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
Noticias Relacionadas: HomeCapitalSaidCompanyThat

Esta noticia ha sido leída 178 veces

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-21042017

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

Regístrate aquí y forma parte del selecto grupo de lectores de EntornoInteligente
http://www.entornointeligente.com





Destacadas


La directiva de Aucas coordinó con la hinchada oriental el viaje hasta Ambato para acompañar al equipo en el partido clave ante Técnico Universitario . ?Papá? se enfrentará al ?Rodillo...


Una persona murió y otras cuatro resultaron heridas en un accidente de tránsito , ocurrida la madrugada de este sábado 18 de noviembre del 2017, después de que un auto...

Ads by Web24

En Smart-Reputation.com tenemos la solución para mejorar tu reputación on line.
http://www.smart-reputation.com

Una ciudadana chilena en Wellington fue la primera en votar por un presidente de Chile en el exterior en la historia del país, en unos comicios en los que el...

Ads by Web24

Smart-Reputation.com will fix your online reputation. Contact us.
http://www.smart-reputation.com

El Gobierno nacional invirtió más de 1.000 millones de dólares en diferentes proyectos de infraestructura vial en el Beni, informó este sábado el gerente regional de la Administradora Boliviana de...

Ads by Web24

Our service help you to improve your online reputation
http://www.smart-reputation.com
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