goeasy Ltd. Reports Record Results for the Fourth Quarter and Full Year

Feb 13 2025 21:02 GMT

Loan Portfolio of $4.60 billion, up 26% from $3.65 billion

Quarterly Revenue of $405 million, up 20% from $338 million

Quarterly Diluted EPS of $4.25; Adjusted Quarterly Diluted EPS¹ of $4.45, up 11% from $4.01

Annual Diluted EPS of $16.30; Adjusted Annual Diluted EPS¹ of $16.71, up 18% from $14.21

Annual Dividend per Share Increased to $5.84, up 25% from $4.68

MISSISSAUGA, ON , Feb. 13, 2025 /CNW/ -: goeasy Ltd. (TSX: GSY), ("goeasy" or the "Company"), one of Canada's leading consumer lenders focused on delivering a full suite of financial services to Canadians with non-prime credit, today reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter Results

During the quarter, the Company generated $814 million in loan originations, up 15% compared to $705 million produced in the fourth quarter of 2023. The increase in lending was driven by a record volume of applications for credit, which were up 28% over the prior year. The Company experienced strong performance across several product and acquisition channels, including unsecured lending, home equity lending, point-of-sale and automotive financing.

The increase in loan originations led to growth in the loan portfolio of $203 million. At quarter end, the consumer loan portfolio was $4.60 billion, up 26% from $3.65 billion in the fourth quarter of 2023. The growth in consumer loans led to an increase in revenue, which was a record $405 million in the quarter, up 20% from $338 million in the fourth quarter of last year.

During the quarter, the Company continued to experience stable credit and payment performance. The annualized net charge off rate was 9.1%, up slightly from 8.8% in the fourth quarter of 2023, and below the midpoint of the Company's forecasted range of between 8.75% and 9.75% for the quarter. The Company's allowance for future credit losses increased to 7.61%, compared to 7.38% in the third quarter, due to unfavourable changes in forward looking macroeconomic indicators produced by Moody's Analytics.

Operating income for the fourth quarter of 2024 was a record $165 million, up 20% from $137 million in the fourth quarter of 2023. Operating margin for the fourth quarter was 40.7%, up slightly from 40.6% in the same period last year. After adjusting for unusual and non-recurring items, the Company reported record adjusted operating income² of $168 million, an increase of 20% compared to $141 million in the fourth quarter of 2023. Adjusted operating margin¹ for the fourth quarter was 41.6%, consistent with 41.6% in the same period in 2023. The efficiency ratio¹ for the fourth quarter of 2024 was 24.2%, an improvement of 410 bps from 28.3% in the fourth quarter of 2023, reflecting an increase in operating leverage.

Net income in the fourth quarter was $73.8 million, down slightly from $74.6 million in the same period of 2023, which resulted in diluted earnings per share of $4.25, down 2% from the $4.34 reported in the fourth quarter of 2023. After adjustments, adjusted net income² was a record $77.4 million, up 12% from $69.0 million in the fourth quarter of 2023. Adjusted diluted earnings per share¹ was a record $4.45, up 11% from $4.01 in the fourth quarter of 2023. Return on equity during the quarter was 24.7%, compared to 28.9% in the fourth quarter of 2023. Adjusted return on equity¹ was 25.9% in the quarter, compared to 26.7% in the same period of 2023.

"The fourth quarter rounded out another record year for the company, in which we issued over $3.2 billion in loans, highlighting the critical role we play in providing everyday Canadians access to credit and the support to enhance their ability to gain future access to lower borrowing costs," said David Ingram, goeasy's Executive Chairman and Interim Chief Executive Officer, "In addition we also bolstered our balance sheet with another $200 million of new capital, lifting our total funding capacity to $1.9 billion to support our organic growth plans. With a declining leverage profile, we also repurchased approximately $69 million in shares during and subsequent to quarter-end," Mr. Ingram continued, "We are proud to have met or exceeded all of our full year forecasts for 2024 and are excited to introduce our new outlook, which includes scaling the loan portfolio to between $7 billion and $8 billion by the end of 2027. We have successfully integrated the new interest rate cap to our credit models and begin 2025 with confidence that our team will continue to generate another year of record earnings."

Other Key Fourth Quarter Highlights

easyfinancial

Record revenue of $367 million, up 23%
45% of the loan portfolio secured, up from 42%
Record volume of applications for credit, up 28%
New customer volume at 46,800, up 16%
71% of net loan advances¹ in the quarter were issued to new customers, up from 67%
Average loan book per branch³ improved to a record $7.0 million, an increase of 22%
Weighted average interest rate³ on consumer loans of 29.0%, down slightly from 30.3%
Record operating income of $174 million, up 16%

easyhome

Revenue of $37.8 million, down slightly from $38.6 million
Consumer loan portfolio within easyhome stores increased to $116.2 million, up 9%
Financial revenue² from consumer lending increased to $13.2 million, up 7%
Operating income of $10.0 million, up 6%

Overall

94^th consecutive quarter of positive net income
2025 marks the 21^st consecutive year of paying dividends and the 11^th consecutive year of a dividend increase
59^th consecutive quarter of same store revenue growth
Total customers served approximately 1.5 million since easyfinancial's inception
Acquired and organically originated over $16.0 billion in loans since easyfinancial's inception
Adjusted return on equity¹ of 25.9%, down from 26.7%
Fully drawn weighted average cost of borrowing at 6.5%, down from 6.8%
Net debt to net capitalization⁴ of 74% on December 31, 2024

Full Year Results

For the year of 2024, the Company funded a record $3.17 billion in loan originations, up 17% from $2.71 billion in 2023. The consumer loan portfolio finished at $4.60 billion, up 26% from $3.65 billion as of December 31, 2023.

