TORONTO, Feb. 8, 2017 /CNW/ - Home Capital Group ("Home
Capital" or "the Company") (TSX: HCG) today reported results for
the three and twelve months ended December
31, 2016. This press release should be read in conjunction
with the Company's 2016 Annual and Fourth Quarter Consolidated
Financial Report including Financial Statements and Management's
Discussion and Analysis (MD&A), which are available on Home
Capital's website at www.homecapital.com and on SEDAR at
www.sedar.com.
Fourth Quarter and Full Year 2016 Highlights
Fourth Quarter 2016, compared with the Fourth Quarter
2015:
- Reported net income was $50.7
million and diluted earnings per share were $0.79, compared with $70.2
million and $1.00
- Adjusted net income was $63.5
million and adjusted diluted earnings per share were
$0.98, compared with $71.8 million
- and $1.02
- Adjusted net income and adjusted diluted earnings per share
exclude the impact of a goodwill impairment charge of $9.0 million net of tax (or $0.13 diluted earnings per share) for the
Company's subsidiary Payment Services Interactive Gateway Inc.
(PSiGate), and an intangible asset impairment of $3.8 million net of tax (or $0.06 diluted earnings per share)
- Repurchased approximately $5.7
million of common shares in the quarter. Normal Course
Issuer Bid (NCIB) renewed through December
2017, providing ability to repurchase common shares up to
10% of the public float.
Year Ended December 31, 2016,
compared with Year Ended December 31,
2015:
- Reported net income was $247.4
million and diluted earnings per share were $3.71, compared with $287.3 million and $4.09
- Adjusted net income was $263.4
million and adjusted diluted earnings per share were
$3.95, compared with $288.9 million and $4.11
- Adjusted net income and adjusted diluted earnings per share
exclude total impact of $16.0 million
net of tax or $0.24 diluted
earnings per share(1)
- Provision for credit losses as a percentage of gross uninsured
loans was 0.05%, compared to 0.06%
- CET 1 capital ratio of 16.55% and Total capital ratio of
16.97%, well in excess of regulatory minimums and internal
targets
- Repurchased a total of $199.2
million of common shares inclusive of $150.0 million of common shares through the
Substantial Issuer Bid (SIB) and $49.2
million common shares through the NCIB. The resulting
outstanding common shares totalled 64,387,519 at the end of
2016
(1)
|
See "Items of Note"
under Reconciliation of Net Income to Adjusted Net Income in this
press release for full details impacting reported and adjusted net
income and diluted earnings per share results for 2016 and 2015 and
in Table 2 of the Q4 2016 Management Discussion and
Analysis.
|
|
|
Management Comments
"In 2016 we took significant strides to improve our business and
we look forward to building on these accomplishments in 2017," said
Martin Reid, President and Chief
Executive Officer, Home Capital. "Our core traditional mortgage
originations continue to drive revenues alongside stronger
performance from our commercial lending business. Our performance
was muted by lower-than-anticipated retention and renewal levels
and elevated expenses. In addition, as a result of the ongoing
review of our goodwill and intangible assets, we recorded a
goodwill impairment charge of $9.0
million net of tax reflecting lower expected future
profitability of the PSiGate business and an intangible asset
impairment of $5.1 million, or
$3.8 million, net of tax, related to
software development costs."
"In 2017, we remain committed to improving customer retention,
increasing our loans under administration and growing revenue as
well as lowering our expense base to help drive positive operating
leverage and increase profitability. We have launched an expense
savings initiative, Project EXPO, which targets, at
minimum, an annualized $15.0
million of cost savings based on an annualized run rate of
Q4 2016 expenses (excluding items of note), over the course of
2017. This will encompass most expense categories including
employees, premises and other operating costs, and will result
in restructuring provisions to be taken in 2017. Moving
forward, we will continue to make the necessary investments that
will enable the Company to meet its strategic goals, but in a
manner that results in future costs rising in a more measured
way."
"In 2016 we were pleased to return $199.2
million to shareholders through a SIB and through our NCIB.
With two dividend increases in 2016, we returned an additional
$65.2 million to shareholders. We
maintained a strong CET 1 capital ratio of 16.55%, well in excess
of regulatory minimums and internal targets. Our solid balance
sheet will continue to provide the necessary foundation required to
execute on our strategy, remain agile in an evolving economic and
regulatory landscape, and support investments in the business to
deliver excellent customer service."
"We believe our 2017 priorities put us on track to deliver our
long-term goals of generating prudent and profitable growth,
providing healthy returns to our shareholders and solidifying our
position as the leading provider of financial services to
underserved Canadians."
Performance Goals
Following completion of the Company's annual planning process
and review of the prior mid-term targets, Home Capital Group is
introducing new performance goals moving forward. These goals
are consistent with the Company's strategic plans and long-term
objectives. The Company expects to achieve these goals over the
long-term, and management will report on progress regularly.
Measure(1)
|
Previous(2)
|
2016
Performance(2)
|
New
|
Revenue
Growth
|
-
|
-
|
5% or
greater
|
Diluted Earnings Per
Share Growth
|
8% to 13%
|
Declined 3.9%
year over year
|
7% or
greater
|
Return on
Shareholders' Equity (ROE)
|
Annual ROE
>16%
|
ROE of
16.3%
|
15% or
greater
|
Dividend Payout
Ratio
|
19% to 26%
|
Dividend Payout Ratio
of 25%
|
-
|
(1)
|
Measures are
calculated on an adjusted basis.
|
(2)
|
2016 Mid-term targets
and performance were calculated on an adjusted basis. Previous
targets included a measure to maintain a strong capital ratio that
exceeds regulatory minimums by a safe margin commensurate with our
risk profile. The Company maintained a strong CET 1 Ratio of 16.55%
at the end of 2016.
|
Management expects that 2017 will be a transition period in
which cost reductions and revenue generation initiatives continue
to unfold. Successful delivery of these items is expected to
translate into improved results consistent with the above goals
later in 2017 and beyond.
2017 Strategic Priorities
The Company has updated its vision, mission, values, and
strategic priorities, which inform and are reflected in new
performance goals. Home Capital's foundation and culture support
achievement of the Company's strategic priorities and vision of
being a leader in providing financial services to underserved
Canadians. The Company's foundation is comprised of the key
strengths of Talent, Service, Technology, Agility, and Risk
Management.
Beginning in 2017 and moving forward, Home Capital is focused on
the following strategic priorities to position the Company for
long-term success:
- Prudent Growth in the Core Residential Mortgage Business
- Provide Innovative Products and Solutions
- Positive Operating Leverage
- Efficient Balance Sheet and Capital Utilization
Fourth Quarter Ended December 31,
2016 Summary
Home Capital reported fourth quarter 2016 net income of
$50.7 million, compared with net
income of $70.2 million in Q4 2015.
Diluted earnings per share (EPS) for Q4 2016 were $0.79, a 21% decrease from Q4 2015. Adjusted net
income was $63.5 million in Q4 2016,
compared to $71.8 million a year ago.
Adjusted EPS was $0.98, compared to
$1.02.
Q4 2016 adjusted net income and EPS exclude the impact of a
goodwill impairment charge of $9.0
million net of tax (or $0.13
diluted EPS) for PSiGate, and an intangible asset impairment of
$3.8 million net of tax (or
$0.06 diluted EPS).
Q4 2016 results reflect the Company's continued profitability as
measured by its net interest margin (TEB) of 2.38%, a healthy loan
portfolio as evidenced by continued low non-performing loans and
credit losses, and a strong capital position.
At the end of Q4 2016, total loans under administration
increased to $26.42 billion, driven
by a solid core residential business and a growing commercial
lending portfolio.
Core Business
A continued focus on growing mortgage origination volumes
resulted in a 12.7% increase in total mortgage originations in Q4
2016 to $2.43 billion, compared to Q4
2015. Total originations decreased 4.4% from Q3 2016 mainly
due to seasonality. Q4 2016 total mortgage origination growth was
led by the traditional single-family line of business which
increased 14.0% to $1.33 billion
compared to Q4 2015, and by strong performance of the commercial
lending line of business.
For the year ended December 31
2016, total mortgage originations were $9.23
billion, up 14.5% from 2015, reflecting good progress on
initiatives to increase volumes through improved service levels.
The core traditional single-family residential mortgage
originations increased 3.5% in 2016 to $4.99
billion compared to 2015. Ace Plus originations grew to
$407.8 million from $253.1 million in 2015, while Accelerator
originations increased 16.5% to $1.62
billion compared to 2015. Commercial mortgage
originations continued to grow with strong performance in both
multi-unit residential and non-residential mortgages.
Following the Government of Canada's announcement in early October 2016, which placed certain limitations on
eligibility criteria for low-ratio government-backed insured
mortgages (mortgage rules), the Company reported that these
limitations may significantly reduce the Company's ability to
profitably originate and fund these mortgages (see the Company's
press release dated October 20,
2016). Specifically, low-ratio lending for the purpose of
refinancing and rental properties will be primarily impacted within
the Company's Accelerator program.
The Company also reported that since the Accelerator program has
traditionally been a low margin product offering it anticipates the
negative impact on net income before tax to be relatively limited
at approximately $6.5 million, and
after-tax net income of approximately $4.8
million on an annualized basis. This estimate assumes that
the Company sells its residual interest in fixed-rate mortgages
which is an activity that the Company does from time to time.
While the Company did experience some weakness in the
Accelerator insured product primarily in December, the mortgage
rules had minimal impact on overall 2016 results. Management
expects that the impact of these rules on the housing market, and
on consumers and competitors, will become clearer as we move
further into 2017, especially as the seasonally active spring
market arrives. Further policy changes, particularly pertaining to
risk sharing, are expected to become more defined in 2017.
Consumer Lending
Consumer lending, comprising credit cards, lines of credit and
other consumer retail loans, continues to be an important source of
loan assets with attractive returns. While representing 4.2% of the
total on-balance sheet loan portfolio, these assets generated 7.7%
of the interest income from loans for the quarter.
Deposits
At the end of Q4 2016, total deposits were $15.89 billion. Approximately 28.9% of deposits
were from diversified sources. In addition to sourcing deposits
through investment dealers and deposit brokers, diversification
continues to be a focus that includes growing deposits through
Oaken Financial, a direct-to-consumer business, and through Home
Bank. In Q4 2016, the ending balance of Oaken deposits was
$1.77 billion, up 62.6% from the end
of 2015, demonstrating significant progress in the Company's
efforts towards deposit diversification.
Operational Highlights
Home Capital continued to deliver strong credit performance,
with net non-performing loans as a percentage of gross loans (NPL
ratio) at 0.30% at the end of Q4 2016, consistent with 0.31% at the
end of Q3 2016 and slightly higher than 0.28% in Q4 2015. These
results reflect the high credit quality of the Company's loan
portfolio resulting from regulatory changes to mortgage rules over
the past few years, among other variables and are supported by the
Company's continued investments in its risk management framework
and control infrastructure.
