Find out how the group fared in this turbulent marketplace…
Dominion Lending Centres Inc. has released its financial results for the three and six months ending June 30.
During the second quarter, DLC posted funded volumes of $21.4 billion (up by 2% annually). Over the same period, the group saw a 2% increase in revenue to $21.8 million.
DLC saw larger net income during the second quarter mainly due to “lower non-cash finance expense on the preferred share liability of $4.6 million, a decrease in interest expense of $0.8 million from lower interest rates under the junior credit facility when compared to the previous Sagard credit facility, higher revenues, and a recovery on share-based compensation,” it said.
“The decrease in finance expense on the preferred share liability was due to the corporation’s outlook and forecast for the 2022 fiscal year softening from its previous outlook and forecast assessed during the first quarter of 2022.”
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DLC remained fundamentally robust despite a net annual loss during the six months ending June 30, “primarily due to higher non-cash finance expense on the preferred share liability of $18 million and higher general administrative expenses from increased legal costs and expenses and personnel costs,” it added.
DLC said that it remains confident about its long-term prospects, with its outlook and forecast for the 2022 fiscal year strengthening since Q4 2021.
“We are delighted with our ongoing recruiting and reflagging efforts which resulted in over 10% growth in our overall broker count year-over-year,” said Gary Mauris, executive chairman and CEO of DLC. “Our mortgage professionals are our most important asset and growing our mortgage professional base will enable us to better navigate housing market volatility.”
This is despite the market-deceleration threat posed by the Bank of Canada’s outsized rate hikes.
“Looking forward, an increase in mortgage interest rates have softened overall housing market activity; however, from our perspective, in a rising interest rate environment, working with a mortgage broker is even more critical to ensure Canadians are receiving the best advice as well as the most competitive mortgage rates,” Mauris said. “While we may see some short-term volatility in our business, we are not anticipating a long-term material negative impact on funded volumes.”