FN beat EPS expectations of 91c coming in at 93c for the quarter. Revenue was $538.45M growing 2% year-over-year, driven by the higher rate environment. Mortgages Under Administration (MUA) increased 8% to a record $148.2B. Pre-FMV Income decreased 14% to $77.5M. FN saw lower demand from single family originations but increasing originations in the commercial segment. Lower single family originations are expected to continue into the third quarter as banks are becoming increasingly competitive for market share and higher rates are keeping buyers on the sidelines. The growth of MUA was a positive this quarter, but there are short-term headwinds that could continue related to single family mortgages. Not a great quarter overall, but considering the tough environment we still like FN as Canada has begun cutting rates which could stimulate the housing market.
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