Home Capital chairman: mortgage lender will fight OSC but focus on business

Home Capital seeks to reassure shareholders

TORONTO — The chairman of Home Capital Group says he remains confident about the lending company’s future despite recently announced allegations against the company, as well as two of its former CEOs and its current chief financial officer.

An open letter by Home Capital chairman Kevin Smith says the company recognizes that shareholder confidence has been shaken by the Ontario Security Commission’s allegations, released Wednesday.

The OSC enforcement staff allege, among other things, that the company and three men misled shareholders through financial statements and conference call comments in 2015. 

Following the OSC’s allegations, Home Capital’s stock (TSX:HCG) lost one-fifth of its value on Thursday, closing at $17.71 — the lowest since August 2009.

The stock regained some of its losses in early Friday following Smith’s letter and the release of Home Capital’s estimated profit for the first quarter.

Under standard accounting rules, Home Capital estimates it had 90 cents per share of diluted earnings for the first quarter and $1.02 per share on an adjusted basis.

A year earlier, GAAP profit was 92 cents per share and adjusted earnings were  96 cents per share.

At mid-morning, Home Capital was at $20.05 — up $2.34 from Thursday’s close but down $2.27 or 10 per cent from Wednesday’s close, prior to the OSC’s announcement.

The Canadian Press

Just Posted

Old timbers grace new Timmy’s

The newest Tim Hortons just outside of Oliver was officially opened Saturday

Penticton Bantam Elks hockey win league title

The Penticton bantam Rec 1 BPO Elks team won the South Central Bantam Recreation Championship

Strong showing for local gymnasts

Local competitors do well in provincials

Okanagan-Similkameen region’s natural beauty subject of photo contest

The South Okanagan Naturalists’ Club invites regional amateur photographers to submit their photos

Penticton Vees erase two-goal deficit to defeat Trail

The Vees take Game 1 of the second round of the BCHL playoffs

VIDEO: B.C. Mounties reunite veteran with lost military medals

RCMP say Zora Singh Tatla, who served in the army in India for 28 years, is the righful owner

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Canucks snap scoreless streak but fall short in 5-3 loss to Sharks

Swiss forward Timo Meier nets two, including the game-winner, to lead San Jose

4 facts to ring in St. Patrick’s Day

What do you really know about the Irish celebration?

Experts urging caution as rabbits die by the hundreds in B.C. city

Province of B.C. confirms more positive tests for rabbit haemorrhagic disease

Federal government seeks public feedback on pedestrian safety

What safety measures do you think need to improved for pedestrians and cyclists?

Search continues for 10-year-old Montreal boy missing since Monday

Montreal police said they are exploring every possibility in search for Ariel Jeffrey Kouakou

Airline passenger-rights bill claws back protections for travellers: Advocate

Bill C-49 would double tarmac delays, scrap compensation for flights affected by mechanical failures

Most Read