Home Capital Reports Net Income up 16.0% year over year:

--  Diluted Earnings per Share are $1.90, up 15.2%; 
--  Return on Equity was 24.3% for the quarter. 
TORONTO, Nov. 6, 2013 /CNW/ - Home Capital today reported another quarter of 
solid results and strong origination volumes. 
The Company's Third 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. 
FINANCIAL HIGHLIGHTS 
                                                                   
(Unaudited)                For the three months ended    For the nine months 
                                                                   ended 
(000s, except  September 30      June 30 September 30 September 30 September
Per Share and                                                             30
Percentage
Amounts) 


                       2013         2013         2012         2013      2012

OPERATING                                                                   
RESULTS

Net Income     $     66,417 $     61,573 $     57,254 $    187,715 $ 163,018

Total Revenue       239,433      232,555      226,603      703,182   660,036

Diluted        $       1.90 $       1.77 $       1.65 $       5.37 $    4.68
Earnings per
Share

Return on             24.3%        23.6%        25.6%        24.0%     25.7%
Shareholders'
Equity

Return on              1.3%         1.3%         1.2%         1.3%      1.2%
Average Assets

Net Interest          2.16%        2.14%        2.14%        2.16%     2.08%
Margin (TEB)
(1)

Provision as a        0.06%        0.10%        0.10%        0.09%     0.08%
Percentage of
Gross Loans
(annualized)

Efficiency            29.6%        28.6%        28.1%        28.8%     27.9%
Ratio (TEB)(1)
                                                                            
                                                             As at          
                  September      June 30     December    September          
                         30                        31           30
                       2013         2013         2012         2012          

BALANCE SHEET                                                               
HIGHLIGHTS

Total Assets   $ 19,840,797 $ 19,532,958 $ 18,800,079 $ 19,241,999          

Total Assets     21,287,095   20,577,505   19,681,750   19,410,132          
Under
Administration
(2)

Total Loans      18,084,382   17,794,420   17,159,913   17,468,655          
(3,4)

Securitized       6,164,544    6,570,837    6,706,160    7,415,206          
Loans
On-Balance
Sheet (3)

Total Loans      19,530,680   18,838,967   18,041,584   17,636,788          
Under
Administration
(3,4,5)

Liquid Assets     1,097,429      884,908      771,772      998,219          

Deposits         11,936,647   11,168,639   10,136,599    9,870,691          

Shareholders'     1,121,362    1,068,017      968,213      919,618          
Equity

FINANCIAL                                                                   
STRENGTH

Capital                                                                     
Measures (6)

Risk-Weighted  $  6,240,690 $  5,984,644 $  5,491,513 $  5,271,674          
Assets

Common Equity        16.72%       16.63%          N/A          N/A          
Tier 1 Capital
Ratio

Tier 1 Capital       16.72%       16.63%       17.01%       16.97%          
Ratio

Total Capital        19.72%       19.74%       20.68%       20.78%          
Ratio

Assets to             13.34        13.36        13.39        14.07          
Regulatory
Capital
Multiple(7)

Credit Quality                                                              

Net                   0.32%        0.31%        0.33%        0.28%          
Non-Performing
Loans as a
Percentage of
Gross Loans

Allowance as a        57.0%        58.3%        57.0%        64.7%          
Percentage of
Gross
Non-Performing
Loans

Share                                                                       
Information

Book Value per $      32.27 $      30.83 $      27.96 $      26.53          
Common Share

Common Share   $      72.03 $      55.53 $      59.07 $      51.44          
Price - Close

Market         $  2,502,754 $  1,923,948 $  2,045,594 $  1,783,322          
Capitalization

Number of            34,746       34,647       34,630       34,668          
Common Shares
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 2013 the Company classified Home Trust mortgages used as CMB replacement 
assets as securitized mortgages. In 2012 these were classified as pledged 
securities. Prior periods in 2012 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.
(7)During Q3 2013, the Company excluded from its assets, for purposes of 
calculating the Assets to Regulatory Capital Multiple, mortgages that are 
off-balance sheet as a result of sales of interest only strips in light of 
regulatory communications confirming this treatment. The comparative 
multiples have been restated to reflect this treatment.

