NewStar Financial, Inc. (NEWS) has reported 68.11 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $8.64 million, or $0.19 a share in the quarter, compared with $5.14 million, or $0.11 a share for the same period last year.

Revenue during the quarter surged 47.18 percent to $32.65 million from $22.19 million in the previous year period. Net interest income for the quarter rose 8.73 percent over the prior year period to $25.26 million. Non-interest income for the quarter rose 214.03 percent over the last year period to $10.97 million.

NewStar Financial, Inc. has made provision of $3.57 million for loan losses during the quarter, down 21.26 percent from $4.53 million in the same period last year.

Net interest margin contracted 7 basis points to 2.50 percent in the quarter from 2.57 percent in the last year period. Efficiency ratio for the quarter improved to 49.88 percent from 50.07 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

Tim Conway, NewStar's chairman and chief executive officer, commented on the Company's performance: "We continued to make progress on our key strategic priorities in the third quarter and our financial results reflected solid operating trends highlighted by a significant increase in earnings driven by strong revenue growth and stable asset quality."

Return on average assets moved up 28 basis points to 0.84 percent in the quarter from 0.56 percent in the last year period. At the same time, return on average equity increased 206 basis points to 5.16 percent in the quarter from 3.10 percent in the last year period.

Equity to assets ratio was 15.25 percent for the quarter, down from 17.06 percent for the previous year quarter. Book value per share for quarter was almost stable at $14.38, when compared with the previous year period.