Home Capital Group Inc. today announced strong financial results for the first quarter of 2007.

The company says it experienced particularly strong asset growth, resulting principally from record residential mortgage origination levels, together with continued forward momentum in Equityline VISA, and the new commercial mortgage lending operation.

The attractive lending climate across Canada, together with the stable interest rate environment, resulted in solid returns and business growth during the first quarter.

Net income for the quarter was $21.2 million, an increase of 49.2% over the $14.2 million recorded in the same period last year.

Basic earnings per share were 62¢, 47.6% above the 42¢ for the first quarter of 2006.

Return on equity was 29.3% for the first quarter, compared to 25.2% for the comparable quarter of 2006, and 30.5% in the fourth quarter last year.

Total assets at March 31 reached $4.17 billion, 25.3% higher than the $3.33 billion reported one year earlier. Total assets, together with Mortgage-Backed Securities (MBS) originated and administered by the company, grew to $5.34 billion, a rise of 27% from $4.21 billion at March 2006, and 6.7% from the $5.01 billion total at Dec. 31, 2006.

Total mortgage originations were $546.4 million during the first quarter, an increase of 28.1% from the $426.7 million advanced in the same period last year. Both residential and commercial mortgage loan growth were strong, with $58.9 million of this total issued through the newly established commercial mortgage department.

The efficiency ratio was 26.7% for the first quarter, compared to 32.2% during the same period of 2006. The ratio was 26.8% for the fourth quarter of 2006.
Net impaired loans represented 0.74% of the total loans portfolio, up from 0.51% at the end of the first quarter of 2006, and from 0.68% at December 2006.

The board of directors of Home Capital approved an increase in the quarterly dividend to 10¢ a share.

Home Capital operates through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, retail credit and credit card issuing services.