Two Years After Buffett’s Exit, Home Capital Posts Record EPS

(Bloomberg) — Home Capital Group Inc., the Canadian mortgage lender bailed out by Warren Buffett’s Berkshire Hathaway Inc. in 2017, posted record earnings as people looking for more living space drove a frenzy of home buying across Canada.

The company reported C$1.12 ($0.86) in earnings per share for the third quarter, the most in any quarter going as far back as 1999, according to data compiled by Bloomberg. Profit of C$58.5 million was the highest in a quarter since 2016, the year before Home Capital nearly collapsed when investors pulled deposits following a regulator’s charge that the firm misled shareholders about mortgage fraud.

Home Capital recovered after Berkshire purchased an equity stake and provided it with a C$2 billion credit line, and its share price continued to climb even after Berkshire “substantially exited” its stake in late 2018.

a close up of a building: Home Capital May Hurt Canada's Economy After Beating Down Banks

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Home Capital May Hurt Canada’s Economy After Beating Down Banks

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