- Gerald Soloway to Retire From
Board Upon Naming of a Replacement
- Robert Blowes to Become Interim
Chief Financial Officer Following Q1 Filing
- Home Retains Wide Access to Deposit Broker Channel
TORONTO, April 24, 2017 /CNW/ - Home Capital Group Inc.
("the Company" TSX: HCG) today announced several board and
management changes. Gerald Soloway,
the Founder of the Company, has indicated that he will step down
from the board when a replacement with recognized expertise in
financial services is named. Robert
Blowes will assume the role of interim Chief Financial
Officer following the filing of the Company's first-quarter
results, at which time Robert Morton
will assume responsibilities for special projects outside the
financial reporting group.
Also, The Bank of Nova Scotia
has advised Home Capital it will resume sales of Home Trust deposit
products today, subject to a $100,000
per-client cap.
"These are important steps in rebuilding confidence and putting
the focus back on our profitable underlying business and its solid
performance," said Kevin Smith,
chair of the board of Home Capital. "We know that we have not met
the full expectations of some of our valued stakeholders, which we
deeply regret. These changes will ultimately result in enhanced
management and governance leadership, and bring valuable new
perspectives to Home Capital."
Mr. Smith added: "We value our relationship with all of our
deposit brokers. We are in close contact with them, and work
diligently to ensure the widest possible access to our
products."
Home Capital's business is profitable and robust, with low loan
loss rates, as demonstrated by preliminary first quarter financial
results released on April 21. The
Company is committed to a solid balance sheet, and maintains
capital ratios well in excess of regulatory minimums.
Board and Management Changes
Mr. Soloway feels it is in the best interests of the company if
he steps down as soon as the board has attracted a strong director
with financial services expertise.
The Company has a short list of well-qualified board candidates,
and intends to identify a replacement for Mr. Soloway as soon as
possible. In the meantime, Mr. Soloway will stand for re-election
to the board at the May 11 Annual
General Meeting (AGM).
Mr. Blowes will serve as interim CFO until the Company concludes
its search for a new CEO, who will select a permanent replacement.
The Company is actively recruiting a CEO, and a successor will be
named as soon as possible. This is a priority for the board.
Mr. Blowes joined the Company as senior vice-president, Finance,
in 2010 and was promoted to CFO in 2012. He served as CFO until his
retirement in December 2014. During
the period from his retirement until his May
2015 election to the board, he was not involved in the
operations or financial management of the Company.
"We are pleased to welcome someone as experienced as
Bob Blowes back into the role of
CFO," said Bonita Then, interim CEO
of Home Capital. "Bob brings additional strength to the team, and
will be a valuable resource as we push ahead with the execution of
our strategy."
Prior to joining the Company, Mr. Blowes was a Partner at Ernst
& Young for 25 years and was part of the Financial Services
Industry Group for more than 10 years.
Mr. Blowes, currently a director of the Company, will stand for
re-election at the AGM.
Deposit Offerings Update
Home Trust deposit products remain available through most
leading Canadian financial institutions. Some of these (including
Scotiabank) have instituted a cap of $100,000 – the upper limit for Canada Deposit
Insurance Corp. insurance.
Home Trust may offer clients at these brokers the right to
transfer balances in excess of $100,000 to the Company's federally regulated
banking subsidiary, Home Bank, which is a member of Canada Deposit
Insurance Corp.
"Home Trust's deposit products remain widely available across
Canada, as they have been for many
years, providing Canadians with attractive yields supported by our
profitable business and 30-year track record of success," said Ms.
Then.
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.