05:19 PM EDT, 04/29/2025 (MT Newswires) -- First National Financial ( FNLIF ) after trade Tuesday said its first-quarter profit declined year-over-year while revenue rose slightly.

The financial-services firm earned $24.6 million, or $0.39 per share, in the period, compared with $49.9 million, or $0.82, a year ago. FactSet expected $0.56 per share.

Revenue rose 2% to $528.9 million from $518 million a year ago.

"First quarter earnings were lower due to lower mortgage servicing revenue, falling overnight interest rates, planned technology and infrastructure investments, and growth in direct securitization that delayed the recognition of income. This combination of factors presented a challenging backdrop," Chief Executive Jason Ellis said.

In the near term, the company expects higher single-family originations over the next two quarters due to a stronger pipeline compared to early 2024. However, this outlook is impacted by uncertainty around U.S. tariffs, which could affect the Canadian economy and employment, potentially raising recession risks, the company said.

Looking ahead, the company plans to generate income and cash flow from its $45 billion in securitized mortgages and $107 billion servicing portfolio, while focusing on the value of its large single-family renewal book, it added.

First National shares closed up $0.14 to $40.60 on the Toronto Stock Exchange.