August 6, 2009 / 11:48 AM / in 8 years

CORRECTED - CORRECTED-UPDATE 1-Equitable Group Q2 profit rises

(Corrects to clarify that securtization volumes of CMHC-insured mortgages fell 16 percent to C$354 million, not rose 16 percent to C$410 million, in the second bullet point and first paragraph)

* Net income rises 16 percent to C$11.9 mln

* CMHC-insured securitization volumes fell 16 pct to C$354mln

* Declares quarterly dividend of 10 Canadian cents

Aug 6 (Reuters) - Canadian mortgage lender Equitable Group Inc ETC.TO posted a higher second quarter profit, helped by lower expenses.

The company said it has increased sales efforts within the context of ongoing lending and risk management discipline, based on its increasing comfort with credit and real estate market dynamics as the markets showed some improvement.

The company posted a net income of C$11.9 million ($11.1 million), or 80 Canadian cents a share, up from C$10.3 million, or 79 cents a share, a year ago.

Analysts on average were expecting earnings of 74 Canadian cents a share, before special items, according to Reuters Estimates.

Equitable said net interest income rose by C$2 million to C$17.5 million, while return on equity fell to 17.8 percent from 18.9 percent a year ago.

Equitable securitized and sold C$353.9 million of Canada Mortgage and Housing Corp (CMHC)-insured multi-unit residential mortgage production, compared with C$410 million in the same quarter of 2008.

Shares of Equitable closed at C$18.50 Wednesday on the Toronto Stock Exchange. ($1=1.071 Canadian Dollar) (Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier)

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