THIRD QUARTER 2013 HIGHLIGHTS

Key results for the third quarter and the first nine months of 2013 included:
    --  Net income increased to $66.4 million for the third quarter and
        $187.7 million for the first nine months of 2013, up 16.0% and
        15.1% over the comparable periods in 2012. Adjusted net income,
        as defined in Table 2,( )was $64.6 million for Q3 2013 and
        $189.5 million for the first nine months of 2013, representing
        increases of 12.9% and 16.3% over the comparable periods of
        2012. Adjusted net income was also up 4.4% from $61.9 million
        in Q2 2013.
    --  Diluted earnings per share were $1.90 for the quarter and $5.37
        year to date representing increases of 15.2% and 14.7% over the
        $1.65 and $4.68 earned in the comparable periods of 2012 and an
        increase of 7.3% over the $1.77 last quarter.
    --  During the quarter, the Company recognized $1.9 million in a
        gain on sale from the sale of interest only strips of
        underlying mortgages with a principal value of $191.8 million.
        In the quarter, Home Capital received a favorable regulatory
        ruling confirming that the underlying mortgages in these
        transactions can be excluded from the calculation of the assets
        to capital multiple.  Please see the discussion below.
    --  Net interest income, before provisions, continued in an upward
        trend, reaching $106.6 million in the third quarter and $311.0
        million year to date, increasing from $99.5 million and $281.6
        million recorded in the same periods of 2012 and from $102.5
        million earned in Q2 2013. The growth in net interest income
        reflects strong net on-balance sheet loan growth in the
        traditional loan portfolio.
    --  Net interest margin (TEB) was 2.16% in both the quarter and on
        a year-to-date basis. This is up from 2.14% and 2.08% in the
        same periods of 2012 and the 2.14% recorded last quarter. The
        increase year over year reflects the combination of the shift
        to higher yielding traditional mortgages relative to
        securitized mortgages and improved spreads earned on
        non-securitized lending year to date.
    --  Return on equity was strong at 24.3% for the quarter and
        continues to be in excess of the Company's minimum performance
        objective of 20%.
    --  The credit quality of the loan portfolio remains strong with
        continued low non-performing loans and credit losses that are
        well within expected levels. Net non-performing loans as a
        percentage of gross loans (NPL ratio) ended the quarter at
        0.32% compared to 0.31% at the end of last quarter, 0.33% at
        the end of last year and 0.28% one year ago. The annualized
        credit provision as a percentage of gross loans (PCL ratio) of
        0.06% has decreased from the 0.10% in both last quarter and one
        year ago.
    --  Capital ratios remain high with Home Trust's Common Equity Tier
        1 ratio (CET 1 ratio) ending the quarter at 16.80%, while Tier
        1 and Total Capital Ratios were 16.80% and 19.81%,
        respectively.  Home Trust's Assets to Capital (ACM) multiple
        was 13.33 at the end of the quarter compared to 13.36 at June
        30, 2013 and 14.07 one year ago.
    --  Total loans under administration, which includes securitized
        mortgages that qualify for off-balance sheet accounting,
        increased to $19.53 billion, reflecting increases of $1.89
        billion or 10.7% from $17.64 billion one year ago, and $1.49
        billion or 8.3% from $18.04 billion at the end of 2012 (11.0%
        on an annualized basis).
    --  Strong demand for the Company's products continues to support
        residential loan growth. Total mortgage originations in the
        quarter increased to $1.99 billion from $1.63 billion last
        quarter and $1.68 billion in the same quarter last year. 
        Year-to-date loan originations were $5.01 billion, up from
        $4.53 billion in 2012.
    --  Traditional residential mortgage originations increased to
        $1.31 billion in the quarter, up from $1.23 billion in Q3 2012
        and $1.24 billion in Q2 2013. Year-to-date traditional mortgage
        originations were $3.54 billion, up from $3.33 billion last
        year. The Company continues to experience strong demand for its
        traditional product offerings, which continue to be of high
        credit quality. This continues to enhance profitability and
        asset quality.
    --  Accelerator (insured) residential mortgage originations
        increased to $272.6 million in the quarter, up from $236.7
        million in Q3 2012 and $260.3 million in last quarter.
        Year-to-date originations of $654.5 million are up from the
        $630.5 million originated in the same period last year.
        Accelerator originations are expected to increase compared to
        current levels as the Company increases its focus on
        origination of new Accelerator mortgages and the renewal of its
        existing portfolios.
    --  Multi-unit residential mortgage originations were $326.3
        million in the quarter and $583.3 million year to date compared
        to $114.3 million and $229.6 million in the same periods last
        year and $54.3 million last quarter. The Company securitized
        and sold $235.5 million in Q3 2013 resulting in $2.9 million in
        securitization gains. The insured multi-unit residential market
        is relatively limited and the Company participates as
        appropriate opportunities are available through various
        origination channels. Consequently, origination volumes can
        vary significantly from quarter to quarter.
    --  Commercial mortgage advances were $49.3 million for the quarter
        and $124.0 million year to date compared to $52.6 million and
        $186.3 million in the comparable periods of 2012 and $44.0
        million last quarter. Store and apartment mortgage advances
        were $24.3 million in the quarter and $75.4 million year to
        date compared to $18.2 million and $93.9 million in the
        comparable periods of 2012 and $27.5 million last quarter.
    --  The consumer retail credit portfolio, which includes durable
        household goods, such as water heaters and larger-ticket home
        improvement items, reached $328.0 million in Q3 2013, up 47.9%
        from $221.8 million one year ago. The Company has been
        successful at expanding relationships with its business
        partners to increase this portfolio which offers attractive
        returns for the risk profile.

