Home Capital Reports Solid Fourth Quarter and Annual Results

• Basic earnings per share were $1.70 for the quarter and $6.40 for 2012, up 17.2% and 16.8%, respectively, from the $1.45 and $5.48 in the comparative periods.
• Net income for 2012 was $222.0 million, an increase of 16.8% over 2011.
• Return on equity for the year was 25.5%, surpassing 20% for the 15^th consecutive year and 25% for the 10^th consecutive year.

TORONTO, Feb. 13, 2013 /CNW/ - Home Capital Group Inc. (TSX: HCG) today reported strong results for the fourth quarter and for the year, meeting the Company's targets for growth in net income and earnings per share and recording annual return on equity in excess of 25% for 10 consecutive years and surpassing 20% for 15 consecutive years.

"Despite a slowing housing market, tighter mortgage lending rules and challenging economic conditions in the US and Europe, the Canadian economy has proved resilient. The Company was well positioned in 2012 to deliver strong growth in our core business and consistent net interest margins that led to increased profits." commented CEO Gerald Soloway.  "We have a proven business model and continue to execute well on our strategy."

The Company's Annual and Fourth Quarter Consolidated Financial Report, including Management's Discussion and Analysis, for each of the three- and twelve-month periods ended December 31, 2012 is available at www.homecapital.com and on the Canadian Securities Administrators' website at www.sedar.com.

Financial Highlights
(000s, except Per Share and Percentage Amounts)				For the three months ended				For the year ended
		December 31		September 30		December 31		December 31		December 31
		2012		2012		2011		2012		2011
OPERATING RESULTS
Net Income	$	58,965	$	57,254	$	50,280	$	221,983	$	190,080
Total Revenue		227,649		226,603		208,399		887,685		790,274
Earnings per Share - Basic	$	1.70	$	1.65	$	1.45	$	6.40	$	5.48
Earnings per Share - Diluted		1.70		1.65		1.45		6.38		5.46
Return on Shareholders' Equity		25.0%		25.6%		26.7%		25.5%		27.1%
Return on Average Assets		1.2%		1.2%		1.2%		1.2%		1.1%
Net Interest Margin (TEB)^1		2.13%		2.14%		2.06%		2.09%		2.06%
Net Interest Margin Non-Securitized Assets (TEB)^1		3.11%		3.17%		3.03%		3.10%		3.04%
Net Interest Margin Securitized Assets		0.79%		0.89%		1.16%		0.93%		1.24%
Provision as a Percentage of Gross Loans (annualized)		0.09%		0.10%		0.07%		0.09%		0.05%
Efficiency Ratio (TEB)^1		27.3%		28.1%		27.1%		27.7%		27.9%
As at		December 31		September 30		December 31
		2012		2012		2011
BALANCE SHEET HIGHLIGHTS
Total Assets	$	18,800,079	$	19,241,999	$	17,696,471
Total Assets Under Administration^2		19,681,750		19,410,132		17,696,471
Total Loans^3		16,904,435		17,292,395		16,089,648
Securitized Loans On-Balance Sheet		6,450,682		7,238,946		8,243,350
Total Loans Under Administration^4		17,786,106		17,460,528		16,089,648
Liquid Assets		771,772		998,219		808,222
Deposits		10,136,599		9,870,691		7,922,124
Shareholders' Equity		968,213		919,618		774,785
FINANCIAL STRENGTH
Capital Measures^5
Risk-Weighted Assets	$	5,491,513	$	5,271,674	$	4,549,696
Tier 1 Capital Ratio		17.01%		16.97%		17.29%
Total Capital Ratio		20.68%		20.78%		20.46%
Assets to Regulatory Capital Multiple		13.98		14.07		14.44
Credit Quality
Net Non-Performing Loans as a Percentage of Gross Loans		0.33%		0.28%		0.25%
Allowance as a Percentage of Gross Non-Performing Loans		57.0%		64.7%		74.9%
Share Information
Book Value per Common Share	$	27.96	$	26.53	$	22.38
Common Share Price - Close	$	59.07	$	51.44	$	49.10
Market Capitalization	$	2,045,594	$	1,783,322	$	1,700,088
Number of Common Shares Outstanding		34,630		34,668		34,625

^1	See definition of Taxable Equivalent Basis (TEB) under Non-GAAP Measures in the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report.
^2	Total assets under administration include total on-balance sheet assets and off-balance sheet loans
^3	Total loans include loans held for sale.
^4	Total Loans under administration include total loans and off-balance sheet loans.
^5	These figures relate to the Company's operating subsidiary, Home Trust Company.

2012 Targets and Performance
					For the year ended December 31, 2012
			2012 Targets	Actual Results	Amount		Increase over 2011
Growth in net income			13%-18%	16.8%	$	221,983	$	31,903
Growth in diluted earnings per share			13%-18%	16.8%		6.38		0.92
Growth in total loans^1			13%-18%	5.1%		16,904,435		814,787
Return on shareholders' equity			20.0%	25.5%
Efficiency ratio (TEB)^2			28.0%-34.0%	27.7%
Capital ratios^3
		Tier 1	Minimum of 13%	17.01%
		Total	Minimum of 14%	20.68%
Provision as a percentage of gross loans			0.05%-0.15%	0.09%

^1	Includes loans held for sale.
^2	See definition of Taxable Equivalent Basis (TEB) under Non-GAAP Measures in the Management's Discussion and Analysis included in the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report.
^3	Based on the Company's wholly owned subsidiary, Home Trust Company.

The Company was successful in meeting or exceeding all of its performance targets in 2012 except for growth in total loans. The Company was able to achieve its profit objectives with lower loan growth by focusing on higher yielding core mortgages, balancing its profit objectives with maintaining strong capital ratios under the Basel II and upcoming Basel III frameworks.  Total loans were also reduced during the year by $896.0 million for loans that qualified for off-balance sheet treatment in 2012.  Including these loans, growth was 10.5% over 2011.

