Reuters logo
3 months ago
CORRECTED-UPDATE 1-Home Capital's high-interest accounts balance to slump to C$391 mln
May 1, 2017 / 12:49 PM / 3 months ago

CORRECTED-UPDATE 1-Home Capital's high-interest accounts balance to slump to C$391 mln

2 Min Read

(Corrects to "last month" from "earlier this month" in paragraph 2)

May 1 (Reuters) - Home Capital Group Inc, Canada's biggest non-bank mortgage lender, said the balance in its high-interest savings accounts (HISA) is expected to slump to about C$391 million ($286 million) on Monday, from C$1.4 billion a week ago.

Home Capital has suffered a crisis of confidence since a securities regulator last month alleged its top executives hid mortgage broker fraud from investors, and has hired bankers to advise on funding and strategic options.

While depositors have been withdrawing more cash from savings accounts that help fund Home Capital's mortgage book, the pace of exits have slowed.

The alternative lender said on Friday that about C$290 million was withdrawn from the company's high-interest savings accounts the previous day, compared to C$472 million on Wednesday.

The company, which secured a C$2 billion credit line from Healthcare of Ontario Pension Plan (HOPP) on Thursday, said its unit Home Trust expects to receive an initial draw of C$1 billion on Monday.

Home Capital said that the funding was intended to mitigate the impact of a decline in the HISA deposit balances.

Total deposits in the lender's less-liquid Guaranteed Investment Certificates stood at C$12.86 billion as of April 28, marginally lower than the C$12.97 billion, as of April 26.

$1 = 1.3651 Canadian dollars Reporting by Arathy S Nair in Bengaluru; Editing by Sai Sachin Ravikumar

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below