During 2016, the Company invested in processes to improve
service and retention levels. The Company has improved response
times for commitments within its risk management framework while
ensuring the documentation process is completed quickly and
accurately. Efforts to improve retention during 2016 did not
materialize as planned, resulting in lower-than-anticipated
retention levels which also muted revenue growth, although some
progress was seen later in Q4 2016. As a result, management is
increasing efforts to change processes to significantly improve
retention levels of existing customers, especially those seeking
early discharge.
Non-interest expenses in Q4 2016 increased to $71.0 million from $54.7
million in Q4 2015. As a result of the ongoing review of
goodwill and intangible assets, Q4 2016 expenses included a
goodwill impairment charge of $9.0
million reflecting lower expected future profitability of
the PSiGate business and an intangible asset impairment of
$5.1 million. Full year 2016 expenses
totaled $238.9 million, up 25.3%
compared to $190.7 million in 2015 as
a result of elevated costs and investments across the business. In
addition, full year expenses include the costs related to goodwill
impairment and intangible asset impairment, and $5.1 million in severance and other related costs
recorded in Q1 2016.
The Company is working hard to become more efficient and reduce
expenses to achieve positive operating leverage, a key priority. In
Q3 2016, the Company announced it would take a hard look at
expenses which have significantly outpaced revenue growth over the
last year. As a result, the Company has started to implement an
expense-savings initiative, Project EXPO, which targets, at
minimum, an annualized $15.0 million
of cost savings based on an annualized run rate of Q4 2016 expenses
(excluding items of note), over the course of 2017. Project EXPO
will encompass most expense categories including employees,
premises and other operating costs, and will also result in
restructuring provisions to be taken in 2017. Moving ahead,
management will continue to make the necessary investments required
to enable the Company to meet its strategic goals, but in a manner
that results in future costs rising in a more measured way. While
this is a key initiative for 2017, a focus on effectively managing
expenses company-wide will remain an ongoing operational
priority.
Strong and Conservative Financial Position
Home Capital continued to focus on maintaining a strong and
conservative financial position while delivering value to
shareholders in Q4 2016 and the full year 2016. Home Capital
delivered ROE and adjusted ROE of 15.3% and 16.3%,
respectively.
With two dividend increases, a SIB and share buybacks through
the NCIB, the Company returned more than $264 million to shareholders in 2016. The
Company's capital position remained strong with a CET 1 ratio of
16.55% at year end, well in excess of regulatory minimums and
internal targets. The Company's strong balance sheet continues to
provide a firm foundation that will enable management to execute on
its longer term strategy and continue to support investments made
in the business to deliver a consistent and optimal experience for
all customers and stakeholders.
Subsequent to the end of the quarter, and in light of the
Company's performance, profitability and strong financial position,
the Board of Directors approved a quarterly dividend of
$0.26 per common share payable on
March 1, 2017 to shareholders of
record at the close of business on February
17, 2017.
Outlook
Home Capital has built a solid foundation comprised of its
strong balance sheet and its core traditional business. In 2016,
the Company completed a review of its strategic agenda, business
and operational initiatives to ensure its strategic priorities
remain aligned with the Company's long-term goals of generating
prudent and profitable growth, providing healthy returns to
shareholders and solidifying Home Capital's position as the leading
provider of financial services to underserved Canadians.
Looking ahead, the Company is committed to building on its
foundation by more stringently managing costs as one of the ways to
drive positive operating leverage, reviewing product offerings and
related operations, and strengthening revenue growth.
The Board of Directors and management expect that Home Capital
will deliver on its long-term business and financial performance
goals, and continue to generate solid shareholder returns in 2017
and
beyond.
(signed)
|
(signed)
|
MARTIN
REID
President & Chief
Executive
Officer
February 8,
2017
|
KEVIN P.D.
SMITH
Chair of the Board
|
|
|
The Company's 2016 Annual and Fourth Quarter Consolidated
Financial Report, including Management's Discussion and Analysis,
for each of the three- and twelve-month periods ended December 31, 2016 is available at
www.homecapital.com and on the Canadian Securities Administrators'
website at www.sedar.com.
Fourth Quarter and Year-End 2016 Results Conference Call and
Webcast
The conference call will take place on Thursday, February 9, 2017, at 8:00 a.m. ET. Participants are asked to call
approximately 10 minutes in advance at 647-427-7450 in Toronto or toll-free 1-888-231-8191 throughout
North America. The call will also
be accessible in listen-only mode on Home Capital's website at
www.homecapital.com in the Investor Relations section of the
website.
Conference Call Archive
A telephone replay of the call will be available between
11:00 a.m. ET Thursday, February 9,
2017 and 12:00 a.m. ET Thursday,
February 16, 2017 by calling 416-849-0833 or 1-855-859-2056
(enter passcode 44438639). The archived audio webcast will be
available for 90 days on CNW Group's website at www.newswire.ca and
Home Capital's website at www.homecapital.com.
Annual Meeting Notice
The Annual Meeting of Shareholders of Home Capital Group Inc.
will be held at One King West, Grand Banking Hall, Toronto, Ontario, M5H 1A1, on Thursday, May 11, 2017 at 11:00 a.m. ET. Shareholders and guests are
invited to join Directors and Management for refreshments following
the Annual Meeting. All shareholders are encouraged to attend.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the year
ended
|
(000s, except
Percentage and Per Share Amounts)
|
|
December
31
|
September
30
|
December
31
|
December
31
|
December
31
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
50,706
|
$
|
66,190
|
$
|
70,239
|
$
|
247,396
|
$
|
287,285
|
Adjusted Net
Income1
|
|
63,475
|
|
66,190
|
|
71,811
|
|
263,414
|
|
288,857
|
Net Interest
Income
|
|
120,620
|
|
119,924
|
|
126,658
|
|
485,164
|
|
481,090
|
Total
Revenue
|
|
239,417
|
|
243,928
|
|
248,462
|
|
967,719
|
|
995,767
|
Diluted Earnings per
Share
|
$
|
0.79
|
$
|
1.01
|
$
|
1.00
|
$
|
3.71
|
$
|
4.09
|
Adjusted Diluted
Earnings per Share1
|
$
|
0.98
|
$
|
1.01
|
$
|
1.02
|
$
|
3.95
|
$
|
4.11
|
Return on
Shareholders' Equity
|
|
12.7%
|
|
16.9%
|
|
17.6%
|
|
15.3%
|
|
18.7%
|
Adjusted Return on
Shareholders' Equity1
|
|
15.9%
|
|
16.9%
|
|
18.0%
|
|
16.3%
|
|
18.8%
|
Return on Average
Assets
|
|
1.0%
|
|
1.3%
|
|
1.4%
|
|
1.2%
|
|
1.4%
|
Net Interest Margin
(TEB)2
|
|
2.38%
|
|
2.34%
|
|
2.46%
|
|
2.37%
|
|
2.36%
|
Provision as a
Percentage of Gross Uninsured Loans (annualized)
|
|
0.07%
|
|
0.04%
|
|
0.04%
|
|
0.05%
|
|
0.06%
|
Provision as a
Percentage of Gross Loans (annualized)
|
|
0.05%
|
|
0.03%
|
|
0.03%
|
|
0.04%
|
|
0.05%
|
Efficiency Ratio
(TEB)2
|
|
48.8%
|
|
37.7%
|
|
36.0%
|
|
40.8%
|
|
32.4%
|
Adjusted Efficiency
Ratio (TEB)1,2
|
|
39.1%
|
|
37.7%
|
|
33.7%
|
|
37.6%
|
|
31.8%
|
|
|
|
|
|
|
As at
|
|
|
|
|
|
December
31
|
September
30
|
December
31
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
BALANCE SHEET
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
20,528,777
|
$
|
20,317,030
|
$
|
20,527,062
|
|
|
|
|
Total Assets Under
Administration3
|
|
28,917,534
|
|
28,327,676
|
|
27,316,476
|
|
|
|
|
Total
Loans4
|
|
18,035,317
|
|
18,002,238
|
|
18,268,708
|
|
|
|
|
Total Loans Under
Administration3,4
|
|
26,424,074
|
|
26,012,884
|
|
25,058,122
|
|
|
|
|
Liquid
Assets
|
|
2,067,981
|
|
1,878,082
|
|
2,095,145
|
|
|
|
|
Deposits
|
|
15,886,030
|
|
15,694,102
|
|
15,665,958
|
|
|
|
|
Shareholders'
Equity
|
|
1,617,192
|
|
1,579,478
|
|
1,621,106
|
|
|
|
|
FINANCIAL
STRENGTH
|
|
|
|
|
|
|
|
|
|
|
Capital
Measures5
|
|
|
|
|
|
|
|
|
|
|
Risk-Weighted
Assets
|
$
|
8,643,267
|
$
|
8,414,960
|
$
|
7,985,498
|
|
|
|
|
Common Equity Tier 1
Capital Ratio
|
|
16.55%
|
|
16.54%
|
|
18.31%
|
|
|
|
|
Tier 1 Capital
Ratio
|
|
16.54%
|
|
16.53%
|
|
18.30%
|
|
|
|
|
Total Capital
Ratio
|
|
16.97%
|
|
16.97%
|
|
20.70%
|
|
|
|
|
Leverage
Ratio
|
|
7.20%
|
|
7.08%
|
|
7.36%
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
|
|
|
|
|
Net Non-Performing
Loans as a Percentage of Gross Loans
|
|
0.30%
|
|
0.31%
|
|
0.28%
|
|
|
|
|
Allowance as a
Percentage of Gross Non-Performing Loans
|
|
73.4%
|
|
69.3%
|
|
74.0%
|
|
|
|
|
Share
Information
|
|
|
|
|
|
|
|
|
|
|
Book Value per Common
Share
|
$
|
25.12
|
$
|
24.47
|
$
|
23.17
|
|
|
|
|
Common Share Price –
Close
|
$
|
31.34
|
$
|
27.00
|
$
|
26.92
|
|
|
|
|
Dividend paid during
the period ended
|
$
|
0.26
|
$
|
0.24
|
$
|
0.22
|
|
|
|
|
Market
Capitalization
|
$
|
2,017,920
|
$
|
1,743,093
|
$
|
1,883,808
|
|
|
|
|
Number of Common
Shares Outstanding
|
|
64,388
|
|
64,559
|
|
69,978
|
|
|
|
|
1 See
definition of Adjusted Net Income, Adjusted Diluted Earnings per
Share, Adjusted Return on Shareholders' Equity and Adjusted
Efficiency Ratio under Non-GAAP measures in the Company's 2016
Annual and Fourth Quarter Consolidated Financial Report and the
reconciliation of net income to adjusted net income in the
following table.
|
2 See
definition of Taxable Equivalent Basis (TEB) under Non-GAAP
Measures in the Company's 2016 Annual and Fourth Quarter
Consolidated Financial Report.
|
3 Total
assets and loans under administration include both on- and off-
balance sheet amounts.
|
4 Total
loans include loans held for sale.
