Home Capital Group Inc. today reported record financial results for the third quarter ended September 30.

The company said it generated strong residential and commercial mortgage lending growth, increased sales of Mortgage-Backed Securities (MBS), and accelerated returns from our VISA products.

Favourable economic conditions across Canada continued to create attractive lending and growth opportunities during the quarter, it said in a release..

Net income for the quarter was $22.8 million, an increase of 37.4% over the $16.6 million recorded for the same period last year.

Basic earnings per share were 66¢, 34.7% above 49¢ for the third quarter of 2006.

Return on equity was 28.9% for the third quarter, compared to 26.2% for the quarter ended September 2006.

Total assets at September 30 reached $4.67 billion, 24.6% higher than the $3.75 billion reported one year earlier. Total assets, together with MBS originated and administered by the company, grew to $6.02 billion, a rise of 25.6% from $4.79 billion at September 2006.

Total mortgage originations were $791 million during the third quarter, an increase of 48.3% from the $533.2 million advanced during the comparable period of 2006.

Mortgage securitization activity remained robust as the Home Capital securitized and sold $208.4 million of CMHC-backed MBS securities during the third quarter compared to $153.1 million for the same period last year.

The efficiency ratio continued to improve as the Home Capital achieved additional productivity gains. The ratio was 25.9% for the third quarter, compared to 32.0% during the same quarter in 2006.

Net impaired loans represented 0.63% of the total loans portfolio, down from 0.74% at March 31, 2007, 0.68% at June 30, 2007 and up from 0.56% at September 30, 2006.

Home Capital operating through its principal subsidiary, Home Trust Company.