TORONTO, Nov. 10, 2014 /CNW/ - Home Trust Company, a wholly owned subsidiary of Home Capital Group Inc. (TSX: HCG) today announced that it intends to apply to the Minister of Finance for a Schedule I bank charter. The proposed bank, which would be called Home Trust Bank in English, and Banque Home Trust in French, would be a wholly owned subsidiary of Home Trust.
Forming a bank subsidiary would give Home Trust greater strategic flexibility in the long run. "The main purpose of applying for the bank charter right now is to help us grow and diversify our deposit base," said Gerald M. Soloway, CEO of Home Trust and Home Capital. "We have been very successful with our Oaken Financial branded deposit products and the bank would support and carry that initiative forward."
Home Trust has traditionally relied primarily upon deposit broker relationships for its funding and will continue to do so. The Oaken Financial products, which are targeted mainly at the direct consumer and small business market, would be carried on by the bank as a separate business. "We see this as a great way to build on the growth potential of our overall business and to continue to build value in Home Capital," said Mr. Soloway.
Home Trust published notice of its intention to apply for a Schedule I bank charter in the Canada Gazette on November 8, 2014. Once the official notice period is over, the Office of the Superintendent of Financial Institutions (OSFI) will review the application and make a recommendation to the Minister of Finance. The receipt by OSFI of an application is not an indication that the application will be successful.
About Home Capital 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 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 deposit brand, Oaken Financial. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to Home Capital's 2013 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
SOURCE: Home Capital Group Inc.
For further information: Gerald M. Soloway, CEO, or Martin Reid, President, 416-360-4663, www.homecapital.com