TORONTO, June 6, 2012 /CNW/ - Home Capital Group Inc. (TSX: HCG)
successfully held its inaugural Investor Day yesterday, where senior
management provided an update on the Company's ability to continue
delivering sustainable growth and profitability.
The event featured presentations by Gerald M. Soloway, Chief Executive
Officer, Martin Reid, President, and other members of the Home Capital
executive team, and provided in-depth reviews of the Company's major
"We see a long period of sustained growth for Home Capital going
forward," said Gerald Soloway. "We foresee a marketplace where there is
demand for all of our products, and where our prudent risk management
practices, proprietary lending criteria and operational efficiencies
will contribute to Home's position as a leader in the lending
Pino Decina, Sr. Vice President, Residential Mortgage Lending, reviewed
the strong demand in the marketplace for Home Capital's residential
mortgage products. By capitalizing on market opportunities, the Company
will sustain its growth through steady demand for its products.
Approximately 20% of the Canadian marketplace is currently underserved
by larger financial institutions, resulting in a large segment of the
Canadian population that requires residential mortgage financing. Home
Capital has successfully focused on this niche over the past 25 years
and expects that this segment will continue to grow going forward.
Home Capital's Chief Risk Officer, Kerry Reinke, discussed the Company's
prudent risk management practices, including its history of careful
lending and ability to align its risk-taking philosophy with its core
strategy. With a focus on lower-risk borrowers, improving portfolio
credit quality and solid risk management practices, the Company has
maintained an extremely low level of write-offs over the past 15 years.
Home Capital has adopted a conservative financial risk profile,
implemented extensive, customized risk evaluation practices and
controls, and instituted proactive assessments of all risk exposures,
and remains well capitalized to help weather potential economic storms.
Robert Blowes, Chief Financial Officer, reviewed Home Capital's
financial position and discussed balance sheet management
opportunities. Home Capital continues to be a low cost operator,
maintaining an efficiency ratio of approximately 30% over the last 15
years. The SAP operating platform, implemented in 2011, will support
the Company's future growth without a need for commensurate additions
to staff, and has already afforded the Company a number of cost savings
and efficiencies. Management's focus on operational effectiveness and
stringent cost containment provides Home Capital with the ability to
continue delivering consistently strong returns on equity for its
A review of Home Capital's commercial mortgage business was provided by
John Harry, Sr. Vice President, Commercial Mortgage Lending. This
segment of the business is focused on credit quality, profitability and
opportunities in the marketplace. With an asset base of $1 billion, the
commercial mortgage lending line of business provides the Company with
a well-diversified portfolio, with low arrears and strong performance,
and there is ample opportunity for future growth.
Cathy Boon, Vice President, Retail Credit Services, provided an overview
of this profitable and growing business segment. Retail Credit Services
provides installment financing for customers making purchases from
established businesses. The portfolio consists mainly of high margin,
low risk, small ticket items with diversified assets and a broad range
of customers. This line of business is well positioned for further
growth in the home improvement industry and water heater business.
Gerald Soloway also provided an outlook on the Canadian housing and
mortgage market. "The Canadian housing market will generally remain
resilient to global economic uncertainty with a balanced supply and
demand across most of the country," he said. "Canada remains in a very
enviable position with lower unemployment rates, continuing strong real
estate fundamentals and Canadian consumers continuing to perform well
in servicing their debts."
Martin Reid stated, "We feel that the Canadian real estate market will
remain stable despite current economic uncertainty and that we will see
solid growth across all of our business lines. We will build and
maintain our position as Canada's leading alternative financial
institution and we will continue to deliver solid returns for our
The webcast and presentation will be archived on the Company's website
at www.homecapital.com for 90 days following the event.
Caution Regarding Forward-Looking Statements
From time to time Home Capital Group Inc. (the "Company" or "Home
Capital") 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 on pages 48 through 58 of the
Company's 2011 Annual Report, as well as its other publicly filed
information, which are 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 and business risk,
reputational risk and regulatory and legal 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 Company's most recent quarterly report.
Forward-looking statements are typically identified by words such as
"will," "believe," "expect," "anticipate," "estimate," "plan," "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 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
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
deposit, residential and non-residential mortgage lending,
securitization of insured residential first mortgage products, consumer
lending, Visa and payment card services. Licensed to conduct business
across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia and Quebec.
SOURCE Home Capital Group Inc.
For further information:
Gerald M. Soloway, CEO, or
Martin Reid, President