FOURTH QUARTER AND 2012 HIGHLIGHTS

The Company recorded another period of solid performance in the fourth quarter of 2012 and for the year. Key results for the fourth quarter of 2012 and the year are as follows:

●	Net income was $59.0 million in the fourth quarter and $222.0 million for the year, increasing 17.3% over the comparable quarter of 2011 and 16.8% over 2011. Sequentially in 2012, fourth quarter net income increased by 3.0% over third quarter net income. The annual results were well within the Company's 2012 objective of 13% to 18% growth in net income over 2011, and reflect the strong loan growth in the traditional portfolio, strengthening total net interest margin, continued low provisions for credit losses and a low efficiency ratio.
●	Basic and diluted earnings per share reached $1.70 for the fourth quarter and $6.40 and $6.38, respectively, for the year.  This represents an increase of 17.2% from the $1.45 basic and diluted earnings per share in the fourth quarter of 2011 and increases of 16.8% over the $5.48 and $5.46 basic and diluted earnings per share earned in 2011. These results are well within the Company's 2012 annual objective of 13% to 18% growth in diluted earnings per share.
●	Return on equity was 25.0% in the quarter and 25.5% for 2012, well in excess of the Company's minimum performance objective of 20% for the fifteenth consecutive year and exceeding 25% for the tenth consecutive year.
●	During the fourth quarter of 2012 the Company completed the sale of residual interests in National Housing Authority (NHA) mortgage-backed security (MBS) loan securitizations related to $662.2 million in existing on-balance sheet mortgages, leading to off-balance accounting for the mortgages and a gain on sale of $4.8 million. As of the date of the Management's Discussion and Analysis (MD&A) the regulatory treatment for these transactions has not been confirmed. For purposes of the calculation of the assets to capital multiple (ACM) the Company has included these off-balance sheet mortgages in the determination of regulatory balance sheet assets. While the ultimate regulatory treatment will impact the Company's volume of sales of residual interests in securitization transactions, it expects to continue sales when the economic returns are favourable.
●	The securitization gains were partly offset by $3.6 million in charges recorded in derivative gains and losses.  These charges relate to the reversal of gains on derivatives recorded prior to adoption of International Financial Reporting Standards (IFRS) and are charged to income as the related CMB bonds mature.  See the Non-Interest Income section of the MD&A report for a discussion of the derivative gains and losses.
●	Net interest income rose to $99.9 million in the fourth quarter and to $381.5 million for the year. This represents an increase of 13.0% over the $88.4 million recorded in the fourth quarter of 2011 and 14.2% over the $334.0 million recorded in 2011. Net interest income increased marginally over the $99.5 million recorded in the third quarter of 2012. The growth in total net interest income quarter over quarter was reduced as a result of the sale of the residual interests in securitization transactions discussed above, as the interest income associated with such securitized mortgages is no longer reflected in interest income.  Net interest income on non-securitized assets of $85.1 million in the fourth quarter was up 3.8% from $81.9 million in the third quarter and 34.6% from the $63.2 million reported in the fourth quarter of 2011.
●	Net interest margin (TEB) was 2.13% in the fourth quarter and 2.09% for the year 2012 compared to 2.06% in the fourth quarter of 2011 and for the year 2011. Net interest margin (TEB) was 2.14% in the third quarter of 2012. Total net interest margin is influenced by the mix of the loan portfolio between securitized and non-securitized mortgages and the net interest margin on each of these portfolios. Beginning in 2011 and continuing through 2012 the weighting of lower yielding securitized mortgages in the total portfolio declined, generally leading to higher total net interest margins. The net interest margin on the non-securitized portfolio also generally improved over that period, with some fluctuations quarter to quarter. The fourth quarter net interest margin for non-securitized mortgages was 3.11%, a decline from 3.17% in the third quarter. This is due to a change in the mix of the non-securitized portfolio and the spreads achieved in the quarter. The securitized net interest margin was 0.79% in the fourth quarter compared to 0.89% in the third quarter, which reflects the maturity of higher yielding Canada Mortgage Bond (CMB) mortgages during the quarter and lower yielding replacement assets in the program.
●	The credit performance of the loans portfolio remained strong in the fourth quarter and for the year. Net non-performing loans ended 2012 at 0.33% of the total loans portfolio compared to 0.25% at the end of 2011 and 0.28% at the end of the third quarter of 2012, with the increase reflecting the relatively higher proportion of uninsured mortgages in the total portfolio in the portfolio. The provision for credit losses for the fourth quarter was 0.09% of gross loans on an annualized basis and 0.09% for the year compared to 0.07% in the comparable quarter of 2011 and 0.05% in 2011 and 0.10% in the third quarter of 2012.  This reflects a year-over-year increase in the proportion of uninsured mortgages. The 2012 results are within the Company's objective of provisions being 0.05% to 0.15% of gross loans. Total write-offs remain low and were $3.6 million in the quarter compared to $5.1 million the comparable quarter of 2011 and $3.4 million last quarter.
●	Home Trust's Tier 1 and Total capital ratios remained very strong at 17.01% and 20.68%, respectively, at December 31, 2012, and well above Company and regulatory minimum targets.  Home Trust's ACM was 13.98 at December 31, 2012 compared to 14.44 at December 31, 2011 and 14.07 at September 30, 2012. In the first quarter of 2013, the Company will be required to adopt the new capital requirements known as Basel III. Based on the Office of the Superintendent of Financial Institutions Canada's (OSFI) implementation requirements, the Company remains well capitalized under Basel III measurements. At December 31, 2012, the Company's  Basel III ratios are as follows:
	●	"all-in" Common Equity Tier 1 capital ratio of 16.09%,
	●	"all-in" Tier 1 Capital Ratio of 16.11%,
	●	"all-in" Total Capital Ratio of 19.82%
	●	transitional ACM of 14.12
	The Basel III capital ratios remain well in excess of the targets set out by OSFI for 2013 and 2014. Please see the Capital Management section of the annual MD&A for further information.
●	Total loans increased by $0.81 billion in 2012 to $16.90 billion, representing growth of 5.1% over the $16.09 billion at the end of 2011 and decreased by 2.2% or $0.39 billion from the $17.29 billion at the end of the third quarter of 2012.  Total loans under administration (which includes all loans carried on the balance sheet plus off-balance sheet securitized loans) increased by $1.70 billion in 2012 to $17.79 billion, representing growth of 10.5% over the $16.09 billion at the end of 2011 and 1.9% or $0.33 billion from the $17.46 billion at the end of the third quarter of 2012. Loan growth was below the Company's 2012 objective of 13% to 18%, while profitability was within targets due to additional focus on the Company's traditional mortgages portfolio.
●	The total value of mortgages originated in the fourth quarter of 2012 was $1.47 billion and $6.01 billion for the year, compared to $1.25 billion in the fourth quarter of 2011 and $5.12 billion for the year.  Total originations were $1.68 billion in the third quarter of 2012. The year-over-year increase in originations reflects increased focus on and increased demand for the Company's traditional mortgage products. Compared to the third quarter, a decline in originations reflects normal and expected seasonal factors.  The Company has generally observed increased credit quality on new originations.
●	The Company originated $1.16 billion of traditional mortgages in the fourth quarter and $4.56 billion for the year, compared to $0.95 billion and $3.51 billion in the comparative periods of 2011 and $1.26 billion in the third quarter of 2012.
●	Accelerator (insured) mortgage originations were $174.2 million in the fourth quarter of 2012 and $804.7 million for the year, compared to $188.5 million and $1.10 billion in the comparative periods of 2011 and $236.7 million in the third quarter of 2012.
●	Multi-unit residential originations were $57.2 million for the fourth quarter of 2012 and $286.9 million for the year, compared to $6.5 million and $137.0 million in the same periods of 2011 and $114.3 million in the third quarter of 2012. A significant portion of multi-unit residential mortgages originated in 2012 are insured and securitized through programs that qualify for off-balance sheet accounting. The Company sold $64.6 million through these programs in the fourth quarter and recognized $0.8 million in gains and $233.9 million for $3.3 million in gains for the year. The Company did not participate in this program in 2011.
●	Non-residential mortgage advances were $52.4 million in the fourth quarter of 2012 and $210.2 million for the year, compared to $41.5 million and $182.2 million in the comparative periods of 2011 and $46.6 million in the third quarter of 2012. The Company continues to maintain a cautious approach to increases in this portfolio.
●	Store and apartment advances were $24.8 million for the quarter and $118.7 million for the year, compared to $35.5 million and $123.0 million in the same periods in 2011 and $18.2 million in the third quarter of 2012.
●	The mortgage lending segment recorded net income of $53.7 million in the fourth quarter and $198.4 million for 2012, increasing from $42.7 million and $155.3 million in the same periods in 2011. This reflects strong originations in the traditional portfolio coupled with strong net interest margins in that portfolio. The securitized mortgage portfolio balance, while declining, continues to contribute to the net income of the segment.
●	The consumer lending segment recorded net income of $8.4 million in the fourth quarter and $32.7 million for the year compared to $7.6 million and $30.1 million in the comparative periods of 2011. The Company opened 716 new Equityline Visa accounts in the fourth quarter and 3,484 for the year compared to 1,814 accounts and 7,697 accounts opened in the same periods in 2011. The consumer lending segment also added $49.9 million in receivables in the retail credit portfolio in the fourth quarter and $98.7 million for the year, compared to $14.5 million and $57.1 million in the comparative periods of 2011.