|
5 These
figures relate to the Company's operating subsidiary, Home Trust
Company.
|
|
|
Reconciliation of
Net Income to Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
Year
|
(000s, except %
and per share amounts)
|
Q4
|
Q3
|
|
Q4
|
|
|
|
|
|
|
2016
|
2016
|
Change
|
2015
|
Change
|
2016
|
2015
|
Change
|
Net income under
GAAP
|
$
|
50,706
|
$
|
66,190
|
(23.4)%
|
$
|
70,239
|
(27.8)%
|
$
|
247,396
|
$
|
287,285
|
(13.9)%
|
Adjustment for
acquisition and integration costs, net of gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
recognized on
acquisition of CFF Bank (net of tax)
|
|
-
|
|
-
|
-
|
|
1,572
|
(100.0)%
|
|
(478)
|
|
1,572
|
(130.4)%
|
Adjustment for
severance and other related costs (net of tax)
|
|
-
|
|
-
|
-
|
|
-
|
-
|
|
3,727
|
|
-
|
-
|
Adjustment for
goodwill impairment loss (net of tax)
|
|
9,000
|
|
-
|
-
|
|
-
|
-
|
|
9,000
|
|
-
|
-
|
Adjustment for
intangible assets impairment loss (net of tax)
|
|
3,769
|
|
-
|
-
|
|
-
|
-
|
|
3,769
|
|
-
|
-
|
Adjusted Net
Income1
|
$
|
63,475
|
$
|
66,190
|
(4.1)%
|
$
|
71,811
|
(11.6)%
|
$
|
263,414
|
$
|
288,857
|
(8.8)%
|
Adjusted Basic
Earnings per Share1
|
$
|
0.98
|
$
|
1.01
|
(3.0)%
|
$
|
1.02
|
(3.9)%
|
$
|
3.96
|
$
|
4.12
|
(3.9)%
|
Adjusted Diluted
Earnings per Share1
|
$
|
0.98
|
$
|
1.01
|
(3.0)%
|
$
|
1.02
|
(3.9)%
|
$
|
3.95
|
$
|
4.11
|
(3.9)%
|
1 Adjusted
Net Income and Adjusted Earnings per share are defined in the
Non-GAAP section of the Company's 2016 Annual and Fourth Quarter
Consolidated Financial Report.
|
|
Items of Note
Items of note are removed from reported results in determining
adjusted results. Adjusted results are designed to provide a better
understanding of how management assesses underlying business
performance and to facilitate a more informed analysis of trends.
Adjusted results are determined after removing items of note from
reported results.
The Company's results were affected by the following items of
note that aggregated to a negative impact of $16.0 million, net of tax, or $0.24 diluted earnings per share in 2016:
- $9.0 million of goodwill
impairment loss related to the Company's PSiGate business
($9.0 million net of tax and
$0.13 diluted earnings per
share).
- $5.1 million of intangible asset
impairment loss related to internally developed software costs
($3.8 million net of tax and
$0.06 diluted earnings per
share).
- Expenses including severance and other related costs in the
amount of $5.1 million ($3.7 million, net of tax and $0.06 diluted earnings per share), that were
recognized in the first quarter of 2016.
- Positive adjustment to gain recognized on the acquisition of
CFF Bank in the amount of $651
thousand ($478 thousand, net
of tax and $0.01 diluted earnings per
share).
The Company's results were also affected by the following items
of note in 2015:
- $0.7 million in acquisition costs
and $3.5 million in integration
costs, less $2.1 million in relation
to a bargain purchase gain for a net negative impact of
$2.1 million related to the
acquisition of CFF Bank in 2015 ($1.6
million after tax and $0.02
diluted earnings per share).
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
|
|
|
December
31
|
|
September
30
|
|
December
31
|
thousands of
Canadian dollars
|
|
2016
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
1,205,394
|
$
|
1,058,940
|
$
|
1,149,849
|
Available for Sale
Securities
|
|
534,924
|
|
523,482
|
|
453,230
|
Loans Held for
Sale
|
|
77,918
|
|
74,207
|
|
135,043
|
Loans
|
|
|
|
|
|
|
Securitized
mortgages
|
|
2,526,804
|
|
2,549,205
|
|
2,674,475
|
Non-securitized
mortgages and loans
|
|
15,430,595
|
|
15,378,826
|
|
15,459,190
|
|
|
17,957,399
|
|
17,928,031
|
|
18,133,665
|
Collective allowance
for credit losses
|
|
(37,063)
|
|
(37,063)
|
|
(36,249)
|
|
|
17,920,336
|
|
17,890,968
|
|
18,097,416
|
Other
|
|
|
|
|
|
|
Restricted
assets
|
|
265,374
|
|
231,235
|
|
195,921
|
Derivative
assets
|
|
37,524
|
|
52,178
|
|
64,796
|
Other
assets
|
|
348,638
|
|
336,077
|
|
287,417
|
Deferred tax
assets
|
|
16,914
|
|
16,362
|
|
15,043
|
Goodwill and
intangible assets
|
|
121,755
|
|
133,581
|
|
128,347
|
|
|
790,205
|
|
769,433
|
|
691,524
|
|
$
|
20,528,777
|
$
|
20,317,030
|
$
|
20,527,062
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Deposits payable on
demand
|
$
|
2,531,803
|
$
|
2,432,283
|
$
|
1,986,136
|
Deposits payable on a
fixed date
|
|
13,354,227
|
|
13,261,819
|
|
13,679,822
|
|
|
15,886,030
|
|
15,694,102
|
|
15,665,958
|
Senior
Debt
|
|
-
|
|
-
|
|
151,480
|
Securitization
Liabilities
|
|
|
|
|
|
|
CMHC-sponsored
mortgage-backed security liabilities
|
|
898,386
|
|
930,614
|
|
531,326
|
CMHC-sponsored Canada
Mortgage Bond liabilities
|
|
1,637,117
|
|
1,610,482
|
|
2,249,230
|
Bank-sponsored
securitization conduit liabilities
|
|
114,146
|
|
139,115
|
|
-
|
|
|
2,649,649
|
|
2,680,211
|
|
2,780,556
|
Other
|
|
|
|
|
|
|
Derivative
liabilities
|
|
3,490
|
|
959
|
|
5,447
|
Other
liabilities
|
|
336,132
|
|
324,070
|
|
264,941
|
Deferred tax
liabilities
|
|
36,284
|
|
38,210
|
|
37,574
|
|
|
375,906
|
|
363,239
|
|
307,962
|
|
|
18,911,585
|
|
18,737,552
|
|
18,905,956
|
Shareholders'
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
84,910
|
|
83,975
|
|
90,247
|
Contributed
surplus
|
|
4,562
|
|
4,588
|
|
3,965
|
Retained
earnings
|
|
1,582,785
|
|
1,554,258
|
|
1,592,438
|
Accumulated other
comprehensive loss
|
|
(55,065)
|
|
(63,343)
|
|
(65,544)
|
|
|
1,617,192
|
|
1,579,478
|
|
1,621,106
|
|
$
|
20,528,777
|
$
|
20,317,030
|
$
|
20,527,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
thousands of
Canadian dollars, except per share amounts
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Interest
Income Non-Securitized Assets
|
|
|
|
|
|
|
|
|
|
|
Interest from
loans
|
$
|
190,389
|
$
|
192,395
|
$
|
197,052
|
$
|
768,034
|
$
|
769,562
|
Dividends from
securities
|
|
2,614
|
|
2,359
|
|
2,608
|
|
10,112
|
|
10,620
|
Other
interest
|
|
2,514
|
|
3,046
|
|
1,694
|
|
11,073
|
|
7,951
|
|
|
195,517
|
|
197,800
|
|
201,354
|
|
789,219
|
|
788,133
|
Interest on deposits
and other
|
|
78,868
|
|
81,519
|
|
77,762
|
|
315,919
|
|
318,597
|
Interest on senior
debt
|
|
-
|
|
-
|
|
1,824
|
|
2,243
|
|
6,396
|
Net interest income
non-securitized assets
|
|
116,649
|
|
116,281
|
|
121,768
|
|
471,057
|
|
463,140
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income Securitized Loans and Assets
|
|
|
|
|
|
|
|
|
|
|
Interest income from
securitized loans and assets
|
|
19,923
|
|
20,957
|
|
22,853
|
|
81,705
|
|
103,841
|
Interest expense on
securitization liabilities
|
|
15,952
|
|
17,314
|
|
17,963
|
|
67,598
|
|
85,891
|
Net interest income
securitized loans and assets
|
|
3,971
|
|
3,643
|
|
4,890
|
|
14,107
|
|
17,950
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Interest
Income
|
|
120,620
|
|
119,924
|
|
126,658
|
|
485,164
|
|
481,090
|
Provision for credit
losses
|
|
2,400
|
|
1,336
|
|
1,415
|
|
7,890
|
|
8,933
|
|
|
118,220
|
|
118,588
|
|
125,243
|
|
477,274
|
|
472,157
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Fees and other
income
|
|
17,613
|
|
17,223
|
|
19,927
|
|
71,329
|
|
82,632
|
Securitization
income
|
|
9,064
|
|
7,599
|
|
5,760
|
|
33,797
|
|
26,208
|
Gain on acquisition
of CFF Bank
|
|
-
|
|
-
|
|
2,056
|
|
651
|
|
2,056
|
Net realized and
unrealized (losses) gains on securities
|
|
-
|
|
-
|
|
(66)
|
|
(175)
|
|
836
|
Net realized and
unrealized losses (gains) on derivatives
|
|
(2,700)
|
|
349
|
|
(3,422)
|
|
(8,807)
|
|
(7,939)
|
|
|
23,977
|
|
25,171
|
|
24,255
|
|
96,795
|
|
103,793
|
|
|
142,197
|
|
143,759
|
|
149,498
|
|
574,069
|
|
575,950
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Expenses
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
24,134
|
|
24,350
|
|
25,874
|
|
101,880
|
|
88,873
|
Premises
|
|
3,607
|
|
3,472
|
|
2,731
|
|
14,505
|
|
12,274
|
Other operating
expenses
|
|
43,287
|
|
27,160
|
|
26,076
|
|
122,554
|
|
89,526
|
|
|
71,028
|
|
54,982
|
|
54,681
|
|
238,939
|
|
190,673
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes
|
|
71,169
|
|
88,777
|
|
94,817
|
|
335,130
|
|
385,277
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
22,941
|
|
22,957
|
|
25,548
|
|
90,895
|
|
98,481
|
|
Deferred
|
|
(2,478)
|
|
(370)
|
|
(970)
|
|
(3,161)
|
|