For the year of 2024, the Company produced record revenues of $1.52 billion, up 22% compared to $1.25 billion in 2023. Operating income for the year was a record $610 million compared with $477 million in 2023, an increase of $133 million or 28%. Adjusted operating income² for the year was a record $628 million, 28% higher compared to $491 million in the prior year. Efficiency ratio¹ for the year was 25.3%, an improvement of 490 bps from 30.2% in 2023.

Net income for the year was $283 million and diluted earnings per share was $16.30, compared with $248 million or $14.48 per share in 2023. Adjusted net income² for the year was a record $290 million and adjusted diluted earnings per share¹ was a record $16.71 compared with $243 million or $14.21 per share, increases of 19% and 18%, respectively. Reported return on equity was 24.9%, while adjusted return on equity¹ was 25.5%, up slightly from 25.4% in 2023.

Balance Sheet and Liquidity

Total assets were $5.19 billion as of December 31, 2024, an increase of 25% from $4.16 billion as of December 31, 2023, primarily driven by growth in the consumer loan portfolio.

In December 2024, the Company increased its existing revolving securitization warehouse facility collateralized by automotive consumer loans (the "Automotive Securitization Facility") by $200 million to $700 million. The maturity of the Automotive Securitization Facility was also extended by a year to December 15, 2026. The lending syndicate continues to consist of Bank of Montreal and Wells Fargo Bank, and the facility continues to bear interest on advances payable at the rate of Adjusted Daily Compounded Canadian Overnight Repo Rate Average ("Adjusted CORRA") plus 185 bps. Based on the current Adjusted CORRA rate, the interest rate would be 5.43%. The Company will continue to utilize an interest rate swap agreement to generate fixed rate payments on the amounts drawn.

During the quarter, the Company recognized a net investment gain of $6.1 million, mainly due to fair value changes in the Company's investments and from the disposal of its remaining investment in Affirm Holdings Inc. ("Affirm"). Including the cash received on the initial sale of PayBright Inc. to Affirm in January 2021, the total net realized gains amount to $129.4 million, relative to the initial investment of $34 million made in 2019, or approximately 3.8 times the initial investment.

Free cash flow from operations before net growth in gross consumer loans receivable² in the quarter was $185 million compared to $85 million in the fourth quarter of 2023. Based on the cash on hand at the end of the quarter and the borrowing capacity under the Company's existing revolving credit facilities, the Company has approximately $1.9 billion in total funding capacity as of December 31, 2024 and a net debt to net capitalization ratio of 74%. The Company remains confident that the capacity available under its existing funding facilities, and its ability to raise additional debt financing, is sufficient to fund its organic growth forecast.

At quarter-end, the Company's weighted average cost of borrowing was 6.8%, and the fully drawn weighted average cost of borrowing was 6.5%. The Company estimates that it could currently grow the consumer loan portfolio by approximately $300 million per year solely from internal cash flows, without utilizing external debt. The Company also estimates that once its existing and available sources of debt are fully utilized, it could continue to grow the loan portfolio by approximately $500 million per year solely from internal cash flows.

Future Outlook

The Company has provided a new 3-year forecast for the years 2025 through 2027. The periods of 2025 and 2026 have been updated to reflect the most recent outlook. The forecast reflects an effective date of January 1, 2025 for the previously announced new legislation to reduce the maximum allowable rate of interest. The Company employs the use of probability weighted third party economic forecasts to establish its economic outlook.

The Company continues to pursue a long-term strategy that includes expanding its product range, developing its channels of distribution, and leveraging risk-based pricing to reduce the cost of borrowing for its consumers and extend the life of its customer relationships. As such, the total yield earned on its consumer loan portfolio and net charge off rates will gradually decline, while operating margins expand. The forecast outlined below is based on the Company's expected domestic organic growth plan and does not include the impact of any future mergers or acquisitions, or the associated gains or losses related to its investments.

The following tables outline the Company's new 3-year forecast for the years 2025 through 2027, and the prior forecast, which was issued in August 2024.

New Forecast

	Forecast for 2025	Forecast for 2026	Forecast for 2027
Gross consumer loans receivable at year end	$5.40 - $5.70 billion	$6.40 - $6.70 billion	$7.35 - $7.75 billion
Total Company revenue	$1.62 - $1.82 billion	$1.80 - $2.00 billion	$2.00 - $2.20 billion
Total yield on consumer loans (including ancillary products)¹	31.0% - 32.5%	29.0% - 31.0%	29.0% - 31.0%
Net charge offs as a percentage of average gross consumer loans receivable	7.75% - 9.75%	7.5% - 9.5%	7.5% - 9.5%
Total Company operating margin	41%+	42.5%+	43%+
Return on equity	23%+	23%+	23%+

Previous Forecast

	Prior Forecast for 2025	Prior Forecast for 2026	Prior Forecast for 2027
Gross consumer loans receivable at year end	$5.30 - $5.60 billion	$6.00 - $6.40 billion	n/a
Total Company revenue	$1.60 - $1.80 billion	$1.75 - $1.95 billion	n/a
Total yield on consumer loans (including ancillary products)¹	31.25% - 33.25%	29.5% - 31.5%	n/a
Net charge offs as a percentage of average gross consumer loans receivable	7.75% - 9.75%	7.5% - 9.5%	n/a
Total Company operating margin	41%+	42%+	n/a
Return on equity	21%+	21%+	n/a

Update on CEO Leadership Transition

Effective January 1, 2025, David Ingram, goeasy's Executive Chairman, assumed the additional role of Interim President & Chief Executive Officer. Mr. Ingram previously served as Chief Executive Officer from 2001 through 2018, and has served as Executive Chairman since 2019. Jason Mullins, the Company's previous President & Chief Executive Officer since 2019, will continue in the role of a Director on the Board.

