The firm launched an initiative earlier this year to cut costs by around $15 million a year
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Canadian lender Home Capital Group entered into an agreement with a third party to divest its payment processing and prepaid card business.
The firm originally announced that it was planning to exit these businesses in the second quarter of the year.
"This sale reflects our commitment to focus on our core lending and deposits business to drive future long-term growth," Home Capital president and CEO Yousry Bissada said.
With this divestment, the company is expecting to achieve around $20 million in annual salary and other operating cost savings. It will also enjoy a corresponding reduction in fee and other income of approximately $18 million.
Meanwhile, Home Capital agreed to enter into a transition services agreement with the third party, allowing it to continue providing services for certain clients for up to a year.
Recently, the lender sent some of its employees packing as part of its initiative to cut costs and prevent future woes.
The group announced early this year an initiative dubbed as Project Expo, targeted to achieve around $15 million in future annual cost savings.
Aimed to reduce employment, premises, and other operating costs, the initiative affected roughly 65 full-time positions under the firm's operational, sales, and underwriting divisions.
Bissada noted that the initiative is to streamline and rebalance the organisation's workforce. In the efforts to do so, the firm has reduced its headcount by around 10%.
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The firm originally announced that it was planning to exit these businesses in the second quarter of the year.
"This sale reflects our commitment to focus on our core lending and deposits business to drive future long-term growth," Home Capital president and CEO Yousry Bissada said.
With this divestment, the company is expecting to achieve around $20 million in annual salary and other operating cost savings. It will also enjoy a corresponding reduction in fee and other income of approximately $18 million.
Meanwhile, Home Capital agreed to enter into a transition services agreement with the third party, allowing it to continue providing services for certain clients for up to a year.
Recently, the lender sent some of its employees packing as part of its initiative to cut costs and prevent future woes.
The group announced early this year an initiative dubbed as Project Expo, targeted to achieve around $15 million in future annual cost savings.
Aimed to reduce employment, premises, and other operating costs, the initiative affected roughly 65 full-time positions under the firm's operational, sales, and underwriting divisions.
Bissada noted that the initiative is to streamline and rebalance the organisation's workforce. In the efforts to do so, the firm has reduced its headcount by around 10%.
For more of Wealth Professional's latest industry news, click here.
Related Stories:
Are investors ready to ignore market noise?
The inside story of an asset manager's rebrand
