TORONTO , Nov. 8, 2019 /CNW/ – MCAN Mortgage Corporation (“MCAN”, the “Company” or “we”) (TSX: “MKP”) reported net income of $14.6 million ( $0.60 per share) for the third quarter ended September 30, 2019 , an increase of 32% from $11.0 million ( $0.47 per share) in the third quarter of 2018. In the third quarter of 2019, we recorded a $5.0 million net gain on securities compared to a $0.4 million net gain in the third quarter of 2018. Year to date, we reported net income of $37.7 million ( $1.57 per share), an increase of 15% from $32.7 million ( $1.39 per share) for the same period in 2018.
- Return on average shareholders’ equity1 of 18.05% in Q3 2019, an increase of 3.76% from 14.29% in Q3 2018.
- Net corporate mortgage spread income1 was consistent with Q3 2018. The net corporate mortgage spread income1 increased due to a higher average corporate mortgage portfolio balance1 of $1,094 million in Q3 2019 from $942 million in Q3 2018. This was offset by a decrease in the spread of corporate mortgages over term deposit interest1 to 2.48% in Q3 2019 from 2.92% in Q3 2018. The decrease in the spread of corporate mortgages over term deposit interest1 is due to a portfolio mix with a greater proportion of single family to construction and commercial loans, continued market competition, and increases to expenses and the Bank of Canada overnight rate in 2018 offset by the…