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UPDATE 1-Home Capital says account balance halves, suspends dividend

Published 2017-05-08, 07:40 a/m
© Reuters.  UPDATE 1-Home Capital says account balance halves, suspends dividend
HCG
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(Adds board appointments, details)

May 8 (Reuters) - Home Capital Group Inc HCG.TO , Canada's biggest non-bank mortgage lender, said the balance in its high-interest savings accounts (HISA) is expected to slump to about C$192 million ($140 million) on Monday, down 50 percent from a week ago.

The company also said it had suspended its dividend and that it had again tapped its C$2 billion credit line. Capital said it has now withdrawn a total of C$1.4 billion, including a draw down of C$1 billion a week ago.

The company also on Monday named three new directors and a chairwoman to its board. Capital said Claude Lamoureux, Paul Haggis and Sharon Sallows would join immediately, and Brenda Eprile, who joined the board as an independent director in 2016, would become its chairwoman.

The company has suffered a crisis of confidence since a securities regulator alleged earlier this year that its top executives hid mortgage broker fraud from investors.

Total deposits in the lender's less-liquid guaranteed investment certificates stood at C$12.64 billion as of May 5, down from C$12.68 billion on April 28. ($1 = C$1.37)

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