Company posts record earnings as demand for non-prime credit remains strong
Alternative lender goeasy Ltd. closed 2024 with record-breaking loan originations and revenue growth.
The company, which operates under the easyhome, easyfinancial, and LendCare brands, saw loan originations rise to $3.17 billion, marking a 17% increase from 2023. Its consumer loan portfolio grew to $4.60 billion, a 26% jump from the previous year.
Despite economic uncertainty, goeasy’s total revenue climbed 22% year-over-year to $1.52 billion, while operating income surged 28% to $610 million. Adjusted net income, which excludes one-time and non-recurring items, hit a record $290 million, with adjusted EPS rising 18% to $16.71.
"The fourth quarter rounded out another record year for the company, in which we issued over $3.2 billion in loans," goeasy executive chairman and interim CEO David Ingram said in the financial report.
The company also announced $200 million in new capital, increasing its total funding capacity to $1.9 billion to support further growth.
Fourth quarter results
In the final quarter of 2024, loan originations hit $814 million, up 15% from Q4 2023. A surge in credit applications – 28% higher than the previous year – helped fuel this growth, with strong activity across unsecured lending, home equity loans, point-of-sale financing, and automotive loans.
The company’s total revenue for the quarter rose 20% to $405 million, while operating income climbed 20% to $165 million.
Net income for Q4 was $73.8 million, slightly below $74.6 million in 2023, reflecting an increase in credit loss provisions. However, adjusted net income rose 12% to $77.4 million, while adjusted earnings per share (EPS) climbed 11% to $4.45.
Read next: goeasy boosts credit capacity with amended $550m facility
goeasy’s credit risk remained stable, with a net charge-off rate of 9.1%, compared to 8.8% in Q4 2023. The company’s allowance for credit losses increased to 7.61%, reflecting updated macroeconomic forecasts.
Outlook for 2025
goeasy expects continued growth in the coming years, with a goal to expand its loan portfolio to between $7 billion and $8 billion by the end of 2027.
"We are proud to have met or exceeded all of our full-year forecasts for 2024 and are excited to introduce our new outlook," Ingram said.
In December, goeasy announced plans to repurchase up to 1.3 million shares in 2025 as part of its normal course issuer bid (NCIB), which was approved by the Toronto Stock Exchange (TSX). The buyback program runs from December 23, 2024, to December 22, 2025.
The company also secured $200 million in additional capital, increasing its total funding capacity to $1.9 billion.
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