TORONTO, Oct. 2, 2017 /CNW/ - Home Capital Group Inc.
("Home Capital" or "the Company") (TSX: HCG) today reported it has
substantially completed Project Expo, an expense savings initiative
announced in February 2017, and
expects to achieve approximately $15
million in future annual cost savings as previously
targeted.
"We have now substantially completed Project Expo including
changes to the Company's workforce and process flows, focusing on
the critical talent and structure needed to enhance our service
offering to our stakeholders and building our business for long
term success," said Yousry Bissada,
President and Chief Executive Officer. "We have taken
important steps to ensure we achieve a more efficient cost
structure, and we are now firmly focused on crafting and executing
a strategy for Home Capital that will drive our growth as one of
Canada's leading alternative
mortgage providers."
Project Expo
In early 2017, the Company launched an expense savings
initiative, Project Expo that targeted annualized cost savings of
$15 million when compared to the
annualized run rate of Q4 2016 expenses (excluding items of
note). With Project Expo now substantially complete, the
Company expects to achieve that goal, however it still faces
elevated expense levels related to the liquidity event that
occurred earlier this year.
Project Expo largely focused on reducing employment, premises
and other operating costs. The Company has now completed its
initiative to streamline and re-balance the organization's
workforce relative to Project Expo. Approximately 65 full-time
positions in the Company's operational, sales and underwriting
division were impacted today. Taking into account the changes made
today, head count measured from the end of Q2 2017 has been reduced
by approximately 10%.
The Company has previously recorded restructuring expenses
related to Project Expo of approximately $9.7 million after tax or $0.15 diluted earnings per share in the first
half of 2017. As the project is now substantially complete, the
Company does not expect to record any further significant expenses
with respect to Project Expo other than those recorded up to the
end of Q2 2017.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the
meaning of applicable Canadian securities legislation. Please refer
to Home Capital's 2016 Annual Report, available on Home Capital's
website at www.homecapital.com, and on the Canadian Securities
Administrators' website at www.sedar.com, for Home Capital's
Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto
Stock Exchange (HCG), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust
company offering residential and non-residential mortgage lending,
securitization of insured residential mortgage products, consumer
lending and credit card services. In addition, Home Trust offers
deposits via brokers and financial planners, and through its direct
to consumer deposit brand, Oaken Financial. Home Trust also
conducts business through its wholly owned subsidiary, Home Bank.
Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.