!!!YIPEE KI YAY!!! Net Income: $1.12 per share in Q3 2020 compared with $0.67 in Q3 2019
- Net income of $58.5 million or $1.12 per share in Q3 2020, up 72.3% compared to $0.65 per share in Q2 2020 and up 67.2% from $0.67 per share in Q3 2019. Net income was $34.1 million in Q2 2020 and $39.0 million in Q3 2019.
- Adjusted net income of $61.6 million or $1.18 per share in Q3 2020, up 68.6% from $0.70 per share in Q2 2020 and up 63.9% from $0.72 per share in Q3 2019. Results are adjusted for items of note related to implementing our Ignite Program.
- Net interest margin of 2.51% in Q3 2020, compared with 2.40% in Q2 2020 and 2.22% in Q3 2019.
- Non-interest expenses of $64.5 million, compared with $66.9 million in Q2 2020 and $59.9 million in Q3 2019.
Asset Growth: Mortgage originations grew by 26.6% over Q3 2019
- Mortgage originations of $1.96 billion in Q3 2020, compared with $1.50 billion in Q2 2020 and $1.55 billion in Q3 2019.
- Single-family mortgage originations of $1.50 billion in Q3 2020, compared with $1.13 billion in Q2 2020 and $1.19 billion in Q3 2019.
- Total loan portfolio of $17.44 billion at the end of Q3 2020, an increase of 1.3% from the end of Q2 2020 and an increase of 2.6% from the end of Q3 2019.
- Loans under administration of $23.06 billion at the end of Q3 2020, up 0.8% from the end of Q2 2020 and up 0.4% from the end of Q3 2019.
Funding: Deposits through our Oaken channel of $3.87 billion make up 27.7% of total deposits
- Total deposits of $13.96 billion at the end of Q3 2020, compared with $14.01 billion at the end of Q2 2020 and $13.52 billion at the end of Q3 2019.
- Total Oaken deposits of $3.87 billion at the end of Q3 2020, an increase of 5.3% from the end of Q2 2020 and an increase of 18.3% from the end of Q3 2019.
- Oaken’s share of total deposits was 27.7% at the end of Q3 2020, compared with 26.2% at the end of Q2 2020 and 24.2% at the end of Q3 2019.
Credit Quality: Credit provisions of (0.16)% of gross loans compared with 0.43% in Q2 2020 and 0.09% in Q3 2019
- Total provision for credit losses (“PCL”) was a release of $7.0 million, compared with provision for credit losses of $18.7 million in Q2 2020 and $3.7 million in Q3 2019.
- Allowance for credit losses of 0.45% of gross loans, compared with 0.63% at the end of Q2 2020 and 0.36% at the end of Q3 2019.
- Net write-offs as a percentage of gross loans of 0.55% in Q3 2020, compared to 0.02% in Q2 2020 and 0.06% in Q3 2019.
- Net non-performing loans (represented by Stage 3 loans under IFRS 9) were 0.47% of gross loans at the end of Q3 2020, compared with 0.42% at the end of Q2 2020 and 0.49% at the end of Q3 2019.
- Residential mortgage and other loan deferrals consist of 701 loans with a balance of $343.9 million as at the end of Q3 2020 and 335 loans with a balance of $146.1 million as at October 31, 2020. Loan deferrals consisted of 3,932 loans with a balance of $1,817.4 million at the end of Q2 and 2,698 loans with a balance of $1,299.0 million at the end of July 2020.