Home Capital Provides Business Update and Reports First Quarter 2017 Results

TORONTO, May 11, 2017 /CNW/ - Home Capital Group ("Home Capital" or "the Company") (TSX: HCG) today provided a business update and reported financial results for the three months ended March 31, 2017. This press release should be read in conjunction with the Company's 2017 First Quarter 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.

Brenda Eprile, Chair, Home Capital said, "Home plays a very important role in the Canadian housing market, providing financing for thousands of deserving customers, including entrepreneurs and new Canadians, and we are committed to ensuring the sustainability of this key enterprise. We are taking the steps required to regain the full confidence of Home's stakeholders, most notably by adding four outstanding new directors with considerable expertise in governance and business, and we will continue to look at every opportunity to strengthen Home as we move ahead."

Business Highlights

  • Addition of four new Board members: Claude Lamoureux, Paul Haggis, Sharon Sallows and Alan Hibben; Brenda Eprile named Chair.
  • Total available liquidity and credit capacity of approximately $1.61 billion as of May 9, 2017 including liquid assets of $1.01 billion and $600 million undrawn amount from the $2.0 billion syndicated credit facility.
  • Non-binding agreement reached with independent third party to purchase funded mortgages or accept mortgage commitments and renewals up to a total of $1.5 billion, providing additional sources of funding as the Company repositions the business.
  • Mortgage portfolio continues to perform well; maintaining low provisions for credit losses.
  • The search for a new Chief Executive Officer and Chief Financial Officer are underway.
  • Management continues to work with its financial advisers to identify and explore a number of permanent solutions to strengthen the Company's historically successful underlying business model.

Bonita Then, Interim Chief Executive Officer said, "Management's focus is on finding more sources of funding in the near term so we can be more active serving our customers, and on seeking longer-term solutions that put the business back on track."

First Quarter 2017 Highlights

First Quarter 2017, compared with the First Quarter 2016:

  • Reported net income was $58.0 million and diluted earnings per share were $0.90, compared with $64.2 million and $0.92. Adjusted net income was $65.5 million and adjusted diluted earnings per share were $1.02, compared with $67.5 million and $0.96.
  • Adjusted net income and adjusted diluted earnings per share exclude the impact of a restructuring provision related to Project Expo, the Company's expense savings initiative, of $5.5 million net of tax (or $0.09 diluted earnings per share) and an impairment loss on intangible and other assets for a non-core prepaid card business of $2.0 million net of tax (or $0.03 diluted earnings per share).
  • Traditional single-family residential mortgages balance was $11.42 billion following record first quarter originations.
  • Provision for credit losses as a percentage of gross uninsured loans was 0.16%, compared to 0.04%, primarily related to an increase in the collective allowance of $2.0 million due to growth in the commercial portfolio and a provision of $2.3 million for losses within the non-core prepaid card business.
  • Capital position with CET 1 ratio at 16.34%, well in excess of regulatory minimums and internal targets.
  • The interim consolidated financial statements for the first quarter ended March 31, 2017 were prepared on a going concern basis; however, management believes that material uncertainty exists regarding the Company's future funding capabilities as a result of reputational concerns that may cast significant doubt upon the Company's ability to continue as a going concern. Please see the Outlook and Going Concern Uncertainty section of the 2017 First Quarter Report for further information.

Dividend

Subsequent to the end of the quarter, the Company suspended its dividend to help prudently manage its liquidity position.

(signed)

(signed)

BONITA THEN                                                                        

BRENDA EPRILE

Interim President & Chief Executive Officer                  

Chair of the Board

May 11, 2017 


 

The Company's 2017 First Quarter Financial Report, including Management's Discussion and Analysis, for the three months ended March 31, 2017 is available at www.homecapital.com and on the Canadian Securities Administrators' website at www.sedar.com.

First Quarter 2017 Results Conference Call and Webcast

The conference call will take place on Friday, May 12, 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 Friday, May 12, 2017 and 12:00 a.m. ET Friday, May 19, 2017 by calling 416-849-0833 or 1-855-859-2056 (enter passcode 91746831). 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 June 29, 2017 at 11:00 a.m. ET.

