Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Canada's Home Capital's savings deposit balances decline

Published 2017-05-19, 04:53 p/m
Updated 2017-05-19, 05:00 p/m
© Reuters.  Canada's Home Capital's savings deposit balances decline

© Reuters. Canada's Home Capital's savings deposit balances decline

TORONTO, May 19 (Reuters) - Canada's biggest non-bank lender Home Capital Group Inc HCG.L on Friday published data showing that its high interest savings account balances declined on Thursday.

Home Capital has been struggling to finance its assets as its high interest deposit account balances have fallen by more than 90 percent since March 27, when the company terminated the employment of former Chief Executive Martin Reid.

The withdrawals accelerated after April 19, when Canada's biggest securities regulator, the Ontario Securities Commission, accused Home Capital of making misleading statements to investors about its mortgage underwriting business. The company has said the accusations are without merit.

Home Capital said its high-interest rate savings deposit balances stood at C$116.2 million ($88.4 million) on Thursday, compared with C$120.2 million the day before.

Its cashable GIC deposits, which holders can redeem before their maturity date, fell to C$144 million on Thursday, compared with C$146 million a day earlier.

The company last Friday said uncertainty around future funding had cast doubt about whether it could continue as a going concern. Capital relies on deposits from savers and GICs to fund its lending to borrowers, such as self-employed workers or newcomers to Canada, who may not meet the strict criteria of the country's biggest banks.

The company said it had access to C$1.47 billion in available liquidity and credit capacity on Thursday, unchanged from the previous day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.