Home Capital cited as "best franchise in the Canadian financial services industry"
newswire.ca
TORONTO, Oct. 23 /CNW/ - Home Capital Group Inc. (TSX:HCG.B) has been
cited in an investment research study as "the best 'franchise' in the Canadian
financial services industry, bar none."
The research study, conducted by Sprott Securities Inc., examined 50 of
Canada's top financial services companies, including asset management,
banking, insurance, capital markets, diversified financials and non-bank
lending companies. The major criteria for ranking these institutions were
return on equity, consistency of earnings (as measured by standard deviation),
and earnings retention rates.
Based on these criteria, Home Capital emerged in the study as the best
franchise in the industry, followed by the Bank of Nova Scotia, Manulife,
Power Financial, Great West Life, Canadian Western Bank and RBC Financial
Group.
The study also noted: "The Company enjoys the distinction of being the
best performing financial services stock in Canada over the past 10 years...
Home Capital's ROAE (Return on Average Equity) is nearly double that of the
banking industry and its retention rate stands at 90% while the average bank
stands at 55%... Home Capital's net interest margins are higher than all of
the banks and its loan loss track record is far superior to any bank in
Canada."
"We are very pleased that Home Capital's long-term earnings performance,
continuing earnings stability and strong potential for growth have been
recognized in the Sprott study," said Gerald Soloway, President and CEO of
Home Capital Group.
Home Capital's long-term performance is reflected in the price of its
shares on the TSX. A $100 investment made in the TSX 300 Total Return Index at
December 31, 1995 would at December 31, 2002 be worth $157. That same $100
invested in Home Capital Group would be worth $3,527 at December 31, 2002.
Since December 31, 2002, the value of Home Capital's shares on the TSX has
appreciated by approximately 100%.
About Home Capital Group
Home Capital Group (TSX: HCG.B) operates through its principal
subsidiary, Home Trust Company, a federally regulated trust company whose
primary business is offering residential, first mortgages. Home Trust also
provides deposit, retail credit and credit card issuing services. It has
offices in Ontario, Alberta, B.C. and Nova Scotia, and is licensed to conduct
business across Canada.
About Sprott Securities Inc.
Sprott Securities Inc. is a Canadian investment dealer specializing in
small and mid capitalization North American public companies.
During the past 36 months Sprott Securities Inc. has received fees from
Home Capital Group Inc. for investment banking services including acting as
lead underwriter in respect of an offering of subordinate voting shares.
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For further information: Gerald M. Soloway, President & CEO,
(416) 360-4663, soloway@hometrust.ca, www.homecapital.com |