Subsequent to the end of the quarter, and in light of the Company's solid performance, profitability and strong financial position, the Board of Directors declared a quarterly dividend of $0.26 per Common share, payable on March 1, 2013 to shareholders of record at the close of business on February 25, 2013.

2013 Overall Outlook

Supported by the stable Canadian economy and healthy real estate market in 2012, the Company continued to reposition the lending portfolio to take advantage of the attractive returns available in the alternative mortgage space, the Company's traditional business. This business, which is within the Company's risk appetite, provides superior returns on the allocated capital. In 2013, the continued expansion of the traditional business will be accompanied by commensurate strengthening of governance, risk management and control processes, through further investment in tools, technology and people. The Company will continue to offer insured mortgages through the Accelerator program, supporting the Company's "one-stop" and "flexible lending solutions" strategies. The Company will also continue to increase its presence in suitable urban and suburban markets across Canada. Additional focus will be placed on growth of the Company's high margin non-residential and consumer lending portfolios within the Company's risk tolerance.

The Company expects supply and demand in the real estate market to remain balanced in 2013, with softening conditions in most markets when compared to the activity levels of recent years. The Company believes that uncertainty in global economic conditions will continue to pose risks to the Canadian economy. The tightening of mortgage underwriting requirements and changes in mortgage insurance qualification rules in 2012 can be expected to continue to dampen the level of activity in the real estate market in 2013.  The Company believes that slowing housing activity will lead to healthier real estate markets overall that are supported by continued low interest rates, stable to improving employment, stable net immigration and good housing affordability. The Company expects continued strong demand for its traditional mortgage and other retail products, reflecting balanced real estate markets and increased market share.

In view of the continued uncertainty and risk within the global financial environment, the Company will continue to maintain relatively high levels of liquidity and low overall leverage, as measured by the ACM, to provide safety and soundness for depositors. To support this conservative approach to liquidity and leverage, the Company will continue to pursue opportunities for revenue contributions from fees, loan sales and sales of residual interests in loan securitizations.

The Company expects that the rate of growth in the Company's non-securitized loan portfolio in 2013 will be relatively consistent with the growth rate experienced in 2012. The traditional mortgage business is expected to maintain strong net interest margin and net interest income levels, while net interest margins on securitized assets continue to decline as older securitization programs reach maturity. The decline primarily reflects a combination of two factors: spreads on new securitization transactions are generally lower than the spreads earned on the maturing programs and the assets provided as replacement assets in the CMB program are generally lower yielding as compared to the maturing or discharging assets. While the Company actively hedges the CMB reinvestment risk, the structure of the hedges will become less effective as the programs mature. This dynamic will tend to put pressure on the overall net interest margin. The increased weighting of the Company's traditional uninsured mortgages will tend to offset this downward pressure, as the margins on these products are more favourable and risk levels are well within the Company's tolerance.

The Company will increase its marketing and sales activities related to the development of more diversified sources of deposits and additional costs will be incurred in this initiative. Reductions in other areas and increases in net interest income will tend to mitigate these increases and other costs and the Company expects that its efficiency ratio for 2013 will continue to be in the target range of 28% to 34%.

Conference Call and Webcast

Fourth Quarter Results Conference Call

The conference call will take place on Thursday, February 14, 2013, at 10:30 a.m. Participants are asked to call 5 to 15 minutes in advance, 647-427-7450 in Toronto or toll-free 1-888-231-8191 throughout North America. The call will also be accessible in listen-only mode via the Internet at www.homecapital.com.

Conference Call Archive

A telephone replay of the call will be available between 1:30 p.m. Thursday, February 14, 2013 and midnight Thursday, February 21, 2013 by calling 416-849-0833 or 1-855-859-2056 (enter passcode 89405755). The archived audio web cast will be available for 90 days on CNW Group's website at www.newswire.ca and Home Capital's website at www.homecapital.com.

