Home Capital loss bigger than forecast — but says troubles are ‘resolved’
Alternative mortgage lender Home Capital Group Inc. reported a $111.1-million net loss in the second quarter as a liquidity crisis eroded its profitability — ending a stretch of quarterly gains that stretches back to at least 1999.
However, the company said the uncertainty that cast significant doubt on the company’s ability going forward had been “resolved.”
“There is no longer material uncertainty that casts significant doubt as to the ability of the Company to continue as a going concern,” Home Capital said in the management’s discussion and analysis section of its quarterly report.
“In the coming months, the Company will reassess its business plan and set new strategic goals and objectives. In the interim, the Company is focused on returning its lending and deposit-taking activities to more normal levels.”
Canada’s biggest non-bank lender posted a diluted loss per share of $1.73 for the quarter ended June 30, compared to $0.99 earnings per share or $66.3 million in net income a year earlier. That’s more than the adjusted loss per share of $1.536, or an adjusted net loss of $66.45 million, expected by analysts surveyed by Bloomberg.