Home Capital Reports Another Strong Quarter:


    --  Diluted Earnings per Share up 13.2% year over year to $1.72;
    --  Adjusted Diluted Earnings per Share(*) up 19.1% year over year
        to $1.81;
    --  Assets Under Administration Surpass $20 billion and
        Shareholders' Equity Increases to over $1 billion

TORONTO, May 8, 2013 /CNW/ - Home Capital Group (TSX: HCG) today reported 
another quarter of strong results for the three months ended March 31, 2013.

The Company's First Quarter Report, including Management's Discussion and 
Analysis, is available on Home Capital's website at www.homecapital.com and 
the Canadian Securities Administrators website at www.sedar.com.

(*) Table 2 provides a reconciliation of net income to adjusted net
income and adjusted diluted earnings per share.

FINANCIAL HIGHLIGHTS
                ( )         ( ) ( )                 ( ) ( )         ( )

(Unaudited)                                  For the three months ended

(000s, except
Per Share and          March 31         December 31            March 31
Percentage
Amounts)
                ( )        2013                2012                2012

OPERATING       ( )         ( )     ( )         ( )     ( )         ( )
RESULTS

Net Income        $      59,725       $      58,965       $      52,534

Total Revenue   ( )     231,194             227,649             214,682

Diluted
Earnings per      $        1.72       $        1.70       $        1.52
Share

Return on
Shareholders'   ( )       24.0%               25.0%               26.2%
Equity

Return on       ( )        1.3%                1.2%                1.2%
Average Assets

Net Interest    ( )       2.17%               2.13%               2.02%
Margin (TEB)(1)

Provision as a
Percentage of   ( )       0.11%               0.09%               0.11%
Gross Loans
(annualized)

Efficiency      ( )       28.3%               27.3%               27.7%
Ratio (TEB)(1)
                ( )         ( )     ( )         ( )     ( )       As at
                ( )    March 31         December 31            March 31
                           2013                2012                2012

BALANCE SHEET               ( )     ( )         ( )     ( )
HIGHLIGHTS

Total Assets      $  19,358,563       $  18,800,079       $  17,995,256

Total Assets
Under           ( )  20,377,074          19,681,750          17,995,256
Administration
(2)

Total Loans     ( )  17,429,982          17,159,913          16,451,745
(3,4)

Securitized
Loans           ( )   6,710,556           6,706,160           8,001,414
On-Balance
Sheet(3)

Total Loans
Under           ( )  18,448,493          18,041,584          16,451,745
Administration
(3,4,5)

Liquid Assets   ( )     823,973             771,772             683,511

Deposits        ( )  10,642,280          10,136,599           8,297,126

Shareholders'   ( )   1,021,813             968,213             828,036
Equity

FINANCIAL       ( )         ( )     ( )         ( )     ( )         ( )
STRENGTH

Capital         ( )         ( )     ( )         ( )     ( )         ( )
Measures(6)

Risk-Weighted   ( )   5,738,257           5,491,513           4,704,529
Assets

Common Equity
Tier 1 Capital  ( )      16.57%                 N/A                 N/A
Ratio

Tier 1 Capital  ( )      16.57%              17.01%              17.49%
Ratio

Total Capital   ( )      19.82%              20.68%              21.62%
Ratio

Assets to
Regulatory      ( )       13.98               13.98               13.64
Capital
Multiple

Credit Quality  ( )         ( )     ( )         ( ) ( )             ( )

Net
Non-Performing
Loans as a      ( )       0.32%               0.33%               0.28%
Percentage of
Gross Loans

Allowance as a
Percentage of
Gross           ( )       59.9%               57.0%               67.6%
Non-Performing
Loans

Share           ( )         ( )     ( )         ( )     ( )         ( )
Information

Book Value per    $       29.53       $       27.96       $       23.83
Common Share

Common Share      $       58.74       $       59.07       $       50.34
Price - Close

Market            $   2,032,404       $   2,045,594       $   1,749,365
Capitalization

Number of
Common Shares   ( )      34,600              34,630              34,751
Outstanding


