MCAN reports third-quarter results

The lender has disclosed its earnings for Q3

MCAN reports third-quarter results

MCAN Financial Group has revealed its financial results for the third quarter, with net income of $18.5 million marking a notable increase from the $11.7 million it reported at the same time last year.

The lender said its earnings per share were $0.53 for the quarter, up from $0.37 in Q3 2022, in a result interim chief executive officer Derek Sutherland said was a testament to the company’s resilience in a challenging economic climate.

“Our diversified portfolio continues to deliver strong results despite having to closely navigate and monitor market conditions, credit quality, geopolitical conflicts and other economic factors that could impact our business,” Sutherland said.

The return on average for shareholders’ equity was 14.20% in Q3, an increase from 10.52% in the third quarter of 2022. Year to date, net income totalled $57.6 million, up from $31.3 million in the previous year, while the return on average shareholders’ equity was 15.06% compared to 9.47% at the same time last year.

The higher total net income was reported to be a result of higher net corporate mortgage spread income which had increased by $8.2 million quarter-over-quarter and $25.2 million year-over-year.

The board of directors also declared that its shareholders of record as of December 15, 2023 will be paid a fourth-quarter regular cash dividend of $0.38 per share on January 2, 2024.

MCAN’s corporate assets totalled $2.67 billion by the end of September 2023, a 17% net increase from December 31, 2022.

Its construction and commercial mortgages reached $1.09 billion by the end of September, an 18% net increase compared with the end of 2022.

The firm’s uninsured residential mortgages came in at $956 million by the end of Q3 2023, up 15% from December 31, 2022.

Securitized mortgages, meanwhile, reached $1.84 billion by the end of September 2023, a 4.8% net increase from December 31, 2022. Insured residential mortgages totalled $269 million by September 30, 2023, amounting to an 86% net increase from December 31, 2022.

“It has been a very challenging economic environment, yet while the economy will continue to change and provide uncertainty, our entire MCAN team has contributed to successfully growing our business and improving all aspects of our operations,” said Sutherland.

“Looking ahead, we will continue to focus on the growth and profitability of our business to drive value for all our stakeholders. Our embedded culture of being vigilant and proactively managing the business through market volatility forms the roots of our exceptional performance.”