Home Capital Group Inc. reported that it has met or exceeded each of its previously stated annual performance targets, and it believes that it will maintain this positive trend during 2002.

Net income for the fourth quarter grew by 37.6% to $4,113,585 from the $2,990,255 recorded for the same period in 2000. For the year, it realized net earnings of $14,859,569, up 42.2% over the $10,451,634 achieved during 2000.

Return on equity during the fourth quarter was 22.5% as compared to the 24.8% achieved one year earlier. This reduction resulted from the additional $13,440,000 in equity raised in September 2001. For the year return on equity increased to 23.8% from the 23.2% recorded in 2000. This represents the fourth consecutive year in which return on equity has exceeded 20%.

Assets grew to $1,121,214,975, an increase of 27.1% over the $881,924,852 at year-end 2000. Net impaired loans at the end of 2001 represented 0.52% of the total portfolio, remaining the same as the third quarter of 2001, up from the 0.39% recorded at year-end 2000.

At year-end, the company’s tier 1 capital rose to $66.1 million from $45.5 million reported at the end of 2000. Total capital rose to $86.4 million from $60.5 million in 2000. Total capital ratio at year-end was 14.3%, which is significantly higher than the average of the six leading banks at 12.5%.

The company says that it believes that the positive performance in the quarter under review and the year is sustainable. There exists a strong demand in the marketplace for national alternatives to the products offered by traditional financial institutions.

“Canada is experiencing somewhat softer economic conditions, however we have not seen any negative effects on the growth or profitability of the company to date. We remain vigilant and are confident that our well regarded underwriting techniques and risk management procedures will continue to serve us well in the future. The company is well positioned to continue its upward earnings momentum and we are confident in our ability to continue generating value for all shareholders during 2002.”