(1 )See definition of Taxable Equivalent Basis (TEB) under Non-GAAP
Measures of the unaudited interim consolidated financial report.
(2)Total assets under administration include total on-balance sheet
assets and off-balance sheet loans.
(3)In the quarter the Company classified Home Trust mortgages used as
CMB replacement assets as securitized mortgages.  In prior periods
these were classified as pledged securities.  Prior periods have been
restated to reflect the current classification.
(4 )Total loans include loans held for sale.
(5)Loans under administration includes total loans and off-balance
sheet loans.
(6)These figures relate to the Company's operating subsidiary, Home
Trust Company and are calculated under Basel III for 2013 and Basel II
for 2012. 


    FIRST QUARTER 2013 HIGHLIGHTS

Key results for Q1 2013 included:
    --  Net income increased to $59.7 million, up 13.7% over Q1 2012
        and 1.3% over Q4 2012. Net income reflects $1.8 million in
        after tax charges related to IFRS implementation (see the
        Non-Interest Income section of the MD&A) and $1.5 million in
        after-tax charges related to the resolution of disputed loans
        to commercial condominium corporations (see the Provision and
        Allowance for Credit Losses section of the MD&A). Without these
        charges, adjusted net income, as defined in Table 2,( )was
        $63.0 million representing an increase of 20.0% over Q1 2012.
         
    --  Diluted earnings per share were $1.72 for the quarter
        representing increases of 13.2% over the $1.52 earned in Q1
        2012 and increases of 1.2% over the $1.70 earned in Q4 2012. 
        Adjusting for charges for IFRS implementation and the
        condominium loan resolution, adjusted diluted earnings per
        share(1) were $1.81, 19.1% higher than Q1 2012.
    --  Net interest income, before provisions, continued its upward
        trend, reaching $101.9 million in Q1 2013, increasing 15.5%
        over the $88.2 million recorded in Q1 2012 and 2.0% over the
        $99.9 million earned in Q4 2012. This reflects net on-balance
        sheet loan growth and improving total net interest margin.
    --  Net interest margin (TEB) increased to 2.17% in Q1 2013 from
        2.02% in Q1 2012 and 2.13% in Q4 2012. The increase reflects
        the combination of the shift to higher yielding traditional
        mortgages relative to securitized mortgages and, when compared
        to Q1 2012, improved spreads earned on non-securitized lending.
    --  Return on equity at 24.0% for the quarter remains strong and
        continues well in excess of the Company's minimum performance
        objective of 20%.
    --  The loan portfolio credit quality remains solid with continued
        low non-performing loans and credit losses well within expected
        levels. Net non-performing loans as a percentage of gross loans
        (NPL ratio) ended the quarter at 0.32% compared to 0.33% at the
        end of 2012 and 0.28% at the end of Q1 2012. The annualized
        credit provision as a percentage of gross loans (PCL ratio)
        remains within expectations at 0.11%, compared to 0.09% in Q4
        2012 and 0.11% in Q1 2012. Excluding the provisions related to
        the resolution of disputed loans to the two condominium
        corporations the PCL ratio would have been 0.06% in the
        quarter.
    --  Home Trust adopted the new Basel III capital requirements in Q1
        2013 and continues to significantly exceed regulatory minimums.
        Under Basel III, Home Trust's Common Equity Tier 1 ratio (CET 1
