TORONTO - Home Capital Group Inc. reported net a income of $30.6 million in its most recent quarter, about 40 per cent less than it earned in the same quarter last year before it was hit with allegations it misled investors.
The Toronto-based mortgage lender's fourth-quarter income in the period ending Dec. 31 amounted to diluted earnings of 38 cents per share.
That compares to a net income of $50.7 million and diluted earnings of 79 cents per share in the same quarter last year.
Fourth-quarter revenue amounted to $109.5 million, down from $144.6 million in the similar quarter a year ago, but ahead of Thomson Reuters estimates of $86.5 million.
CEO Yousry Bissada said in a statement late Wednesday that Home Capital is entering 2018 with positive momentum in its business and expects to grow from here.
"We have demonstrated progress towards growing our residential and commercial business lines to more normal and sustainable levels and our employees delivered improved service," he said.
It's been a tumultuous year for the Toronto-based mortgage lender after allegations it was misleading shareholders prompted a run on deposits by customers last April.
By June, the company agreed to pay $29.5 million to settle a class-action lawsuit and a matter before the Ontario Securities Commission concerning the allegations.
But last fall the company was still facing elevated expenses because of the scrutiny, as it cut 65 jobs and sold of segments of its business amid the departure of several executives.
More recently, separate lawsuits by a short seller and West Face Capital Inc. were launched against Home Capital and three former executives, both alleging the lender's public disclosure was inaccurate and misleading.
Companies in this story: (TSX:HCG)
Note to readers: CORRECTS lede to say net income was 40 per cent less than last year's fourth quarter results