Ho-hum, another excellent quarter:
Home Capital Group achieves record first quarter results
Earnings up 23.1%, return on equity 22.4%
Nineteenth consecutive quarter of increasingly positive earnings
Unveils Canada's first new trust company in a decade
TORONTO, April 26 /CNW/ - Home Capital Group Inc. (TSE:HCG.B) today
announced results for the most profitable first quarter in the Company's
history. These results were generated by the Company's wholly owned
subsidiary, Home Trust Company.
Three months ended
March 31
2000 1999
---- ----
Revenue $15,704,200 $11,943,316
Net Income $2,321,812 $1,886,130
Net Income/Share - Basic $0.16 $0.13
-Fully Diluted $0.15 $0.12
Return on equity 22.4% 21.9%
Total Assets $748,835,212 $576,002,378
Avg. No. shares outstanding 14,725,595 14,475,000
- Net earnings rose 23.1% to $2,321,812 or $0.16 per share. This marks
the nineteenth consecutive quarter in which earnings before unusual
items exceeded those of the previous three months.
- The Company achieved return on equity of 22.4 %.
- Effective March 28, 2000, Home Savings & Loan Corporation changed its
name to Home Trust Company, the first time in a decade that a
provincial loan corporation has become a federal trust company serving
the retail market across Canada.
- The Company is on track to meet or exceed its stated goals for the
current year.
Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust company that
offers deposit and mortgage lending services. Licensed to conduct business
across Canada, Home Trust has offices in Ontario, Alberta and British
Columbia.
HOME CAPITAL GROUP INC.
TO OUR SHAREHOLDERS
Home Capital Group Inc., through its wholly owned subsidiary Home Trust
Company, began the new year with a strong first quarter net income of
$2,321,812. This represents an increase of 23.1% over the same period last
year, marking the nineteenth consecutive quarter in which earnings before
unusual items exceeded those of the previous three months.
Other performance indicators reflected significant achievement over the
same period as earnings per share rose from $0.13 to $0.16, return on equity
increased from 21.9% to 22.4%, total assets grew from $576,002,378 to
$748,835,212 and net non-performing loans as a percentage of the gross
mortgage portfolio declined from 0.35% to 0.26%.
Our core business continues to perform exceptionally well and is
expanding through our pursuit of above average returns on above average growth
with below average risk. Business - and business conditions - in our
traditional base of southern Ontario remain strong. First quarter results from
our Calgary and Vancouver offices are meeting expectations and reflecting an
encouraging trend for the future. Our valued network of mortgage brokers
continues to be the mainstay of our mortgage lending business. And the early
results of a new pilot project in Ontario with Scotiabank, in which we would
be designated the preferred alternative provider of first residential
mortgages for its customers, point to healthy growth potential in the future.
Our continued record of excellent performance and our positive outlook
for the balance of this year, represent more than the achievement of immediate
tactical objectives. More importantly, they reflect the strategic foundation
from which your Company will pursue continued growth, profitability and value.
This foundation was further strengthened during the first quarter.
Effective March 9, 2000 we received Letters Patent continuing Home Savings &
Loan Corporation as a federal trust company. Home Trust Company, as Home
Savings has become, is the first provincial loan corporation in a decade to
become a federal trust company serving Canada's national retail market.
This change represents more than just a change in name. It constitutes
the potential for a significant business transformation. It expands our
geographic and business focus from regional to national and from a mortgage
lender towards more diversified product and service offerings. And while
residential mortgage lending will remain our core business activity, we will
now be able to increasingly leverage our experience and leadership serving
customers in our niche market, a market that remains underserved by other
institutions.
Your Company has successfully undertaken two significant activities
simultaneously: 'minding the store' on an increasingly profitable basis year-
over-year while also developing and implementing the strategies that will
position us for further success and the continued generation of value for our
shareholders. The Company is on track to meet or exceed its stated goals for
the current year.
On behalf of the Board of Directors, I invite all shareholders and guests
to attend the Annual Meeting of Shareholders, which will be held in Ballroom B
of the Crowne Plaza Toronto Centre, 225 Front Street West, Toronto, Ontario on
Wednesday, May 24, 2000 at 11:00 a.m. local time. Shareholders and guests are
also invited to join Directors and Management for lunch and refreshments
following the Annual Meeting.