 

FINANCIAL HIGHLIGHTS








(Unaudited)

For the three months ended

(000s, except Percentage and Per Share Amounts)

March 31  

December 31  

March 31  



2017


2016


2016

OPERATING RESULTS







Net Income

$

58,041

$

50,706

$

64,248

Adjusted Net Income1


65,482


63,475


67,497

Net Interest Income


125,857


120,620


122,517

Total Revenue2


147,742


144,597


145,506

Diluted Earnings per Share

$

0.90

$

0.79

$

0.92

Adjusted Diluted Earnings per Share1

$

1.02

$

0.98

$

0.96

Return on Shareholders' Equity


14.1%


12.7%


15.7%

Adjusted Return on Shareholders' Equity1


16.0%


15.9%


16.4%

Return on Average Assets


1.1%


1.0%


1.2%

Net Interest Margin (TEB)3


2.44%


2.38%


2.38%

Provision as a Percentage of Gross Uninsured Loans (annualized)


0.16%


0.07%


0.04%

Provision as a Percentage of Gross Loans (annualized)


0.13%


0.05%


0.03%

Efficiency Ratio (TEB)3


43.4%


48.8%


39.6%

Adjusted Efficiency Ratio (TEB)1,3


36.6%


39.1%


36.3%







As at


March 31  


December 31  


March 31  



2017


2016


2016

BALANCE SHEET HIGHLIGHTS







Total Assets

$

20,993,385

$

20,528,777

$

20,687,984

Total Assets Under Administration4


29,583,545


28,917,534


27,960,592

Total Loans5


18,573,476


18,035,317


17,949,915

Total Loans Under Administration4,5


27,163,636


26,424,074


25,222,523

Liquid Assets


2,098,192


2,067,981


2,459,859

Deposits


16,249,611


15,886,030


15,824,899

Shareholders' Equity


1,665,503


1,617,192


1,661,759

FINANCIAL STRENGTH







Capital Measures6







Risk-Weighted Assets

$

9,086,886

$

8,643,267

$

8,169,818

Common Equity Tier 1 Capital Ratio


16.34%


16.55%


18.28%

Tier 1 Capital Ratio


16.34%


16.54%


18.28%

Total Capital Ratio


16.77%


16.97%


20.63%

Leverage Ratio


7.29%


7.20%


7.46%

Credit Quality







Net Non-Performing Loans as a Percentage of Gross Loans


0.24%


0.30%


0.34%

Allowance as a Percentage of Gross Non-Performing Loans


91.8%


73.4%


62.9%

Share Information







Book Value per Common Share

$

25.94

$

25.12

$

23.75

Common Share Price – Close

$

26.03

$

31.34

$

35.06

Dividend paid during the period ended

$

0.26

$

0.26

$

0.24

Dividend Payout Ratio


28.9%


32.9%


26.1%

Market Capitalization

$

1,671,230

$

2,017,920

$

2,453,008

Number of Common Shares Outstanding


64,204


64,388


69,966

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 2017 First Quarter Report and the Reconciliation of Net Income to Adjusted Net Income in the following table.

2 The Company has revised its definition of Total Revenue and restated amounts in prior periods accordingly.  Please see the revised definition under Non-GAAP Measures in the Company's 2017 First Quarter Report.

3 See definition of Taxable Equivalent Basis (TEB) under Non-GAAP Measures in the Company's 2017 First Quarter Report.

4 Total assets and loans under administration include both on- and off-balance sheet amounts.

5 Total loans include loans held for sale.

6 These figures relate to the Company's operating subsidiary, Home Trust Company.

 








Reconciliation of Net Income to Adjusted Net Income














(000s, except and per share amounts)

Q1


Q4


Q1



2017


2016


2016

Net income

$

58,041

$

50,706

$

64,248

Adjustment for gain recognized on acquisition of CFF Bank (net of tax)


-


-


(478)

Adjustment for severance and other related costs (net of tax)


-


-


3,727

Adjustment for goodwill impairment loss (net of tax)


-


9,000


-

Adjustment for impairment loss on intangible and other assets (net of tax)


1,981


3,769


-

Adjustment for project EXPO restructuring charges (net of tax)


5,460


-


-

Adjusted net income

$

65,482

$

63,475

$

67,497

Adjusted basic earnings per share

$

1.02

$

0.98

$

0.96

Adjusted diluted earnings per share

$

1.02

$

0.98

$

0.96

 

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.