Annual Meeting Notice

The Annual Meeting of Shareholders of Home Capital Group Inc. will be held at the Design Exchange, Trading Floor, Second Floor, 234 Bay Street, Toronto, Ontario, on Wednesday, May 15, 2013 at 11:00 a.m. local time. Shareholders and guests are invited to join Directors and Management for lunch and refreshments following the Annual Meeting. All shareholders are encouraged to attend.

Consolidated Balance Sheets
							As at
			December 31		September 30		December 31
thousands of Canadian dollars			2012		2012		2011
ASSETS
Cash Resources and Restricted Cash		$	439,287	$	543,825	$	665,806
Securities
Available for sale			414,344		401,830		391,754
Pledged securities			843,547		784,098		341,588
			1,257,891		1,185,928		733,342
Loans Held for Sale			21,921		36,405		-
Loans
Residential mortgages			8,843,923		8,456,791		6,339,883
Securitized residential mortgages			6,450,682		7,238,946		8,243,350
Non-residential mortgages			988,416		993,174		946,222
Personal and credit card loans			599,493		567,079		560,193
			16,882,514		17,255,990		16,089,648
Collective allowance for credit losses			(30,000)		(29,800)		(29,440)
			16,852,514		17,226,190		16,060,208
Other
Derivative assets			45,388		57,651		72,424
Other assets			94,405		102,741		79,650
Capital assets			6,578		7,165		5,372
Intangible assets			66,343		66,342		63,917
Goodwill			15,752		15,752		15,752
			228,466		249,651		237,115
		$	18,800,079	$	19,241,999	$	17,696,471
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
	Deposits payable on demand	$	105,923	$	49,835	$	75,965
	Deposits payable on a fixed date		10,030,676		9,820,856		7,846,159
			10,136,599		9,870,691		7,922,124
Senior Debt			150,684		153,724		153,336
Securitization Liabilities
	Mortgage-backed security liabilities		1,301,693		1,923,017		2,417,801
	Canada Mortgage Bond liabilities		6,034,202		6,155,475		6,231,274
			7,335,895		8,078,492		8,649,075
Other
Derivative liabilities			2,386		3,767		3,458
Income taxes payable			21,912		8,689		17,628
Other liabilities			148,590		168,743		136,025
Deferred tax liabilities			35,800		38,275		40,040
			208,688		219,474		197,151
			17,831,866		18,322,381		16,921,686
Shareholders' Equity
Capital stock			61,903		61,873		55,104
Contributed surplus			6,224		5,847		5,873
Retained earnings			903,831		857,339		722,999
Accumulated other comprehensive loss			(3,745)		(5,441)		(9,191)
			968,213		919,618		774,785
		$	18,800,079	$	19,241,999	$	17,696,471

Consolidated Statements of Income
					For the three months ended				For the year ended
			December 31		September 30		December 31		December 31		December 31
(thousands of Canadian dollars, except per share amounts)			2012		2012		2011		2012		2011
Net Interest Income Non-Securitized Assets
Interest from loans		$	144,310	$	138,271	$	111,065	$	525,722	$	400,997
Dividends from securities			3,502		3,172		4,559		14,171		18,417
Other interest			949		1,093		1,241		4,019		5,487
			148,761		142,536		116,865		543,912		424,901
Interest on deposits			61,873		58,962		51,989		230,006		192,357
Interest on senior debt			1,825		1,648		1,673		6,831		4,364
Net interest income non-securitized assets			85,063		81,926		63,203		307,075		228,180
Net Interest Income Securitized Loans and Assets
Interest income from securitized loans and assets			64,351		70,618		81,876		287,871		330,491
Interest expense on securitization liabilities			49,506		53,053		56,667		213,474		224,719
Net interest income securitized loans and assets			14,845		17,565		25,209		74,397		105,772
Total Net Interest Income			99,908		99,491		88,412		381,472		333,952
Provision for credit losses			3,685		4,239		2,979		14,720		7,519
			96,223		95,252		85,433		366,752		326,433
Non-Interest Income
Fees and other income			11,059		11,281		11,294		43,994		37,997
Securitization income			5,659		1,204		-		8,131		-
Net realized and unrealized (losses) gains on securities and mortgages			(883)		(1,172)		(1,306)		(71)		4,088
Net realized and unrealized (loss) gain on derivatives			(1,298)		2,136		(330)		3,848		(7,203)
			14,537		13,449		9,658		55,902		34,882
			110,760		108,701		95,091		422,654		361,315
Non-Interest Expenses
Salaries and benefits			14,991		15,465		13,184		58,956		52,523
Premises			2,562		2,296		2,007		8,833		7,776
Other operating expenses			14,067		14,304		11,916		54,946		44,703
			31,620		32,065		27,107		122,735		105,002
Income Before Income Taxes			79,140		76,636		67,984		299,919		256,313
Income taxes
	Current		22,649		19,904		15,909		82,176		66,270
	Deferred		(2,474)		(522)		1,795		(4,240)		(37)
			20,175		19,382		17,704		77,936		66,233
NET INCOME		$	58,965	$	57,254	$	50,280	$	221,983	$	190,080
NET INCOME PER COMMON SHARE
Basic		$	1.70	$	1.65	$	1.45	$	6.40	$	5.48
Diluted		$	1.70	$	1.65	$	1.45	$	6.38	$	5.46
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic			34,655		34,697		34,668		34,692		34,677
Diluted			34,779		34,803		34,782		34,820		34,787
Total number of outstanding common shares			34,630		34,668		34,625		34,630		34,625
Book value per common share		$	27.96	$	26.53	$	22.38	$	27.96	$	22.38

Consolidated Statements of Comprehensive Income
				For the three months ended				For the year ended
	December 31		September 30		December 31		December 31		December 31
thousands of Canadian dollars	2012		2012		2011		2012		2011
NET INCOME	$	58,965	$	57,254	$	50,280	$	221,983	$	190,080
OTHER COMPREHENSIVE INCOME (LOSS)
Available for Sale Securities
Net unrealized gains (losses) on securities available for sale		1,471		1,667		700		6,462		(8,602)
Net losses (gains) reclassified to net income		457		1,141		1,174		(114)		(4,815)
		1,928		2,808		1,874		6,348		(13,417)
Income tax expense (recovery)		509		742		505		1,775		(3,370)
		1,419		2,066		1,369		4,573		(10,047)
Cash Flow Hedges
Net unrealized losses on cash flow hedges		-		-		(639)		(370)		(7,386)
Net losses reclassified to net income		376		376		338		1,462		618
		376		376		(301)		1,092		(6,768)
Income tax expense (recovery)		99		99		(36)		219		(1,718)
		277		277		(265)		873		(5,050)
Total other comprehensive income (loss)		1,696		2,343		1,104		5,446		(15,097)
COMPREHENSIVE INCOME	$	60,661	$	59,597	$	51,384	$	227,429	$	174,983