During the quarter, OSFI confirmed the Company's proposed treatment of 
mortgages underlying sales of interest only strips as it affects the 
measurement of the regulatory asset to capital multiple. This favourable 
ruling confirms that off-balance sheet capital treatment can be achieved for 
securitized mortgages in certain situations and has resulted in an immediate 
increase of the Company's unutilized lending capacity. The ruling also 
provides significant flexibility with respect to growth of the portfolio of 
insured prime residential mortgages originated or renewed by the Company. The 
significance of this development is discussed under Capital and Lending 
Capacity in the Capital Management section of the Management's Discussion and 
Analysis in the Company's Third Quarter 2013 Report, which is available on 
Home Capital's website. As discussed above, in September the Company sold 
interest only strips of underlying mortgages with a principal value of $191.8 
million. This resulted in a gain of $1.9 million in the quarter.

The Company continues to experience strong demand for its mortgage lending 
products. Recent information indicates that modest increases in sales 
volumes and prices occurred in the quarter, which is reflective of relatively 
balanced markets. This is consistent with the Company's experience and 
observations of a healthy market with listings and sales in balance. The 
Company has not observed evidence of a "housing bubble" and expects that it 
will be able to continue to expand its share of the market through its network 
of brokers and its business development programs.

In the previous quarter, the Company reported that, based on its review of 
properties, it did not expect to incur significant losses as a result of the 
dramatic flooding in Alberta that occurred late in the second quarter. We 
are pleased to report that, although a number of borrowers were affected by 
the flooding and a small number have asked for revisions to payments, no 
significant losses have been reported as of this date and the Company does not 
expect significant losses.

Senior Management and the Board of Directors are pleased to announce that the 
Company further strengthened its senior executive team during the quarter with 
the appointment of Fariba Rawhani to the position of Senior Vice President and 
Chief Information Officer, along with Carol Ferguson to the position of Vice 
President, Human Resources. Ms. Rawhani is a seasoned information technology 
executive with 28 years of experience in IT leadership and transformation 
spanning public sector agencies, and numerous private sector industries 
including 16 years in the financial services industry. She has managed 
highly complex IT programs involving large teams of professionals, delivering 
senior IT leadership for national and international Fortune 100 companies. Ms. 
Ferguson brings to the organization over 25 years of financial services 
industry experience and a proven track record of building strong Human 
Resources teams. She specializes in delivering customized, practical human 
capital solutions, most notably in succession planning and leadership 
development.

