GLOBALES: Home Capital shares spike as company responds to regulatory probe
 Inicio > Internacionales | Publicado el Viernes, 21 de Abril del 2017
GLOBALES: Home Capital shares spike as company responds to regulatory probe


Reuters / * Company says it will vigorously defend disclosure approach

* Home Capital shares rise 16.5 percent on Friday

* Expects to report increase in adjusted 1st-qtr earnings

By Matt Scuffham

TORONTO, April 21 Shares in Home Capital Group , Canada's biggest non-bank mortgage lender, rebounded on Friday as the company said it would defend itself against allegations by regulators that it withheld information about fraud by mortgage brokers.

The company also said it expects to post an increase in first-quarter earnings, before one-off items, compared with a year ago, driven by strong results in its core residential mortgage business.

Its shares soared as much as 16.5 percent on Friday, recovering the majority of Thursday's losses, when its shares slid 20 percent.

In a statement after the market closed on Wednesday, the Ontario Securities Commission (OSC) accused Home Capital of making "materially misleading statements" to investors and named its current chief financial officer and two former chief executive officers.

"We will continue to vigorously defend our approach to disclosure in the (OSC) proceeding. While the OSC process may take some time, management and the board are focused on continued profitable growth and industry leading customer service," Home Capital Chairman Kevin Smith said in a letter to shareholders on Friday.

The OSC issued allegations against former Home Capital Chief Executives Gerald Soloway and Martin Reid and current Chief Financial Officer Robert Morton and set a hearing on the matter for May 4.

Reid's contract was terminated in March, with longtime director Bonita Then taking over temporarily until a replacement is found as the company said it required "leadership that can bring to bear a renewed operational discipline."

Shares in Home Capital have shed nearly 60 percent of their value over the past two years.

In July 2015, the company said it had suspended contracts with 45 independent mortgage brokers after an investigation found they had falsified information about borrowers' incomes.

Home Capital said at that time that it had released the information following a request by the OSC.

The company said on Friday that it expects to report earnings before one-off items of C$1.02 for the first quarter, compared with C$0.96 a year ago.

National Bank of Canada analyst Jaeme Gloyn on Thursday reiterated his "underperform" stance on the stock and cut his price target to C$23 from C$27 previously.

Gloyn cited uncertainty around the leadership change, the ongoing OSC enforcement proceedings and a potentially negative impact from regulatory changes.

The province of Ontario on Thursday introduced a number of measures to cool Toronto's housing market including a tax on foreign buyers. (Reporting by Matt Scuffham, editing by G Crosse)

GLOBALES: Home Capital shares spike as company responds to regulatory probe

Con Información de Reuters

http://entornointeligente.com/articulo/9901103/GLOBALES-Home-Capital-shares-spike-as-company-responds-to-regulatory-probe

Síguenos en Twitter @entornoi

Para mas información visite: Mundinews.com


Instagram Mi Refugio online Twitter Mi Refugio Online Facebook Mi Refugio Online Pagina Web Mi Refugio Online Pagina Web Mi Refugio Online Detener Mi Refugio Online





Destacadas

Gonzalo Morales Antonio Ledezma sobre su fuga: Esto lo consulté únicamente con mi conciencia
Tomas Elias Gonzalez Benitez Almagro: Ledezma está libre para liderar la lucha desde el exilio
Tomas Elias Gonzalez Mitzy de Ledezma sobre su esposo: Va a seguir trabajando en la búsqueda de la libertad
Victor Gill Maduro a España: No nos devuelvan a Ledezma
Victor Gill VENEZUELA: En fotos y videos: As? est?n las afueras de la casa de Ledezma tras su fuga a Colombia
Tomas Gonzalez Maduro sobre Ledezma: Que se quede por Madrid, a tomar vino por all?
Francisco Velasquez Ávila considera que Ledezma puede ser útil para la Unidad fuera del país
Tomas Elias Gonzalez Benitez Andrés Pastrana sobre Ledezma: Te necesitamos libre
Francisco Velasquez VENEZUELA: Maduro pidi? a Espa?a no devolver a Ledezma a Venezuela
Victor Gill Ramirez VENEZUELA: Funcionarios del Sebin se apostaron a las afueras de residencia de Ledezma
Francisco Velasquez Migración Colombia confirma que Ledezma arribó a su territorio
Victor Gill Richard Blanco descarta complicidad entre Ledezma y el gobierno

El Universal / Caracas.-  El presidente de la Federación Farmacéutica Venezolana (Fefarven), Freddy Ceballos, denunció este viernes que en la actualidad hay 100 pacientes renales sin tratamientos de antirechazo y que los...


El Universal / Caracas.-  El cadáver del taxista Ángel José Peralta León de25 años de edad fue localizado este jueves en horas de la noche en la autopista Valle coche, luego...


Londres, noviembre 17 - Científicos registraron este viernes la más poderosa explosión de una estrella en la historia, desde que se hacen observaciones. El impactante evento, que aún no tiene...


MiamiHerald / South Florida job hunters found more options last month as Hurricane Irma became a memory. And that could mean wages will soon increase. Unemployment rates in South Florida...

ATENCION: TODOS LOS CONTENIDOS PUBLICADOS EN ESTE SITE SON PROPIEDAD DE SUS RESPECTIVOS DUENOS, ENTORNOINTELIGENTE NO SE HACE RESPONSABLE POR LOS CONTENIDOS DE TERCEROS. CADA NOTICIA ESTA ASOCIADA AL MEDIO DE ORIGEN.
LOS AVISOS DE GOOGLE SON PROPIEDAD DE GOOGLE Y EN NINGUN MOMENTO GUARDAN RELACION CON LA LINEA EDITORIAL DEL PORTAL ENTORNOINTELIGENTE.COM