Consolidated Statements of Changes in Shareholders' Equity
											Net Unrealized				Net Unrealized			Total
											(Losses) Gains				Losses on			Accumulated
											on Securities				Cash Flow			Other			Total
thousands of Canadian dollars,			Capital			Contributed			Retained			Available for			Hedges,		Comprehensive				Shareholders'
except per share amounts			Stock			Surplus			Earnings			Sale, After Tax			After Tax		(Loss) Income				Equity
Balance at December 31, 2011		$	55,104		$	5,873		$	722,999		$	(4,141)		$	(5,050)		$	(9,191)		$	774,785
Comprehensive income			-			-			221,983			4,573			873			5,446			227,429
Stock options settled			7,088			(1,408)			-			-			-			-			5,680
Amortization of fair value of
employee stock options			-			1,759			-			-			-			-			1,759
Repurchase of shares			(289)			-			(7,828)			-			-			-			(8,117)
Dividends paid
($0.90 per share)			-			-			(33,323)			-			-			-			(33,323)
Balance at December 31, 2012		$	61,903		$	6,224		$	903,831		$	432		$	(4,177)		$	(3,745)		$	968,213
Balance at December 31, 2010		$	50,427		$	4,571		$	567,681		$	5,906		$	-		$	5,906		$	628,585
Comprehensive income			-			-			190,080			(10,047)			(5,050)			(15,097)			174,983
Stock options settled			4,921			(1,098)			-			-			-			-			3,823
Amortization of fair value of
employee stock options			-			2,400			-			-			-			-			2,400
Repurchase of shares			(244)			-			(7,702)			-			-			-			(7,946)
Dividends paid
($0.76 per share)			-			-			(27,060)			-			-			-			(27,060)
Balance at December 31, 2011		$	55,104		$	5,873		$	722,999		$	(4,141)		$	(5,050)		$	(9,191)		$	774,785

Consolidated Statements of Cash Flows
			For the year ended
				December 31		December 31
thousands of Canadian dollars				2012		2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the year			$	221,983	$	190,080
Adjustments to determine cash flows relating to operating activities:
	Deferred income taxes			(4,240)		(37)
	Amortization of capital assets			3,118		3,052
	Amortization of intangible assets			6,715		679
	Amortization of net premium (discount) on securities			2,460		(49)
	Amortization of securitization and senior debt transaction costs			13,396		14,153
	Provision for credit losses			14,720		7,519
	Change in accrued interest payable			13,519		4,993
	Change in accrued interest receivable			(5,449)		(6,686)
	Net realized and unrealized losses (gains) on securities and mortgages			71		(4,088)
	Realized gain on securitization			(8,131)		-
	Settlement of derivatives			(370)		(7,385)
	(Gain) loss on derivatives			(3,848)		7,203
	Net increase in mortgages			(1,687,717)		(1,897,308)
	Net increase in personal and credit card loans			(40,858)		(107,817)
	Net increase in deposits			2,214,475		1,326,145
	Activity in securitization liabilities
	Proceeds from sale of mortgage-back securities			242,009		-
		Proceeds from securitization of mortgage-backed security liabilities		641,696		1,233,754
		Settlement and repayment of securitization liabilities		(1,278,521)		(753,085)
	Amortization of fair value of employee stock options			1,759		2,400
	Changes in taxes payable and other			(6,732)		23,293
Cash flows provided by operating activities				340,055		36,816
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of shares				(8,117)		(7,946)
Exercise of employee stock options				5,680		3,823
Issuance of senior debt				-		149,052
Dividends paid to shareholders				(31,244)		(26,371)
Cash flows (used in) provided by financing activities				(33,681)		118,558
CASH FLOWS FROM INVESTING ACTIVITIES
Activity in securities
	Purchases			(4,291,902)		(1,641,985)
	Proceeds from sales			381,049		389,978
	Proceeds from maturities			3,391,425		935,824
Purchases of capital assets				(4,324)		(3,530)
Purchases of intangible assets				(9,141)		(16,679)
Cash flows used in investing activities				(532,893)		(336,392)
Net decrease in cash resources and restricted cash during the year				(226,519)		(181,018)
Cash resources and restricted cash at beginning of the year				665,806		846,824
Cash Resources and Restricted Cash at End of the Year			$	439,287	$	665,806
Supplementary Disclosure of Cash Flow Information
Dividends received on investments			$	12,626	$	17,318
Interest received				518,537		725,476
Interest paid				223,318		416,764
Income taxes paid				87,184		36,636

Net Interest Margin
	For the three months ended			For the year ended
	December 31	September 30	December 31	December 31	December 31
	2012	2012	2011	2012	2011
Net interest margin non-securitized interest earning assets (TEB)	3.11%	3.17%	3.03%	3.10%	3.04%
Net interest margin non-securitized interest earning assets (non-TEB)	3.07%	3.13%	2.95%	3.05%	2.96%
Net interest margin securitized assets	0.79%	0.89%	1.16%	0.93%	1.24%
Total net interest margin (TEB)	2.13%	2.14%	2.06%	2.09%	2.06%
Total net interest margin (non-TEB)	2.11%	2.11%	2.02%	2.07%	2.01%
Spread of non-securitized loans over deposits only	3.13%	3.16%	3.16%	3.13%	3.09%

