Home Capital Group’s New Executive Vice President

For Immediate Release

TORONTO – October 3, 2017 – Home Capital Group Inc. (“Home Capital” or “the Company”) (TSX: HCG) announced today that Edward Karthaus will be joining Home Capital as Executive Vice President, Residential Lending Sales on October 10th. The Company also announced Pino Decina, Executive Vice President, Residential Lending, and Chris Whyte, Executive Vice President & Chief Operating Officer, have departed from their roles at the organization.

The Company does not intend to fill the Chief Operating Officer position. Home Capital, in keeping with its focus on improving its technology and being a leader in that aspect of the mortgage industry, is creating a Chief Information Officer role and has commenced a search for the right candidate.

Mr. Karthaus, who brings extensive financial services and technology experience to this role, will have responsibility for developing and executing on Home Capital’s residential lending sales strategy. “Ed Karthaus has more than 33 years of experience in the technology, financial services and telecommunications industries, and we are excited that he has decided to join Home Capital’s leadership team to help drive our growth as one of Canada’s leading alternative mortgage providers.” said Yousry Bissada, President and Chief Executive Officer of Home Capital.

“Pino Decina and Chris Whyte have been important members of the senior leadership team, and have made significant contributions during their tenure at Home. I wish them continued success in their future endeavours,” said Mr. Bissada.

Mr. Karthaus added: “I couldn’t be more excited to get back into the Canadian Mortgage Industry. Home Capital has been an established industry leader for more than 30 years, and has carved out a strong identity in the alternative lending space. I look forward to being part of its growth as it continues to make the dream of home ownership a reality for all deserving Canadians.”

Edward Karthaus Biography
Ed Karthaus has more than 33 years of experience in the technology, financial services and telecommunications industries. He was previously Executive Vice President, Broker Services at D+H and Executive Vice President, Sales, Marketing & Client Services at Filogix LP. During his time with D+H and Filogix LP, Ed was a frequent speaker at mortgage industry events across the country, and was inducted into the Independent Mortgage Brokers Association of Ontario (IMBA) Hall of Fame, now called Canadian Mortgage Brokers Association (Ontario). He has served on the Board of Directors of the Independent Mortgage Brokers Association of Ontario (IMBA) and the Research, Innovation and Commercialization Centre (RIC Centre). In addition, Ed has held senior executive leadership roles at Prophix Software Inc., NCR Canada Ltd. and Yappn Corp. Ed began his career with Xerox Canada and Oracle Canada.

Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to Home Capital’s 2016 Annual Report, available on Home Capital’s website at www.homecapital.com, and on the Canadian Securities Administrators’ website at www.sedar.com, for Home Capital’s Caution Regarding Forward-looking Statements

About Home Capital Group Inc.
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 residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.


Laura Lepore
Assistant Vice President, Investor Relations (416) 933-5652

Canadian Western Bank Senior Debt Rating is A(low)

According to the Dominion Bond Rating Service (DBRS) based in Toronto, Canada, yesterday it has confirmed the Deposits & Senior Debt rating of Canadian Western Bank (CWB) at A (low) and its Subordinated Debt rating at BBB (high) with all trends remaining Stable.  DBRS also recognizes CWB’s long history of low write-off rates and its use of “relationship-based lending” (a key principle well depicted in “The Banker Who Saved  His Soul”.

From the CBRS website –

CWB’s most important strengths are its strong asset quality as evidenced by its very long history of low write-off rates, its proven niche strategy using relationship-based lending, its low-cost base (partially due to its business mix) and its strong internal capital generation characteristics. Funding diversification has improved over the past several years. 

Challenges include concentration in the loan book, both geographically (Alberta and British Columbia) and by industry (commercial, construction and real estate lending), although the secured nature of the loan book and the low write-off rates suggest this issue has been well managed throughout the Bank’s history.

CWB recently reported earnings of $133 million (a return on equity of 15.7%) for the nine months ended July 31, 2011, a 15% increase over adjusted earnings for the similar period in 2010, when it reported an adjusted profit of $116 million. The earnings increase was in part due to higher net interest income and the acquisition of National Leasing Group Inc. (NL) in Q2 2010. Both periods included significant gains on securities, which are not expected to recur. The most recent quarter was CWB’s 93rd consecutive profitable quarter (more than 23 years). Loan loss provisions relative to average loans were 20 basis points (bps) annualized in the first three quarters of 2011, down a little from 21 bps for full-year 2010. Gross non-performing loans as a percentage of gross loans have improved over the course of the year relative to both the loan book and to common equity and reserves. Liquidity levels were temporarily below targeted levels at the end of Q3 2011, but they have since recovered. 

Under DBRS’s global rating methodology for banks, Canadian Western Bank’s long-term Deposits & Senior Debt rating has an intrinsic assessment of A (low) and a support assessment of SA3. The SA3 rating, which reflects the expectation of no timely external support, results in the final rating being equivalent to the intrinsic assessment.


Issuer Debt Rated Rating Action Rating Trend Notes Published
Canadian Western Bank Deposits & Senior Debt Confirmed A (low) Stb Oct 28, 2011
Canadian Western Bank Subordinated Debt Confirmed BBB (high) Stb Oct 28, 2011



Canadian Western Bank Group Added To The Banker Who Saved His Soul

The Canadian Who Saved His Soul website has added The Canadian Western Bank Group (CW Bank) on its list of Canadian Financial Institutions being observed for corporate responsibility and community involvement. Though a relatively small player in Canadian banking, CW Bank is growing and is in a good position to leverage its smaller organizational and perhaps more flexible corporate culture and organization to become a leader in corporate innovation, social responsibility and community involvement.

CW Bank’s website has the tagline “We Work Hard. We Get Things Done.”  Perhaps an indication of its western roots. They describe themselves as:

Canadian Western Bank (TSX: CWB) is the largest publicly traded Canadian bank headquartered in Western Canada. CWB and its subsidiaries, which are together known as Canadian Western Bank Group (CWB Group), offer a diversified range of financial services through 40 banking branches, eight trust locations, two centralized insurance offices, a focused commercial equipment leasing centre and one wealth management location. We have combined balance sheet assets of approximately $14 billion, assets under administration approaching $10 billion and assets under management near $1 billion. We employ more than 1,800 people working in over 50 different communities across Canada. CWB Group’s collective offering of banking, trust, insurance and wealth management provides our customers with a full complement of financial services, all with one common thread – great personal service.