(489)
|
|
|
20,463
|
|
22,587
|
|
24,578
|
|
87,734
|
-
|
97,992
|
NET
INCOME
|
$
|
50,706
|
$
|
66,190
|
$
|
70,239
|
$
|
247,396
|
$
|
287,285
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.79
|
$
|
1.01
|
$
|
1.00
|
$
|
3.71
|
$
|
4.09
|
Diluted
|
$
|
0.79
|
$
|
1.01
|
$
|
1.00
|
$
|
3.71
|
$
|
4.09
|
AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
64,479
|
|
65,386
|
|
70,157
|
|
66,601
|
|
70,170
|
Diluted
|
|
64,519
|
|
65,435
|
|
70,237
|
|
66,668
|
|
70,323
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number of
outstanding common shares
|
|
64,388
|
|
64,559
|
|
69,978
|
|
64,388
|
|
69,978
|
Book value per common
share
|
$
|
25.12
|
$
|
24.47
|
$
|
23.17
|
$
|
25.12
|
$
|
23.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Comprehensive Income
|
|
|
|
|
|
|
For the
three months ended
|
|
For the year
ended
|
|
December
31
|
September
30
|
December
31
|
December
31
|
December
31
|
thousands of
Canadian dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
|
50,706
|
$
|
66,190
|
$
|
70,239
|
$
|
247,396
|
$
|
287,285
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale
Securities and Retained Interests
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains
(losses)
|
|
12,774
|
|
7,820
|
|
6,171
|
|
11,852
|
|
(61,991)
|
Net losses
(gains) reclassified to net income
|
|
-
|
|
-
|
|
66
|
|
204
|
|
(917)
|
|
|
12,774
|
|
7,820
|
|
6,237
|
|
12,056
|
|
(62,908)
|
Income tax expense
(recovery)
|
|
3,391
|
|
2,075
|
|
1,654
|
|
3,179
|
|
(16,684)
|
|
|
9,383
|
|
5,745
|
|
4,583
|
|
8,877
|
|
(46,224)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow
Hedges
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
(losses) gains
|
|
(1,677)
|
|
803
|
|
(2,110)
|
|
1,035
|
|
(2,449)
|
Net losses
reclassified to net income
|
|
174
|
|
268
|
|
369
|
|
1,147
|
|
1,474
|
|
|
(1,503)
|
|
1,071
|
|
(1,741)
|
|
2,182
|
|
(975)
|
Income tax (recovery)
expense
|
|
(398)
|
|
284
|
|
(462)
|
|
580
|
|
(260)
|
|
|
(1,105)
|
|
787
|
|
(1,279)
|
|
1,602
|
|
(715)
|
|
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
8,278
|
|
6,532
|
|
3,304
|
|
10,479
|
|
(46,939)
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME
|
$
|
58,984
|
$
|
72,722
|
$
|
73,543
|
$
|
257,875
|
$
|
240,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Changes in Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Unrealized
|
|
|
|
|
|
|
|
Losses
|
Net
Unrealized
|
Total
|
|
|
|
|
|
on Securities
and
|
Losses on
|
Accumulated
|
|
|
|
|
|
Retained
|
Cash Flow
|
Other
|
Total
|
thousands of
Canadian dollars,
|
Capital
|
Contributed
|
Retained
|
Interests
Available
|
Hedges,
|
Comprehensive
|
Shareholders'
|
except per share
amounts
|
Stock
|
Surplus
|
Earnings
|
for Sale, After
Tax
|
After Tax
|
Loss
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2015
|
$
|
90,247
|
$
|
3,965
|
$
|
1,592,438
|
$
|
(62,466)
|
$
|
(3,078)
|
$
|
(65,544)
|
$
|
1,621,106
|
Comprehensive
income
|
|
-
|
|
-
|
|
247,396
|
|
8,877
|
|
1,602
|
|
10,479
|
|
257,875
|
Stock options
settled
|
|
1,984
|
|
(530)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,454
|
Amortization of
fair value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
employee stock
options
|
|
-
|
|
1,127
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,127
|
Repurchase of
shares
|
|
(7,321)
|
|
-
|
|
(191,875)
|
|
-
|
|
-
|
|
-
|
|
(199,196)
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.98 per
share)
|
|
-
|
|
-
|
|
(65,174)
|
|
-
|
|
-
|
|
-
|
|
(65,174)
|
Balance at
December 31, 2016
|
$
|
84,910
|
$
|
4,562
|
$
|
1,582,785
|
$
|
(53,589)
|
$
|
(1,476)
|
$
|
(55,065)
|
$
|
1,617,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
31, 2014
|
$
|
84,687
|
$
|
3,989
|
$
|
1,378,562
|
$
|
(16,242)
|
$
|
(2,363)
|
$
|
(18,605)
|
$
|
1,448,633
|
Comprehensive
income
|
|
-
|
|
-
|
|
287,285
|
|
(46,224)
|
|
(715)
|
|
(46,939)
|
|
240,346
|
Stock options
settled
|
|
6,002
|
|
(1,605)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,397
|
Amortization of fair
value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
employee stock
options
|
|
-
|
|
1,581
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,581
|
Repurchase of
shares
|
|
(442)
|
|
-
|
|
(10,270)
|
|
-
|
|
-
|
|
-
|
|
(10,712)
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.88 per
share)
|
|
-
|
|
-
|
|
(63,139)
|
|
-
|
|
-
|
|
-
|
|
(63,139)
|
Balance at December
31, 2015
|
$
|
90,247
|
$
|
3,965
|
$
|
1,592,438
|
$
|
(62,466)
|
$
|
(3,078)
|
$
|
(65,544)
|
$
|
1,621,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
For the three months
ended
|
For the year
ended
|
|
|
|
|
December
31
|
|
December
31
|
|
December
31
|
|
December
31
|
thousands of
Canadian dollars
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
50,706
|
$
|
70,239
|
$
|
247,396
|
$
|
287,285
|
Adjustments to
determine cash flows relating to operating activities:
|
|
|
|
|
|
|
|
|
|
Amortization of net
discount on securities
|
|
(79)
|
|
(221)
|
|
(458)
|
|
(169)
|
|
Provision for credit
losses
|
|
2,400
|
|
1,415
|
|
7,890
|
|
8,933
|
|
Gain on acquisition
of CFF Bank
|
|
-
|
|
(2,056)
|
|
-
|
|
(2,056)
|
|
Gain on sale of
mortgages or residual interest
|
|
(7,006)
|
|
(4,728)
|
|
(26,972)
|
|
(21,412)
|
|
Net realized and
unrealized losses (gains) on securities
|
|
-
|
|
66
|
|
175
|
|
(836)
|
|
Amortization and
impairment losses 1
|
|
18,104
|
|
2,918
|
|
29,686
|
|
12,922
|
|
Amortization of fair
value of employee stock options
|
|
322
|
|
418
|
|
1,127
|
|
1,581
|
|
Deferred income
taxes
|
|
(2,478)
|
|
(970)
|
|
(3,161)
|
|
(489)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
Loans, net of
securitization and sales
|
|
(28,184)
|
|
165,761
|
|
253,837
|
|
205,412
|
|
Restricted
assets
|
|
(34,139)
|
|
302,883
|
|
(69,453)
|
|
229,833
|
|
Derivative assets and
liabilities
|
|
15,682
|
|
13,844
|
|
27,497
|
|
(24,075)
|
|
Accrued interest
receivable
|
|
(506)
|
|
495
|
|
2,668
|
|
1,319
|
|
Accrued interest
payable
|
|
(1,855)
|
|
(10,146)
|
|
(1,312)
|
|
4,399
|
|
Deposits
|
|
191,928
|
|
514,361
|
|
220,072
|
|
1,524,232
|
|
Securitization
liabilities
|
|
(30,562)
|
|
(557,308)
|
|
(130,907)
|
|
(1,542,653)
|
|
Taxes receivable or
payable and other
|
|
(1,489)
|
|
(11,072)
|
|
2,757
|
|
20,358
|
Cash flows provided
by operating activities
|
|
172,844
|
|
485,899
|
|
560,842
|
|
704,584
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repurchase of
shares
|
|
(5,678)
|
|
(7,334)
|
|
(199,196)
|
|
(10,712)
|
Exercise of employee
stock options
|
|
856
|
|
638
|
|
1,454
|
|
4,397
|
Repayment of senior
debt
|
|
-
|
|
-
|
|
(150,000)
|
|
-
|
Dividends paid to
shareholders
|
|
(16,770)
|
|
(15,429)
|
|
(65,174)
|
|
(61,763)
|
Cash flows used in
financing activities
|
|
(21,592)
|
|
(22,125)
|
|
(412,916)
|
|
(68,078)
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Activity in
securities
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(2,978)
|
|
(35,020)
|
|
(203,674)
|
|
(35,020)
|
|
Proceeds from
sales
|
|
-
|
|
-
|
|
-
|
|
76,924
|
|
Proceeds from
maturities
|
|
3,992
|
|
1,618
|
|
132,932
|
|
25,350
|
Acquisition of CFF
Bank, net of cash acquired
|
|
-
|
|
115,892
|
|
-
|
|
115,892
|
Purchases of capital
assets
|
|
(460)
|
|
(1,628)
|
|
(2,550)
|
|
(5,302)
|
Capitalized
intangible development costs
|
|
(5,352)
|
|
(7,006)
|
|
(19,089)
|
|
(25,247)
|
Cash flows (used in)
provided by investing activities
|
|
(4,798)
|
|
73,856
|
|
(92,381)
|
|
152,597
|
Net increase in cash
and cash equivalents during the period
|
|
146,454
|
|
537,630
|
|
55,545
|
|
789,103
|
Cash and cash
equivalents at beginning of the period
|
|
1,058,940
|
|
612,218
|
|
1,149,849
|
|
360,746
|
Cash and Cash
Equivalents at End of the Period
|
$
|
1,205,394
|
$
|
1,149,848
|
$
|
1,205,394
|
$
|
1,149,849
|
Supplementary
Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
Dividends received on
investments
|
$
|
1,898
|
$
|
4,513
|
$
|
10,037
|
$
|
11,656
|
Interest
received
|
|
212,920
|
|
220,787
|
|
863,321
|
|
881,749
|
Interest
paid
|
|
96,675
|
|
109,628
|
|
388,440
|
|
406,485
|
Income taxes
paid
|
|
16,314
|
|
26,374
|
|
84,559
|
|
128,763
|
¹Amortization and
impairment losses include amortization on capital and intangible
assets and impairment losses on intangible assets and
goodwill.
