Lender brings in a seasoned executive to helm its expansion into new markets
Alternative lender Goeasy Ltd. has appointed Dan Rees as its new chief executive officer, bringing in a seasoned banking executive to lead its next phase of expansion.
Rees, who spent nearly 25 years at Scotiabank, takes over at a time when loan applications are up 30% year-over-year, and Canadians are facing increasing financial strain.
Rees previously led Scotiabank’s Canadian banking division from 2019 to 2023, and was seen as a top contender for the bank’s CEO role before the board ultimately chose Scott Thomson. Following his departure from Scotiabank, Rees sought a leadership position in public financial services and now takes the helm at Goeasy, his first role at a non-bank lender.
“There’s a level of pride that the company has, and that I share, with regards to providing appropriate, well-priced access to credit for Canadians who deserve it,” Rees said.
Based in Mississauga, Ontario, Goeasy specializes in lending to non-prime borrowers, including individuals who do not qualify for financing from Canada’s Big Six banks. The company has issued over $16 billion in loans to approximately 1.5 million customers and operates a $4.6 billion consumer loan portfolio as of the end of 2024.
Goeasy’s customers represent a portion of the estimated nine million Canadians with non-prime credit scores, often referred to as subprime or near-prime borrowers. The company has more than 400 branches nationwide and offers a range of loan products, including term loans, auto financing, and secured loans of up to $50,000.
The company is eyeing substantial growth, with plans to expand its loan book to between $7 billion and $8 billion by 2027. Goeasy is also launching a credit card later this year and increasing its focus on auto loans, with potential plans to introduce small business lending in the future.
Rees is the first external CEO hire in Goeasy’s history. David Ingram, the company’s executive chair and interim CEO, said the decision was driven by the need for a leader with deep experience in lending and product development.
“It was the right time to bring in someone that’s done this before, introduced new products before, and has the experience to know, from past mistakes and successes and wins, how to make the right judgment calls,” Ingram said.
Ingram originally served as CEO from 2000 to 2018, then returned as interim CEO in January 2024 after Jason Mullins stepped down to join the board of directors.
Rees takes over Goeasy at a time of economic uncertainty, with US tariffs on Canadian imports set to take effect and inflation concerns persisting. The alternative lending market is seeing increased demand as major banks tighten their lending criteria, potentially boosting Goeasy’s customer base.
At the same time, concerns remain over loan defaults. However, Ingram noted that non-prime borrowers tend to have lower delinquency rates in downturns, as they carry less debt than prime borrowers with large mortgages and multiple financial obligations.
“Delinquency rates have held up very well so far,” Ingram said. “The biggest concern will be about how to manage the consumers through what could be a period of reinflation.”
Despite economic headwinds, Goeasy closed 2024 on a high note, with strong loan growth and financial performance.
Loan originations reached $3.17 billion, a 17% increase from 2023 and its consumer loan portfolio expanded 26% to $4.6 billion. Total revenue climbed 22% year-over-year to $1.52 billion, while operating income surged 28% to $610 million. Adjusted net income hit a record $290 million, with earnings per share (EPS) rising 18% to $16.71.
National Bank Financial analyst Jaeme Gloyn noted that improving profits and stable loan charge-offs should ease investor concerns about credit risk and the potential impact of tariffs.
Goeasy primarily competes with Fairstone Financial Inc., a personal lender owned by billionaire Stephen Smith. The company charges annual interest rates ranging from 9.9% to 35%, depending on the borrower’s credit profile and the loan type.
The typical Goeasy customer earns about $60,000 annually and borrows between $5,000 and $15,000 for term and auto loans. The lender also offers pay-as-you-go financing for merchants and secured loans up to $50,000.
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