TORONTO, April 21, 2017 /CNW/ - Home Capital Group Inc.
(the "Company", TSX: HCG) today pre-announced preliminary,
unaudited first-quarter earnings per share and released a message
to shareholders from Kevin Smith,
Chair of the Company's Board of Directors.
Home Capital expects to report earnings of $0.90 on a diluted earnings per share basis, and
$1.02 on an adjusted diluted earnings
per share basis. This compares to $0.92 and $0.96 a
year ago.
The increase in adjusted diluted earnings per share was driven
by strong results in the Company's core residential mortgage
business and progress made in improving mortgage discharges, which
together produced an increase in loans under administration. The
Company also made strides on expense savings initiatives.
Credit quality remains high and net non-performing loans are
0.24% compared to 0.34% a year ago. The Company's capital ratios
continue to be strong.
The Company plans to report full results as scheduled on
May 3.
Message to Shareholders
Dear Fellow Shareholders,
I am writing on behalf of the Board of Directors of Home Capital
Group, to put into context recent events and explain directly to
you why we remain confident about the Company and its
future.
As these preliminary first-quarter numbers show, the business is
robust and on the right track. We continue to build momentum as the
efforts we have put into improving our operations bear fruit.
Established over three decades ago, Home Capital is a
fundamentally strong company, built on a solid foundation and a
good business model that addresses an important market niche. We
strongly believe that this model and our focused strategy set us up
for continued long-term success.
I recognize that we have had our share of challenges recently
and the confidence of our stakeholders has been understandably
shaken. I also know that the best way for us to move forward is to
view these challenges as opportunities to improve the way we do
business and to regain your confidence and our strong reputation.
That's what we will be doing in the coming weeks and months while
focusing on executing our strategy and delivering on our
goals.
We continue to see strong volumes and excellent credit quality,
demonstrating the underlying strength of our model and strategy. We
are optimistic that the positive trends we have seen in our
business will continue to build.
However, the Board believes the business could and should be
doing even better. For that reason, the Board took the decision
last month to replace our chief executive officer. More rapid
execution of our strategy must remain our focus, with an emphasis
on effective implementation of cost containment actions.
We are fortunate to have an experienced management team that is
working with our interim CEO, Bonita
Then, to effectively implement our strategy while we search
for the right long-term leader. Our people are hard at work serving
our customers and driving our business and we remain confident that
Home Capital is in excellent hands.
In closing, we will continue to vigorously defend our approach
to disclosure in the Ontario Securities Commission (OSC)
proceeding. While the OSC process may take some time, management
and the Board are focused on continued profitable growth and
industry leading customer service.
We look forward to updating you on our accomplishments when we
report full first-quarter results in May.
Thank you for your support,
Kevin Smith,
Chair of the Board
Home Capital Group and Home Trust
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.