/C O R R E C T I O N from Source -- Home Capital Group Inc./

• Net income of $7.5 million, compared with $247.4 million.
• Net income includes $223.6 million of expenses directly associated with the Q2 2017 liquidity event.
• Diluted earnings per share of $0.10 compared to diluted earnings per share of $3.71.
• Total loans under administration of $22.51 billion, a decrease of 14.8% or $3.91 billion from $26.42 billion.
• Provision for credit losses as a percentage of gross uninsured loans was 0.07%, compared to 0.05%.

Corporate Update

Home Capital ended 2017 with a strong capital position, poised for sustainable growth and with a clear goal of regaining its leading market share position in Canada's Alt-A mortgage market.

Management and the Board of Directors are focused on completing a strategy that will take advantage of the Company's capital position and balance sheet to invest in the business, drive profitable growth and create long-term shareholder value. 

In the near term, management's key areas of focus are:

In addition, the Company is operating in the context of an evolving regulatory landscape that will affect its primary residential mortgage market, although the extent of any impact is not yet clear. Management and the Board of Directors will continue to assess opportunities for the business as it relates to the current environment during the first and second quarters of 2018.

Fourth Quarter 2017 Financial Position

• Total loans under administration of $22.51 billion, which includes securitized mortgages that qualify for off-balance sheet accounting, decreased by 14.8% or $3.91 billion from $26.42 billion at the end of 2016, and 3.1% or $719.2 million from $23.23 billion at the end of Q3 2017.
• Total loans of $15.06 billion declined 16.5% from $18.04 billion at the end of 2016, and 2.4% from $15.43 billion at the end of Q3 2017. 
• Total mortgages originated of $872.1 million, compared to $2.43 billion in Q4 2016 and $385.1 million in Q3 2017. 
• Single-family residential mortgage originations of $566.0 million in Q4 2017, compared with $1.78 billion in Q4 2016 and $224.0 million in Q3 2017.
• Multi-unit residential mortgage originations of $194.8 million, compared to $371.5 million in Q4 2016 and $99.1 million in Q3 2017. Multi-unit residential mortgage originations are mostly insured and subsequently securitized through programs that qualify for off-balance sheet accounting.
• Non-residential commercial mortgage originations, which include store and apartment mortgages, of $111.2 million, compared to $277.3 million in Q4 2016 and $62.0 million in Q3 2017.
• Liquid assets were $1.65 billion, compared to $2.07 billion at the end of 2016 and $2.66 billion at September 30, 2017.  The Company maintains a prudent level of liquidity, given the current level of operations, loan balances and the Company's obligations.
• Total deposits were $12.17 billion, compared to $15.89 billion at the end of 2016 and $13.36 billion at the end of Q3 2017.
• The decrease in deposits from the end of last year reflects the elevated level of redemptions of the Company's High-Interest Savings Accounts during the Q2 2017 liquidity event and lower funding requirements due to lower loan balances. 
• The decrease in deposits from the end of last quarter reflects the Company's intentional actions to slow the inflow of deposits to match expected mortgage originations.  During the third quarter, the Company decided to offer premium rates on deposits to increase inflows following the Q2 2017 liquidity event.  The growth of deposits outpaced loan growth and created a drag on earnings. Consequently, by the end of the third quarter, the Company reduced interest rates on new deposits to intentionally lower deposits until mortgage balances began to grow.
• The Company created net deposits inflows mid-way through the fourth quarter by increasing interest rates paid on new and renewed deposits to meet expected mortgage funding requirements.  It is expected that the Company may be required to offer higher interest rates on new deposits in future periods.  It is assumed that any such increases could be offset by increased interest rates charged on mortgages originated or renewed in future periods. Any inability to pass on any increased funding costs would negatively impact net interest margins.

Credit Quality

The loan portfolio remained strong with the level of credit losses and non-performing loans remaining low. Provision for credit losses (PCL) for the quarter was $3.4 million, compared to $2.4 million in Q4 2016 and a $4.3 million release in Q3 2017.

