First National profit falls 10 percent
(Reuters) - First National Financial Corp's (FN.TO: Quote) second-quarter profit fell 10 percent on mark-to-market adjustments, but the Canadian company increased its annual dividend by 4 percent.
First National is an originator, underwriter and servicer of residential and commercial mortgages.
Net income fell to C$18.1 million ($18.00 million) from C$20.2 million a year earlier as bond yields on its financial instruments fell. The company recorded $12.0 million of losses on financial instruments.
Revenue jumped 29 percent to C$157 million.
Mortgages under administration rose 14 percent to C$63.7 billion, and the parent company of First National Financial LP said it expected healthy mortgage spreads for the full year.
The company said it raised its dividend to C$1.30 on strong cash flow. Adjusted cash flow for the quarter stood at C$38.3 million.
Shares of the company, which has a market value of C$960 million, closed at C$16 on Friday on the Toronto Stock Exchange.
(Reporting By Krithika Krishnamurthy in Bangalore; Editing by Maju Samuel)
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