Toronto, February 8, 2017 - Home Capital Group (“Home Capital” or “the Company”) (TSX: HCG) today reported results for the three and twelve months ended December 31, 2016. This press release should be read in conjunction with the Company’s 2016 Annual and Fourth Quarter Consolidated Financial Report including Financial Statements and Management’s Discussion and Analysis (MD&A), which are available on Home Capital’s website at www.homecapital.com and on SEDAR at www.sedar.com.
Fourth Quarter and Full Year 2016 Highlights
Fourth Quarter 2016, compared with the Fourth Quarter 2015:
Reported net income was $50.7 million and diluted earnings per share were $0.79, compared with $70.2 million and $1.00
Adjusted net income was $63.5 million and adjusted diluted earnings per share were $0.98, compared with $71.8 million and $1.02
djusted net income and adjusted diluted earnings per share exclude the impact of a goodwill impairment charge of $9.0 million net of tax (or $0.13 diluted earnings per share) for the Company’s subsidiary Payment Services Interactive Gateway Inc. (PSiGate), and an intangible asset impairment of $3.8 million net of tax (or $0.06 diluted earnings per share)
Repurchased approximately $5.7 million of common shares in the quarter. Normal Course Issuer Bid (NCIB) renewed through December 2017, providing ability to repurchase common shares up to 10% of the public float.
Year Ended December 31, 2016, compared with Year Ended December 31, 2015:
Reported net income was $247.4 million and diluted earnings per share were $3.71, compared with $287.3 million and $4.09
Adjusted net income was $263.4 million and adjusted diluted earnings per share were $3.95, compared with $288.9 million and $4.11
Adjusted net income and adjusted diluted earnings per share exclude total impact of $16.0 million net of tax or $0.24 diluted earnings per share (1)
Provision for credit losses as a percentage of gross uninsured loans was 0.05%, compared to 0.06%
CET 1 capital ratio of 16.55% and Total capital ratio of 16.97%, well in excess of regulatory minimums and internal targets
Repurchased a total of $199.2 million of common shares inclusive of $150.0 million of common shares through the Substantial Issuer Bid (SIB) and $49.2 million common shares through the NCIB. The resulting outstanding common shares totalled 64,387,519 at the end of 2016
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