June 11, 2009 / 11:51 AM / in 9 years

UPDATE 1-Xceed Mortgage posts Q2 profit

* Q2 profit C$0.05 mln vs. yr-ago loss C$16.7 mln

* Revenue down 25 pct

June 11 (Reuters) - Canadian insured mortgages provider Xceed Mortgage Corp (XMC.TO) posted a small profit in the second quarter, helped by lower costs and a positive fair-value adjustment related to its mortgage securitization facility.

For the quarter ended April 30, Xceed Mortgage reported net income of C$46,000 ($41,670), or breakeven per share, compared with a net loss of C$16.7 million, or 60 Canadian cents per share, in the year-ago quarter.

The company said the second-quarter results include a positive fair-value adjustment of C$1.4 million for the deferred net mortgage interest receivable from its mortgage securitization facility, Okanagan Funding Trust (OFT).

Revenue fell nearly 25 percent to about C$2 million, hurt by a residual securitization loss of C$1.8 million.

Expenses dropped 63 percent to C$3.1 million.

    The average mortgage default ratio (greater than 90 days in arrears) on the company’s combined securitized and non-securitized portfolio was 3.48 percent for the quarter, compared with 3.53 percent a year earlier.

    Xceed said it originated new mortgages worth C$135.1 million in the quarter, up from C$125.3 million in the 2008 second quarter.

    At the end of the quarter, the company had mortgages and other assets under administration worth C$2.04 billion, down from C$2.4 billion, a year earlier.

    Xceed Mortgage shares closed at C$1.40 Wednesday on the Toronto Stock Exchange. ($1=1.104 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Aradhana Aravindan)

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