Money HSBC Canada Not Interested in Home Capital Assets, CEO Says

21:40  19 may  2017
21:40  19 may  2017 Source:   bloomberg.com

Canadian Fund With $6 Billion War Chest Picks London for EU Hub

  Canadian Fund With $6 Billion War Chest Picks London for EU Hub The Public Sector Pension Investment Board picked London as its European hub and plans to spend as much as 4.6 billion pounds ($6 billion) in the region in the next five years. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.

HSBC Canada , which leapfrogged small Canadian competitors by acquiring failing Bank of British Columbia in 1986, wouldn’t be interested in Home Capital if the embattled mortgage lender put itself up for sale or sold off assets such as its mortgage portfolio.

HSBC Canada , which leapfrogged small Canadian competitors by acquiring failing Bank of British Columbia in 1986, wouldn’t be interested in Home Capital if the embattled mortgage lender put itself up for sale or sold off assets such as its mortgage portfolio.

A © Bloomberg/Bloomberg 1495206248_toronto-homes2

(Bloomberg) -- One of the last times a Canadian bank ran into trouble, HSBC Holdings Plc came to the rescue. Don’t expect history to repeat itself in the case of Home Capital Group Inc.

HSBC Canada, which leapfrogged small Canadian competitors by acquiring failing Bank of British Columbia in 1986, wouldn’t be interested in Home Capital if the embattled mortgage lender put itself up for sale or sold off assets such as its mortgage portfolio.

Quotes in the article

HSBC Bank Canada

HSB.PR.C

‘Classic contrarian opportunity’: Investors snap up Home Capital shares amid turmoil

  ‘Classic contrarian opportunity’: Investors snap up Home Capital shares amid turmoil Kingsferry will be among the investors watching closely as Home Capital reports its first-quarter earnings on Thursday after market close .The company will be facing tough questions as it has been mired in liquidity problems and a crisis of confidence since the OSC filed formal allegations on April 19 against Home Capital, and three of its current and former executives.The securities regulator has accused them of misleading shareholders after the discovery of falsified information in its mortgage broker channel, and the subsequent firing of 45 brokers in 2014 and 2015.

HSBC Canada , which leapfrogged small Canadian competitors by acquiring failing Bank of British Columbia in 1986, wouldn’t be interested in Home Capital if the embattled mortgage lender put itself up for sale or sold off assets such as its mortgage portfolio.

Commenting on the results, Paulo Maia, President and Chief Executive Officer of HSBC Bank Canada , said : I am happy to Regulatory capital and capital ratios in the tables below, with exception of the assets -to- capital 2 Presented as non-controlling interests in the consolidated balance sheet.

25.44
+0.04
+0.16%
Home Capital Group Inc

HCG

9.18
+0.31
+3.49%
Canadian Western Bank

CWB

25.87
+0.27
+1.05%
Royal Bank of Canada

RY.PR.A

25.23
+0.06
+0.24%

“This isn’t something for us right now," Sandra Stuart, chief executive officer of HSBC’s Canadian unit said Thursday in an interview in her Vancouver office. “We were in the subprime business and we had a subprime portfolio that performed very well, and we took a decision to exit it. We understand deeply what it takes to run a subprime book, and at this stage I would say we’re not interested."

Home Capital has been seeking to stabilize itself after losing almost C$1.9 billion ($1.4 billion) in high-interest deposits since the end of March, forcing it to secure a costly C$2 billion rescue loan from a pension fund. The company also hired investment banks to advise on financing and “strategic options" that may include a sale of the company or assets.

Home Capital says uncertainty over funding capabilities casts doubt about its future

  Home Capital says uncertainty over funding capabilities casts doubt about its future ‘Management believes that material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern’.HCG

The bank ’s core common equity is existing Tier 1 capital less non-controlling interest in subsidiaries, HSBC HaTS™ and preferred shares. Marc Cevey Chief Executive Officer HSBC Global Asset Management ( Canada ) Limited Toronto.

Commenting on the results, Paulo Maia, President and Chief Executive Officer of HSBC Bank Canada , said Customer group net interest income reflects internal funding charges and credits on the customer groups’ assets , liabilities and capital , at market rates, taking into account relevant terms

Other Canadian financial firms earlier this month ruled out an outright purchase of Home Capital, including Canadian Western Bank and alternative lender Equitable Group Inc. HSBC’s case is noteworthy because of the bank’s history in Canada.

Bank Fails

Stuart has first-hand experience with a bank failure. She was a teller of Bank of British Columbia in Vancouver’s suburb of Burnaby when the lender ran into trouble. She became a part of HSBC when the Bank of British Columbia was acquired by the London-based lender in November 1986.

“Reflecting on it, it happened so quickly," Stuart said. “I remember when HSBC made the purchase and how exhilarating that was to have a foreign bank take over a little British Columbia bank and absolutely overnight the prospect for the whole business changed. It was really exiting."

Bank of British Columbia’s woes followed the failures of Canadian Commercial Bank and Northland Bank of Canada in 1985, when rising interest rates and a slumping dollar caused their real estate and energy-heavy loan books to deteriorate, according to a Bank of Canada report. The failure of two small Western Canadian lenders eroded the confidence of other banks that relied on wholesale deposit funding, leaving Bank of British Columbia unable to weather the storm.

Is Home Capital a buy?

  Is Home Capital a buy? Norm Rothery examines the merits of this one-time All-Star stock after the mortgage lender’s rapid fall from grace

Paulo Maia President and Chief Executive Officer HSBC Bank Canada . HSBC Bank Canada is the leading international bank in Canada with total assets of .3bn at 31 December 2013. The household debt slowdown will affect home renovation activity and existing home sales, both of which

HSBC Canada Not Interested in Home Capital Assets , CEO Says - League, according to a New York Times obituary published when he died in Home Capital if the - ’s history in Vancouver’s suburb of Home Capital , including Canadian Western Bank and - Columbia in Canada .

The B.C. bank was run at the time by Edgar Kaiser Jr., an industrialist whose holdings included Canada’s biggest coal company, and the Denver Broncos of the National Football League, according to a New York Times obituary published when he died in 2012.

Expansion Plan

The B.C. purchase bolstered HSBC’s Canadian presence five years after entering the country, and the deal became the first of a string of purchases over 22 years in the bank’s strategy to expand across the nation.

HSBC Canada hasn’t seen much impact from Home Capital’s woes, Stuart said.

“If anything, we’ve seen our deposits increase over the last little while," Stuart said, adding that she doesn’t expect Home Capital’s troubles will spread to other financial firms. “It’s a C$20 billion book, it’s going to play out as it’s going to play out. We don’t feel any contagion to us, so I’m suspecting it’s probably going to be isolated."

Home Capital rose a second straight day, adding 5.9 percent to C$9.39 in Toronto. The stock is still down 70 percent on the year.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net, Peter Eichenbaum at peichenbaum@bloomberg.net, Stephen Wicary

©2017 Bloomberg L.P.

]]>

Canada opens World Women’s Rugby Sevens Series with three wins .
Canada opens World Women’s Rugby Sevens Series with three winsJulia Greenshields, Bianca Farella, Ghislaine Landry and Natasha Watcham-Roy each scored tries as Canada beat Russia 24-10 in their final match of the day.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!