Home Capital Group achieves significant growth through nine months
newswire.ca
TORONTO, Oct. 21 /CNW/ - Home Capital Group Inc. (TSE:HCG.B) achieved
significant increases in net income, earnings per share and total assets
through the third quarter and nine months ended September 30, 1999. These
results were recorded by the Company's wholly-owned subsidiary, Home Savings &
Loan Corporation.
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Three months ended
September 30
1999 1998 change
Revenue $13,490,139 $10,914,104 +23.6%
Net Income $2,071,016 $1,496,535 +38.4%
EPS Basic $0.14 $0.12 +16.7%
EPS Fully Diluted $0.13 $0.10 +30.0%
No. Shares O/S 14,795,695 14,849,495
Nine months ended
September 30
1999 1998 change
Revenue $37,942,963 $30,086,376 +26.1%
Net Income $5,915,539 $4,069,398 +45.4%
EPS Basic $0.40 $0.33 +21.2%
EPS Fully Diluted $0.38 $0.27 +40.7%
No. Shares O/S 14,795,695 14,849,495
>>
- Total assets increased by 28.2% to $680,337,431 at September 30, 1999.
- Return on equity for the three and nine month periods stood at 21.9%
and 21.8% respectively.
- Hon. William G. Davis joins board of Home Capital Group Inc.
- The Company expects to exceed all targets for 1999 as outlined in our
1998 annual report.
Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating through its principal subsidiary,
Home Savings & Loan Corporation. Home Savings & Loan was incorporated in 1977
and is a regulated financial institution that offers deposit and mortgage
lending services. The Company services Ontario and Western Canada. Home
Savings & Loan Corporation is an innovative niche player that focuses on
providing residential first mortgages to the self-employed, owners of small
business and other customers.
HOME CAPITAL GROUP INC.
TO OUR SHAREHOLDERS
EARNINGS INCREASED 38.4% OVER THIRD QUARTER OF 1998
Home Capital Group Inc. is proud to announce record earnings. The third
quarter and nine months ended September 30, 1999 saw your Company achieve
significant growth in each of net earnings, earnings per share and total
assets. This performance, recorded through wholly-owned subsidiary Home
Savings & Loan Corporation, provides further indication that we remain firmly
on track not only to achieve, but to exceed, our 1999 objectives for assets,
profits and returns.
Record net earnings for the three months ended September 30, 1999 stood
at $2,071,016, an increase of 38.4% over the third quarter of 1998. Basic
earnings per share of $0.14 were 16.7% higher than in the same period the
previous year and fully diluted earnings per share of $0.13 were 30% higher.
Total assets totaled $680,337,431, an increase of 28.2% from the same time
last year.
For the nine months ended September 30, 1999 net earnings rose by 45.4%
to $5,915,539 while basic earnings per share increased by 21.2% to stand at
$0.40. Fully diluted earnings per share rose 40.7% to $0.38.
Other indicators continued to reflect this positive performance. Return
on equity for the three and nine-month periods stood at 21.9% and 21.8%
respectively, representing strong wealth creating capacity. Risk weighted Tier
1 and Total Capital ratios continued to exceed regulatory standards. First
mortgages and residential properties represented 99.8% and 94.8% of the
mortgage portfolio respectively. Net non-performing loans represented
approximately 0.33% of the mortgage portfolio.
These achievements are attributable to such recent factors as mortgage
portfolio acquisitions and our increasing business activity both inside and
outside Ontario.
During the third quarter we completed the previously announced
acquisition of a mortgage portfolio from Clarica Life Insurance Co., formerly
Mutual Life Assurance Co. In addition, we entered into an agreement to acquire
a $61 million portfolio from CIBC Trust. This portfolio consists of some 500
mainly residential accounts located primarily in Ontario. The first stage of
this transaction closed in September and we expect the balance to be concluded
during the fourth quarter.
Our activity in other provinces is developing as planned and is now
making a positive contribution to the bottom line. Our market penetration
continues to grow in British Columbia, our volumes in Calgary required the
hiring of a second underwriter, and we have transacted our first business in
the Halifax area.
The Company continued to undertake steps to strengthen the long-term
position of its subsidiary, Home Savings & Loan Corporation. Home Savings &
Loan Corporation has published a notice of intention to apply to the Minister
of Finance to be continued as a federal trust company with the name Home Trust
Company, in the English form, and Société de Fiducie Home, in the French form.
The federal trust charter will further enhance the ability of the Company to
provide complementary services to its customers.
This path to continued growth has been further strengthened with the
addition of the Hon. William Davis to our board of directors. Mr. Davis is
Counsel to the law firm of Tory Haythe and serves on the boards of a number of
leading corporations. He served as Premier of the province of Ontario between
1971 and 1985. Mr. Davis' experience in both the private and public sectors
will be a tremendous asset, we welcome his addition to our board, and we look
forward to a long and positive association.
Your Company has completed all renovations and implementation of mission
critical systems pertaining to Year 2000 readiness. Internal testing has
deemed our systems to be Y2K compliant. We continue to monitor the readiness
of third party service providers and expect they will be ready to continue to
provide services to their customers and us. Your financial records will be
fully protected before, on and after January 1, 2000.
The Company recently declared a dividend of 1.5 cents per share payable
on November 12, 1999 to shareholders of record at the close of business on
October 15, 1999.
The Company expects to exceed all targets set for 1999 as set out in our
1998 annual report and is confident that solid growth in earnings, earnings
per share and assets will continue in the fourth quarter and in fiscal 2000.
GERALD M. SOLOWAY
President and Chief Executive Officer
October 21, 1999 |