In July of 2024, the Board formed a CEO Transition Committee to lead the identification and selection of the organization's next Chief Executive Officer. The Committee is pleased to share it has made significant progress on the search and is in advanced stages with a preferred candidate. The Company will continue to provide further updates as they become available.

Dividend

Based on its 2024 adjusted earnings and the Company's confidence in its continued growth, the Board of Directors has approved an increase to the annual dividend from $4.68 per share to $5.84 per share, an increase of 25%. This year marks the 11^th consecutive year of an increase in the dividend to shareholders. As such, the Board of Directors has approved a quarterly dividend of $1.46 per share payable on April 11, 2025 to the holders of common shares of record as at the close of business on March 28, 2025.

Forward-Looking Statements

All figures reported above with respect to outlook are targets established by the Company and are subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. Actual results may differ materially.

This press release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward-looking statements include, but are not limited to, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company's ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships, the size and characteristics of the Canadian non-prime lending market and the continued development of the type and size of competitors in the market. In certain cases, forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "target" or negative versions thereof and similar expressions, and/or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company's operations, economic factors and the industry generally. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those expressed or implied by forward-looking statements made by the Company. Some important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, goeasy's ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, offer products which appeal to customers at a competitive rate, respond to changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, compete, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance the system of internal controls.

The Company cautions that the foregoing list is not exhaustive. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company's Management's Discussion and Analysis ("MD&A"), including under the section entitled "Risk Factors".

The reader is cautioned to consider these, and other factors carefully and not to place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.

About goeasy

goeasy Ltd. is a Canadian company, headquartered in Mississauga, Ontario, that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by over 2,500 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans, merchant financing through a variety of verticals and lease-to-own merchandise. Customers can transact seamlessly through an omni-channel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals, through over 10,800 merchant partners across Canada. Throughout the Company's history, it has acquired and organically served approximately 1.5 million Canadians and originated over $16.0 billion in loans.

Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards in recognition of its exceptional culture and continued business growth including 2024 Best Workplaces™ in Financial Services & Insurance, Waterstone Canada's Most Admired Corporate Cultures, ranking on the 2022 Report on Business Women Lead Here executive gender diversity benchmark, placing on the 2024 Report on Business ranking of Canada's Top Growing Companies, ranking on the TSX30, Greater Toronto Top Employers Award and has been certified as a Great Place to Work®. The Company is represented by a diverse group of team members from over 70 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $6.3 million to support its long-standing partnerships with BGC Canada and many other local charities.

goeasy Ltd.'s. common shares are listed on the TSX under the trading symbol "GSY". goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody's.

For more information about goeasy and our business units, visit www.goeasy.com, www.easyfinancial.com, www.lendcare.ca, www.easyhome.ca.

For further information contact:

Farhan Ali Khan
Executive Vice President & Chief Strategy and Corporate Development Officer
(905) 272-2788

Notes:

¹ These are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

²These are non-IFRS measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

³These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

⁴ These are capital management measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

⁵Non-IFRS ratios, non-IFRS measures, supplementary financial measures and capital management measures are not determined in accordance with IFRS, do not have standardized meanings and may not be comparable to similar financial measures presented by other companies.

goeasy Ltd.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of Canadian dollars)



	As At	As At
	December 31,	December 31,
	2024	2023

ASSETS
Cash	251,381	144,577
Accounts receivable	42,438	30,762
Prepaid expenses	9,488	9,462
Consumer loans receivable, net	4,366,533	3,447,588
Investments	41,918	61,464
Lease assets	40,973	45,187
Derivative financial assets	60,675	21,904
Property and equipment, net	35,004	35,382
Right-of-use assets, net	54,224	61,987
Intangible assets, net	110,979	124,931
Goodwill	180,923	180,923
TOTAL ASSETS	5,194,536	4,164,167

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Revolving credit facility	21,797	190,921
Accounts payable and other liabilities	156,903	72,409
Income taxes payable	24,567	24,691
Dividends payable	19,519	15,960
Unearned revenue	25,864	26,965
Accrued interest payable	49,003	12,875
Deferred income tax liabilities, net	4,184	24,259
Lease liabilities	62,164	70,809
Secured borrowings	120,335	143,177
Revolving securitization warehouse facilities	1,073,876	1,364,741
Derivative financial liabilities	21,466	42,457
Notes payable	2,413,795	1,120,826
TOTAL LIABILITIES	3,993,473	3,110,090

Shareholders' equity
Share capital	438,302	428,328
Contributed surplus	26,942	24,817
Accumulated other comprehensive loss	(56,938)	(9,721)
Retained earnings	792,757	610,653
TOTAL SHAREHOLDERS' EQUITY	1,201,063	1,054,077
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	5,194,536	4,164,167

goeasy Ltd.

CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of Canadian dollars, except earnings per share)



	Three Months Ended		Year Ended
	December 31,	December 31,	December 31,	December 31,
	2024	2023	2024	2023

REVENUE
Interest income	304,363	244,668	1,121,822	888,928
Lease revenue	23,213	24,691	95,407	99,848
Commissions earned	71,092	61,510	275,726	234,485
Charges and fees	6,517	7,243	30,334	26,808
	405,185	338,112	1,523,289	1,250,069

OPERATING EXPENSES

BAD DEBTS	128,978	91,570	467,764	341,639

OTHER OPERATING EXPENSES
Salaries and benefits	50,461	49,322	201,791	200,917
Share-based compensation	1,050	3,678	13,534	12,938
Technology costs	9,798	7,410	38,088	28,402
Advertising and promotion	9,271	8,305	32,979	31,020
Underwriting and collections	6,416	4,231	21,251	16,564
Occupancy	5,060	6,269	20,632	25,405
Other expenses	8,299	8,519	33,698	30,335
	90,355	87,734	361,973	345,581

DEPRECIATION AND AMORTIZATION
Depreciation of lease assets	7,622	8,207	29,482	33,535
Amortization of intangible assets	5,368	5,552	22,788	21,999
Depreciation of right-of-use assets	5,253	5,420	21,349	21,260
Depreciation of property and equipment	2,554	2,392	10,276	9,537
	20,797	21,571	83,895	86,331

TOTAL OPERATING EXPENSES	240,130	200,875	913,632	773,551

OPERATING INCOME	165,055	137,237	609,657	476,518

OTHER INCOME	6,105	1,310	3,132	9,771

FINANCE COSTS	(71,645)	(36,580)	(225,492)	(149,334)

INCOME BEFORE INCOME TAXES	99,515	101,967	387,297	336,955

INCOME TAX EXPENSE (RECOVERY)
Current	29,748	22,994	113,370	90,809
Deferred	(4,058)	4,371	(9,183)	(1,752)
	25,690	27,365	104,187	89,057

NET INCOME	73,825	74,602	283,110	247,898

BASIC EARNINGS PER SHARE	4.32	4.41	16.56	14.70
DILUTED EARNINGS PER SHARE	4.25	4.34	16.30	14.48

SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT
(Expressed in thousands of Canadian dollars, except earnings per share)

	Three Months Ended December 31, 2024
	easyfinancial	easyhome	Corporate	Total

Revenue
Interest income	294,150	10,213	-	304,363
Lease revenue	-	23,213	-	23,213
Commissions earned	67,498	3,594	-	71,092
Charges and fees	5,696	821	-	6,517
	367,344	37,841	-	405,185

Operating expenses
Bad debts	124,334	4,644	-	128,978
Other operating expenses	59,413	13,499	17,443	90,355
Depreciation and amortization	9,408	9,697	1,692	20,797
	193,155	27,840	19,135	240,130

Operating income (loss)	174,189	10,001	(19,135)	165,055

Other income				6,105

Finance costs				(71,645)

Income before income taxes				99,515

Income taxes				25,690

Net income				73,825

Diluted earnings per share				4.25

	Three Months Ended December 31, 2023
	easyfinancial	easyhome	Corporate	Total

Revenue
Interest income	235,142	9,526	-	244,668
Lease revenue	-	24,691	-	24,691
Commissions earned	58,015	3,495	-	61,510
Charges and fees	6,308	935	-	7,243
	299,465	38,647	-	338,112

Operating expenses
Bad debts	87,076	4,494	-	91,570
Other operating expenses	52,533	14,330	20,871	87,734
Depreciation and amortization	9,614	10,419	1,538	21,571
	149,223	29,243	22,409	200,875

Operating income (loss)	150,242	9,404	(22,409)	137,237

Other income				1,310

Finance costs				(36,580)

Income before income taxes				101,967

Income taxes				27,365

Net income				74,602

Diluted earnings per share				4.34


	Year Ended December 31, 2024
	easyfinancial	easyhome	Corporate	Total

Revenue
Interest income	1,081,843	39,979	-	1,121,822
Lease revenue	-	95,407	-	95,407
Commissions earned	261,630	14,096	-	275,726
Charges and fees	26,941	3,393	-	30,334
	1,370,414	152,875	-	1,523,289

Operating expenses
Bad debts	452,558	15,206	-	467,764
Other operating expenses	212,451	54,987	94,535	361,973
Depreciation and amortization	38,995	38,096	6,804	83,895
	704,004	108,289	101,339	913,632

Operating income (loss)	666,410	44,586	(101,339)	609,657

Other income				3,132

Finance costs				(225,492)

Income before income taxes				387,297

Income taxes				104,187

Net income				283,110

Diluted earnings per share				16.30

	Year Ended December 31, 2023
	easyfinancial	easyhome	Corporate	Total

Revenue
Interest income	853,228	35,700	-	888,928
Lease revenue	-	99,848	-	99,848
Commissions earned	220,363	14,122	-	234,485
Charges and fees	23,226	3,582	-	26,808
	1,096,817	153,252	-	1,250,069

Operating expenses
Bad debts	327,196	14,443	-	341,639
Other operating expenses	197,358	59,610	88,613	345,581
Depreciation and amortization	37,747	42,259	6,325	86,331
	562,301	116,312	94,938	773,551

Operating income (loss)	534,516	36,940	(94,938)	476,518

Other income				9,771

Finance costs				(149,334)

Income before income taxes				336,955

Income taxes				89,057

Net income				247,898

Diluted earnings per share				14.48


SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS
(Expressed in thousands of Canadian dollars, except earnings per share and percentages)

	Three Months Ended
	December 31,	December 31,	Variance	Variance
	2024	2023	$ / bps	% change