On September 25, 2013, Home Trust was pleased to host and sponsor the first 
annual Home Trust Tom Trenouth Charity Golf Tournament. Over 144 brokers and 
industry partners were in attendance and overwhelming support was received 
from everyone involved. The proceeds of $67 thousand from the tournament 
were donated to the Breast Cancer Society of Canada. The Company is looking 
forward to the second annual tournament which promises to be even more 
successful.

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 approved a quarterly dividend of $0.28 per common share, payable on 
December 1, 2013 to shareholders of record at the close of business on 
November 15, 2013.

The Company continues to deliver solid results in terms of growth, high 
returns and increased dividends. 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 
its 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 nine months 2013 to continue for the remainder of year and into 2014.

(signed)                                 (signed)

GERALD M. SOLOWAY                        KEVIN P.D. SMITH

Chief Executive Officer                  Chair of the Board

November 6, 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.

Third Quarter Results Conference Call
The conference call will take place on Thursday, November 7, 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 2:30 p.m.Thursday, 
November 7, 2013 and midnight Thursday, November 14, 2013 by calling 
416-849-0833 or 1-855-859-2056 (enter passcode 80101898). 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.

Consolidated                                                               
Statements of
Income
                       For the three months ended      For the nine months
                                                              ended

thousands of      September     June 30   September   September   September
Canadian                 30                      30          30          30
dollars, except
per share
amounts

(Unaudited)            2013        2013        2012        2013        2012

Net Interest                                                               
Income
Non-Securitized
Assets

Interest from     $ 159,573   $ 153,598   $ 138,271   $ 461,202   $ 381,412
loans

Dividends from        2,621       2,795       3,172       8,609      10,669
securities

Other interest        2,386       1,778       1,093       5,620       3,070
                    164,580     158,171     142,536     475,431     395,151
                   

Interest on          67,911      65,640      58,962     196,489     168,133
deposits

Interest on           1,635       1,601       1,648       4,819       5,006
senior debt

Net interest         95,034      90,930      81,926     274,123     222,012
income
non-securitized
assets
                                                                           
                   

Net Interest                                                               
Income
Securitized
Loans and
Assets

Interest income      55,229      57,953      70,618     174,519     223,520
from
securitized
loans and
assets

Interest             43,669      46,351      53,053     137,630     163,968
expense on
securitization
liabilities

Net interest         11,560      11,602      17,565      36,889      59,552
income
securitized
loans and
assets
                                                                           
                   

Total Net           106,594     102,532      99,491     311,012     281,564
Interest Income

Provision for         2,768       4,429       4,239      11,864      11,035
credit losses
                    103,826      98,103      95,252     299,148     270,529
                   

Non-Interest                                                               
Income

Fees and other       15,472      15,406      11,281      45,850      32,935
income

Securitization        4,864         508       1,507       6,878       2,545
income

Net realized          (668)       1,163     (1,141)       2,441         402
and unrealized
(losses) gains
on securities

Net realized           (44)       (646)       1,802     (1,937)       5,483
and unrealized
(loss) gain on
derivatives
                     19,624      16,431      13,449      53,232      41,365
                   
                    123,450     114,534     108,701     352,380     311,894
                   

Non-Interest                                                               
Expenses

Salaries and         17,768      16,673      15,465      51,391      43,965
benefits

Premises              2,407       2,439       2,296       7,291       6,271

Other operating      17,460      15,160      14,304      47,194      40,879
expenses
                     37,635      34,272      32,065     105,876      91,115
                   
                                                                           
                               

Income Before        85,815      80,262      76,636     246,504     220,779
Income Taxes

Income taxes                                                               

  Current            20,258      16,077      19,904      59,791      59,527

  Deferred            (860)       2,612       (522)     (1,002)     (1,766)
                     19,398      18,689      19,382      58,789      57,761
                   

