Home Capital delaying the release of its first-quarter earnings

Canadian alternative mortgage lender Home Capital Group Inc. says it is delaying the release of its first-quarter earnings.

The company was scheduled to report the first-quarter results Wednesday after markets close and host an analyst conference call Thursday.

In a news release Tuesday, Home Capital Group Inc. (TSX:HCG) says results for the period that ended on March 31 will be issued May 11.

The embattled company says the change allows the management’s discussion and analysis section of the results to be updated “for events that have occurred since the close of the first quarter.”

Home Capital has seen its stock price tumble following allegations from Ontario’s securities watchdog that it misled investors. The Toronto-based company has said the allegations are without merit and pledged to defend itself.

The subprime lender, which provides loans to borrowers who don’t meet the more stringent criteria of one of the big banks, has also had to secure a $2-billion credit line after depositors suddenly withdrew hundreds of millions of dollars from its high-interest savings accounts.

Source: Canadian Press