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

Skid Steer stolen from Sparwood Transfer Station

Elk Valley RCMP are seeking the public’s assistance with a theft that… Continue reading

Golf pro has big plans for Sparwood Golf Course

Golf pro looks to a promising future for golf in Sparwood

Ghostriders show grit and tenacity

Hard work and heartbreak; a reoccurring theme in Fernie’s past two hockey… Continue reading

Fernie Swim team aims for Nationals

Aidan Chudleigh has high hopes for his swim team this year, and… Continue reading

Jaffray Area OCP goes to public hearing

The public hearing will be held November 22nd at 7:00 PM at the Jaffray Community Hall.

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

Sparwood florist to compete nationally

The Maple Leaf Cup; where art and flower design meet under one… Continue reading

‘An officer and a gentleman’: Const. John Davidson is laid to rest

Thousands attend memorial service for slain Abbotsford Police officer

VIDEO: Coquihalla closed both directions near Merritt

Detours are available via Hwy. 8 and Hwy. 1

VIDEO: The Last Jedi is going to be the longest ‘Star Wars’ movie yet

Newest movie in the franchise will beat Star Wars: Episode II - Attack of the Clones

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week.

PHOTOS: Procession and funeral for Const. John Davidson

Thousands attended celebration of life for Abbotsford police officer

B.C. Liberal leadership candidates debate different paths for party

Third debate held Sunday, Nov. 19 at Nanaimo’s Vancouver Island Conference Centre

Apology to Canadians persecuted for being gay coming Nov. 28: Trudeau

Thousands were fired from the military, RCMP and public service because of their sexual orientation

Most Read