NET INCOME        $  66,417   $  61,573   $  57,254   $ 187,715   $ 163,018
                                                                           

NET INCOME PER                                                             
COMMON SHARE

Basic             $    1.91   $    1.78   $    1.65   $    5.42   $    4.70

Diluted           $    1.90   $    1.77   $    1.65   $    5.37   $    4.68

AVERAGE NUMBER                                                             
OF COMMON
SHARES
OUTSTANDING

Basic                34,703      34,612      34,697      34,645      34,705

Diluted              34,953      34,850      34,803      34,962      34,826
                                                                           

Total number of      34,746      34,647      34,668      34,746      34,668
outstanding
common shares

Book value per    $   32.27   $   30.83   $   26.53   $   32.27   $   26.53
common share

Consolidated                                                                
Statements of
Comprehensive
Income
                      For the three months ended        For the nine months
                                                               ended
                 September      June 30   September    September   September
                        30                       30           30          30

thousands of          2013         2013        2012         2013        2012
Canadian
dollars
(Unaudited)
                                                                            

NET INCOME      $   66,417   $   61,573   $  57,254   $  187,715   $ 163,018
                                                                            

OTHER                                                                       
COMPREHENSIVE
(LOSS) INCOME
                                                                            

Available for                                                               
Sale
Securities

Net               (10,638)     (10,737)       1,667     (14,210)       4,991
unrealized
(losses)
gains on
securities
available for
sale

Net losses             671      (1,162)       1,141      (2,437)       (571)
(gains)
reclassified
to net income
                   (9,967)     (11,899)       2,808     (16,647)       4,420

Income tax         (2,640)      (3,151)         742      (4,410)       1,266
(recovery)
expense
                   (7,327)      (8,748)       2,066     (12,237)       3,154
                                                                            

Cash Flow                                                                   
Hedges

Net                  (195)            -           -        (195)       (370)
unrealized
losses on
cash flow
hedges

Net losses             376          372         376        1,115       1,086
reclassified
to net income
                       181          372         376          920         716

Income tax              48           97          99          240         120
expense
                       133          275         277          680         596
                                                                            

Total other        (7,194)      (8,473)       2,343     (11,557)       3,750
comprehensive
(loss) income
                                                                            

COMPREHENSIVE   $   59,223   $   53,100   $  59,597   $  176,158   $ 166,768
INCOME

Consolidated Balance                                                   
Sheets
                                                                       
                             September 30        June 30    December 31

thousands of Canadian                2013           2013           2012
dollars (Unaudited)

ASSETS                                                                 

Cash and Cash                $    774,591   $    707,240   $    301,863
Equivalents

Available for Sale                441,689        396,557        414,344
Securities

Loans Held for Sale                77,655         25,508         21,921

Loans                                                                  

Securitized mortgages           6,164,544      6,570,837      6,706,160

Non-securitized                11,842,183     11,198,075     10,431,832
mortgages and loans
                               18,006,727     17,768,912     17,137,992

Collective allowance for         (30,900)       (30,500)       (30,000)
credit losses
                               17,975,827     17,738,412     17,107,992

Other                                                                  

Restricted cash                   108,223        136,165        137,424

Pledged securities                195,187        304,269        588,069

Derivative assets                  32,731         28,739         45,388

Other assets                      148,548        110,958        100,983

Goodwill and intangible            86,346         85,110         82,095
assets
                                  571,035        665,241        953,959
                             $ 19,840,797   $ 19,532,958   $ 18,800,079

LIABILITIES AND                                                        
SHAREHOLDERS' EQUITY

Liabilities                                                            

Deposits                                                               

Deposits payable on          $    281,348   $    172,370   $    105,923
demand

Deposits payable on a          11,655,299     10,996,269     10,030,676
fixed date
                               11,936,647     11,168,639     10,136,599

Senior Debt                       149,822        148,300        150,684

Securitization                                                         
Liabilities

Mortgage-backed security          913,103      1,103,266      1,301,693
liabilities

Canada Mortgage Bond            5,495,144      5,820,394      6,034,202
liabilities
                                6,408,247      6,923,660      7,335,895