GERALD M. SOLOWAY
President and Chief Executive Officer
April 26, 2000
-0- 04/26/2000
For further information: Gerald M. Soloway, President and Chief Executive Officer, or W. Roy Vincent, Senior Vice President, tel. (416) 360-4663, fax: (416) 363-7611, web: www.homecapital.com
Home Capital Group achieves record first quarter results
Earnings up 23.1%, return on equity 22.4%
Nineteenth consecutive quarter of increasingly positive earnings
Unveils Canada's first new trust company in a decade
TORONTO, April 26 /CNW/ - Home Capital Group Inc. (TSE:HCG.B) today
announced results for the most profitable first quarter in the Company's
history. These results were generated by the Company's wholly owned
subsidiary, Home Trust Company.
Three months ended
March 31
2000 1999
---- ----
Revenue $15,704,200 $11,943,316
Net Income $2,321,812 $1,886,130
Net Income/Share - Basic $0.16 $0.13
-Fully Diluted $0.15 $0.12
Return on equity 22.4% 21.9%
Total Assets $748,835,212 $576,002,378
Avg. No. shares outstanding 14,725,595 14,475,000
- Net earnings rose 23.1% to $2,321,812 or $0.16 per share. This marks
the nineteenth consecutive quarter in which earnings before unusual
items exceeded those of the previous three months.
- The Company achieved return on equity of 22.4 %.
- Effective March 28, 2000, Home Savings & Loan Corporation changed its
name to Home Trust Company, the first time in a decade that a
provincial loan corporation has become a federal trust company serving
the retail market across Canada.
- The Company is on track to meet or exceed its stated goals for the
current year.
Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust company that
offers deposit and mortgage lending services. Licensed to conduct business
across Canada, Home Trust has offices in Ontario, Alberta and British
Columbia.
HOME CAPITAL GROUP INC.
TO OUR SHAREHOLDERS
Home Capital Group Inc., through its wholly owned subsidiary Home Trust
Company, began the new year with a strong first quarter net income of
$2,321,812. This represents an increase of 23.1% over the same period last
year, marking the nineteenth consecutive quarter in which earnings before
unusual items exceeded those of the previous three months.
Other performance indicators reflected significant achievement over the
same period as earnings per share rose from $0.13 to $0.16, return on equity
increased from 21.9% to 22.4%, total assets grew from $576,002,378 to
$748,835,212 and net non-performing loans as a percentage of the gross
mortgage portfolio declined from 0.35% to 0.26%.
Our core business continues to perform exceptionally well and is
expanding through our pursuit of above average returns on above average growth
with below average risk. Business - and business conditions - in our
traditional base of southern Ontario remain strong. First quarter results from
our Calgary and Vancouver offices are meeting expectations and reflecting an
encouraging trend for the future. Our valued network of mortgage brokers
continues to be the mainstay of our mortgage lending business. And the early
results of a new pilot project in Ontario with Scotiabank, in which we would
be designated the preferred alternative provider of first residential
mortgages for its customers, point to healthy growth potential in the future.
Our continued record of excellent performance and our positive outlook
for the balance of this year, represent more than the achievement of immediate
tactical objectives. More importantly, they reflect the strategic foundation
from which your Company will pursue continued growth, profitability and value.
This foundation was further strengthened during the first quarter.
Effective March 9, 2000 we received Letters Patent continuing Home Savings &
Loan Corporation as a federal trust company. Home Trust Company, as Home
Savings has become, is the first provincial loan corporation in a decade to
become a federal trust company serving Canada's national retail market.
This change represents more than just a change in name. It constitutes
the potential for a significant business transformation. It expands our
geographic and business focus from regional to national and from a mortgage
lender towards more diversified product and service offerings. And while
residential mortgage lending will remain our core business activity, we will
now be able to increasingly leverage our experience and leadership serving
customers in our niche market, a market that remains underserved by other
institutions.
Your Company has successfully undertaken two significant activities
simultaneously: 'minding the store' on an increasingly profitable basis year-
over-year while also developing and implementing the strategies that will
position us for further success and the continued generation of value for our
shareholders. The Company is on track to meet or exceed its stated goals for
the current year.
On behalf of the Board of Directors, I invite all shareholders and guests
to attend the Annual Meeting of Shareholders, which will be held in Ballroom B
of the Crowne Plaza Toronto Centre, 225 Front Street West, Toronto, Ontario on
Wednesday, May 24, 2000 at 11:00 a.m. local time. Shareholders and guests are
also invited to join Directors and Management for lunch and refreshments
following the Annual Meeting.
GERALD M. SOLOWAY
President and Chief Executive Officer
April 26, 2000
-0- 04/26/2000
For further information: Gerald M. Soloway, President and Chief Executive Officer, or W. Roy Vincent, Senior Vice President, tel. (416) 360-4663, fax: (416) 363-7611, web: www.homecapital.com |