• The annualized credit provision as a percentage of gross uninsured loans was 0.12%, compared to 0.07% in Q4 2016 and (0.14)% in Q3 2017. 
• The increase in the PCL ratio over last year resulted from a specific provision of $2.2 million against one non-residential commercial mortgage.  The negative PCL ratio in the third quarter resulted from the reduction of $6.5 million in the collective allowance for the non-residential commercial portfolio related to asset sales (see Note 5(H) of the consolidated financial statements for more information).  In the absence of this reduction, the PCL ratio in Q3 2017 would have been 0.07%.
• Net non-performing loans as a percentage of gross loans ended 2017 at 0.30%, compared to 0.28% at the end of Q3 2017 and unchanged from the end of 2016. 
• Although the percentage of net non-performing loans over gross loans was consistent year over year and sequentially, there was a significant change in the mix of net non-performing residential and commercial mortgages. 
• The net amount of non-performing non-residential commercial mortgages increased to $13.7 million at Q4 2017 from $4.5 million at Q4 2016 and $6.2 million at Q3 2017, and the net amount of non-performing single-family residential mortgages decreased to $30.1 million from $47.9 million at Q4 2016 and $36.1 million at Q3 2017.
• Total net non-performing loan balances decreased to $45.4 million at Q4 2017 from $53.7 million at Q4 2016 and increased from $43.6 million at Q3 2017.
• The Company adopted IFRS 9 beginning January 1, 2018. The impact of the adoption of IFRS 9 is not expected to be significant. Additional information on the impacts of IFRS 9 will be made available in the Company's Report to Shareholders for the first quarter of 2018.

Capital Position

The Company maintained strong capital ratios well above Company targets and regulatory minimums at the end of 2017. Management continues to review opportunities to deploy capital in the most efficient manner to maximize shareholder value.

• Home Trust's Common Equity Tier 1 and Total capital ratios remained very strong at 23.17% and 23.68%, respectively, at December 31, 2017. The comparative balances were 16.55% and 16.97%, respectively, at December 31, 2016.
• Home Trust's Leverage ratio was 8.70% at December 31, 2017 and 7.20% at December 31, 2016.

Looking Forward

Looking to 2018, the Company's strong capital position and balance sheet, stable deposit funding base and ample liquidity provide a solid foundation for future investment in the business and to be competitive in the Canadian market.

Management is confident it is well-positioned to deliver sustainable loan growth as well as improved execution and service levels to increase market share. As the business grows, management and the Board are committed to the ongoing enhancement of risk management and corporate governance practices to grow the business responsibly. Creating long-term shareholder value and resuming Home Capital's nearly 30-year track record of profitable growth are priorities for the Company.

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

Fourth Quarter and Year-End 2017 Results Conference Call and Webcast

The conference call will take place on Thursday, February 15, 2018, 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. A webcast slide presentation 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 Thursday, February 15, 2018 and 12:00 a.m. ET Thursday, February 22, 2018 by calling 416-849-0833 or 1-855-859-2056 (enter passcode 8574149). 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.

Financial Highlights
	For the three months ended						For the year ended
(000s, except Percentage and Per Share Amounts)	December 31		September 30		December 31		December 31		December 31
		2017		2017		2016		2017		2016
OPERATING RESULTS
Net Income	$	30,619	$	29,983	$	50,706	$	7,527	$	247,396
Net Interest Income		91,718		88,762		120,620		302,930		485,164
Total Revenue1		109,455		95,407		144,597		291,311		581,959
Diluted Earnings per Share	$	0.38	$	0.37	$	0.79	$	0.10	$	3.71
Return on Shareholders' Equity		6.8% Werbung Mehr Nachrichten zur Home Cap. Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Invesco Bond Income Plus Ltd - Issue of Equity 24.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59