Goeasy Reports Strong Quarter
Goeasy, the Canadian consumer lender, surpasses expectations with a strong quarter, driven by a record volume of credit applications.
Goeasy, the Canadian consumer lender known for its easyhome, easyfinancial, and LendCare brands, has surpassed expectations in its recent quarter. The company recorded a significant increase in net income and revenue, driven by a record volume of credit applications.
In the third quarter, Goeasy's net income rose to 66.3 million Canadian dollars ($48.2 million), or C$3.87 per share, compared to C$47.2 million, or C$2.86 per share, in the same period last year. Adjusted earnings came in at C$3.81 per share, exceeding the mean estimate of analysts polled by FactSet, which was C$3.46 per share.
Revenue for the quarter reached C$321.7 million, a 23% increase from the previous year. This growth was driven by higher interest income, commissions earned, as well as increased charges and fees. Analysts had forecasted revenue of C$319.5 million for the period.
Goeasy experienced a surge in credit applications, which resulted in a record C$722 million in loan originations in the quarter. This marked a 13% increase compared to the same period last year.
Despite the rise in loan originations, Goeasy maintained stable credit and payment performance. The company reported a net charge-off rate of 8.8% in the third quarter, down from 9.3% in the same period last year. This rate fell within Goeasy's projected range of 8.5% to 9.5%.
The impressive financial results have propelled Goeasy's shares to a 7.1% increase in morning trading, bringing the year-to-date advance to 21%.