CWB Optimum Mortgage has reported a 12% year-over-year rise in total loans in the third quarter of 2018.
Financial results reported by parent CWB Financial show that the $2.982 billion total is a 3% gain from the second quarter.
Alternative mortgage originations were down 7% in dollar terms from a year earlier while renewals increased from 70% in Q3, 2017 to 78% in Q3, 2018. However, this was expected.
Growth for the quarter was driven almost exclusively by alternative mortgages secured via first mortgages carrying a weighted average loan-to-value at initiation of approximately 69%.
The book value of alternative mortgages represented 94% of CWB Optimum’s total portfolio which is consistent with the prior quarter and last year.
The bulk of the firm’s portfolio is in Ontario (56%) followed by BC (18%) and Alberta (17%).
The average size of CWB Optimum mortgages originated in the third quarter was approximately $353,000, and the average size of mortgages outstanding at July 31, 2018 was $295,000.
Overall, CWB Financial Group announced strong third quarter financial performance with record common shareholders’ net income of $62 million and pre-tax, pre-provision income of $111 million, up 11% and 10%, respectively, from the third quarter last year.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