        ratio) was 16.57%, while Tier 1 and Total Capital Ratios were
        16.57% and 19.82%, respectively.  Home Trust's assets to
        capital multiple was 13.98 at the end of the quarter compared
        to 13.98 at December 31, 2012 and 13.64 at March 31, 2012.
    --  Total loans under administration, which includes securitized
        mortgages that qualify for off-balance sheet accounting, grew
        to $18.45 billion, reflecting increases of $2.00 billion or
        12.1% from $16.45 billion one year ago, and $0.41 billion or
        2.3% from $18.04 billion at the end of 2012 (9.0% on an
        annualized basis). At this point the Company still expects to
        meet its loans under administration growth target of 10-15%
        year over year.
    --  Product demand was strong in the quarter, with $1.38 billion in
        total mortgage originations up from $1.19 billion originated in
        Q1 2012. Even though Q1 2012 benefited from milder weather and
        increased activity ahead of mortgage insurance changes, the
        Company was able to increase year over year originations. Q1
        2013 originations were behind Q4 2012 originations of $1.47
        billion primarily due to seasonal factors.
    --  Traditional mortgage originations increased to $0.99 billion in
        Q1 2013 from $0.92 billion in Q1 2012 and declined seasonally
        from $1.16 billion in Q4 2012. The Company continues to
        experience strong demand for its traditional product offerings
        combined with high credit quality. This continues to enhance
        profitability and asset quality.
    --  Accelerator (insured) mortgage originations declined to $121.6
        million in Q1 2013 from $172.7 million in Q1 2012 and from
        $174.2 million in Q4 2012 reflecting the Company's continued
        preference for high margin assets on balance sheet.
    --  The Company continues to pursue strategies for transactions
        that will qualify lower margin, insured single-family
        residential mortgages for off-balance sheet treatment and lead
        to increased growth in this loan portfolio.  Ongoing dialogue
        with regulators and other interested parties regarding these
        strategies has continued and management remains cautiously
        optimistic that a solution can be attained.
    --  Multi-unit residential mortgage originations were $202.6
        million in Q1 2013 compared to $27.5 million in Q1 2012 and
        $57.2 million in Q4 2012.  In the quarter the Company
        securitized and sold $156.2 million of insured multi-unit
        residential mortgages that qualified for off-balance sheet
        accounting compared to $64.6 million last quarter.  These
        transactions resulted in securitization gains of $1.4 million
        in the quarter compared to $0.7 million last quarter. This
        securitization program was initiated in the second quarter of
        2012.  The Company is pleased with the results and anticipates
        that this program will continue to enhance profitability and
        experience modest growth.
    --  Store and apartment mortgage advances were $23.6 million in Q1
        2013 compared to $37.9 million in Q1 2012 and $24.8 million in
        Q4 2012.
    --  Commercial mortgage advances were $30.7 million in Q1 2013
        compared to $27.7 million in Q1 2012 and $52.4 million in Q4
        2012.  The Company continues to be selective and focuses on
        opportunities that present strong credit and risk profiles.