The Company's results were affected by the following items of note that aggregated to a negative impact of $7.4 million, net of tax, or $0.12 diluted earnings per share in Q1 2017:

  • $7.4 million of restructuring charges in relation to the Company's expense savings initiative, Project EXPO ($5.5 million net of tax and $0.09 diluted earnings per share). Please see the Non-Interest Expenses section of the 2017 First Quarter Report for more information.
  • $2.7 million of impairment losses on intangible and other assets related to the non-core prepaid card business ($2.0 million net of tax and $0.03 diluted earnings per share). Please see the Non-Interest Expenses section of the 2017 First Quarter Report for more information.

The Company's results were also affected by the following items of note that aggregated to a negative impact of $12.8 million, net of tax, or $0.19 diluted earnings per share in Q4 2016:

  • $9.0 million of goodwill impairment loss related 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).

The Company's results were also affected by the following items of note that aggregated to a negative impact of $3.2 million, net of tax, or $0.04 diluted earnings per share in Q1 2016:

  • $5.1 million of expenses including severance and other related costs ($3.7 million net of tax and $0.05 diluted earnings per share).
  • $651 thousand for a positive adjustment to the gain recognized on the acquisition of CFF Bank ($478 thousand net of tax and $0.01 diluted earnings per share).

 

Consolidated Statements of Income


For the three months ended

thousands of Canadian dollars, except per share amounts

March 31

December 31

March 31

(Unaudited)


2017


2016


2016

Net Interest Income Non-Securitized Assets







Interest from loans

$

192,435

$

190,389

$

193,546

Dividends from securities


2,286


2,614


2,692

Other interest


2,920


2,514


2,528



197,641


195,517


198,766

Interest on deposits and other


77,252


78,868


77,685

Interest on senior debt


-


-


1,778

Net interest income non-securitized assets


120,389


116,649


119,303








Net Interest Income Securitized Loans and Assets







Interest income from securitized loans and assets


21,558


19,923


20,093

Interest expense on securitization liabilities


16,090


15,952


16,879

Net interest income securitized loans and assets


5,468


3,971


3,214








Total Net Interest Income


125,857


120,620


122,517

Provision for credit losses


5,919


2,400


1,394



119,938


118,220


121,123

Non-Interest Income







Fees and other income


16,331


17,613


19,165

Securitization income


6,432


9,064


7,682

Gain on acquisition of CFF Bank


-


-


651

Net realized and unrealized losses on securities


(3)


-


(175)

Net realized and unrealized losses on derivatives


(875)


(2,700)


(4,334)



21,885


23,977


22,989



141,823


142,197


144,112

Non-Interest Expenses







Salaries and benefits


29,619


24,134


28,711

Premises


3,752


3,607


3,851

Other operating expenses


31,094


43,287


25,455



64,465


71,028


58,017








Income Before Income Taxes


77,358


71,169


86,095

Income taxes








Current


23,142


22,941


20,086


Deferred                                                                         


(3,825)


(2,478)


1,761



19,317


20,463


21,847

NET INCOME

$

58,041

$

50,706

$

64,248








NET INCOME PER COMMON SHARE







Basic

$

0.90

$

0.79

$

0.92

Diluted

$

0.90

$

0.79

$

0.92

AVERAGE NUMBER OF COMMON SHARES OUTSTANDING







Basic


64,263


64,479


69,972

Diluted


64,294


64,519


70,047








Total number of outstanding common shares


64,204


64,388


69,966

Book value per common share

$

25.94

$

25.12

$

23.75


 