|
|
|
|
Net Interest
Margin
|
|
|
|
For the three months
ended
|
For the year
ended
|
|
December
31
|
September
30
|
December
31
|
December
31
|
December
31
|
|
2016
|
2016
|
2015
|
2016
|
2015
|
Net interest margin
non-securitized interest-earning assets (non-TEB)
|
2.71%
|
2.68%
|
2.87%
|
2.71%
|
2.80%
|
Net interest margin
non-securitized interest-earning assets (TEB)
|
2.73%
|
2.70%
|
2.89%
|
2.73%
|
2.83%
|
Net interest margin
CMHC-sponsored securitized assets
|
0.53%
|
0.45%
|
0.60%
|
0.47%
|
0.49%
|
Net interest margin
bank-sponsored securitization conduit assets
|
1.90%
|
1.85%
|
-
|
1.90%
|
-
|
Total net interest
margin (non-TEB)
|
2.36%
|
2.33%
|
2.45%
|
2.35%
|
2.34%
|
Total net interest
margin (TEB)
|
2.38%
|
2.34%
|
2.46%
|
2.37%
|
2.36%
|
Spread of
non-securitized loans over deposits and other
|
2.86%
|
2.89%
|
2.97%
|
2.91%
|
2.91%
|
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
December 31,
2016
|
September 30,
2016
|
December 31,
2015
|
(000s, except
%)
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
|
Expense
|
Rate
1
|
|
Expense
|
Rate
1
|
|
Expense
|
Rate
1
|
Interest-bearing
assets
|
|
|
|
|
|
|
|
|
|
Cash resources and
securities
|
$
|
5,128
|
1.31%
|
$
|
5,405
|
1.21%
|
$
|
4,302
|
1.39%
|
Traditional
single-family residential mortgages
|
|
131,029
|
4.75%
|
|
133,997
|
4.84%
|
|
144,335
|
4.98%
|
ACE Plus
single-family residential mortgages
|
|
3,344
|
3.38%
|
|
3,104
|
3.36%
|
|
1,532
|
3.37%
|
Accelerator
single-family residential mortgages
|
|
6,505
|
2.24%
|
|
7,342
|
2.40%
|
|
8,651
|
2.63%
|
Residential
commercial mortgages2
|
|
4,291
|
3.99%
|
|
4,483
|
4.26%
|
|
5,036
|
3.97%
|
Non-residential
commercial mortgages
|
|
28,233
|
5.93%
|
|
26,741
|
6.08%
|
|
22,205
|
5.95%
|
Credit card loans and
lines of credit
|
|
8,389
|
9.02%
|
|
8,432
|
9.03%
|
|
8,388
|
9.05%
|
Other consumer retail
loans
|
|
8,598
|
9.32%
|
|
8,296
|
9.40%
|
|
6,905
|
9.81%
|
Total non-securitized
loans
|
|
190,389
|
4.86%
|
|
192,395
|
4.94%
|
|
197,052
|
5.00%
|
Taxable equivalent
adjustment
|
|
944
|
-
|
|
853
|
-
|
|
941
|
-
|
Total non-securitized
interest earning assets
|
|
196,461
|
4.56%
|
|
198,653
|
4.58%
|
|
202,295
|
4.76%
|
CMHC-sponsored
securitized single-family residential mortgages
|
|
11,115
|
2.50%
|
|
11,921
|
2.57%
|
|
13,549
|
2.74%
|
CMHC-sponsored
securitized multi-unit residential mortgages
|
|
7,197
|
4.63%
|
|
7,238
|
4.61%
|
|
8,580
|
4.28%
|
Assets pledged as
collateral for CMHC-sponsored securitization
|
|
495
|
1.35%
|
|
489
|
1.27%
|
|
724
|
0.63%
|
Total CMHC-sponsored
securitized residential mortgages
|
|
18,807
|
2.96%
|
|
19,648
|
2.98%
|
|
22,853
|
2.82%
|
Bank-sponsored
securitization conduit assets
|
|
1,116
|
3.53%
|
$
|
1,309
|
3.52%
|
$
|
-
|
-
|
Total
assets
|
$
|
216,384
|
4.24%
|
|
219,610
|
4.25%
|
|
225,148
|
4.35%
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
Deposits and
other
|
$
|
78,868
|
2.00%
|
$
|
81,519
|
2.05%
|
$
|
77,762
|
2.03%
|
Senior
debt
|
|
-
|
-
|
|
-
|
-
|
|
1,824
|
4.78%
|
CMHC-sponsored
securitization liabilities
|
|
15,438
|
2.41%
|
|
16,693
|
2.49%
|
|
17,963
|
2.20%
|
Bank-sponsored
securitization conduit liabilities
|
|
514
|
1.61%
|
|
621
|
1.76%
|
|
-
|
-
|
Total
liabilities
|
$
|
94,820
|
1.86%
|
$
|
98,833
|
1.91%
|
$
|
97,549
|
1.89%
|
Net Interest
Income (TEB)
|
$
|
121,564
|
|
$
|
120,777
|
|
$
|
127,599
|
|
Taxable Equivalent
Adjustment
|
|
(944)
|
|
|
(853)
|
|
|
(941)
|
|
Net Interest
Income per Financial Statements
|
$
|
120,620
|
|
$
|
119,924
|
|
$
|
126,658
|
|
|
|
|
2016
|
|
|
2015
|
(000s, except
%)
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
|
Expense
|
Rate
1
|
|
Expense
|
Rate
1
|
Interest-bearing
assets
|
|
|
|
|
|
|
Cash resources and
securities
|
$
|
21,185
|
1.25%
|
$
|
18,571
|
1.44%
|
Traditional
single-family residential mortgages
|
|
540,522
|
4.84%
|
|
587,005
|
4.99%
|
ACE Plus
single-family residential mortgages
|
|
11,490
|
3.31%
|
|
1,849
|
3.31%
|
Accelerator
single-family residential mortgages
|
|
30,935
|
2.38%
|
|
28,777
|
2.58%
|
Residential
commercial mortgages2
|
|
17,614
|
4.12%
|
|
17,053
|
4.16%
|
Non-residential
commercial mortgages
|
|
102,465
|
6.01%
|
|
80,032
|
6.06%
|
Credit card loans and
lines of credit
|
|
33,536
|
8.99%
|
|
31,427
|
9.06%
|
Other consumer retail
loans
|
|
31,472
|
9.22%
|
|
23,419
|
9.88%
|
Total non-securitized
loans
|
|
768,034
|
4.90%
|
|
769,562
|
5.05%
|
Taxable equivalent
adjustment
|
|
3,654
|
-
|
|
3,830
|
-
|
Total non-securitized
interest earning assets
|
|
792,873
|
4.56%
|
|
791,963
|
4.79%
|
CMHC-sponsored
securitized single-family residential mortgages
|
|
46,642
|
2.60%
|
|
62,891
|
2.79%
|
CMHC-sponsored
securitized multi-unit residential mortgages
|
|
29,866
|
4.58%
|
|
36,625
|
4.23%
|
Assets pledged as
collateral for CMHC-sponsored securitization
|
|
2,246
|
0.96%
|
|
4,325
|
0.84%
|
Total CMHC-sponsored
securitized residential mortgages
|
|
78,754
|
2.94%
|
|
103,841
|
2.86%
|
Bank-sponsored
securitization conduit assets
|
|
2,951
|
3.43%
|
|
-
|
-
|
Total
assets
|
$
|
874,578
|
4.24%
|
$
|
895,804
|
4.35%
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
Deposits and
other
|
$
|
315,919
|
1.99%
|
$
|
318,597
|
2.14%
|
Senior
debt
|
|
2,243
|
3.91%
|
|
6,396
|
4.18%
|
CMHC-sponsored
securitization liabilities
|
|
66,278
|
2.44%
|
|
85,891
|
2.32%
|
Bank-sponsored
securitization conduit liabilities
|
|
1,320
|
1.58%
|
|
-
|
0.00%
|
Total
liabilities
|
$
|
385,760
|
1.87%
|
$
|
410,884
|
1.99%
|
Net Interest
Income (TEB)
|
$
|
488,818
|
|
$
|
484,920
|
|
Taxable Equivalent
Adjustment
|
|
(3,654)
|
|
|
(3,830)
|
|
Net Interest
Income per Financial Statements
|
$
|
485,164
|
|
$
|
481,090
|
|
1 The
average is calculated with reference to opening and closing monthly
asset and liability balances.
|
2
Residential commercial mortgages include non-securitized multi-unit
residential mortgages and commercial mortgages secured by
residential property types.
|
|
Mortgage
Advances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
(000s)
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Single-family
residential mortgages
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
|
$
|
1,325,896
|
$
|
1,416,842
|
$
|
1,163,285
|
$
|
4,991,051
|
$
|
4,821,659
|
|
ACE Plus
|
|
106,477
|
|
116,666
|
|
140,983
|
|
407,767
|
|
253,064
|
|
Accelerator
|
|
346,690
|
|
446,734
|
|
515,891
|
|
1,622,003
|
|
1,391,740
|
Residential
commercial mortgages
|
|
|
|
|
|
|
|
|
|
|
|
Multi-unit uninsured
residential mortgages
|
|
53,999
|
|
17,947
|
|
23,503
|
|
142,026
|
|
105,098
|
|
Multi-unit insured
residential mortgages
|
|
293,306
|
|
194,875
|
|
101,683
|
|
956,406
|
|
688,743
|
|
Other1
|
|
24,179
|
|
-
|
|
8,535
|
|
50,772
|
|
43,957
|
Non-residential
commercial mortgages
|
|
|
|
|
|
|
|
|
|
|
|
Stores and
apartments
|
|
14,878
|
|
35,018
|
|
26,462
|
|
80,888
|
|
109,115
|
|
Commercial
|
|
262,423
|
|
312,618
|
|
173,825
|
|
974,864
|
|
646,033
|
Total mortgage
advances
|
$
|
2,427,848
|
$
|
2,540,700
|
$
|
2,154,167
|
$
|
9,225,777
|
$
|
8,059,409
|
1 Other
residential commercial mortgages include mortgages such as
builders' inventory.
