* Q4 EPS C$0.84, in line with Street
* Strong lending boosted results
* Sees 2009 EPS growing 10-15 pct
Feb 17 (Reuters) - Canadian mortgage lender Home Capital Group Inc HCG.TO reported a higher quarterly profit, partly helped by increased residential and commercial mortgage lending.
The company, which mainly underwrites non-traditional residential mortgages, posted a fourth-quarter profit of C$29 million ($23.11 million), up 20 percent from C$24.2 million a year earlier.
The company focused on increasing the number of mortgages in its insured mortgage programs and subsequently sold these mortgages through Canadian Mortgage and Housing Corporation (CMHC)-insured mortgage-backed securities or the Canada Mortgage Bond program.
This move removed any associated credit risk on the securitized mortgages from its balance sheet, the company said.
During the fourth quarter, Home Capital advanced C$894.0 million in residential mortgages, compared with C$722.4 million last year. The company securitized and sold about C$557.7 million of CMHC-insured mortgages in the quarter, higher than C$198.9 million prior year.
The company, which expects 10 to 15 percent growth in total assets in 2009, said the insured mortgage program will continue to be a significant factor in its profitability over the near term.
Shares of Home Capital closed at C$16.50 Friday on the Toronto Stock Exchange. ($1=1.255 Canadian Dollar) (Reporting by R. Manikandan in Bangalore; Editing by Pratish Narayanan)