Net Interest Income
	For the three months ended December 31, 2012					For the three months ended September 30, 2012
(000s, except %)	Average		Income/		Average	Average		Income/		Average
	Balance^1		Expense		Rate^1	Balance^1		Expense		Rate^1
Assets
Cash resources and securities	$	817,669	$	4,451	2.18%	$	731,533	$	4,265	2.33%
Traditional single-family residential mortgages		8,017,732		109,208	5.45%		7,386,369		102,660	5.56%
Accelerator single-family residential mortgages		582,728		4,470	3.07%		646,033		5,219	3.23%
Multi-unit residential mortgages		107,658		1,274	4.73%		141,761		1,187	3.35%
Non-residential mortgages		981,483		15,789	6.43%		1,017,194		15,685	6.17%
Personal and credit card loans		578,116		13,569	9.39%		567,186		13,520	9.53%
Total non-securitized loans		10,267,717		144,310	5.62%		9,758,543		138,271	5.67%
Taxable equivalent adjustment		-		1,243	-		-		1,126	-
Total on non-securitized interest earning assets		11,085,386		150,004	5.41%		10,490,076		143,662	5.48%
Securitized loans and pledged assets		7,627,113		64,351	3.37%		8,073,588		70,618	3.50%
Other assets		294,020		-	-		249,064		-	-
Total Assets	$	19,006,519	$	214,355	4.51%	$	18,812,728	$	214,280	4.56%
Liabilities and Shareholders' Equity
Deposits	$	9,944,774	$	61,873	2.49%	$	9,400,930	$	58,962	2.51%
Securitization liabilities		7,661,311		49,506	2.58%		8,123,804		53,053	2.61%
Other liabilities and shareholders' equity		1,400,434		1,825	0.52%		1,287,994		1,648	0.51%
Total Liabilities and Shareholders' Equity	$	19,006,519	$	113,204	2.38%	$	18,812,728	$	113,663	2.42%
Net Interest Income (TEB)			$	101,151				$	100,617
Tax Equivalent Adjustment				(1,243)					(1,126)
Net Interest Income per Financial Statements			$	99,908				$	99,491
						For the three months ended December 31, 2011
(000s, except %)						Average		Income/		Average
						Balance^1		Expense		Rate^1
Assets
Cash resources and securities						$	987,740	$	5,800	2.35%
Traditional single-family residential mortgages							5,513,181		77,933	5.65%
Accelerator single-family residential mortgages							436,066		3,304	3.03%
Multi-unit residential mortgages							112,288		1,562	5.56%
Non-residential mortgages							957,859		14,998	6.26%
Personal and credit card loans							555,359		13,268	9.56%
Total non-securitized loans							7,574,753		111,065	5.87%
Taxable equivalent adjustment							-		1,785	-
Total on non-securitized interest earning assets							8,562,493		118,650	5.54%
Securitized loans and pledged assets							8,703,077		81,876	3.76%
Other assets							254,958		-	-
Total Assets						$	17,520,528	$	200,526	4.58%
Liabilities and Shareholders' Equity
Deposits						$	7,662,457	$	51,989	2.71%
Securitization liabilities							8,725,546		56,667	2.60%
Other liabilities and shareholders' equity							1,132,525		1,673	0.59%
Total Liabilities and Shareholders' Equity						$	17,520,528	$	110,329	2.52%
Net Interest Income (TEB)								$	90,197
Tax Equivalent Adjustment									(1,785)
Net Interest Income per Financial Statements								$	88,412

Mortgage Production
				For the three months ended				For the year ended
		December 31		September 30		December 31		December 31		December 31
(000s)		2012		2012		2011		2012		2011
Traditional single family residential mortgages	$	1,164,037	$	1,257,379	$	948,848	$	4,556,379	$	3,514,430
Accelerator single family residential mortgages		174,214		236,673		188,484		804,692		1,103,555
Multi-unit residential mortgages		57,245		114,279		6,522		286,879		137,005
Non-residential mortgages		52,417		46,624		41,508		210,228		182,163
Store and apartment mortgages		24,835		18,175		35,544		118,689		122,957
Warehouse commercial mortgages		-		6,000		27,000		28,500		56,750
Total mortgage advances	$	1,472,748	$	1,679,130	$	1,247,906	$	6,005,367	$	5,116,860

Provision for Credit Losses
				For the three months ended			For the year ended
(000s, except %)	December 31		September 30		December 31		December 31		December 31
		2012		2012		2011		2012		2011
Collective provision	$	200	$	300	$	50	$	560	$	287
Individual provision		3,485		3,939		2,929		14,160		7,232
Total provision	$	3,685	$	4,239	$	2,979	$	14,720	$	7,519
Provision as a % of gross loans (annualized)		0.09%		0.10%		0.07%		0.09%		0.05%
Net write-offs	$	3,294	$	3,075	$	4,843	$	12,381	$	10,673
Net write-offs as a % of gross loans (annualized)		0.08%		0.07%		0.12%		0.07%		0.07%

Net Non-Performing Loans and Allowances
					As at
(000s, except %)		December 31		September 30		December
		2012		2012		2011
Net non-performing loans	$	56,308	$	48,817	$	40,297
Gross loans (excluding allowances)		16,885,233		17,258,569		16,091,162
Net non-performing loans as % of gross loans		0.33%		0.28%		0.25%
Collective allowance	$	30,000	$	29,800	$	29,440
Individual allowance		3,638		3,447		1,859
Total allowance	$	33,638	$	33,247	$	31,299

Impaired Loans
(000s)								As at December 31, 2012
			Securitized
	Residential		Residential		Non-residential		Personal and
	Mortgages		Mortgages		Mortgages		Credit Card Loans		Total
Gross amount of impaired loans	$	54,696	$	-	$	501	$	3,830	$	59,027
Individual allowances on principal		(2,381)		-		-		(338)		(2,719)
Net	$	52,315	$	-	$	501	$	3,492	$	56,308
(000s)								As at December 31, 2011
				Securitized
	Residential			Residential		Non-residential	Personal and
	Mortgages		Mortgages		Mortgages		Credit Card Loans			Total
Gross amount of impaired loans	$	36,845	$	-	$	822	$	4,144	$	41,811
Individual allowances on principal		(742)		-		(78)		(694)		(1,514)
Net	$	36,103	$	-	$	744	$	3,450	$	40,297

