Toronto-based Home Capital Group Inc. reported second-quarter adjusted net income of C$34.7 million, or 58 Canadian cents per share, an increase from C$29.6 million, or 37 cents per share, in the year-ago period.
The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was 52 cents.
On a GAAP basis, the bank recorded a year-over-year increase in its net income to C$31.9 million, or 53 cents per share, from C$29.6 million, or 37 cents per share.
Net interest margin on a taxable equivalent basis for the second quarter was 2.09%, both representing increases from 2.01% in the previous quarter and 1.91% in the year-ago period. Net interest income on a taxable equivalent basis increased year over year to C$97.5 million from C$84.1 million.
Total loans at the end of the second quarter were C$16.84 billion, compared with C$16.68 billion in the previous quarter and C$15.45 billion in the second-quarter of 2018.
Deposits at the end of the quarter stood at C$13.51 billion, compared with C$13.57 billion in the previous quarter and C$12.50 billion in the year-ago period.
Home Capital Group expects conditions in the Canadian real estate market to continue to support its growth for the rest of 2019. The company said current and expected levels of housing activity point to a relatively stable real estate market overall, particularly in the company's Greater Toronto area market.
It also expects the Bank of Canada overnight interest rate to be stable for the rest of the year, debt service levels of Canadian households to be manageable and anticipates stable employment conditions in its established regions.