Toronto-based Counsel Corp. (TSX: CXS) Thursday announced plans to focus on financial services and shift away from operating multiple businesses in diverse markets.
Counsel operates in residential mortgage lending through its subsidiary Street Capital Financial Corp., one of the largest non-bank mortgage lenders in Canada.
Subject to shareholder approval, Counsel will change its name to Street Capital Group Inc. to promote brand recognition and efficiency.
As well, the management teams and boards of directors of Counsel and Street Capital will be combined and streamlined, the firm says.
Ed Gettings and Lazaro DaRocha will become CEO and president of Street Capital Group, respectively, and Allan Silber, chairman and CEO of Counsel Corp. will move to the position of executive chairman of Street Capital Group.
“Our Q1 results, released this morning, demonstrate that our core mortgage lending business continues to fire on all cylinders,” said Gettings in a release.
In its results, the company reported that mortgages sold during the quarter ended March 31 totalled $1.617 billion, compared to $1.376 billion in the year earlier period. Mortgages under administration were $22.163 billion, up 22% from $18.208 billion last year.
“As a management team, our long-term interests are aligned with the interests of Counsel shareholders. We are confident that by continuing to execute our strategy today, we will set this business up for continued profitable growth well into the future. We have put the required people, systems and processes in place to support a transition to operating as a Schedule I bank, should our application be approved,” Gettings added.
Counsel will hold its annual and special meeting of shareholders June 18 in Toronto.