Forward-Looking Statements

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2 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 Please see the risk factors, which are set forth in detail in the Risk Management section of the 2017 Second Quarter Report, as well as the Company s other publicly filed information, which is available on the System for Electronic Document Analysis and Retrieval (SEDAR) at 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, liquidity and funding risk, structural interest rate risk, operational risk, investment risk, strategic risk, reputational risk, compliance risk and capital adequacy 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 Overview of the Second Quarter and Outlook section in the 2017 Second Quarter Report. Forward-looking statements are typically identified by words such as will, believe, expect, anticipate, intend, should, 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 uncertainty, 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. Please also refer to the Overview of the Second Quarter and Outlook section of the 2017 Second Quarter Report for risks and uncertainties related to the Company s going concern assessment. 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 presents forward-looking statements to assist shareholders in understanding the Company s assumptions and expectations about the future that are relevant in management s setting of performance goals, strategic priorities and outlook. The Company presents its outlook to assist shareholders in understanding management s expectations on how the future will impact the financial performance of the Company. These forward-looking statements may not be appropriate for other purposes. 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. 2

3 Agenda Guaranteed Investment Certificates Investment Strategies Company Profile Questions 3

4 Guaranteed Investment Certificates What is a GIC? Guaranteed Investment Certificates (GIC) are investments which guarantee your initial investment as well as provide a fixed rate of return. Benefits Growth - Your investment is guaranteed to grow Dependability - your interest rate is guaranteed over a fixed period of time Security - 100% principal protection Flexibility choose the term and interest option that is right for you Simplicity low risk Eligible for Canada Deposit Insurance Corporation (CDIC) protection, up to applicable limits Redeemable in the event of death Risks Re-investment risk the risk that market peaks will be missed Purchasing power the risk that GICs won t outperform inflation Liquidity the risk that money needed is tied up and unavailable 4

5 Home Bank Home Trust Company Deposits and CDIC Brokered Deposits/Oaken Eligible Products Member of the CDIC Member of the CDIC Term/Savings* TFSA RRSP RRIF Term/Savings* TFSA RRSP RRIF - Home Bank and Home Trust Company are separate members of the Canada Deposit Insurance Corporation (CDIC) - GICs and savings accounts are available through either Home Bank or Home Trust Company, with your deposits eligible for CDIC coverage, up to applicable limits. - - CDIC fast insurance determination (see link for details) *Terms deposits and savings accounts are covered under one category. 5

6 Home offers a range of GICs for both, Personal and Commercial Accounts Product Term Plan Availability Minimum Deposit Short Term GIC (non-redeemable) Non-registered: days RSP: days Non-registered: RSP: $5,000 $2,500 1 Year Cashable (redeemable) 1 year cashable after 30 or 90 days Non-registered: $5,000 Long Term GIC (non-redeemable) 1-5 years Non-registered: RSP & TFSA: RIF: $5,000 $1,000 $10,000 High Interest Savings Account (redeemable) Open (Nominee name and through FundSERV only) $1,000 6

7 Home s GIC rates are some of the most competitive compared to its peers 5 Year GIC Rates 2.60% 2.55% 2.51% 2.50% 2.46% 2.46% 2.46% 2.25% 1.80% 1.80% Home Bank Home Trust Equitable Bank Coast Capital B2B Bank Laurentian Bank Canadian Western Bank General Bank Big 5 Banks National Bank of Canada Rates as of August 22, Competitor rates from Cannex and company websites. *Highest of the big 5 banks 7

8 Agenda Guaranteed Investment Certificates Investment Strategies Company Profile Questions 8

9 GIC Laddering Strategy There are many advantages that can be obtained from an investment strategy know as laddering. GIC Laddering is a simple way to maximize your returns by staggering the maturity date, hence all the funds are not locked in for the same term. GIC laddering can be part of a balanced portfolio. Benefits Take advantage of rising interest rates and reduce exposure to interest rate fluctuations You can access 20% of your investment every year Low risk Eliminates the guesswork 9

10 GIC Laddering Strategy Example 5 year ladder Divide your funds into five equal portions Invest each portion in a combination of GICs with maturity dates ranging from one to five years. Each year, as one of the GICs matures re-invest it into a new five-year GIC By the end of the fifth year, all your funds will have a 5 year term Sample Illustration: 10

11 GIC Laddering Strategy Example *Home Bank rates effective September 7 th 2017, subject to change without notice. 11

12 Diversify by products strategy Diversifying your investment across a number of deposit products (short and long term) you are able to benefit from the different features that each product may offer. Things to consider Guaranteed rates of return Provides more options if you need the liquidity in the short term Shorter tem or cashable investments provide more flexibility but lower rates Longer term investments provide less flexibility but higher rates Benefit from compound interest for terms over one year Minimize interest rate fluctuations 12

13 Agenda Guaranteed Investment Certificates Strategies Company Profile Questions 13

14 Company Profile - 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, which also operates through its wholly owned subsidiary, Home Bank, and offers: Residential and non residential mortgage lending Securitization of insured residential mortgage products Consumer lending and credit card services. Deposits via brokers/financial planners, and through its direct to consumer deposit brand, Oaken Financial. 14

15 Home Trust has branches in six major Canadian cities Operations Across Canada: 6 branches; 2 stores; 816 employees (as of June 30, 2017) 15

16 Our Customers and Their Stories Matter Specialize in clients who are: SELF EMPLOYED BRUISED CREDIT NEW CANADIANS Experience Helping Canadians Achieve Their Financial Goals 16

17 Transactional Risk Management: The Foundation of our Business Model Property Qualifications Borrower Qualifications Appraisals on all uninsured mortgages Independent site inspections LTV based on appraisal evaluation and geographic location Risk Adjusted Pricing Beacon score / Credit history Employment / Income Debt service capacity 17

18 Capital & Liquidity Update Home Trust Big 5 Bank Average* OSFI Minimum** Common Equity Tier 1 Capital Ratio Total Capital Ratio 17.06% 17.54% 14.80% 11.24% 10.50% 7.00% Q2-17 Q2-17 *Big 5 banks ratios are a simple average, Source: Bank Q Reports **OSFI All In Capital Targets 18

19 Non-Performing vs. Net Write Offs as a % of Gross Loans 0.40% 0.35% Net Non-Performing Loans as a Percentage of Gross Loans Net Writeoff's as a Percentage of Gross Loans 0.30% 0.25% 0.23% 0.20% 0.15% 0.10% 0.05% 0.05% 0.00% Q Q Q Q Q Q Q Q Prudent strategies to maintain strong credit quality Close monitoring of non-performing loans and proactive measures to minimize losses 19

20 Total GIC Balance Total GIC Balance in ($) Billions: Oaken Broker Mar 31 Apr 30 May 31 Jun 30 July 31 20

21 Agenda Guaranteed Investment Certificates Strategies Company Profile Questions 21

22 Deposits team contact information Nicole Kotsifas, Senior National Business Development Manager - Deposits Direct Tel: Cell: nicole.kotsifas@hometrust.ca Christina Fazio, Senior National Business Development Manager - Deposits Direct Tel: Cell: christina.fazio@hometrust.ca Meghan Leo, Business Development Manager, Deposits Direct Tel: Cell: meghan.leo@hometrust.ca 22