Summary Financial Results
Revenue	405,185	338,112	67,073	19.8 %
Bad debts	128,978	91,570	37,408	40.9 %
Other operating expenses	90,355	87,734	2,621	3.0 %
EBITDA¹	184,335	151,911	32,424	21.3 %
EBITDA margin¹	45.5 %	44.9 %	60 bps	1.3 %
Depreciation and amortization	20,797	21,571	(774)	(3.6 %)
Operating income	165,055	137,237	27,818	20.3 %
Operating margin	40.7 %	40.6 %	10 bps	0.2 %
Other income	6,105	1,310	4,795	366.0 %
Finance costs	71,645	36,580	35,065	95.9 %
Effective income tax rate	25.8 %	26.8 %	(100 bps)	(3.7 %)
Net income	73,825	74,602	(777)	(1.0 %)
Diluted earnings per share	4.25	4.34	(0.09)	(2.1 %)
Return on receivables	6.5 %	8.3 %	(180 bps)	(21.7 %)
Return on assets	5.9 %	7.4 %	(150 bps)	(20.3 %)
Return on equity	24.7 %	28.9 %	(420 bps)	(14.5 %)
Return on tangible common equity¹	32.0 %	39.5 %	(750 bps)	(19.0 %)

Adjusted Financial Results ¹
Other operating expenses	97,885	95,810	2,075	2.2 %
Efficiency ratio	24.2 %	28.3 %	(410 bps)	(14.5 %)
Operating income	168,422	140,643	27,779	19.8 %
Operating margin	41.6 %	41.6 %	-	-
Net income	77,399	68,961	8,438	12.2 %
Diluted earnings per share	4.45	4.01	0.44	11.0 %
Return on receivables	6.8 %	7.7 %	(90 bps)	(11.7 %)
Return on assets	6.1 %	6.8 %	(70 bps)	(10.3 %)
Return on equity	25.9 %	26.7 %	(80 bps)	(3.0 %)
Return on tangible common equity	32.5 %	35.3 %	(280 bps)	(7.9 %)

Key Performance Indicators

Segment Financials
easyfinancial revenue	367,344	299,465	67,879	22.7 %
easyfinancial operating margin	47.4 %	50.2 %	(280 bps)	(5.6 %)
easyhome revenue	37,841	38,647	(806)	(2.1 %)
easyhome operating margin	26.4 %	24.3 %	210 bps	8.6 %

Portfolio Indicators
Gross consumer loans receivable	4,596,115	3,645,202	950,913	26.1 %
Growth in consumer loans receivable	202,762	214,926	(12,164)	(5.7 %)
Gross loan originations	813,689	704,875	108,814	15.4 %
Total yield on consumer loans (including ancillary products)¹	33.6 %	34.9 %	(130 bps)	(3.7 %)
Net charge offs as a percentage of average gross consumer loans receivable	9.1 %	8.8 %	30 bps	3.4 %
Free cash flows from operations before net growth in gross consumer loans receivable¹	185,177	85,142	100,035	117.5 %
Potential monthly leasing revenue¹	6,875	7,654	(779)	(10.2 %)
¹EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.





	Year Ended
	December 31,	December 31,	Variance	Variance
	2024	2023	$ / bps	% change

Summary Financial Results
Revenue	1,523,289	1,250,069	273,220	21.9 %
Bad debts	467,764	341,639	126,125	36.9 %
Other operating expenses	361,973	345,581	16,392	4.7 %
EBITDA¹	667,202	539,085	128,117	23.8 %
EBITDA margin¹	43.8 %	43.1 %	70 bps	1.6 %
Depreciation and amortization	83,895	86,331	(2,436)	(2.8 %)
Operating income	609,657	476,518	133,139	27.9 %
Operating margin	40.0 %	38.1 %	190 bps	5.0 %
Other income	3,132	9,771	(6,639)	(67.9 %)
Finance costs	225,492	149,334	76,158	51.0 %
Effective income tax rate	26.9 %	26.4 %	50 bps	1.9 %
Net income	283,110	247,898	35,212	14.2 %
Diluted earnings per share	16.30	14.48	1.82	12.6 %
Return on receivables	6.8 %	7.6 %	(80 bps)	(10.5 %)
Return on assets	6.1 %	6.7 %	(60 bps)	(9.0 %)
Return on equity	24.9 %	25.9 %	(100 bps)	(3.9 %)
Return on tangible common equity¹	32.8 %	36.7 %	(390 bps)	(10.6 %)

Adjusted Financial Results ¹
Other operating expenses	386,017	377,574	8,443	2.2 %
Efficiency ratio	25.3 %	30.2 %	(490 bps)	(16.2 %)
Operating income	628,195	491,160	137,035	27.9 %
Operating margin	41.2 %	39.3 %	190 bps	4.8 %
Net income	290,142	243,175	46,967	19.3 %
Diluted earnings per share	16.71	14.21	2.50	17.6 %
Return on receivables	7.0 %	7.5 %	(50 bps)	(6.7 %)
Return on assets	6.2 %	6.5 %	(30 bps)	(4.6 %)
Return on equity	25.5 %	25.4 %	10 bps	0.4 %
Return on tangible common equity	32.5 %	34.6 %	(210 bps)	(6.1 %)

Key Performance Indicators

Segment Financials
easyfinancial revenue	1,370,414	1,096,817	273,597	24.9 %
easyfinancial operating margin	48.6 %	48.7 %	(10 bps)	(0.2 %)
easyhome revenue	152,875	153,252	(377)	(0.2 %)
easyhome operating margin	29.2 %	24.1 %	510 bps	21.2 %

Portfolio Indicators
Gross consumer loans receivable	4,596,115	3,645,202	950,913	26.1 %
Growth in consumer loans receivable	950,913	850,508	100,405	11.8 %
Gross loan originations	3,166,227	2,709,194	457,033	16.9 %
Total yield on consumer loans (including ancillary products)¹	34.1 %	35.3 %	(120 bps)	(3.4 %)
Net charge offs as a percentage of average gross consumer loans receivable	9.2 %	8.9 %	30 bps	3.4 %
Free cash flows from operations before net growth in gross consumer loans receivable¹	481,467	377,291	104,176	27.6 %
Potential monthly leasing revenue¹	6,875	7,654	(779)	(10.2 %)
¹EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

Non-IFRS Measures and Other Financial Measures

The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of non-IFRS measures and other financial measures can be found in the Company's MD&A, available on www.sedarplus.ca.

