The group weathered the worst impacts of the BoC's rate hikes, top exec says
First National Financial Corporation has announced its financial results for the three and 12 months ending December 31, 2022.
During the fourth quarter of 2022, the group’s revenue was $414.8 million compared to $339.3 million the same period a year ago. Net income was at $42.7 million ($0.70 per share), versus $42 million ($0.69 per share) the year prior.
New single-family mortgage originations for 2022 amounted to $19.5 billion, approximately 17% ($3.9 billion) lower than 2021 levels. For the whole of 2022, revenue grew from $1.39 billion to $1.57 billion. Net income stood at $197.7 million ($3.25 per share), compared to $194.6 million ($3.20 per share) in 2021.
This was despite the chilling effect of the Bank of Canada’s outsized rate hikes over the course of 2022.
“First National more than held its own as Canadian housing activity retreated in the face of rapidly rising interest rates,” said Jason Ellis, the group’s president and CEO. “While total mortgage originations were 12% below last year with an impact on operating leverage, our business remained solidly profitable in both the fourth quarter and full year.”
Mortgages under administration totalled a record high of $131 billion in 2022, compared to $123.9 billion the year prior.
“MUA, the source of most of our earnings, increased again, reflecting our Canada-wide access to residential and commercial mortgage origination and renewal opportunities, dedication to responsive customer service, and long-standing business partnerships,” Ellis said. “Our MUA and adherence to our business model will support corporate performance in 2023.”
Ellis assured that First National is well placed to take advantage of this strong momentum.
“Our task now is to respond with discipline to a market that we expect will remain challenging in the first half of 2023 before improving later in the year,” Ellis said. “I am confident that the team at First National can deliver for customers and shareholders in this environment.”
