May 19, 2017 / 8:55 PM / in 9 months

Canada's Home Capital's savings deposit balances decline

TORONTO, May 19 (Reuters) - Canada’s biggest non-bank lender Home Capital Group Inc 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.

Home 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.

Reporting by Matt Scuffham

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