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Adjusted net income is a non-IFRS measure, while adjusted diluted earnings per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted net income and adjusted earnings per share for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended		Year Ended
($ in 000's except earnings per share)	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Net income as stated	73,825	74,602	283,110	247,898

Impact of adjusting items
Other operating expenses
Advisory costs¹	-	-	4,941	-
Integration costs²	92	131	497	608
Contract exit fee⁴	-	-	-	934
Depreciation and amortization
Amortization of acquired intangible assets³	3,275	3,275	13,100	13,100
Other income ⁵	(6,105)	(1,310)	(3,132)	(9,771)
Finance costs
Refinancing costs related to Notes Payable^6,7	9,429	9,501	9,429	9,501
Discount on the repurchase of Notes Payable⁶	(1,487)	-	(1,487)	-
Fair value change on prepayment options related to Notes Payable⁸	761	(19,035)	(13,216)	(19,035)
Total pre-tax impact of adjusting items	5,965	(7,438)	10,132	(4,663)
Income tax impact of above adjusting items	(2,391)	1,797	(3,100)	(60)
After-tax impact of adjusting items	3,574	(5,641)	7,032	(4,723)

Adjusted net income	77,399	68,961	290,142	243,175

Weighted average number of diluted shares outstanding	17,383	17,207	17,366	17,117

Diluted earnings per share as stated	4.25	4.34	16.30	14.48
Per share impact of adjusting items	0.20	(0.33)	0.41	(0.27)
Adjusted diluted earnings per share	4.45	4.01	16.71	14.21

Adjusting items related to the advisory costs

¹Advisory costs for the three-month period and year ended December 31, 2024 were related to non-recurring advisory, consulting and legal costs.

Adjusting items related to the LendCare acquisition

²Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare.

³Amortization of the $131 million intangible asset related to the acquisition of LendCare with an estimated useful life of ten years.

Adjusting items related to a contract exit fee

⁴In the first quarter of 2023, the Company settled its dispute with the third-party technology provider that was contracted in 2020 to develop a new loan management system.

Adjusting item related to other income

⁵For the three-month periods and years ended December 31, 2024 and 2023, net investment income were mainly due to fair value changes in the Company's investments.

Adjusting item related to the refinancing of Notes Payable

⁶In the fourth quarter of 2024, the Company the Company extinguished a total of US$255.4 million of 4.375% senior unsecured notes payable maturing on May 1, 2026 that were validly tendered and accepted for repurchase at a price of US$999.58 per US$1,000 principal amount, resulting in a $1.5 million discount. As a result of repurchasing these notes and the unwinding of the related cross-currency swaps, the Company incurred tender offer fees, recognized the remaining unamortized deferred financing costs related to these notes, realized derivative loss, and reclassified the net change in cash flow hedge from OCI to the consolidated statements of income resulting in a total refinancing cost of $9.4 million.

⁷In the fourth quarter of 2023, the Company repaid its 5.375% senior unsecured notes payable maturing on December 1, 2024 ("2024 Notes") that would have matured on December 1, 2024 and unwound the related cross currency swaps, incurring a $9.5 million refinancing costs, which included the recognition of the remaining unamortized deferred financing costs, realized derivative loss on the settlement of the cross-currency swaps associated to 2024 Notes, and the net change in cash flow hedge that was reclassified from other comprehensive income to consolidated statement of income.

Adjusting item related to prepayment options embedded in the Notes Payable

⁸For the three-month periods and years ended December 31, 2024 and 2023, the Company recognized a fair value change on the prepayment options related to Notes Payable.

Adjusted Other Operating Expenses and Efficiency Ratio

Adjusted other operating expenses is a non-IFRS measure, while efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted other operating expenses and efficiency ratio for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended		Year Ended
($ in 000's except earnings per share)	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Other operating expenses as stated	90,355	87,734	361,973	345,581

Impact of adjusting items¹
Other operating expenses
Integration costs	(92)	(131)	(497)	(608)
Advisory costs	-	-	(4,941)	-
Contract exit fee	-	-	-	(934)
Depreciation and amortization
Depreciation of lease assets	7,622	8,207	29,482	33,535
Total impact of adjusting items	7,530	8,076	24,044	31,993

Adjusted other operating expenses	97,885	95,810	386,017	377,574

Total revenue	405,185	338,112	1,523,289	1,250,069

Efficiency ratio	24.2 %	28.3 %	25.3 %	30.2 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

Adjusted Operating Margin

Adjusted operating income is a non-IFRS measure, while adjusted operating margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted operating income and adjusted operating margins for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

easyfinancial
Operating income	174,189	174,189	150,242	150,242
Divided by revenue	367,344	367,344	299,465	299,465

easyfinancial operating margin	47.4 %	47.4 %	50.2 %	50.2 %

easyhome
Operating income	10,001	10,001	9,404	9,404
Divided by revenue	37,841	37,841	38,647	38,647

easyhome operating margin	26.4 %	26.4 %	24.3 %	24.3 %

Total
Operating income	165,055	165,055	137,237	137,237
Other operating expenses ¹
Integration costs	-	92	-	131
Depreciation and amortization ¹
Amortization of acquired intangible assets	-	3,275	-	3,275
Adjusted operating income	165,055	168,422	137,237	140,643

