Goeasy Reports Strong Quarter

by Robb M. Stewart

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.

Financial Performance

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.

Record Loan Originations

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.

Stable Credit and Payment Performance

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%.