|
|
Provision for
Credit Losses and Net Write-offs as a Percentage of Gross
Loans on an Annualized Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
(000s, except
%)
|
December 31,
2016
|
September 30,
2016
|
December 31,
2015
|
|
|
% of
Gross
|
|
% of Gross
|
|
% of Gross
|
|
Amount
|
Loans1
|
Amount
|
Loans1
|
Amount
|
Loans1
|
Provision2
|
|
|
|
|
|
|
|
|
|
Single-family
residential mortgages
|
$
|
1,029
|
0.03%
|
$
|
1,006
|
0.03%
|
$
|
986
|
0.03%
|
Residential
commercial mortgages
|
|
2
|
0.00%
|
|
(128)
|
(0.19)%
|
|
-
|
-
|
Non-residential
commercial mortgages
|
|
45
|
0.01%
|
|
(37)
|
(0.01)%
|
|
(40)
|
(0.01)%
|
Credit card loans and
lines of credit
|
|
1,164
|
1.26%
|
|
280
|
0.30%
|
|
343
|
0.37%
|
Other consumer retail
loans
|
|
160
|
0.17%
|
|
215
|
0.23%
|
|
101
|
0.14%
|
Securitized
single-family residential mortgages
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Securitized
multi-unit residential mortgages
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Total individual
provision
|
|
2,400
|
0.05%
|
|
1,336
|
0.03%
|
|
1,390
|
0.03%
|
Total collective
provision
|
|
-
|
-
|
|
-
|
-
|
|
25
|
0.00%
|
Total
provision
|
$
|
2,400
|
0.05%
|
$
|
1,336
|
0.03%
|
$
|
1,415
|
0.03%
|
Net
Write-offs2
|
|
|
|
|
|
|
|
|
|
Single-family
residential mortgages
|
$
|
440
|
0.01%
|
$
|
664
|
0.02%
|
$
|
1,415
|
0.04%
|
Residential
commercial mortgages
|
|
2
|
0.00%
|
|
-
|
-
|
|
-
|
-
|
Non-residential
commercial mortgages
|
|
(5)
|
(0.00)%
|
|
100
|
0.02%
|
|
127
|
0.03%
|
Credit card loans and
lines of credit
|
|
469
|
0.51%
|
|
397
|
0.42%
|
|
502
|
0.54%
|
Other consumer retail
loans
|
|
48
|
0.05%
|
|
77
|
0.09%
|
|
94
|
0.13%
|
Securitized
single-family residential mortgages
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Securitized
multi-unit residential mortgages
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Net
write-offs
|
$
|
954
|
0.02%
|
$
|
1,238
|
0.03%
|
$
|
2,138
|
0.05%
|
|
|
|
|
|
|
|
|
|
|
(000s, except
%)
|
|
2016
|
2015
|
|
|
|
|
|
% of
Gross
|
|
% of Gross
|
|
|
|
|
Amount
|
Loans1
|
Amount
|
Loans1
|
Provision2
|
|
|
|
|
|
|
|
|
|
Single-family
residential mortgages
|
|
|
|
$
|
3,917
|
0.03%
|
$
|
5,415
|
0.04%
|
Residential
commercial mortgages
|
|
|
|
|
2
|
0.00%
|
|
4
|
0.00%
|
Non-residential
commercial mortgages
|
|
|
|
|
246
|
0.01%
|
|
720
|
0.05%
|
Credit card loans and
lines of credit
|
|
|
|
|
2,379
|
0.64%
|
|
798
|
0.22%
|
Other consumer retail
loans
|
|
|
|
|
532
|
0.14%
|
|
171
|
0.06%
|
Securitized
single-family residential mortgages
|
|
|
|
|
-
|
-
|
|
-
|
-
|
Securitized
multi-unit residential mortgages
|
|
|
|
|
-
|
-
|
|
-
|
-
|
Total individual
provision
|
|
|
|
|
7,076
|
0.04%
|
|
7,108
|
0.04%
|
Total collective
provision
|
|
|
|
|
814
|
0.00%
|
|
1,825
|
0.01%
|
Total
provision
|
|
|
|
$
|
7,890
|
0.04%
|
$
|
8,933
|
0.05%
|
Net
Write-offs2
|
|
|
|
|
|
|
|
|
|
Single-family
residential mortgages
|
|
|
|
$
|
3,087
|
0.02%
|
$
|
5,292
|
0.04%
|
Residential
commercial mortgages
|
|
|
|
|
2
|
0.00%
|
|
4
|
0.00%
|
Non-residential
commercial mortgages
|
|
|
|
|
515
|
0.03%
|
|
435
|
0.03%
|
Credit card loans and
lines of credit
|
|
|
|
|
1,928
|
0.52%
|
|
969
|
0.26%
|
Other consumer retail
loans
|
|
|
|
|
275
|
0.07%
|
|
168
|
0.06%
|
Securitized
single-family residential mortgages
|
|
|
|
|
-
|
-
|
|
-
|
-
|
Securitized
multi-unit residential mortgages
|
|
|
|
|
-
|
-
|
|
-
|
-
|
Net
write-offs
|
|
|
|
$
|
5,807
|
0.03%
|
$
|
6,868
|
0.04%
|
1 Gross
loans used in the calculation of total Company ratio includes
securitized on-balance sheet loans.
|
2 There
were no individual provisions, allowances or net write-offs on
securitized mortgages.
|
|
|
|
Loans by
Geographic Region and Type (net of individual allowances for credit
losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s, except
%)
|
|
|
|
As at December 31,
2016
|
|
British
|
|
|
|
|
|
|
|
Columbia
|
Alberta
|
Ontario
|
Quebec
|
|
Other
|
|
Total
|
Securitized
single-family residential mortgages1
|
$
|
200,882
|
$
|
211,131
|
$
|
1,298,919
|
$
|
68,229
|
$
|
127,450
|
$
|
1,906,611
|
Securitized
multi-unit residential mortgages
|
|
86,479
|
|
45,819
|
|
281,923
|
|
47,638
|
|
158,334
|
|
620,193
|
Total securitized
mortgages
|
|
287,361
|
|
256,950
|
|
1,580,842
|
|
115,867
|
|
285,784
|
|
2,526,804
|
Single-family
residential mortgages
|
|
688,939
|
|
401,820
|
|
10,796,570
|
|
326,253
|
|
208,426
|
|
12,422,008
|
Residential
commercial mortgages2
|
|
15,387
|
|
21,271
|
|
232,819
|
|
24,058
|
|
11,653
|
|
305,188
|
Non-residential
commercial mortgages
|
|
48,335
|
|
58,688
|
|
1,795,461
|
|
35,820
|
|
16,516
|
|
1,954,820
|
Credit card loans and
lines of credit
|
|
7,548
|
|
20,265
|
|
333,903
|
|
1,253
|
|
6,709
|
|
369,678
|
Other consumer retail
loans
|
|
950
|
|
20,492
|
|
354,356
|
|
-
|
|
3,103
|
|
378,901
|
Total non-securitized
mortgages and loans3
|
|
761,159
|
|
522,536
|
|
13,513,109
|
|
387,384
|
|
246,407
|
|
15,430,595
|
|
$
|
1,048,520
|
$
|
779,486
|
$
|
15,093,951
|
$
|
503,251
|
$
|
532,191
|
$
|
17,957,399
|
As a % of
portfolio
|
|
5.8%
|
|
4.3%
|
|
84.1%
|
|
2.8%
|
|
3.0%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
thousands of Canadian
dollars, except %
|
|
|
|
|
|
|
|
|
|
As at September 30,
2016
|
|
|
British
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia
|
|
Alberta
|
|
Ontario
|
|
Quebec
|
|
Other
|
|
Total
|
Securitized
single-family residential mortgages1
|
$
|
196,176
|
$
|
211,470
|
$
|
1,323,658
|
$
|
69,580
|
$
|
123,947
|
$
|
1,924,831
|
Securitized
multi-unit residential mortgages
|
|
86,877
|
|
46,086
|
|
284,161
|
|
48,122
|
|
159,128
|
|
624,374
|
Total securitized
mortgages
|
|
283,053
|
|
257,556
|
|
1,607,819
|
|
117,702
|
|
283,075
|
|
2,549,205
|
Single-family
residential mortgages
|
|
693,783
|
|
409,703
|
|
10,851,113
|
|
346,199
|
|
224,167
|
|
12,524,965
|
Residential
commercial mortgages2
|
|
13,737
|
|
7,026
|
|
208,049
|
|
25,440
|
|
9,963
|
|
264,215
|
Non-residential
commercial mortgages
|
|
28,572
|
|
56,701
|
|
1,705,435
|
|
47,354
|
|
16,053
|
|
1,854,115
|
Credit card loans and
lines of credit
|
|
8,392
|
|
21,431
|
|
336,348
|
|
1,326
|
|
6,851
|
|
374,348
|
Other consumer retail
loans
|
|
954
|
|
18,299
|
|
340,307
|
|
-
|
|
1,623
|
|
361,183
|
Total non-securitized
mortgages and loans3
|
|
745,438
|
|
513,160
|
|
13,441,252
|
|
420,319
|
|
258,657
|
|
15,378,826
|
|
$
|
1,028,491
|
$
|
770,716
|
$
|
15,049,071
|
$
|
538,021
|
$
|
541,732
|
$
|
17,928,031
|
As a % of
portfolio
|
|
5.7%
|
|
4.3%
|
|
84.0%
|
|
3.0%
|
|
3.0%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
thousands of Canadian
dollars, except %
|
|
|
|
|
|
|
|
|
|
As at December 31,
2015
|
|
|
British
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia
|
|
Alberta
|
|
Ontario
|
|
Quebec
|
|
Other
|
|
Total
|
Securitized
single-family residential mortgages
|
$
|
125,239
|
$
|
114,807
|
$
|
1,559,536
|
$
|
81,262
|
$
|
67,266
|
$
|
1,948,110
|
Securitized
multi-unit residential mortgages
|
|
94,676
|
|
46,848
|
|
372,141
|
|
51,309
|
|
161,391
|
|
726,365
|
Total securitized
mortgages
|
|
219,915
|
|
161,655
|
|
1,931,677
|
|
132,571
|
|
228,657
|
|
2,674,475
|
Single-family
residential mortgages
|
|
706,555
|
|
525,984
|
|
11,060,894
|
|
419,075
|
|
266,910
|
|
12,979,418
|
Residential
commercial mortgages2
|
|
21,128
|
|
14,215
|
|
216,407
|
|
27,265
|
|
42,427
|
|
321,442
|
Non-residential
commercial mortgages
|
|
25,157
|
|
59,861
|
|
1,358,295
|
|
14,505
|
|
32,830
|
|
1,490,648
|
Credit card loans and
lines of credit
|
|
9,598
|
|
22,709
|
|
330,188
|
|
1,489
|
|
6,841
|
|
370,825
|
Other consumer retail
loans
|
|
783
|
|
11,090
|
|
284,231
|
|
-
|
|
753
|
|
296,857
|
Total non-securitized
mortgages and loans3
|
|
763,221
|
|
633,859
|
|
13,250,015
|
|
462,334
|
|
349,761
|
|
15,459,190
|
|
$
|
983,136
|
$
|
795,514
|
$
|
15,181,692
|
$
|
594,905
|
$
|
578,418
|
$
|
18,133,665
|
As a % of
portfolio
|
|
5.4%
|
|
4.4%
|
|
83.7%
|
|
3.3%
|
|
3.2%
|
|
100.0%
|
1
Securitized single-family residential mortgages include both
CMHC-sponsored securitized insured mortgages and bank-sponsored
securitization conduit uninsured mortgages.
|
2
Residential commercial mortgages include non-securitized multi-unit
residential mortgages and commercial mortgages secured by
residential property types.
|
3 Loans
exclude mortgages held for sale.