Other                                                                  

Derivative liabilities              2,378          1,704          2,386

Other liabilities                 187,301        186,744        170,502

Deferred tax                       35,040         35,894         35,800
liabilities 
                                  224,719        224,342        208,688
                               18,719,435     18,464,941     17,831,866

Shareholders' Equity                                                   

Capital stock                      70,237         64,662         61,903

Contributed surplus                 5,412          6,419          6,224

Retained earnings               1,061,015      1,005,044        903,831

Accumulated other                (15,302)        (8,108)        (3,745)
comprehensive loss 
                                1,121,362      1,068,017        968,213
                             $ 19,840,797   $ 19,532,958   $ 18,800,079

Consolidated Statements of Changes in Shareholders' Equity
                                                                                                 
                                                       Net        Net         Total              
                                                Unrealized Unrealized
                                                    Gains  Losses on    Accumulated              
                                                  (Losses)
                                                        on  Cash Flow         Other         Total
                                                Securities

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

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

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

Comprehensive        -            -     187,715   (12,237)        680      (11,557)       176,158
income

Stock options    8,400      (2,202)           -          -          -             -         6,198
settled

Amortization                                                                                     
of fair value
of


employee         -        1,390           -          -          -             -         1,390
stock options 
Repurchase of     (66)            -     (2,077)          -          -             -       (2,143)
shares 
Dividends                                                                                         
($0.80 per           -            -    (28,454)          -          -             -      (28,454)
share) 
Balance at    $ 70,237 $      5,412 $ 1,061,015 $ (11,805) $  (3,497) $    (15,302) $   1,121,362
September 30,
2013 
                                                                                              
Balance at    $ 55,104 $      5,873 $   722,999 $  (4,141) $  (5,050) $     (9,191) $     774,785
December 31,
2011 
Comprehensive        -            -     163,018      3,154        596         3,750       166,768
income 
Stock options    6,988      (1,379)           -          -          -             -         5,609
settled 
Amortization                                                                                     
of fair value
of 
employee         -        1,353           -          -          -             -         1,353
stock options 
Repurchase of    (219)            -     (5,743)          -          -             -       (5,962)
shares 
Dividends                                                                                         
($0.64 per           -            -    (22,935)          -          -             -      (22,935)
share) 
Balance at    $ 61,873 $      5,847 $   857,339 $    (987) $  (4,454) $     (5,441) $     919,618
September 30,
2012 
Consolidated Statements of Cash Flows 
                                          For the nine months ended 


                                             September 30  September 30

thousands of Canadian dollars (Unaudited)            2013          2012

CASH FLOWS FROM OPERATING ACTIVITIES                                   

Net income for the period                   $     187,715 $     163,018

Adjustments to determine cash flows                                    
relating to operating activities:

  Deferred income taxes                           (1,002)       (1,766)

  Amortization of capital assets                    2,455         2,477

  Amortization of intangible assets                 5,907         4,854

  Amortization of net premium on securities         1,877         2,046

  Amortization of securitization and senior        11,144        10,141
  debt transaction costs

  Provision for credit losses                      11,864        11,035

  Change in accrued interest payable               25,996        31,090

  Change in accrued interest receivable             (962)       (6,733)

  Net realized and unrealized gains on            (2,441)         (402)
  securities 

  Realized gain on securitization                 (6,878)       (2,545)

  Settlement of derivatives                         3,115         (370)

  Loss (gain) on derivatives                        2,151       (5,483)

  Net increase in mortgages                   (1,540,523)   (1,551,261)

  Net decrease (increase) in pledged assets       392,882     (266,250)

  Net increase in credit card loans and          (27,706)       (7,112)
  other consumer retail loans

  Net increase in deposits                      1,800,048     1,948,567

  Activity in securitization liabilities                               
    Proceeds from sale of mortgage-backed         427,232       173,178
    securities derecognized
    Proceeds from sale of mortgage-backed         479,247       152,303
    securities
    Settlement and repayment of               (1,217,173)     (710,644)
    securitization liabilities

  Amortization of fair value of employee            1,390         1,353
  stock options