Divided by revenue	405,185	405,185	338,112	338,112

Total operating margin	40.7 %	41.6 %	40.6 %	41.6 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

	Year Ended
($ in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

easyfinancial
Operating income	666,410	666,410	534,516	534,516
Divided by revenue	1,370,414	1,370,414	1,096,817	1,096,817

easyfinancial operating margin	48.6 %	48.6 %	48.7 %	48.7 %

easyhome
Operating income	44,586	44,586	36,940	36,940
Divided by revenue	152,875	152,875	153,252	53,252

easyhome operating margin	29.2 %	29.2 %	24.1 %	24.1 %

Total
Operating income	609,657	609,657	476,518	476,518
Other operating expenses ¹
Advisory costs	-	4,941	-	-
Integration costs	-	497	-	608
Contract exit fee	-	-	-	934
Depreciation and amortization ¹
Amortization of acquired intangible assets	-	13,100	-	13,100
Adjusted operating income	609,657	628,195	476,518	491,160

Divided by revenue	1,523,289	1,523,289	1,250,069	1,250,069

Total operating margin	40.0 %	41.2 %	38.1 %	39.3 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and EBITDA Margin

EBITDA is a non-IFRS measure, while EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate EBITDA and EBITDA margin for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended		Year Ended
($in 000's except percentages)	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Net income as stated	73,825	74,602	283,110	247,898

Finance cost	71,645	36,580	225,492	149,334
Income tax expense	25,690	27,365	104,187	89,027
Depreciation and amortization	20,797	21,571	83,895	86,331
Depreciation of lease assets	(7,622)	(8,207)	(29,482)	(33,535)
EBITDA	184,335	151,911	667,202	539,085

Divided by revenue	405,185	338,112	1,523,289	1,250,069

EBITDA margin	45.5 %	44.9 %	43.8 %	43.1 %

Free Cash Flow from Operations before Net Growth in Gross Consumer Loans Receivable

Free cash flow from operations before net growth in gross consumer loans receivable is a non-IFRS measure. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate free cash flow from operations before net growth in gross consumer loans receivable for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended		Year Ended
	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Cash used in operating activities	(17,585)	(129,784)	(469,446)	(473,217)

Net growth in gross consumer loans receivable during the period	202,762	214,926	950,913	850,508

Free cash flows from operations before net growth in gross consumer loans receivable	185,177	85,142	481,467	377,291

Adjusted Return on Receivables

Adjusted return on receivables is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on assets for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	73,825	73,825	74,602	74,602
After-tax impact of adjusting items¹	-	3,574	-	(5,641)
Adjusted net income	73,825	77,399	74,602	68,961

Multiplied by number of periods in a year	X 4	X 4	X 4	X 4

Divided by average gross consumer loans receivable	4,536,022	4,536,022	3,577,393	3,577,393

Return on receivables	6.5 %	6.8 %	8.3 %	7.7 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

	Year Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	283,110	283,110	247,898	247,898
After-tax impact of adjusting items¹	-	7,032	-	(4,723)
Adjusted net income	283,110	290,142	247,898	243,175

Divided by average gross consumer loans receivable	4,167,684	4,167,684	3,245,686	3,245,686

Return on receivables	6.8 %	7.0 %	7.6 %	7.5 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

Adjusted Return on Assets

Adjusted return on assets is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on assets for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	73,825	73,825	74,602	74,602
After-tax impact of adjusting items¹	-	3,574	-	(5,641)
Adjusted net income	73,825	77,399	74,602	68,961

Multiplied by number of periods in a year	X 4	X 4	X 4	X 4

Divided by average total assets for the period	5,043,428	5,043,428	4,050,068	4,050,068

Return on assets	5.9 %	6.1 %	7.4 %	6.8 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

	Year Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	283,110	283,110	247,898	247,898
After-tax impact of adjusting items¹	-	7,032	-	(4,723)
Adjusted net income	283,110	290,142	247,898	243,175

Divided by average total assets for the period	4,658,528	4,658,528	3,715,531	3,715,531

Return on assets	6.1 %	6.2 %	6.7 %	6.5 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

Adjusted Return on Equity

Adjusted return on equity is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on equity for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	73,825	73,825	74,602	74,602
After-tax impact of adjusting items¹	-	3,574	-	(5,641)
Adjusted net income	73,825	77,399	74,602	68,961

Multiplied by number of periods in a year	X 4	X 4	X 4	X 4

Divided by average shareholders' equity for the period	1,196,902	1,196,902	1,033,259	1,033,259

Return on equity	24.7 %	25.9 %	28.9 %	26.7 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

	Year Ended
($in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	283,110	283,110	247,898	247,898
After-tax impact of adjusting items¹	-	7,032	-	(4,723)
Adjusted net income	283,110	290,142	247,898	243,175

Divided by average shareholders' equity for the period	1,139,198	1,139,198	958,322	958,322

Return on equity	24.9 %	25.5 %	25.9 %	25.4 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

Reported and Adjusted Return on Tangible Common Equity

Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate reported and adjusted return on tangible common equity for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	73,825	73,825	74,602	74,602
Amortization of acquired intangible assets	3,275	3,275	3,275	3,275
Income tax impact of the above item	(868)	(868)	(868)	(868)
Net income before amortization of acquired intangible assets, net of income tax	76,232	76,232	77,009	77,009

