Home Capital says former RBC exec will replace founder on board; stock up

Home Capital adds former RBC exec to board

TORONTO — Home Capital Group Inc. (TSX:HCG) is adding a former Royal Bank of Canada executive to its board, replacing company founder Gerald Soloway, in a bid to renew its leadership and boost investor confidence.

Shares of the Toronto-based mortgage lender were up 3.7 per cent to $6.23 on Friday after the appointment of Alan Hibben was announced.

“This is the start of our governance renewal,” board chairman Kevin Smith said in a news release, adding that more changes are coming.

“We have made considerable progress in identifying new candidates for the board and in our search for a new chief executive officer. The new CEO will in turn be involved in the hiring of a new chief financial officer, providing a major refresh in our corporate leadership as part of the process of rebuilding the company.”

Home Capital’s share price has been under pressure in recent weeks as the company grapples with a loss of deposits following allegations from Ontario’s securities watchdog.

Customers have been pulling their money out after staff at the Ontario Securities Commission alleged that Home Capital, Soloway, former CEO Martin Reid and current CFO Robert Morton misled investors in their handling of a scandal involving falsified loan applications.

The company has said that the allegations are without merit and has vowed to defend itself. Lawyers for all three men did not respond to a request for comment on Thursday. Reid declined to comment several weeks ago when the OSC first announced the allegations.

The OSC has scheduled a June 2 hearing to deal with that matter.

Home Capital has secured a $2 billion line of credit from the Healthcare of Ontario Pension Plan to help make up the lost capital.

Veritas analyst Mike Rizvanovic says bringing in someone as credible as Hibben is a small positive, but noted Home Capital is still dealing with an outflow of the cash it uses to fund lending.

“We can’t say that bringing new people in is going to necessarily stem the outflow of deposits,” Rizvanovic said.

“It’s not like you bring this individual in and then suddenly they’ve got their access back to the deposit market. It’s way too early to know that.”

Hibben’s resume includes experience as head of strategy at Royal Bank and managing director of mergers and acquisitions for RBC Capital Markets until his retirement from the bank in 2014.

Since retiring from RBC in 2014, Hibben has been an independent financial adviser and a director of several companies. He was appointed last year to the board of trustees for OPTrust, which manages funds for an Ontario public-sector pension plan.

Home Capital announced last week that Soloway would step down from the board of directors once a replacement is found.

Alexandra Posadzki, The Canadian Press

Just Posted

Participation by women in West Kootenay/Boundary elections up slightly

More running than in 2014, but about same number as 2011

More burning prohibitions rescinded in southeast B.C.

Category 2 and 3 fires will be permitted in Southeast Fire Centre as of 1p.m. on Wednesday.

High hazard in downtown Trail

Roofing work began early Monday morning at the Trail Memorial Centre

Second hospital road part of plan, says Trail mayor

Martin was in Whistler last week for the UBCM; city delegation met with health ministry

Syringa Creek fire ‘being held’

The fire has burned 3193 hectares; Deer Creek fire is also “being held” at 3849 hectares

U.S. congressman issues dire warning to Canada’s NAFTA team: time is running out

Canadian Foreign Affairs Minister Chrystia Freeland is expected to resume talks with the U.S.

B.C. marijuana workers may face U.S. border scrutiny

Cannabis still illegal federally south of the border

New political party holds an informational session in Vernon

Maxime Bernier’s The People’s Party of Canada draws about 2o interested patrons to Vernon pub.

B.C. MLAs reminded of rural school struggles

Finance committee hears of falling enrolment, staff shortages

B.C. VIEWS: ’Not photo radar’ coming soon to high-crash areas

ICBC deficit now largely due to reckless and distracted driving

Researchers tag great white shark in Atlantic Canada

Information will be used to learn more about where white sharks move in Canadian waters

Mix-up of bodies leads to funeral home reforms in Nova Scotia

One woman was was mistakenly cremated, another was embalmed and presented to family members during a visitation that went horribly wrong

B.C. RCMP turn to Const. Scarecrow to shock speeders into slowing down

New addition will watch over drivers from a Coquitlam median for first-of-its-kind pilot in Canada

Cyclists finish North America trip to highlight Ukraine struggle

The 10,000 bike ride raised over $10,000 for victims of the war in Ukraine.

Most Read