Home Capital Group Reports Strong Q1 2021 Results Due to Higher NIM and PCL Release
Home Capital Group Inc. reported Q1 2021 net income of $64.5 million, a 17% quarter-over-quarter increase as growth in net interest income, lower non-interest expenses, and a release of provisions for credit losses were partly offset by lower securitization income. On balance sheet loans retracted 1% compared with the linked quarter as securitized loans were moved off balance sheet. Despite the decline in balances during the quarter, the net interest margin increased by six basis points, driven largely by margin improvements on non-securitized assets, reflecting the decrease in the average interest rate paid on deposits. Meanwhile, the efficiency ratio improved to 46% in Q1 2021 because of lower technology and Coronavirus Disease (COVID-19) pandemic-related expenses.Home Capital Group is a holding company that operates primarily through its principal subsidiary, Home Trust Company, which provides insured and uninsured deposits, residential and non-residential commercial mortgage lending and consumer lending. Co. also conducts business through its wholly owned subsidiary, CFF Bank, a Canadian retail bank. Co.'s subsidiary, Payment Services Interactive Gateway Inc. (PSiGate) provides payment card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
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