Allowance for Credit Losses
(000s)					For the three months ended December 31, 2012
		Residential		Non-Residential		Personal and
		Mortgages		Mortgages		Credit Card Loans		Total
Individual allowances
Allowance on loan principal
	Balance at the beginning of the period	$	1,660	$	-	$	919	$	2,579
	Provision for credit losses		3,413		-		21		3,434
	Write-offs		(2,848)		-		(794)		(3,642)
	Recoveries		156		-		192		348
			2,381		-		338		2,719
Allowance on accrued interest receivable
	Balance at the beginning of the period		868		-		-		868
	Provision for credit losses		51		-		-		51
			919		-		-		919
Total individual allowance			3,300		-		338		3,638
Collective allowance
	Balance at the beginning of the period		16,659		9,300		3,841		29,800
	Provision for credit losses		200		-		-		200
			16,859		9,300		3,841		30,000
Total allowance		$	20,159	$	9,300	$	4,179	$	33,638
Total provision		$	3,664	$	-	$	21	$	3,685
(000s)					For the three months ended September 30, 2012
		Residential		Non-Residential		Personal and
		Mortgages		Mortgages		Credit Card Loans		Total
Individual allowances
Allowance on loan principal
	Balance at the beginning of the period	$	1,179	$	-	$	663	$	1,842
	Provision for credit losses		3,216		-		596		3,812
	Write-offs		(2,898)		-		(464)		(3,362)
	Recoveries		163		-		124		287
			1,660		-		919		2,579
Allowance on accrued interest receivable
	Balance at the beginning of the period		741		-		-		741
	Provision for credit losses		127		-		-		127
			868		-		-		868
Total individual allowance			2,528		-		919		3,447
Collective allowance
	Balance at the beginning of the period		16,359		9,300		3,841		29,500
	Provision for credit losses		300		-		-		300
			16,659		9,300		3,841		29,800
Total allowance		$	19,187	$	9,300	$	4,760	$	33,247
Total provision		$	3,643	$	-	$	596	$	4,239
(000s)					For the three months ended December 31, 2011
		Residential		Non-Residential		Personal and
		Mortgages		Mortgages		Credit Card Loans		Total
Individual allowances
Allowance on loan principal
	Balance at the beginning of the period	$	1,312	$	33	$	1,854	$	3,199
	Provision for credit losses		2,108		45		1,005		3,158
	Write-offs		(2,874)		-		(2,223)		(5,097)
	Recoveries		196		-		58		254
			742		78		694		1,514
Allowance on accrued interest receivable
	Balance at the beginning of the period		574		-		-		574
	Provision for credit losses		(229)		-		-		(229)
			345		-		-		345
Total individual allowance			1,087		78		694		1,859
Collective allowance
	Balance at the beginning of the period		16,919		8,334		4,137		29,390
	Provision for credit losses		(620)		966		(296)		50
			16,299		9,300		3,841		29,440
Total allowance		$	17,386	$	9,378	$	4,535	$	31,299
Total provision		$	1,259	$	1,011	$	709	$	2,979
(000s)					For the year ended December 31, 2012
		Residential		Non-residential		Personal and
		Mortgages		Mortgages		Credit Card Loans		Total
Individual allowances
Allowance on loan principal
	Balance at the beginning of the year	$	742	$	78	$	694	$	1,514
	Provision for credit losses		12,107		(78)		1,557		13,586
	Write-offs		(10,921)		-		(2,332)		(13,253)
	Recoveries		453		-		419		872
			2,381		-		338		2,719
Allowance on accrued interest receivable
	Balance at the beginning of the year		345		-		-		345
	Provision for credit losses		574		-		-		574
			919		-		-		919
Total individual allowance			3,300		-		338		3,638
Collective allowance
	Balance at the beginning of the year		16,299		9,300		3,841		29,440
	Provision for credit losses		560		-		-		560
			16,859		9,300		3,841		30,000
Total allowance		$	20,159	$	9,300	$	4,179	$	33,638
Total provision		$	13,241	$	(78)	$	1,557	$	14,720
(000s)					For the year ended December 31, 2011
		Residential		Non-residential		Personal and
		Mortgages		Mortgages		Credit Card Loans		Total
Individual allowances
Allowance on loan principal
	Balance at the beginning of the year	$	1,757	$	-	$	3,140	$	4,897
	Provision for credit losses		6,248		78		964		7,290
	Write-offs		(7,754)		-		(3,574)		(11,328)
	Recoveries		491		-		164		655
			742		78		694		1,514
Allowance on accrued interest receivable
	Balance at the beginning of the year		403		-		-		403
	Provision for credit losses		(58)		-		-		(58)
			345		-		-		345
Total individual allowance			1,087		78		694		1,859
Collective allowance
	Balance at the beginning of the year		16,299		9,357		3,497		29,153
	Provision for credit losses		-		(57)		344		287
			16,299		9,300		3,841		29,440
Total allowance		$	17,386	$	9,378	$	4,535	$	31,299
Total provision		$	6,190	$	21	$	1,308	$	7,519

