May 15, 2009 / 11:19 AM / in 9 years

UPDATE 1-Mortgage lender Quest Capital's Q1 profit falls

* Q1 earning C$0.01/shr

*Quarterly Loan loss provisions C$2.6 mln

May 15 (Reuters) - Mortgage Financier Quest Capital Corp QC.TO QCq.L posted lower quarterly results on Friday, hurt by weak credit conditions and a deteriorating real estate market.

The lender posted a net income of C$1.4 million ($1.20 million), or 1 Canadian cent a share, compared with income of C$1.8 million or 1 Canadian cent a share in the year ago period.

Loan-loss provisions for the quarter amounted to C$2.6 million, compared with no such provision in the last comparable quarter, the company said in a statement.

“While our first quarter results do not reflect the significant measures we announced earlier this month to reduce costs, they do reflect the realities of Canada’s real estate markets so far this year,” Chief Executive Stephen Coffey said in a statement.

Earlier this month, the company said it planed to cut jobs to reduce overhead costs amid a weak credit market, and that CEO Stephen Coffey would step down, effective May 21. [ID:nBNG79741]

Quest expects a charge of C$1.5 million, or 1 Canadian cent a share, which will be charged against second-quarter results, and expects to save C$1.7 million annually as a result of the overhead cost cutting measures.

Shares of the company closed at 85 Canadian cents Thursday on the Toronto Stock Exchange. ($1=1.171 Canadian Dollar) (Reporting by Isheeta Sanghi in Bangalore, Editing by Dinesh Nair) ((; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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