Canada's First National Financial corp beats Q2 revenue expectations

Overview

• First National Q2 revenue rises 15% yr/yr, beating analyst expectations

• Net income for Q2 increases to C$63.4 mln from C$54.1 mln a year ago

• Mortgages under administration reach record C$159.9 bln, up 8% yr/yr

Outlook

• Company expects increased single-family originations in next two quarters

• First National anticipates steady commercial origination volumes

• Company sees potential negative impact from U.S. tariffs

• First National confident in competitive position despite market challenges

Result Drivers

• MORTGAGE ORIGINATION - Record origination volume driven by new mortgage commitments and renewals, per CEO Jason Ellis

• PLACEMENT FEES - Placement fees increased 80% due to higher activity and shift towards new mortgages

• COMMERCIAL SEGMENT - Best-ever quarter for commercial segment with volumes surpassing C$5 bln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy."

• Wall Street's median 12-month price target for First National Financial Corp is C$48.00, about 0.3% below its July 28 closing price of C$48.15

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNW7vBqQa