Carfinco reports a record second-quarter profit of $4.3 million


Carfinco Income Fund announced a steep gain in second quarter earnings marking the fifth consecutive quarter of record net earnings for the specialty finance income fund.

Net earnings of $4.3 million during the second quarter, represents a 21.4 per cent increase over the previous tally of $3.6 million reached in the first quarter of 2010 and a 144 per cent increase over the $1.8 million over the same period last year.

“This continues the trend of record breaking quarterly earnings for the fund of $1.8 million, $2.2 million, $2.6 million, $3.6 million and $4.3 respectively for the last five quarters,” the company said in a release.

Total revenues of $9.2 million were good enough for a 16.8 per cent jump over the $7.9 million take for Q2 last year.

The net earnings of $4.3 million also include a $250,000 non-cash reduction in the allowance for credit losses.

Carfinco, which provides consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources, is offering through a network of select independent and franchise dealerships.

The units of the fund trade on The Toronto Stock Exchange.