Earnings by Business Segment
				For the three months ended December 31, 2012
(000s)	Mortgage Lending		Consumer Lending		Other		Total
Net interest income	$	86,650	$	11,002	$	2,256	$	99,908
Provision for credit losses		(3,664)		(21)		-		(3,685)
Fees and other income		7,318		3,739		2		11,059
Securitization income		5,659		-		-		5,659
Net (loss) gain on securities and other		(2,557)		-		376		(2,181)
Non-interest expenses		(20,203)		(3,350)		(8,067)		(31,620)
Income before income taxes		73,203		11,370		(5,433)		79,140
Income taxes		(19,532)		(3,018)		2,375		(20,175)
Net income (loss)	$	53,671	$	8,352	$	(3,058)	$	58,965
Goodwill	$	2,324	$	13,428	$	-	$	15,752
Total assets	$	17,198,250	$	769,098	$	832,731	$	18,800,079
				For the three months ended September 30, 2012
(000s)	Mortgage Lending		Consumer Lending		Other		Total
Net interest income	$	86,523	$	10,874	$	2,094	$	99,491
Provision for credit losses		(3,644)		(595)		-		(4,239)
Fees and other income		7,128		4,087		66		11,281
Securitization income		1,204		-		-		1,204
Net gain (loss) on securities and other		1,447		-		(483)		964
Non-interest expenses		(20,200)		(3,277)		(8,588)		(32,065)
Income before income taxes		72,458		11,089		(6,911)		76,636
Income taxes		(19,110)		(2,951)		2,679		(19,382)
Net income (loss)	$	53,348	$	8,138	$	(4,232)	$	57,254
Goodwill	$	2,324	$	13,428	$	-	$	15,752
Total assets	$	17,623,833	$	717,386	$	900,780	$	19,241,999
				For the three months ended December 31, 2011
(000s)	Mortgage Lending		Consumer Lending		Other		Total
Net interest income	$	74,164	$	10,639	$	3,609	$	88,412
Provision for credit losses		(1,975)		(1,004)		-		(2,979)
Fees and other income		6,829		4,343		122		11,294
Net loss on securities and other		(1,095)		-		(541)		(1,636)
Non-interest expenses		(18,824)		(3,417)		(4,866)		(27,107)
Income before income taxes		59,099		10,561		(1,676)		67,984
Income taxes		(16,370)		(2,987)		1,653		(17,704)
Net income (loss)	$	42,729	$	7,574	$	(23)	$	50,280
Goodwill	$	2,324	$	13,428	$	-	$	15,752
Total assets	$	15,997,106	$	614,626	$	1,084,739	$	17,696,471
			For the year ended December 31, 2012
(000s)	Mortgage Lending		Consumer Lending		Other		Total
Net interest income	$	328,087	$	43,598	$	9,787	$	381,472
Provision for credit losses		(13,164)		(1,556)		-		(14,720)
Fees and other income		27,465		16,527		2		43,994
Securitization income		8,131		-		-		8,131
Net gain on securities and other		944		-		2,833		3,777
Non-interest expenses		(78,573)		(14,056)		(30,106)		(122,735)
Income before income taxes		272,890		44,513		(17,484)		299,919
Income taxes		(74,534)		(11,821)		8,419		(77,936)
Net income (loss)	$	198,356	$	32,692	$	(9,065)	$	221,983
Goodwill	$	2,324	$	13,428	$	-	$	15,752
Total assets	$	17,198,250	$	769,098	$	832,731	$	18,800,079
			For the year ended December 31, 2011
(000s)	Mortgage Lending		Consumer Lending		Other		Total
Net interest income	$	273,738	$	41,782	$	18,432	$	333,952
Provision for credit losses		(5,916)		(1,603)		-		(7,519)
Fees and other income		19,457		18,051		489		37,997
Net (loss) gain on securities and other		(4,821)		-		1,706		(3,115)
Non-interest expenses		(67,851)		(16,255)		(20,896)		(105,002)
Income before income taxes		214,607		41,975		(269)		256,313
Income taxes		(59,331)		(11,872)		4,970		(66,233)
Net income	$	155,276	$	30,103	$	4,701	$	190,080
Goodwill	$	2,324	$	13,428	$	-	$	15,752
Total assets	$	15,997,106	$	614,626	$	1,084,739	$	17,696,471

Management's Responsibility for Financial Information

The Company's Audit Committee reviewed this document along with the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report.  The Company's Board of Directors approved both documents prior to their release.   A full description of management's responsibility for financial information is included in the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report.

Caution Regarding Forward-looking Statements

From time to time Home Capital makes written and verbal forward-looking statements. These are included in the Annual Report, periodic reports to shareholders, regulatory filings, press releases, Company presentations and other Company communications. Forward-looking statements are made in connection with business objectives and targets, Company strategies, operations, anticipated financial results and the outlook for the Company, its industry, and the Canadian economy. These statements regarding expected future performance are "financial outlooks" within the meaning of National Instrument 51-102.  Please see the risk factors, which are set forth in detail in the Risk Management and Other Risks sections of the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report, as well as its other publicly filed information, which are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, for the material factors that could cause the Company's actual results to differ materially from these statements.  These risk factors are material risk factors a reader should consider, and include credit risk, liquidity and funding risk, structural interest rate risk, operational risk, investment risk, strategic and business risk, reputational risk and regulatory and legal risk along with additional risk factors that may affect future results. Forward-looking statements can be found in the Report to the Shareholders and the Outlook sections in the Annual Report.   Forward-looking statements are typically identified by words such as "will,"  "believe," "expect," "anticipate," "estimate," "plan," "forecast," "may," and "could" or other similar expressions.

By their very nature, these statements require the Company to make assumptions and are subject to inherent risks and uncertainties, general and specific, which may cause actual results to differ materially from the expectations expressed in the forward-looking statements.  These risks and uncertainties include, but are not limited to, global capital market activity, changes in government monetary and economic policies, changes in interest rates, inflation levels, general economic conditions, legislative and regulatory developments, competition and technological change. The preceding list is not exhaustive of possible factors.

These and other factors should be considered carefully and readers are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any forward-looking statements, whether written or verbal, that may be made from time to time by it or on its behalf, except as required by securities laws.

Assumptions about the performance of the Canadian economy in 2013 and its effect on Home Capital's business are material factors the Company considers when setting its objectives and outlook.  In determining expectations for economic growth, both broadly and in the financial services sector, the Company primarily considers historical and forecasted economic data provided by the Canadian government and its agencies.  In setting and reviewing the outlook and objectives for 2013, management's expectations assume:

• The Canadian economy will produce modest growth in 2013 with stable to modestly improving employment conditions in most regions. The economy will continue to be heavily influenced by the economic conditions in the United States and global markets.  Inflation will generally be within the Bank of Canada's target of 1%-3%.
  
  
• The Bank of Canada has indicated that increases to its target overnight interest rate are not imminent and, as such, the Company is assuming the rate will remain at its current level for most of 2013. This is expected to continue to support low mortgage interest rates.
  
  
• The housing market will remain stable with balanced supply and demand conditions in most regions supported by continued low interest rates, stable to improving employment and immigration.  There will be declines in housing starts and resale activity with stable to modestly declining prices through most of Canada.
  
  
• Consumer debt levels will remain serviceable by Canadian households.

Non-GAAP Measures

The Company has adopted IFRS as its accounting framework. IFRS are the generally accepted accounting principles (GAAP) for Canadian publicly accountable enterprises for years beginning on or after January 1, 2011. The Company uses a number of financial measures to assess its performance.  Some of these measures are not calculated in accordance with GAAP, are not defined by GAAP, and do not have standardized meanings that would ensure consistency and comparability between companies using these measures.  Definitions of non-GAAP measures used in this report can be found under Non-GAAP Measures in the Management's Discussion and Analysis included in the Company's 2012 Annual and Fourth Quarter Consolidated Financial Report.

Regulatory Filings

The Company's continuous disclosure materials, including interim filings, annual Management's Discussion and Analysis and audited consolidated financial statements, Annual Information Form, Notice of Annual Meeting of Shareholders, and Proxy Circular are available on the Company's website at www.homecapital.com and on the Canadian Securities Administrators' website at www.sedar.com.

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposits, residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

 

 

 

SOURCE: Home Capital Group Inc.

Gerald M. Soloway, CEO, or
Martin Reid, President
416-360-4663
www.homecapital.com