Street Capital Group Inc. operates primarily through its wholly owned subsidiary Street Capital Bank of Canada, which offers a broad range of deposit and residential mortgage solutions to Canadians. Street Capital is one of the largest lenders in the mortgage broker channel, with approximately 130,000 mortgage customers and a strong and sizeable network of broker relationships. The Company’s objective is to continue to create shareholder value by building a substantial, diversified financial services organization. The Company is headquartered in Toronto, Ontario, with offices in Calgary, Alberta and Vancouver, British Columbia.
Street Capital Group Inc. is listed on the Toronto Stock Exchange and trades under the ticker SCB.
Why invest in Street Capital
1. Shareholder-aligned management team with expertise in all retail lending products
Street Capital’s founders, W. Ed Gettings, (CEO), Lazaro DaRocha, (President) and Paul Grewal, (Vice Chair), started Street Capital Financial Corporation in 2007. Since that time, the company has continued to strengthen its management team, adding individuals with deep experience running mortgage and consumer lending operations in Canada. As a management team and board of directors, we are aligned with our shareholders as we collectively hold 25% of the outstanding common shares of Street Capital.
2. #3 player in mortgage broker channel – strong foundation of revenue and earnings
With over 250 employees and offices in Toronto, Vancouver and Calgary, we offer a broad range of competitive residential mortgage solutions to Canadians. Street Capital sources its mortgages primarily through its network of high-quality independent mortgage brokers. Mortgage brokers are an important distribution channel in Canada, capturing over half of ﬁrst time homebuyers and 42% of repeat buyers, according to the 2015 Mortgage Consumer Survey by the Canada Mortgage and Housing Corporation (“CMHC”).
3. Proven risk manager
Our success, yesterday and tomorrow, will always be rooted in quality. We’re known for rigorous and proven underwriting. Our credit quality is well above industry average, with our serious arrears at half the industry levels and our CMHC early default rate, which is an indicator of the quality of the underwriting of our mortgage portfolio, at less than half the industry average. Our culture is established to live and breathe credit quality. The overall market is composed of distinct credit segments. Street Capital is focused on underwriting loans at the very top of the quality scale.
4. Predictable, high margin renewal stream – near-term growth catalyst
Although the Company outsources servicing of the mortgages it underwrites to third parties, it continues to administer them, and therefore remains the face of all direct communication with borrowers throughout the mortgage term. This ongoing customer relationship is a key part of the long-term growth, proﬁtability and recognition of the Street Capital brand, since it promotes renewals. Acquisition costs of renewed mortgages are much less than those of new ones, meaning that renewals will be an important driver of future profitability. Street Capital Financial targets a renewal rate of approximately 75–80% for mortgages it has originated, which is in line with the industry norm, and expects to achieve higher overall margins as mortgage renewals become a greater part of its mix of business.
5. Schedule I bank – generating sustainable growth for many years to come
Ten years young, with over $25 billion of mortgages under administration, we are now at an inflection point. We are positioned to build on our proven strengths and scale to unlock the value of our approximately 130,000 customers and established broker relationships, through the launch of our Schedule I bank, Street Capital Bank of Canada. The addition of the bank licence will enable us to raise deposits for the expansion of products beyond insured residential mortgages. This will enable us to diversify our revenue sources and in the coming years we will expand into a full suite retail lending financial institution. Long-term, we see an opportunity in the Canadian market for a full-suite, multi-channel retail banking offer, enabled by technology.
6. Committed to driving solid returns on capital and shareholder value
As a management team and board of directors, we are aligned with our shareholders as we collectively hold 25% of the outstanding common shares of Street Capital. As we build-out our Schedule I bank platform, we are committed to prudent and profitable growth, with return on capital at the core of every decision we make.
Our management team is broad, deep and diverse. With decades of cumulative experience, our leadership team brings a wealth of experience in financial services and strategic management.
W. Ed Gettings, AMPChief Executive Officer