  Changes in taxes payable and other                  656      (20,241)

Cash flows provided by (used in) operating        556,994      (72,745)
activities

CASH FLOWS FROM FINANCING ACTIVITIES                                   

Repurchase of shares                              (2,143)       (5,962)

Exercise of employee stock options                  6,198         5,609

Dividends paid to shareholders                   (27,729)      (22,233)

Cash flows used in financing activities          (23,674)      (22,586)

CASH FLOWS FROM INVESTING ACTIVITIES                                   

Activity in securities                                                 

  Purchases                                     (182,382)     (276,922)

  Proceeds from sales                             138,216       270,826

Purchases of capital assets                       (6,268)       (4,270)

Purchases of intangible assets                   (10,158)       (7,279)

Cash flows used in investing activities          (60,592)      (17,645)

Net increase (decrease) in cash and cash          472,728     (112,976)
equivalents during the period

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

Cash and Cash Equivalents at End of the     $     774,591 $     421,418
Period

Supplementary Disclosure of Cash Flow                                  
Information

Dividends received on investments           $       7,175 $       8,898

Interest received                                 459,720       372,892

Interest paid                                     175,312       142,049

Income taxes paid                                  77,534        72,262

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 nine months ended September
                                            30, 2013
                 2013 Targets  Actual       Amount    Increase over
                              Results                          2012

Growth in net         13%-18%   15.1% $    187,715 $         24,697
income

Growth in             13%-18%   14.7%         5.37             0.69
diluted
earnings per
share

Growth in total       10%-15%   11.0%   19,530,680        1,489,096
loans under
administration
(1)

Return on               20.0%   24.0%                              
shareholders'
equity

Efficiency      28.0% - 34.0%   28.8%                              
ratio (TEB)(2)

Provision as a  0.10% - 0.18%   0.09%                              
percentage of
gross loans
(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               Year to date

(000s, except         Q3        Q2       %       Q3      %                          %
% and per
share amounts)
                    2013      2013  Change     2012 Change      2013      2012 Change

Reconciliation                                                                       
of Net Income
to Adjusted
Net Income

Net income     $  66,417 $  61,573    7.9% $ 57,254  16.0% $ 187,715 $ 163,018  15.1%

Adjustment for       931     2,309 (59.7)%        -      -     5,023 $       -      -
derivative
restructuring
- IFRS
conversion
(net of tax)

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

Adjustment for   (2,735)   (1,985)   37.8%        -      -   (4,720)         -      -
investment tax
credit
benefits (net
of tax)

Adjusted Net   $  64,613 $  61,897    4.4% $ 57,254  12.9% $ 189,526 $ 163,018  16.3%
Income(1)

Adjusted Basic $    1.86 $    1.79    3.9% $   1.65  12.7% $    5.47 $    4.70  16.4%
Earnings per
Share(1)

Adjusted       $    1.85 $    1.78    3.9% $   1.65  12.1% $    5.42 $    4.68  15.8%
Diluted
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 and its effect on 
Home Capital's business are material factors the Company considers when 
setting its objectives, targets 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 its 
targets, objectives and outlook 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 and inflation will generally be within the Bank
        of Canada's target of 1% to 3%, leading to stable credit losses
        and continued strong demand for the Company's lending products.
    --  The Canadian economy will continue to be heavily influenced by
        the economic conditions in the United States and global markets
        and, as such, the Company is prepared for the variability to
        plan that this may lead to.
    --  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 the balance of 2013 and for the foreseeable future.
        This is expected to continue to support relatively low mortgage
        interest rates for the foreseeable future.
    --  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 relatively stable prices throughout most of Canada. This
        supports continued stable credit quality and strong demand for
        the Company's products.
    --  Consumer debt levels will remain serviceable by Canadian
        households.
    --  The Company will have uninterrupted access to the mortgage and
        deposit markets through broker networks.

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 Third 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 branch 
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 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/06/c4681.html 
CO: Home Capital Group Inc.
ST: Ontario
NI: FIN ERN  
-0- Nov/06/2013 22:00 GMT
 
 
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