Lower Rates Drive Growth Prospects / Posts Record Q2 Revenue

Published: 9/5/2024

Author: FRC Analysts

*See important disclosures at the bottom of this report

Sector: Financial Services | Industry: Mortgage Finance

Ticker Symbols:

BCF - TSX 🔹

Rating and Key Data

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In Q2-2024, BCF recorded its highest-ever Q2 revenue (up 3% YoY), amid higher lending rates, but missed our estimate by 5% due to lower than expected mortgage advancements.
EPS was flat YoY, driven by higher loan loss provisions, missing our estimate by 4%. Annual regular dividends remained unchanged at $0.80/share, reflecting a yield of 8.9%.

Stage three mortgages (impaired) decreased QoQ, from 2.3% to 1.7% of mortgages. However, for conservatism, management raised loan loss allowances by 0.2 pp QoQ to 2.73% of mortgages, aligning

Rating and Key Data