(1)Table 2 provides a reconciliation of net income to adjusted net
income and adjusted diluted earnings per share.


Data from the Canadian Real Estate Association indicates that real estate 
markets have softened in the first quarter of 2013 with an overall decline in 
housing activity of approximately 15% when compared to the first quarter of 
2012. Average prices across Canada rose marginally in the quarter and the 
rate of appreciation of home prices has moderated, with pockets of pricing 
declines in certain markets. The Company's view and observations are that 
housing markets remain in balanced territory and remain healthy overall. 
Declines in housing activity were not unexpected given the strong start to 
spring last year, ahead of changes to mortgage insurance rules. While the 
Company experienced overall originations below the last quarter of 2012, the 
activity was within management's expectations given seasonality and the slower 
start to the spring housing market this year. The Company continues to observe 
good demand for its traditional mortgage products from customers with strong 
credit profiles and originations in this product were up over the same period 
last year. The Company anticipates that demand for its traditional products 
to continue to be robust, but recognizes that overall markets have softened 
and demand could be reduced in future quarters. Management is prepared to 
adjust its strategy in such a situation. 
During the quarter the Company continued its deposit diversification 
initiative by further building balances in its brokered high interest savings 
account and in GICs directly with customers. These efforts will be further 
bolstered by the launch of a direct to consumer savings account later this 
year combined with continued advertising and business development activities 
and investment in information technology infrastructure to build the direct 
deposit channel and enhance deposit diversification. 
Beginning on January 1, 2013 the Company's subsidiary Home Trust was subject 
to, and fully compliant with, the new regulatory capital rules known as Basel 
III. Generally, the new rules introduced higher minimum capital targets along 
with requirements for higher quality capital. Home Trust was well positioned 
to adopt the new rules as it already well exceeded minimum regulatory capital 
ratios and maintained a simple structure of high quality capital. 
To further strengthen the Company's Board of Directors, Ms. Diana Graham will 
stand as a nominee for election to the board at the upcoming Annual General 
Meeting. Ms. Graham brings extensive experience to the Board, including 
governance, credit, operational, market and enterprise risk management, in 
both the United States and Canada, most recently retiring from the position of 
Chief Risk Officer at a Canadian financial institution. We are confident that 
Ms. Graham's significant experience and depth of knowledge will be assets to 
the Board and the Company. 
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 
June 1, 2013 to shareholders of record at the close of business on May 17, 
2013. 
The Company continues to deliver solid results in terms of growth and 
increased returns. Despite the persistent international economic instability 
and modest economic improvement in Canada, the Company's performance continues 
to reflect the strength and the successful execution of the Company's core 
strategy. 
With solid performance in all aspects of Home Capital's business, management 
continues to expect the positive performance the Company experienced during 
the first quarter of 2013 to continue for the remainder of year. 
(Signed) 
GERALD M. SOLOWAY 
Chief Executive Officer  
(Signed)  
KEVIN P.D. SMITH 
Chair of the Board May 8, 2013   
Additional information concerning the Company's targets and related 
expectations for 2013, including the risks and assumptions underlying these 
expectations, may be found in Management's Discussion and Analysis (MD&A) of 
the quarterly report. 
Conference Call and Webcast 
First Quarter Results Conference Call
The conference call will take place on Thursday, May 9, 2013 at 10:30 a.m. ET. 
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. ETThursday, 
May 9, 2013 and midnight ETThursday, May 16, 2013 by calling 416-849-0833 or 
1-855-859-2056 (enter passcode 36458511). 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 Statements of Income  
                                           For the three months ended 
thousands of Canadian
dollars, except per share        March 31     December 31     March 31
amounts 
(Unaudited)                          2013            2012         2012 
Net Interest Income                                                   
Non-Securitized Assets 
Interest from loans            $  148,031   $     144,310   $  117,565 
Dividends from securities           3,193           3,502        3,964 
Other interest                      1,456             949        1,047 
                              152,680         148,761      122,576 
Interest on deposits               62,938          61,873       53,128 
Interest on senior debt             1,583           1,825        1,653 
Net interest income                88,159          85,063       67,795
non-securitized assets 
                                                                   
Net Interest Income                                                   
Securitized Loans and Assets 
Interest income from               61,337          64,351       76,616
securitized loans and assets 
Interest expense on                47,610          49,506       56,192
securitization liabilities   
Net interest income                13,727          14,845       20,424
securitized loans and assets 
                                                                   
Total Net Interest Income         101,886          99,908       88,219 
Provision for credit losses         4,667           3,685        4,498 


                                   97,219          96,223       83,721

Non-Interest Income                                                   

Fees and other income              14,972          11,059       10,897

Securitization income               1,587           5,659            -

Net realized and unrealized
gains (losses) on securities        2,274           (883)          308
and mortgages

Net realized and unrealized       (1,656)         (1,298)        4,285
(loss) gain on derivatives
                                   17,177          14,537       15,490
                                  114,396         110,760       99,211

Non-Interest Expenses                                                 

Salaries and benefits              16,950          14,991       13,999

Premises                            2,445           2,562        1,998

Other operating expenses           14,574          14,067       13,171
                                   33,969          31,620       29,168
                                                                      

Income Before Income Taxes         80,427          79,140       70,043

Income taxes                                                          

  Current                          23,456          22,649       19,055

  Deferred                        (2,754)         (2,474)      (1,546)
                                   20,702          20,175       17,509

NET INCOME                     $   59,725   $      58,965   $   52,534
                                                                      

NET INCOME PER COMMON SHARE                                           

Basic                          $     1.72   $        1.70   $     1.52

Diluted                        $     1.72   $        1.70   $     1.52

AVERAGE NUMBER OF COMMON                                              
SHARES OUTSTANDING

Basic                              34,630          34,655       34,550

Diluted                            34,825          34,779       34,593
                                                                      

Total number of outstanding        34,600          34,630       34,751
common shares

