DOW JONES NEWSWIRES
Citing strong earnings growth and returns from each of its core businesss, Home Capital Group Inc. (Toronto:HCG) (HGC.T) posted a 19% improvement in first-quarter earnings even after taking into account a charge on the sale of Quebecor World Inc. (Toronto:IQW) (IQW.T) preferred shares.
The Toronto holding company, which has residential and commercial mortgage lending, CMHC-insured Mortgage-Backed Securities, and Visa lending operations, earned C$25.2 million or 72 Canadian cents a share in its latest quarter, up from C$21.2 million or 61 Canadian cents a year earlier.
Results in the latest quarter include a charge of C$2.1 million or 6 Canadian cents a share on the sale of Quebecor World preferred shares.
The Thomson Reuters mean estimate was for a profit of 70 Canadian cents a share.
Revenue for the quarter rose to C$106.8 million from C$81.7 million. Return on equity was 27.9% for the quarter, compared with 29.3% a year earlier.
Home Capital (Toronto:HCG) also said William Dimma will retire as chairman on May 14. He will be succeeded by Norman Angus, managing director of Stuart Lammert & Co. It also said Kevin Smith, president and chief executive of St. Joseph's Health Network in Hamilton, Ont., has been named vice-chairman.
-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com
(END) Dow Jones Newswires 05-12-08 0726 Copyright (c) 2008 Dow Jones & Company, Inc.
