Highlights 2015

Net_Income_2015

Net Income

  • We earned record net income of $32.9 million in 2015, an increase of $7.4 million (29%) from $25.4 million in 2014.
  • Earnings per share increased by $0.28 (23%) to $1.51 from $1.23.
  • Return on average shareholders’ equity* increased by 17% to 13.45% from 11.50%


Corporate Activity

  • Corporate assets totalled $1.16 billion at December 31, 2015, up $110 million from December 31, 2014 which represents a 10.5% increase year over year.
  • The corporate mortgage portfolio increased to $944 million from $895 million during 2015, which included increases of $70 million in uninsured single family, $34 million in commercial and $10 million in completed inventory and decreases of $49 million in insured single family and $16 million in construction.  The growth in uninsured single family during 2015 was a result of the continued expansion of our Xceed mortgage origination platform.
  • In 2015, we originated $518 million of single family mortgages through our Xceed mortgage origination platform, consisting of $357 million of insured single family and $161 million of uninsured single family.
  • On July 13, 2015, we completed a rights offering with 1,406,084 new common shares issued and $15.1 million of new share capital raised that created $87 million of additional income tax asset capacity*.


Securitization Activity

  • Throughout 2015, we issued and sold $589 million of new MBS to third parties through the market MBS program. 
  • Securitized mortgages increased by $335 million (45%) to $1.1 billion at December 31, 2015.
  • In Q4 2015, we sold the residual economics (the “interest-only strips”) associated with $147 million of mortgages that had been securitized through the market MBS program, which allowed us to derecognize the associated mortgages from our balance sheet and reduce the related capital utilization for regulatory purposes.


Credit Quality

  • The impaired total mortgage ratio* improved to 0.11% at December 31, 2015 from 0.50% at December 31, 2014.
  • The impaired corporate mortgage ratio* was 0.23%, improved from 0.92% at December 31, 2014.
  • Total mortgage arrears* were $34 million at December 31, 2015, down $4 million (11%) from $38 million at December 31, 2014. 


Capital

  • Our Common Equity Tier 1, Tier 1 and Total Capital to risk-weighted assets ratios* were 23.64% at December 31, 2015 on the transitional basis and 23.08% on the “all-in” basis compared to 23.37% and 22.62%, respectively, at December 31, 2014. 
  • Our leverage ratio* was 9.96% at December 31, 2015.
  • Income tax asset capacity* was $141 million at December 31, 2015 compared to $145 million at December 31, 2014.


* Considered to be a “Non-IFRS Measure”. For further details, refer to the “Non-IFRS Measures” section of our 2015 Annual MD&A.

 

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