May 30th, 2024

Alternative lender Goeasy reports 41% jump in credit applications

By The Canadian Press on May 7, 2024.

Goeasy Ltd. company logo is seen in an undated handout image. THE CANADIAN PRESS/HO

TORONTO – Alternative lender Goeasy Ltd. says it had a record volume of credit applications in its first quarter, up 41 per cent from a year earlier.

Goeasy says the jump in applications led loan originations to climb 12 per cent to $686 million for the quarter as it experienced strong performance across several categories including unsecured lending and automotive financing.

Chief executive Jason Mullins says it was a strong start to the year with over $200 million in loan portfolio growth, and the lender expects to finish at the high end of its loan growth forecast for the year.

The growth comes as inflation and elevated interest rates have led many Canadians to borrow more, while those with lower credit scores often have to rely on alternatives to major banks.

The company says it saw stable credit and payment performance as its net charge-off rate, or the amount of loans it doesn’t expect to get paid back, was within its targeted range at 9.1 per cent.

The lender reported net income of $58.9 million, or $3.40 per diluted share, up from $51.4 million or $3.01 per share last year.

This report by The Canadian Press was first published May 7, 2024.

Companies in this story: (TSX:GSY)

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