Impact of adjusting items¹
Other operating expenses
Integration costs	-	92	-	131
Other income	-	(6,105)	-	(1,310)
Finance costs
Refinancing costs related to Notes Payable	-	9,429	-	9,501
Discount on the repurchase of Notes Payable	-	(1,487)	-	-
Fair value change on prepayment options related to Notes Payable	-	761	-	(19,035)
Total pre-tax impact of adjusting items	-	2,690	-	(10,713)
Income tax impact of above adjusting items		(1,523)	-	2,665
After-tax impact of adjusting items	-	1,167	-	(8,048)

Adjusted net income	76,232	77,399	77,009	68,961

Multiplied by number of periods in a year	X 4	X 4	X 4	X 4

Average shareholders' equity	1,196,902	1,196,902	1,033,259	1,033,259
Average goodwill	(180,923)	(180,923)	(180,923)	(180,923)
Average acquired intangible assets²	(84,604)	(84,604)	(97,704)	(97,704)
Average related deferred tax liabilities	22,420	22,420	25,892	25,892
Divided by average tangible common equity	953,795	953,795	780,524	780,524

Return on tangible common equity	32.0 %	32.5 %	39.5 %	35.3 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

² Excludes intangible assets relating to software.

	Year Ended
($ in 000's except percentages)	December 31, 2024	December 31, 2024 (adjusted)	December 31, 2023	December 31, 2023 (adjusted)

Net income as stated	283,110	283,110	247,898	247,898
Amortization of acquired intangible assets	13,100	13,100	13,100	13,100
Income tax impact of the above item	(3,471)	(3,471)	(3,471)	(3,471)
Net income before amortization of acquired intangible assets, net of income tax	292,739	292,739	257,527	257,527

Impact of adjusting items¹
Other operating expenses
Advisory costs	-	4,941	-	-
Integration costs	-	497	-	608
Contract exit fee	-		-	934
Other income	-	(3,132)	-	(9,771)
Finance costs
Refinancing costs related to Notes Payable	-	9,429	-	9,501
Discount on the repurchase of Notes Payable	-	(1,487)	-	-
Fair value change on prepayment options related to Notes Payable	-	(13,216)	-	(19,035)
Total pre-tax impact of adjusting items	-	(2,968)	-	(17,763)
Income tax impact of above adjusting items	-	371	-	3,411
After-tax impact of adjusting items	-	(2,597)	-	(14,352)

Adjusted net income	292,739	290,142	257,527	243,175

Average shareholders' equity	1,139,198	1,139,198	958,322	958,322
Average goodwill	(180,923)	(180,923)	(180,923)	(180,923)
Average acquired intangible assets²	(89,517)	(89,517)	(102,617)	(102,617)
Average related deferred tax liabilities	23,722	23,722	27,194	27,194
Divided by average tangible common equity	892,480	892,480	701,976	701,976

Return on tangible common equity	32.8 %	32.5 %	36.7 %	34.6 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

² Excludes intangible assets relating to software.

easyhome Financial Revenue

easyhome financial revenue is a non-IFRS measure. It is calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three-month periods ended December 31, 2024 and 2023 include those indicated in the chart below:

($in 000's)	Three Months Ended
($in 000's)	December 31, 2024	December 31, 2023
Total company revenue	405,185	338,112
Less: easyfinancial revenue	(367,344)	(299,465)
Less: leasing revenue	(24,612)	(26,236)
easyhome financial revenue	13,229	12,411

Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable

Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section "Portfolio Analysis" on page 31 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below::

	Three Months Ended		Year Ended
($in 000's except percentages)	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Total Company revenue	405,185	338,112	1,523,289	1,250,069
Less: Leasing revenue	(24,612)	(26,236)	(101,129)	(105,925)
Financial revenue	380,573	311,876	1,422,160	1,144,144

Multiplied by number of periods in a year	X 4	X 4	X 4/4	X 4/4

Divided by average gross consumer loans receivable	4,536,022	3,577,393	4,167,684	3,245,686

Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized)	33.6 %	34.9 %	34.1 %	35.3 %

Net Principal Written and Percentage Net Principal Written to New Customers

Net principal written (Net loan advances) is a non-IFRS measure. See description in section "Portfolio Analysis" on page 31 of the Company's MD&A for the year ended December 31, 2024. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business. Items used to calculate the percentage of net loan advances to new customers for the three-month periods ended December 31, 2024 and 2023 include those indicated in the chart below:

	Three Months Ended		Year Ended
($ in 000's)	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Gross loan originations	813,689	704,875	3,166,227	2,709,194

Loan originations to new customers	428,753	345,339	1,701,171	1,354,907

Loan originations to existing customers	384,936	359,536	1,465,056	1,354,287
Less: Proceeds applied to repay existing loans	(207,416)	(191,978)	(766,764)	(724,702)
Net advance to existing customers	177,520	167,558	698,292	629,585

Net principal written	606,273	512,897	2,399,463	1,984,492

Percentage net advances to new customers	71 %	67 %	71 %	68 %

Net Debt to Net Capitalization

Net debt to net capitalization is a capital management measure. Refer to "Financial Condition" section on page 54 of the Company's MD&A for the year ended December 31, 2024.

Average Loan Book Per Branch

Average loan book per branch is a supplementary financial measure. It is calculated as gross consumer loans receivable held by easyfinancial branch locations divided by the number of total easyfinancial branch locations.

Weighted Average Interest Rate

Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable.

SOURCE goeasy Ltd