|
|
|
|
Impaired Loans and
Individual Allowances for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s, except
%)
|
|
|
|
|
|
As at December 31,
2016
|
|
Single-family
|
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
Retail
Loans
|
|
Total
|
Gross amount of
impaired loans
|
$
|
49,834
|
$
|
-
|
$
|
4,577
|
$
|
2,049
|
$
|
411
|
$
|
56,871
|
Individual allowances
on principal
|
|
(1,980)
|
|
-
|
|
(30)
|
|
(780)
|
|
(411)
|
|
(3,201)
|
Net amount of
impaired loans
|
$
|
47,854
|
$
|
-
|
$
|
4,547
|
$
|
1,269
|
$
|
-
|
$
|
53,670
|
Net impaired loans as
a % of gross loans
|
|
0.39%
|
|
-
|
|
0.23%
|
|
0.34%
|
|
-
|
|
0.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s, except
%)
|
|
|
|
|
|
|
|
|
As at September 30,
2016
|
|
|
Single-family
|
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
Retail
Loans
|
|
Total
|
Gross amount of
impaired loans
|
$
|
52,349
|
$
|
-
|
$
|
3,388
|
$
|
2,091
|
$
|
302
|
$
|
58,130
|
Individual allowances
on principal
|
|
(1,637)
|
|
-
|
|
(20)
|
|
(85)
|
|
(302)
|
|
(2,044)
|
Net amount of
impaired loans
|
$
|
50,712
|
$
|
-
|
$
|
3,368
|
$
|
2,006
|
$
|
-
|
$
|
56,086
|
Net impaired loans as
a % of gross loans
|
|
0.40%
|
|
-
|
|
0.18%
|
|
0.54%
|
|
-
|
|
0.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s, except
%)
|
|
|
|
|
|
|
|
|
As at December 31,
2015
|
|
|
Single-Family
|
|
Residential
|
Non-Residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
Retail
Loans
|
|
Total
|
Gross amount of
impaired loans
|
$
|
49,285
|
$
|
-
|
$
|
2,558
|
$
|
1,518
|
$
|
161
|
$
|
53,522
|
Individual allowances
on principal
|
|
(1,652)
|
|
-
|
|
(340)
|
|
(329)
|
|
(161)
|
|
(2,482)
|
Net amount of
impaired loans
|
$
|
47,633
|
$
|
-
|
$
|
2,218
|
$
|
1,189
|
$
|
-
|
$
|
51,040
|
Net impaired loans as
a % of gross loans
|
|
0.37%
|
|
-
|
|
0.15%
|
|
0.32%
|
|
-
|
|
0.28%
|
Allowance for
Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
For the three months
ended December 31, 2016
|
|
Single-family
|
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
|
Retail
Loans
|
|
Total
|
Individual
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance on loan
principal
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
$
|
1,637
|
$
|
-
|
$
|
20
|
$
|
85
|
$
|
302
|
$
|
2,044
|
Provision for credit
losses
|
|
783
|
|
2
|
|
5
|
|
1,164
|
|
157
|
|
2,111
|
Write-offs
|
|
(619)
|
|
(2)
|
|
(5)
|
|
(493)
|
|
(126)
|
|
(1,245)
|
Recoveries
|
|
179
|
|
-
|
|
10
|
|
24
|
|
78
|
|
291
|
|
|
1,980
|
|
-
|
|
30
|
|
780
|
|
411
|
|
3,201
|
Allowance on accrued
interest receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
1,095
|
|
-
|
|
58
|
|
-
|
|
9
|
|
1,162
|
Provision for credit
losses
|
|
246
|
|
-
|
|
40
|
|
-
|
|
3
|
|
289
|
|
|
1,341
|
|
-
|
|
98
|
|
-
|
|
12
|
|
1,451
|
Total individual
allowance
|
|
3,321
|
|
-
|
|
128
|
|
780
|
|
423
|
|
4,652
|
Collective
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
23,032
|
|
327
|
|
9,500
|
|
3,904
|
|
300
|
|
37,063
|
Provision for credit
losses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
23,032
|
|
327
|
|
9,500
|
|
3,904
|
|
300
|
|
37,063
|
Total
allowance
|
$
|
26,353
|
$
|
327
|
$
|
9,628
|
$
|
4,684
|
$
|
723
|
$
|
41,715
|
Total
provision
|
$
|
1,029
|
$
|
2
|
$
|
45
|
$
|
1,164
|
$
|
160
|
$
|
2,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
For the three months
ended September 30, 2015
|
|
Single-family
|
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
|
Retail
Loans
|
|
Total
|
Individual
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance on loan
principal
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
$
|
1,358
|
$
|
-
|
$
|
160
|
$
|
202
|
$
|
167
|
$
|
1,887
|
Provision for credit
losses
|
|
943
|
|
-
|
|
(40)
|
|
280
|
|
212
|
|
1,395
|
Write-offs
|
|
(745)
|
|
-
|
|
(104)
|
|
(420)
|
|
(127)
|
|
(1,396)
|
Recoveries
|
|
81
|
|
-
|
|
4
|
|
23
|
|
50
|
|
158
|
|
|
1,637
|
|
-
|
|
20
|
|
85
|
|
302
|
|
2,044
|
Allowance on accrued
interest receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
1,032
|
|
128
|
|
55
|
|
-
|
|
6
|
|
1,221
|
Provision for credit
losses
|
|
63
|
|
(128)
|
|
3
|
|
-
|
|
3
|
|
(59)
|
|
|
1,095
|
|
-
|
|
58
|
|
-
|
|
9
|
|
1,162
|
Total individual
allowance
|
|
2,732
|
|
-
|
|
78
|
|
85
|
|
311
|
|
3,206
|
Collective
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
23,032
|
|
327
|
|
9,500
|
|
3,904
|
|
300
|
|
37,063
|
Provision for credit
losses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
23,032
|
|
327
|
|
9,500
|
|
3,904
|
|
300
|
|
37,063
|
Total
allowance
|
$
|
25,764
|
$
|
327
|
$
|
9,578
|
$
|
3,989
|
$
|
611
|
$
|
40,269
|
Total
provision
|
$
|
1,006
|
$
|
(128)
|
$
|
(37)
|
$
|
280
|
$
|
215
|
$
|
1,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
Credit Losses (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
For the three months
ended December 31, 2015
|
|
Single-family
|
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
|
Commercial
|
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
Retail
Loans
|
|
Total
|
Individual
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance on loan
principal
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
$
|
1,952
|
$
|
-
|
$
|
405
|
$
|
68
|
$
|
155
|
$
|
2,580
|
Allowance assumed on
purchase of CFF Bank
|
|
-
|
|
-
|
|
-
|
|
420
|
|
-
|
|
420
|
Provision for credit
losses
|
|
1,115
|
|
-
|
|
62
|
|
343
|
|
100
|
|
1,620
|
Write-offs
|
|
(1,531)
|
|
-
|
|
(167)
|
|
(519)
|
|
(123)
|
|
(2,340)
|
Recoveries
|
|
116
|
|
-
|
|
40
|
|
17
|
|
29
|
|
202
|
|
|
1,652
|
|
-
|
|
340
|
|
329
|
|
161
|
|
2,482
|
Allowance on accrued
interest receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
968
|
|
-
|
|
159
|
|
-
|
|
4
|
|
1,131
|
Provision for credit
losses
|
|
(129)
|
|
-
|
|
(102)
|
|
-
|
|
1
|
|
(230)
|
|
|
839
|
|
-
|
|
57
|
|
-
|
|
5
|
|
901
|
Total individual
allowance
|
|
2,491
|
|
-
|
|
397
|
|
329
|
|
166
|
|
3,383
|
Collective
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the period
|
|
22,232
|
|
327
|
|
9,500
|
|
3,541
|
|
300
|
|
35,900
|
Allowance assumed on
purchase of CFF Bank
|
|
-
|
|
-
|
|
-
|
|
324
|
|
-
|
|
324
|
Provision for credit
losses
|
|
-
|
|
-
|
|
-
|
|
25
|
|
-
|
|
25
|
|
|
22,232
|
|
327
|
|
9,500
|
|
3,890
|
|
300
|
|
36,249
|
Total
allowance
|
$
|
24,723
|
$
|
327
|
$
|
9,897
|
$
|
4,219
|
$
|
466
|
$
|
39,632
|
Total
provision
|
$
|
986
|
$
|
-
|
$
|
(40)
|
$
|
368
|
$
|
101
|
$
|
1,415
|
Allowance for
Credit Losses (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
For the year ended
December 31, 2016
|
|
Single-family
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
Commercial
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
Mortgages
|
Mortgages
|
Lines of
Credit
|
|
Retail
Loans
|
|
Total
|
Individual
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance on loan
principal
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
$
|
1,652
|
$
|
-
|
$
|
340
|
$
|
329
|
$
|
161
|
$
|
2,482
|
Provision for credit
losses
|
|
3,415
|
|
2
|
|
205
|
|
2,379
|
|
525
|
|
6,526
|
Write-offs
|
|
(3,608)
|
|
(2)
|
|
(537)
|
|
(2,117)
|
|
(519)
|
|
(6,783)
|
Recoveries
|
|
521
|
|
-
|
|
22
|
|
189
|
|
244
|
|
976
|
|
|
1,980
|
|
-
|
|
30
|
|
780
|
|
411
|
|
3,201
|
Allowance on accrued
interest receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
|
839
|
|
-
|
|
57
|
|
-
|
|
5
|
|
901
|
Provision for credit
losses
|
|
502
|
|
-
|
|
41
|
|
-
|
|
7
|
|
550
|
|
|
1,341
|
|
-
|
|
98
|
|
-
|
|
12
|
|
1,451
|
Total individual
allowance
|
|
3,321
|
|
-
|
|
128
|
|
780
|
|
423
|
|
4,652
|
Collective
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
|
22,232
|
|
327
|
|
9,500
|
|
3,890
|
|
300
|
|
36,249
|
Provision for credit
losses
|
|
800
|
|
-
|
|
-
|
|
14
|
|
-
|
|
814
|
|
|
23,032
|
|
327
|
|
9,500
|
|
3,904
|
|
300
|
|
37,063
|
Total
allowance
|
$
|
26,353
|
$
|
327
|
$
|
9,628
|
$
|
4,684
|
$
|
723
|
$
|
41,715
|
Total
provision
|
$
|
4,717
|
$
|
2
|
$
|
246
|
$
|
2,393
|
$
|
532
|
$
|
7,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
|
|
For the year ended
December 31, 2015
|
|
Single-family
|
Residential
|
Non-residential
|
|
Credit
Card
|
|
Other
|
|
|
|
|
Residential
|
Commercial
|
Commercial
|
|
Loans and
|
|
Consumer
|
|
|
|
|
Mortgages
|
|
Mortgages
|
|
Mortgages
|
Lines of
Credit
|
|
Retail
Loans
|
|
Total
|
Individual
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance on loan
principal
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
$
|
1,808
|
$
|
-
|
$
|
55
|
$
|
80
|
$
|
160
|
$
|
2,103
|
Allowance assumed on
purchase of CFF Bank
|
|
-
|
|
-
|
|
-
|
|
420
|
|
-
|
|
420
|
Provision for credit
losses
|
|
5,136
|
|
4
|
|
720
|
|
798
|
|
169
|
|
6,827
|
Write-offs
|
|
(6,357)
|
|
(9)
|
|
(486)
|
|
(1,005)
|
|
(442)
|
|
(8,299)
|
Recoveries
|
|
1,065
|
|
5
|
|
51
|
|
36
|
|
274
|
|
1,431
|
|
|
1,652
|
|
-
|
|
340
|
|
329
|
|
161
|
|
2,482
|
Allowance on accrued
interest receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
|
560
|
|
-
|
|
57
|
|
-
|
|
3
|
|
620
|
Provision for credit
losses
|
|
279
|
|
-
|
|
-
|
|
-
|
|
2
|
|
281
|
|
|
839
|
|
-
|
|
57
|
|
-
|
|
5
|
|
901
|
Total individual
allowance
|
|
2,491
|
|
-
|
|
397
|
|
329
|
|
166
|
|
3,383
|
Collective
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the
beginning of the year
|
|
20,632
|
|
327
|
|
9,300
|
|
3,541
|
|
300
|
|
34,100
|
Allowance assumed on
purchase of CFF Bank
|
|
-
|
|
-
|
|
-
|
|
324
|
|
-
|
|
324
|
Provision for credit
losses
|
|
1,600
|
|
-
|
|
200
|
|
25
|
|
-
|
|
1,825
|
|
|
22,232
|
|
327
|
|
9,500
|
|
3,890
|
|
300
|
|
36,249
|
Total
allowance
|
$
|
24,723
|
$
|
327
|
$
|
9,897
|
$
|
4,219
|
$
|
466
|
$
|
39,632
|
Total
provision
|
$
|
7,015
|
$
|
4
|
$
|
920
|
$
|
823
|
$
|
171
|
$
|
8,933
|
|
There were no
individual provisions, allowances, or net write-offs on securitized
residential mortgages.