Consolidated Statements of Comprehensive Income


For the three months ended


March 31

December 31

March 31

thousands of Canadian dollars (Unaudited)


2017


2016


2016








NET INCOME

$

58,041

$

50,706

$

64,248








OTHER COMPREHENSIVE INCOME (LOSS)














Available for Sale Securities and Retained Interests







Net unrealized gains (losses)


16,414


12,774


(13,014)

Net losses reclassified to net income


3


-


204



16,417


12,774


(12,810)

Income tax expense (recovery)


4,358


3,391


(3,421)



12,059


9,383


(9,389)








Cash Flow Hedges







Net unrealized (losses)  gains


(85)


(1,677)


3,221

Net losses reclassified to net income


329


174


364



244


(1,503)


3,585

Income tax expense (recovery)


72


(398)


951



172


(1,105)


2,634








Total other comprehensive income (loss)


12,231


8,278


(6,755)








COMPREHENSIVE INCOME

$

70,272

$

58,984

$

57,493


 

Consolidated Balance Sheets








As at



March 31

December 31

thousands of Canadian dollars (Unaudited)


2017


2016

ASSETS





Cash and Cash Equivalents

$

1,251,190

$

1,205,394

Available for Sale Securities


549,456


534,924

Loans Held for Sale


40,721


77,918

Loans





Securitized mortgages


2,647,014


2,526,804

Non-securitized mortgages and loans


15,885,741


15,430,595




18,532,755


17,957,399

Collective allowance for credit losses


(39,063)


(37,063)




18,493,692


17,920,336

Other





Restricted assets


140,325


265,374

Derivative assets


33,480


37,524

Other assets


347,477


348,638

Deferred tax assets


18,048


16,914

Goodwill and intangible assets


118,996


121,755




658,326


790,205



$

20,993,385

$

20,528,777

LIABILITIES AND SHAREHOLDERS' EQUITY





Liabilities





Deposits





Deposits payable on demand

$

2,377,400

$

2,531,803

Deposits payable on a fixed date


13,872,211


13,354,227




16,249,611


15,886,030

Securitization Liabilities





CMHC-sponsored mortgage-backed security liabilities


922,377


898,386

CMHC-sponsored Canada Mortgage Bond liabilities


1,474,539


1,637,117

Bank-sponsored securitization conduit liabilities


250,129


114,146




2,647,045


2,649,649

Other





Derivative liabilities


2,871


3,490

Other liabilities


394,762


336,132

Deferred tax liabilities


33,593


36,284




431,226


375,906




19,327,882


18,911,585

Shareholders' Equity





Capital stock


85,194


84,910

Contributed surplus


4,725


4,562

Retained earnings


1,618,418


1,582,785

Accumulated other comprehensive loss


(42,834)


(55,065)




1,665,503


1,617,192



$

20,993,385

$

20,528,777


 

Consolidated Statements of Changes in Shareholders' Equity




















Net Unrealized








Losses

Net Unrealized

Total






on Securities and

Losses on

Accumulated









Retained Interests

Cash Flow

Other

Total

thousands of Canadian dollars,

Capital

Contributed

Retained

Available

Hedges,

Comprehensive

Shareholders'

except per share amounts (Unaudited)

Stock

Surplus

Earnings

for Sale, after Tax

after Tax

Loss

Equity

Balance at December 31, 2016

$

84,910

$

4,562

$

1,582,785

$

(53,589)

$

(1,476)

$

(55,065)

$

1,617,192

Comprehensive income


-


-


58,041


12,059


172


12,231


70,272

Stock options settled


548


(141)


-


-


-


-


407

Amortization of fair value of
















employee stock options            


-


304


-


-


-


-


304

Repurchase of shares


(264)


-


(5,698)


-


-


-


(5,962)

Dividends















($0.26 per share)


-


-


(16,710)


-


-


-


(16,710)

Balance at March 31, 2017

$

85,194

$

4,725

$

1,618,418

$

(41,530)

$

(1,304)

$

(42,834)

$

1,665,503
















Balance at December 31, 2015

$

90,247

$

3,965

$

1,592,438

$

(62,466)