Book value per common share    $    29.53   $       27.96   $    23.83
                                                                      
    Consolidated Statements of Comprehensive Income 
                                               For the three months ended
                               March 31      December 31      March 31

 thousands of Canadian             2013             2012          2012
dollars (Unaudited)
                                                                      

 NET INCOME                  $   59,725    $      58,965    $   52,534
                                                                      

 OTHER COMPREHENSIVE INCOME                                           
                                                                      

 Available for Sale                                                   
Securities

 Net unrealized gains on
securities available for          7,165            1,471         4,393
sale

 Net (gains) losses             (1,946)              457         (364)
reclassified to net income
                                  5,219            1,928         4,029

 Income tax expense               1,381              509         1,167
                                  3,838            1,419         2,862
                                                                      

 Cash Flow Hedges                                                     

 Net unrealized gains on              -                -            26
cash flow hedges

 Net losses reclassified to         367              376           353
net income
                                    367              376           379

 Income tax expense                  95               99           110
                                    272              277           269
                                                                      

 Total other comprehensive        4,110            1,696         3,131
income
                                                                      

 COMPREHENSIVE INCOME        $   63,835    $      60,661    $   55,665
                                                                      
    Consolidated Balance Sheets 
                                                                       
                                                                       
                                               March 31     December 31

 thousands of Canadian dollars                     2013            2012
(Unaudited)

 ASSETS                                                                

 Cash and Cash Equivalents                $     631,080   $     301,863

 Available for Sale Securities                  404,254         414,344

 Loans held for sale                             43,434          21,921

 Loans                                                                 

 Securitized mortgages                        6,710,556       6,706,160

 Non-securitized mortgages and loans         10,675,992      10,431,832
                                             17,386,548      17,137,992

 Collective allowance for credit losses        (30,300)        (30,000)
                                             17,356,248      17,107,992

 Other                                                                 

 Restricted cash                                130,083         137,424

 Pledged securities                             551,008         588,069

 Derivative assets                               44,643          45,388

 Other assets                                   114,528         100,983

 Goodwill and intangible assets                  83,285          82,095
                                                923,547         953,959
                                          $  19,358,563   $  18,800,079

 LIABILITIES AND SHAREHOLDERS' EQUITY                                  

 Liabilities                                                           

 Deposits                                                              

 Deposits payable on demand               $      96,513   $     105,923

 Deposits payable on a fixed date            10,545,767      10,030,676
                                             10,642,280      10,136,599

 Senior Debt                                    152,092         150,684

 Securitization Liabilities                                            

 Mortgage-backed security liabilities         1,271,879       1,301,693

 Canada Mortgage Bond liabilities             6,036,475       6,034,202
                                              7,308,354       7,335,895

 Other                                                                 

 Derivative liabilities                           2,941           2,386

 Other liabilities                              198,037         170,502

 Deferred tax liabilities                        33,046          35,800
                                                234,024         208,688
                                             18,336,750      17,831,866

 Shareholders' Equity                                                  

 Capital stock                                   61,850          61,903

 Contributed surplus                              6,729           6,224

 Retained earnings                              952,869         903,831

 Accumulated other comprehensive income             365         (3,745)
(loss)
                                              1,021,813         968,213
                                          $  19,358,563   $  18,800,079
                                                                       
    Consolidated Statements of Changes in Shareholders' Equity 
                                                                                                          
                                                           Net        Net          Total               
                                                    Unrealized Unrealized
                                                        Gains      Losses    Accumulated               
                                                      (Losses)        on 
                                                            on  Cash Flow          Other          Total
                                                    Securities

 thousands of                                        Available
Canadian          Capital  Contributed     Retained        for    Hedges,  Comprehensive  Shareholders'
dollars,

 except per                                              Sale,
share amounts       Stock       Surplus    Earnings  after Tax  after Tax  (Loss) Income         Equity
(Unaudited)

 Balance at                                                              
December 31,    $  61,903  $      6,224  $  903,831  $     432  $ (4,177)  $     (3,745)  $     968,213
2012