|
Securitization
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
|
|
December
31
|
|
|
September
30
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
2016
|
|
Single-family
|
Multi-unit
|
|
|
Single-family
|
Multi-unit
|
|
|
|
Residential
MBS
|
Residential
MBS
|
Total
MBS
|
Residential
MBS
|
Residential
MBS
|
Total MBS
|
Carrying value of
underlying mortgages derecognized
|
$
|
392,298
|
$
|
314,985
|
$
|
707,283
|
$
|
400,764
|
$
|
242,894
|
$
|
643,658
|
Net gains on sale of
mortgages or residual interest 1
|
|
4,284
|
|
2,722
|
|
7,006
|
|
3,904
|
|
2,151
|
|
6,055
|
Retained interests
recorded
|
|
-
|
|
10,004
|
|
10,004
|
|
-
|
|
10,077
|
|
10,077
|
Servicing liability
recorded
|
|
-
|
|
2,408
|
|
2,408
|
|
-
|
|
2,313
|
|
2,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
|
|
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
Single-family
|
Multi-unit
|
|
|
|
|
|
|
|
Residential
MBS
|
Residential
MBS
|
Total MBS
|
Carrying value of
underlying mortgages derecognized
|
|
|
|
|
|
|
$
|
371,473
|
$
|
161,757
|
$
|
533,230
|
Net gains on sale of
mortgages or residual interest 1
|
|
|
|
|
|
|
|
3,362
|
|
1,366
|
|
4,728
|
Retained interests
recorded
|
|
|
|
|
|
|
|
-
|
|
5,933
|
|
5,933
|
Servicing liability
recorded
|
|
|
|
|
|
|
|
-
|
|
1,278
|
|
1,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000s)
|
|
2016
|
|
2015
|
|
Single-family
|
Multi-unit
|
|
|
Single-family
|
Multi-unit
|
|
|
|
Residential
MBS
|
Residential
MBS
|
Total
MBS
|
Residential
MBS
|
Residential
MBS
|
Total MBS
|
Carrying value of
underlying mortgages derecognized
|
$
|
1,490,850
|
$
|
1,046,457
|
$
|
2,537,307
|
$
|
1,184,253
|
$
|
713,635
|
$
|
1,897,888
|
Net gains on sale of
mortgages or residual interest 1
|
|
17,368
|
|
9,604
|
|
26,972
|
|
15,499
|
|
5,913
|
|
21,412
|
Retained interests
recorded
|
|
-
|
|
41,900
|
|
41,900
|
|
-
|
|
33,228
|
|
33,228
|
Servicing liability
recorded
|
|
-
|
|
8,955
|
|
8,955
|
|
-
|
|
6,229
|
|
6,229
|
¹Gains on sale of
mortgages and residual interest are net of hedging
impact.
|
|
|
|
|
(000s)
|
|
|
For the three months
ended
|
|
December 31,
2016
|
September 30,
2016
|
December 31,
2015
|
Net gain on sale of
mortgages and residual interest1
|
$
|
7,006
|
$
|
6,055
|
$
|
4,728
|
Net change in
unrealized gain or loss on hedging activities
|
|
276
|
|
(121)
|
|
(232)
|
Servicing
income
|
|
1,782
|
|
1,665
|
|
1,264
|
Total securitization
income
|
$
|
9,064
|
$
|
7,599
|
$
|
5,760
|
|
|
|
|
|
(000s)
|
|
2016
|
|
2015
|
Net gain on sale of
mortgages and residual interest 1
|
$
|
26,972
|
$
|
21,412
|
Net change in
unrealized gain or loss on hedging activities
|
|
399
|
|
(313)
|
Servicing
income
|
|
6,426
|
|
5,109
|
Total securitization
income
|
$
|
33,797
|
$
|
26,208
|
¹Gains on sale of
mortgages and residual interest are net of hedging
impact.
|
|
|
|
|
|
Management's Responsibility for Financial Information
The Company's Audit Committee reviewed this document along with
the Company's 2016 Annual and Fourth Quarter Consolidated Financial
Report. The Company's Board of Directors approved both
documents prior to their release. A full description of
management's responsibility for financial information is included
in the Company's 2016 Annual and Fourth Quarter Consolidated
Financial Report.
Caution Regarding Forward-looking Statements
From time to time Home Capital Group Inc. makes written and
verbal forward-looking statements. These are included in the Annual
Report, periodic reports to shareholders, regulatory filings, press
releases, Company presentations and other Company communications.
Forward-looking statements are made in connection with business
objectives and targets, Company strategies, operations, anticipated
financial results and the outlook for the Company, its industry,
and the Canadian economy. These statements regarding expected
future performance are "financial outlooks" within the meaning of
National Instrument 51-102. Please see the risk factors,
which are set forth in detail in the Risk Management section of the
Company's 2016 Annual and Fourth Quarter Consolidated Financial
Report as well as the Company's other publicly filed information,
which is available on the System for Electronic Document Analysis
and Retrieval (SEDAR) at www.sedar.com, for the material factors
that could cause the Company's actual results to differ materially
from these statements. These risk factors are material risk
factors a reader should consider, and include credit risk,
liquidity and funding risk, structural interest rate risk,
operational risk, investment risk, strategic risk, reputational
risk, compliance risk and capital adequacy risk along with
additional risk factors that may affect future results.
Forward-looking statements can be found in the Report to the
Shareholders and the Outlook section in the Annual Report.
Forward-looking statements are typically identified by words such
as "will," "believe," "expect," "anticipate," "intend,"
"should," "estimate," "plan," "forecast," "may," and "could" or
other similar expressions.
By their very nature, these statements require the Company to
make assumptions and are subject to inherent risks and
uncertainties, general and specific, which may cause actual results
to differ materially from the expectations expressed in the
forward-looking statements. These risks and uncertainties
include, but are not limited to, global capital market activity,
changes in government monetary and economic policies, changes in
interest rates, inflation levels and general economic conditions,
legislative and regulatory developments, competition and
technological change. The preceding list is not exhaustive of
possible factors.
These and other factors should be considered carefully and
readers are cautioned not to place undue reliance on these
forward-looking statements. The Company presents forward-looking
statements to assist shareholders in understanding the Company's
assumptions and expectations about the future that are relevant in
management's setting of performance goals, strategic priorities and
outlook. The Company presents its outlook to assist shareholders in
understanding management's expectations on how the future will
impact the financial performance of the Company. These
forward-looking statements may not be appropriate for other
purposes. The Company does not undertake to update any
forward-looking statements, whether written or verbal, that may be
made from time to time by it or on its behalf, except as required
by securities laws.
Assumptions about the performance of the Canadian economy in
2017 and its effect on Home Capital's business are material factors
the Company considers when setting its performance goals, strategic
priorities and outlook. In determining expectations for
economic growth, both broadly and in the financial services sector,
the Company primarily considers historical and forecasted economic
data provided by the Canadian government and its agencies. In
setting and reviewing its performance goals, strategic priorities
and outlook for 2017, management's expectations continue to
assume:
- The Canadian economy is expected to be relatively stable in
2017, supported by expanded Federal Government spending; however,
it will continue to be impacted by adverse effects related to
fluctuations in oil prices and other commodities. The Company has
limited exposure in energy-producing regions.
- Generally the Company expects stable employment conditions in
its established regions; however, unemployment rates in energy
producing regions are expected to remain elevated in 2017. Also the
Company expects inflation will generally be within the Bank of
Canada's target of 1% to 3%,
leading to stable credit losses and consistent demand for the
Company's lending products in its established regions. Credit
losses and delinquencies in the energy-producing regions may
increase, but given the Company's limited exposure, this is not
expected to be significant.
- The Canadian economy will continue to be influenced by the
economic conditions in the United
States and global markets and further adjustments in
commodity prices; as such, the Company is prepared for the
variability to plan that may result.
- The Company is assuming that interest rates will remain at the
current very low rate for 2017. This is expected to continue to
support relatively low mortgage interest rates for the foreseeable
future.
- The Company believes that the current and expected levels of
housing activity indicate a stable real estate market overall.
Please see Market Conditions under the 2017 Overall Outlook section
of the 2016 Annual and Fourth Quarter Consolidated Financial Report
for more discussion on the Company's expectations for the housing
market and the impact of the recent changes unveiled by the
government to the mortgage market.
- The Company expects that consumer debt levels, while elevated,
will remain serviceable by Canadian households.
- The Company will have access to the mortgage and deposit
markets through broker networks.
Non-GAAP Measures
The Company has adopted IFRS as its accounting framework. IFRS
are the generally accepted accounting principles (GAAP) for
Canadian publicly accountable enterprises for years beginning on or
after January 1, 2011. The Company
uses a number of financial measures to assess its
performance. Some of these measures are not calculated in
accordance with GAAP, are not defined by GAAP, and do not have
standardized meanings that would ensure consistency and
comparability between companies using these measures.
Definitions of non-GAAP measures can be found under Non-GAAP
Measures in the Management's Discussion and Analysis included in
the Company's 2016 Annual and Fourth Quarter Consolidated Financial
Report.
Regulatory Filings
The Company's continuous disclosure materials, including interim
filings, annual Management's Discussion and Analysis and audited
consolidated financial statements, Annual Information Form, Notice
of Annual Meeting of Shareholders, and Proxy Circular are available
on the Company's website at www.homecapital.com and on the Canadian
Securities Administrators' website at www.sedar.com.
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 deposits, residential and non-residential
mortgage lending, securitization of insured residential first
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 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.