$

(3,078)

$

(65,544)

$

1,621,106

Comprehensive income


-


-


64,248


(9,389)


2,634


(6,755)


57,493

Stock options settled


53


(12)


-


-


-


-


41

Amortization of fair value of
















employee stock options


-


277


-


-


-


-


277

Repurchase of shares


(17)


-


(346)


-


-


-


(363)

Dividends















($0.24 per share)


-


-


(16,795)


-


-


-


(16,795)

Balance at March 31, 2016

$

90,283

$

4,230

$

1,639,545

$

(71,855)

$

(444)

$

(72,299)

$

1,661,759


 

Consolidated Statements of Cash Flows



For the three months ended




March 31

March 31

thousands of Canadian dollars (Unaudited)


2017


2016

CASH FLOWS FROM OPERATING ACTIVITIES





Net income for the period

$

58,041

$

64,248

Adjustments to determine cash flows relating to operating activities:






Amortization of net discount on securities


(86)


(135)


Provision for credit losses


5,919


1,394


Gain on sale of mortgages or residual interest


(4,738)


(5,935)


Net realized and unrealized losses on securities


3


175


Amortization and impairment losses¹


6,219


3,646


Amortization of fair value of employee stock options                                               


304


277


Deferred income taxes


(3,825)


1,761

Changes in operating assets and liabilities






Loans, net of securitization and sales


(537,269)


323,494


Restricted assets


125,049


(97,716)


Derivative assets and liabilities


3,669


43


Accrued interest receivable


(512)


1,493


Accrued interest payable


19,648


17,779


Deposits


363,581


158,941


Securitization liabilities


(2,604)


(46,724)


Taxes receivable or payable and other


33,807


(47,225)

Cash flows provided by operating activities


67,206


375,516

CASH FLOWS FROM FINANCING ACTIVITIES





Repurchase of shares


(5,962)


(363)

Exercise of employee stock options


407


41

Dividends paid to shareholders


(16,710)


(16,795)

Cash flows used in financing activities


(22,265)


(17,117)

CASH FLOWS FROM INVESTING ACTIVITIES





Activity in securities






Purchases


(5,803)


(85,419)


Proceeds from maturities


9,051


37,171

Purchases of capital assets


(56)


(224)

Capitalized intangible development costs


(2,337)


(5,024)

Cash flows provided by (used in) investing activities


855


(53,496)

Net increase in cash and cash equivalents during the period


45,796


304,903

Cash and cash equivalents at beginning of the period


1,205,394


1,149,849

Cash and Cash Equivalents at End of the Period

$

1,251,190

$

1,454,752

Supplementary Disclosure of Cash Flow Information





Dividends received on investments

$

3,028

$

2,779

Interest received


215,644


217,384

Interest paid


73,694


76,619

Income taxes paid


20,222


27,479

¹Amortization and impairment losses include amortization on capital and intangible assets and impairment losses on intangible assets.


 

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 2017 First Quarter 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 and Going Concern Uncertainty section in the 2017 First Quarter 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.  Please also refer to the Outlook and Going Concern Uncertainty section of the 2017 First Quarter Report for risks and uncertainties related to the Company's going concern assessment.  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 the remainder of 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 Outlook and Going Concern Uncertainty section in the 2017 First Quarter Report for more discussion on the Company's expectations for the housing market and the impact of the changes to the mortgage market unveiled by the government in the second half of 2016.

  • 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. However, this access has been and will be reduced in light of the reputational and liquidity events that have occurred at the end of the quarter and continued into the second quarter. The degree to which such access may decline is currently uncertain. Please see the Outlook and Going Concern Uncertainty section in the 2017 First Quarter Report for further information.

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 2017 First Quarter 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.

About Home Capital

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.

For further information: Media: Boyd Erman, Longview Communications Inc., (416) 649-8007, berman@longviewcomms.ca; or Peter Block, Longview Communications Inc., (416) 649-8008, pblock@longviewcomms.ca; Investors: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652, laura.lepore@hometrust.ca

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http://www.homecapital.com

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