Canada's First National Financial corp beats Q2 revenue expectations

First National Financial

29/07/2025 22:10

Overview

First National Q2 revenue rises 15% yr/yr, beating analyst expectations

Net income for Q2 increases to C$63.4 mln from C$54.1 mln a year ago

Mortgages under administration reach record C$159.9 bln, up 8% yr/yr

Outlook

Company expects increased single-family originations in next two quarters

First National anticipates steady commercial origination volumes

Company sees potential negative impact from U.S. tariffs

First National confident in competitive position despite market challenges

Result Drivers

MORTGAGE ORIGINATION - Record origination volume driven by new mortgage commitments and renewals, per CEO Jason Ellis

PLACEMENT FEES - Placement fees increased 80% due to higher activity and shift towards new mortgages

COMMERCIAL SEGMENT - Best-ever quarter for commercial segment with volumes surpassing C$5 bln

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$621.30 mln
C$225.20 mln (2 Analysts)
Q2 Net Income
C$63.40 mln
Q2 Pretax Profit
C$86.20 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy."

Wall Street's median 12-month price target for First National Financial Corp is C$48.00, about 0.3% below its July 28 closing price of C$48.15

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNW7vBqQa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)