 Comprehensive          -             -      59,725      3,838        272          4,110         63,835
income

 Amortization
of fair value                                                                                          
of

 employee               -           505           -          -          -              -            505
stock options

 Repurchase of       (53)             -                                                -        (1,746)
shares                                      (1,693)          -          -

 Dividends                                                                                             
paid

 ($0.26 per             -             -     (8,994)          -          -              -        (8,994)
share)

 Balance at     $  61,850  $      6,729  $  952,869  $   4,270  $          $         365  $   1,021,813
March 31, 2013                                                    (3,905)
                                                                                                       

 Balance at                                                              
December 31,    $  55,104  $      5,873  $  722,999  $ (4,141)  $ (5,050)  $     (9,191)  $     774,785
2011

 Comprehensive          -             -      52,534      2,862        269          3,131         55,665
income

 Stock options      6,431       (1,254)           -          -          -              -          5,177
settled

 Amortization
of fair value                                                                                          
of

 employee               -           588           -          -          -              -            588
stock options

 Repurchase of       (41)             -     (1,159)          -          -              -        (1,200)
shares

 Dividends                                                                                             
paid

 ($0.20 per             -             -     (6,979)          -          -              -        (6,979)
share)

 Balance at     $  61,494  $      5,207  $  767,395  $          $          $     (6,060)  $     828,036
March 31, 2012                                         (1,279)    (4,781)
                                                                                                       
    Consolidated Statements of Cash Flows 
                                                For the three months ended
                                               March 31        March 31

 thousands of Canadian dollars
(Unaudited)                                        2013            2012

 CASH FLOWS FROM OPERATING ACTIVITIES                                  

 Net income for the period                 $     59,725    $     52,534

 Adjustments to determine cash flows
relating to operating activities:                                      
    Deferred income taxes                       (2,754)         (1,546)
    Amortization of capital assets                  686             705
    Amortization of intangible assets             1,927           1,591
    Amortization of net premium on
    securities                                      477             929
    Amortization of securitization and
    senior debt transaction costs                 3,114           3,460
    Provision for credit losses                   4,667           4,498
    Change in accrued interest payable           40,909          39,292
    Change in accrued interest
    receivable                                  (2,105)           (667)
    Net realized and unrealized gains on
    securities and mortgages                    (2,274)           (308)
    Realized gain on securitization             (1,587)               -
    Settlement of derivatives                     3,115               -
    Loss (gain) on derivatives                    1,857         (4,285)
    Net increase in mortgages                 (679,017)       (313,250)
    Net increase in  credit card loans
    and other consumer retail loans             (6,667)         (4,810)
    Net increase in deposits                    505,681         375,002
    Proceeds from obligations under
    repurchase agreement                              -          49,720
    Proceeds from sale of
    mortgage-backed securities                  143,553               -
    Proceeds from securitization of
    mortgage-backed security liabilities        285,616               -
    Settlement and repayment of
    securitization liabilities                (316,334)       (181,242)
    Amortization of fair value of
    employee stock options                          505             588
    Changes in taxes payable and other          (6,039)        (19,777)

 Cash flows provided by operating
activities                                       35,055           2,434

 CASH FLOWS FROM FINANCING ACTIVITIES                                  

 Repurchase of shares                           (1,746)         (1,200)

 Exercise of employee stock options                   -           5,177

 Dividends paid to shareholders                 (9,003)         (6,954)

 Cash flows used in financing activities       (10,749)         (2,977)

 CASH FLOWS FROM INVESTING ACTIVITIES                                  

 Activity in securities                                                

 Purchases                                    (895,985)       (243,855)

 Proceeds from sales                            321,975           7,145

 Proceeds from maturities                       883,337           7,058

 Purchases of capital assets                    (1,299)         (1,629)

 Purchases of intangible assets                 (3,117)         (2,890)

 Cash flows provided by (used in)
investing activities                            304,911       (234,171)

 Net  increase (decrease) in cash and
cash equivalents during the period              329,217       (234,714)

 Cash and cash equivalents at beginning
of the period                                   301,863         534,394

