Mcan Mortgage Corporation · TSX:MKP
Mcan Mortgage — FY2018 Earnings Presentation
14 slides from Mcan Mortgage's earnings presentation, Feb 22, 2019
Slide 1: Annual & Q4-2018 Investor Presentation
ANNUAL & Q4-2018 INVESTOR PRESENTATION For the year and quarter ended December 31, 2018 February 22, 2019
Slide 2: Forward Looking Information
Forward Looking Information This presentation may contain forward-looking statements and statements regarding the business and anticipated financial performance of MCAN Mortgage Corporation and its subsidiaries. These statements are based on current expectations, and are subject to a number of risks
Slide 3: Contents
Contents Fourth Quarter 2018 Highlights Annual 2018 Financial Highlights MCAN’s Outlook as at Q4 2018
Slide 4: Financial Highlights – Q4 2018
Financial Highlights – Q4 2018 (for the year ended December 31, 2018) $1.22 Billion $0.15 $3.5 Million 4.66% Corporate Basic and diluted Net Income Return on Avg. Assets earnings per share (down from Shareholders’ (down $15mm (down from $0.47 $10.8mm Equity [1] from Q3-18) in Q4-17) in Q4-17) (14.63
Slide 5: Financial Highlights – Fiscal 2018
Financial Highlights – Fiscal 2018 (for the year ended December 31, 2018) $1.22 Billion $1.54 $36.3 Million 11.90% Corporate Basic and diluted Net Income Return on Avg. Assets earnings per share (down $3.6mm Shareholders’ (up $42mm (down $0.18 from 2017) Equity [1] from Dec-17) from 2017) (13.75% in
Slide 6: Strong Capital Position
Strong Capital Position CET 1, Tier 1 and Total Capital Ratios CET 1, Tier 1 and Total Capital Ratio CET 1 ratio Basel III minimum target 7.0% Total Capital ratio Basel III minimum target 10.5% 25.00% 20.00% 21.26% 21.29% 21.47% 20.58% 21.66% 15.00% 10.00% 5.00% 0.00% Q4-17 Q1-18 Q3-18 Q3-18 Q4-18 I
Slide 7: Annual Dividend Trend
Annual Dividend Trend 2019 Dividend Amounts: $1.60 $0.32 paid Jan-02-19 $0.32 to be paid Mar-29-19 $1.40 $1.43 $1.20 $1.31 $1.17 $1.12 $1.12 $1.13 $1.00 $1.08 $1.09 $1.01 $1.04 $0.96 $0.80 $0.92 $0.84 $0.76 $0.60 $0.40 $0.20 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 8: Key Metrics: Annual Trend Charts
Key Metrics: Annual Trend Charts Return on average shareholders' equity1 Net Income (%) ($ millions) 14.74% 13.45% 13.75% 40.2 39.9 11.50% 11.90% 36.3 32.9 25.4 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Basic and diluted earnings per share Book value per common share1 ($ per share) ($ per sh
Slide 9: Mortgage Portfolio Geographic Distribution
Mortgage Portfolio Geographic Distribution Corporate Mortgages Securitization Mortgages As at Q4-18 (as at Q4-17) As at Q4-18 (as at Q4-17) Total $922 million as at Q4-18 Total $887 million as at Q4-18 ($863 million as at Q4-17) ($1,017 million as at Q4-17) Source: MCAN’s Q4-2018 Report 9
Slide 10: Corporate Net Spread – Quarterly Trend
Corporate Net Spread – Quarterly Trend 8.0 7.00% 7.0 6.00% 6.0 5.72% 5.65% 5.62% 5.56% 5.53% 5.28% 5.00% 5.14% 5.25% 5.0 4.00% 3.27% 3.34% 4.0 3.07% 3.17% 2.94% 3.00% 2.92% 2.93% 3.00% 3.0 2.61% 2.69% 2.38% 2.48% 2.00% 2.20% 2.21% 2.25% 2.29% 2.0 1.00% 1.0 6.5 6.9 6.6 6.9 6.8 7.2 6.8 7.1 - 0.00% Q1-
Slide 11: Corporate Originations – Quarterly Trend
Corporate Originations – Quarterly Trend Originations ($ millions) 60.0 50.0 40.0 30.0 20.0 10.0 - Single family - uninsured Single family - insured Single family - uninsured Construction Commercial completed inventory Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Originations ($ millions) Q4-17 Q1-18 Q2-18 Q3-18 Q
Slide 12: Credit Quality & Risk Management
Credit Quality & Risk Management (quarterly history up to December 31, 2018) 0.60% 0.40% 0.20% 0.00% Dec Mar Jun Sep Dec Mar Jun Sep Dec 2016 2017 2017 2017 2017 2018 2018 2018 2018 Impaired Mortgages as % of Total Corporate Mortgages • Impaired total mortgage ratio[1] was 0.12%, compared to 0.03% a
Slide 13: Outlook
Outlook Continuing to adapt our business to: - changing market dynamics - uncertainty in the housing market Total Corporate Mortgages - Single Family vs - the impact of increasing rates Construction & Commercial ($ millions) - the overall economy and related risk factors Actions for growth in Single
Slide 14: Contact Information
Contact Information MCAN Mortgage Corporation 200 King Street West, Suite 600 Toronto, ON M5H 3T4 Tel. (416) 572-4880 mcanexecutive@mcanmortgage.com www.mcanmortgage.com 14