Home Capital Group Inc. reported a 40 per cent drop in its first-quarter income from the same period last year, before it was hit with allegations of misleading investors.
The Toronto-based mortgage lender said income in the three months that ended March 31 was $34.6-million, or diluted earnings of 43 cents per share.
That compares to a net income of $58-million and diluted earnings of 90 cents per share in the same quarter of last year.
The company said in a statement that the numbers reflect “the impact of reduced loan balances and lower securitization income, partially offset by lower non-interest expenses.”
It’s been a tumultuous year for Home Capital, after allegations the lender had misled shareholders prompted a run on deposits by customers last April.
By June, the company had agreed to pay $29.5-million to settle a class-action lawsuit and a matter before the Ontario Securities Commission concerning the allegations.