November 4, 2009 / 11:46 AM / 9 years ago

UPDATE 1-Home Capital Q3 profit tops estimate, ups dividend

* Q3 EPS C$1.10 vs C$0.98 est

* Mortgage originations rise 26 pct to C$1.40 bln

* Raises qtrly div by 7 pct to C$0.16

Nov 4 (Reuters) - Canada’s Home Capital Group Inc (HCG.TO) posted a better-than-expected quarterly profit, driven by higher loan originations, and the mortgage lender boosted its dividend for the third time this year.

For the third quarter, net income was C$38.2 million, or C$1.10 a share, compared with C$27.9 million, or 81 Canadian cents a share, a year ago.

Analysts had forecast earnings of 98 Canadian cents a share, according to Thomson Reuters I/B/E/S.

The company, which mainly underwrites residential mortgages, said total mortgage originations rose to C$1.40 billion ($1.31 billion) from C$1.11 billion last year.

Net impaired loans represented 1.2 percent of the total loans portfolio at Sept. 30, down from 1.3 percent at the end of the second quarter.

The company also raised its quarterly dividend by 7 percent to 16 Canadian cents.

Home Capital shares, which have surged more than 95 percent so far this year, closed at C$38.68 Tuesday on the Toronto Stock Exchange. ($1=1.066 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Deepak Kannan)

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