Canada’s largest non-bank mortgage originator and underwriter has reported higher-than-expected earnings in the first quarter of 2021.
First National Financial Corporation announced that its revenue increased by 23% to $336.5 million in the first three months to March 31, 2021 from $274.6 million during the same period a year ago. Additionally, net income increased to $52.6 million in Q1 from a loss of $2.3 million in the previous year.
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The firm also revealed that its mortgages under administration (MUA) increased by 5% to a record $119.6 billion, compared to the $113.5 billion in Q1 of 2020, while new mortgage originations increased by 16% to $6.2 billion.
“First National’s first quarter results were ahead of our expectations reflecting market demand, our market share in the mortgage broker channel, and excellent follow-through by our team in delivering responsive, technology-enabled service,” said Stephen Smith, chairman and chief executive officer of First National Financial Corporation. “Earnings improved as a result of growth in originations and higher mortgage spreads and – coupled with our positive outlook – provided support for the board’s decision to increase the dividend for the 15th straight year since our 2006 IPO. We are very pleased with First National’s performance and proud of the hard work and commitment of our employees who continue to do great work for borrowers and mortgage brokers while working from home.”
“The first quarter typically features seasonally lower housing market activity but not this year as Canadians continued to arrange mortgage financings at a record pace,” said Moray Tawse, executive vice president at First National. “First National was the beneficiary as our single-family mortgage originations reached $4.4 billion, 58% above last year. After coming off a record year last year, commercial originations and renewals were lower – at $1.8 billion and $283 million – but still represented a solid performance in a more competitive environment.”