 Cash and Cash Equivalents at End of the
Period                                     $    631,080    $    299,680

 Supplementary Disclosure of Cash Flow
Information                                                            

 Dividends received on investments         $      1,768    $      4,671

 Interest received                              147,027         194,561

 Interest paid                                   23,613          74,681

 Income taxes paid                               38,744          33,571


Home Capital published its financial objectives for 2013 on page 18 of the 
Company's 2012 Annual Report. The following table compares actual performance 
to date against each of these objectives. 
Table 1: 2013 Targets and Performance 
                  ( ) ( )     ( ) ( )         ( )           ( ) 
( )         ( )       ( ) ( )     ( ) ( )         ( )           ( ) 
                           For the three months ended March 31,
( )         ( )       ( )                                      2013 
                 2013      Actual ( )      Amount      Increase 
              Targets     Results                     over 2012 
Growth in net     13%-18%       13.7%   $      59,725   $     7,191
income 
Growth in
diluted           13%-18%       13.2% ( )        1.72          0.20
earnings per
share 
Growth in total
loans under       10%-15%        9.0% ( )  18,448,493       406,909
administration
(1) 
Return on
shareholders'       20.0%       24.0% ( )         ( ) ( )       ( )
equity 
Efficiency        28.0% -       28.3% ( )         ( ) ( )       ( )
ratio (TEB)(2)      34.0% 
Provision as a
percentage of     0.10% -       0.11% ( )         ( ) ( )       ( )
gross loans         0.18%
(annualized) 
(1) Change represents growth over December 31, 2012 on an annualized
  basis and includes loans held for sale.
  (2) See definition of TEB under Non-GAAP Measures in the unaudited
  interim consolidated financial report. 
Table 2: Reconciliation of Net Income to Adjusted Net Income 


                                                                   Quarter

(000s, except % and            Q1          Q4       %          Q1     %
per share amounts)

Reconciliation of Net
Income to Adjusted    ( )     ( ) ( )     ( )     ( ) ( )     ( )   ( )
Net Income

Net income per
Consolidated            $  59,725   $  58,965    1.3%   $  52,534 13.7%
Statements of Income

Adjustment for
derivative
restructuring - IFRS  ( )   1,783   $   2,602 (31.5)%           -     -
conversion (net of
tax)

Adjustment for
disputed loans to
condominium           ( )   1,508           -       -           -     -
corporations (net of
tax)

Adjusted Net Income     $  63,016   $  61,567    2.4%   $  52,534 20.0%
(1)

Adjusted Basic          $    1.82   $    1.78    2.2%   $    1.52 19.7%
Earnings per Share(1)

Adjusted Diluted        $    1.81   $    1.77    2.3%   $    1.52 19.1%
Earnings per Share(1)
                      ( )     ( ) ( )     ( )     ( ) ( )     ( )   ( )
       (1) Adjusted net income and Adjusted earnings per share are
       defined in the Non-GAAP section of the MD&A.

 

Caution Regarding Forward-Looking Statements

From time to time Home Capital Group Inc. 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 on pages 
55 through 68 of the Company's 2012 Annual 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, funding and liquidity 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 
Section in the quarterly 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 and 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 the remainder of 2013, management's expectations 
continue to assume:
    --  The Canadian economy will produce modest growth in 2013 with
        relatively 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% to 3%.
    --  The Bank of Canada continues to indicate 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 relatively stable with balanced
        supply and demand conditions in most regions supported by
        continued low interest rates, relatively stable to modestly
        improving employment, and immigration.  There will be declines
        in housing starts and resale activity compared to prior years
        with stable to modestly declining prices throughout most of
        Canada.
    --  Consumer debt levels will remain serviceable by Canadian
        households.

Non-GAAP Measures
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 can be found under Non-GAAP Measures in the 
Management's Discussion and Analysis included in the Company's First Quarter 
2013 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.

About Home Capital
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.





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

SOURCE: Home Capital Group Inc.

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CO: Home Capital Group Inc.
ST: Ontario
NI: FIN ERN CONF 

-0- May/08/2013 21:00 GMT