Home Capital Group Inc. says its fourth-quarter profit rose almost 20% as its core business activities delivered solid growth.

The Toronto-based alternative mortgage lender said Tuesday that profit for the quarter Dec. 31, 2008, was $29 million, or 84¢ a share, compared with $24.2 million, or 70¢ a share, recorded in the same period a year earlier.

Revenues increased to just under $118 million during the quarter from $105.1 million a year ago, the company said.

Return on equity was 27.4% for the fourth quarter, compared to 28.9% for the quarter ended Dec. 31, 2007,

For the full year, Home Capital said it earned $108.7 million in profit, up from $90.2 million, while annual revenue jumped to $454.7 million from $368.9 million.

Return on equity for the year was 27.8%, compared to 28.9% in 2007.

“Despite a weakening Canadian market, the company’s core business activities, including residential and commercial mortgage lending, CMHC-insured mortgage securitization and Visa operations, all delivered strong earnings growth and returns on equity. We were pleased to have met our goal of
maintaining strong financial results in 2008,” the company said in a release.

Total assets at Dec. 31, 2008 reached $5.81 billion, 16.8% higher than the $4.98 billion reported one year earlier.