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goeasy Ltd. goeasy Ltd. Reports Record Results for the Third Quarter November 3 , 2021 Third Quarter Results Loan Portfolio of $ 1.90 billion , up 60 % Revenue of $ 220 million , up 36 % Adjusted Operating Income of $ 85.8 million , up 51 % MISSISSAUGA , Ontario , Nov. 03 , 2021 ( GLOBE NEWSWIRE ) goeasy Ltd. ( TSX : GSY ) , ( “ goeasy " or the " Company " ) , one of Canada's leading non - prime consumer lenders , today reported results for the third quarter ended September 30 , 2021 . Adjusted Quarterly Net Income of $ 46.7 million , up 48 % Adjusted Quarterly Diluted Earnings per Share of $ 2.70 , up 35 % -- During the quarter , the Company generated a record $ 436 million in total loan originations , up 52 % compared to the $ 287 million produced in the third quarter of 2020 , and a sequential increase of 15 % from the $ 379 million in loan originations in the second quarter of 2021. The increase in loan originations led to record organic growth in the loan portfolio of $ 101 million during the quarter , resulting in a total gross consumer loan receivable portfolio of $ 1.90 billion , up 60 % from $ 1.18 billion in the third quarter of 2020. The growth in consumer loans led to an increase in revenue , which was a record $ 220 million in the quarter , up 36 % over the third quarter in 2020 . During the quarter , the Company continued to experience stable credit and payment performance . The net charge off rate for the third quarter was 8.3 % , compared to 7.8 % in the third quarter of 2020 and 8.2 % in the second quarter of 2021. The overall allowance for future credit losses reduced slightly from 7.90 % in the prior quarter to 7.83 % . Operating income for the third quarter of 2021 was a record $ 81.4 million , up 43 % from $ 56.9 million in the third quarter of 2020. Operating margin for the third quarter was 37.0 % , up from 35.2 % in the prior year . After adjusting for items related to the recent acquisition of Lend Care Holdings Inc. ( " LendCare " ) , the Company reported record adjusted operating income of $ 85.8 million , up $ 28.9 million or an increase of 51 % compared to the third quarter of 2020. Adjusted operating margin for the third quarter was 39.1 % , up from 35.2 % in the prior year . During the quarter , the Company also recorded a $ 23.2 million before - tax fair value gain on investments . Net income in the third quarter was $ 63.5 million , compared to $ 33.1 million in the same period of 2020 , which resulted in diluted earnings per share of $ 3.66 , compared to $ 2.09 in the third quarter of 2020. After adjusting for non - recurring and unusual items on an after - tax basis , including $ 1.0 million of transaction and integration costs related to the acquisition of LendCare , $ 2.4 million in amortization of acquired intangible assets , and a $ 20.1 million fair value gain on investments , adjusted net income was a record $ 46.7 million , up 48 % from $ 31.6 million in 2020. Adjusted diluted earnings per share was a record $ 2.70 , up 35 % from $ 2.00 in the third quarter of 2020 . Return on equity during the quarter was 32.7 % , compared to 34.7 % in the third quarter of 2020. After adjusting for the non - recurring and unusual items previously noted , adjusted return on equity was 24.0 % in the quarter , compared to 33.1 % in the same period of 2020 . easyhome " During the quarter we made significant progress on the integration of LendCare , which is on track to produce the synergies and accretion forecast during our acquisition , " said Jason Mullins , goeasy's President and Chief Executive Officer , " With consumer demand for credit improving , complemented by the expansion of our auto lending program and point - of - sale channel , we grew the consumer loan portfolio a record $ 101 million during the quarter , more than double the same quarter last year . Meanwhile , the stable credit performance and improved operating leverage , led to record adjusted diluted earnings per share of $ 2.70 , " Mr. Mullins concluded , " With our fully drawn weighted average cost of borrowing declining to 4.3 % and total liquidity now exceeding $ 900 million , our balance sheet is stronger than ever and we remain on track to achieving our forecast for 2021 and beyond . " Other Key Third Quarter Highlights easyfinancial • Revenue of $ 182 million , up 45 % • 33 % of the loan portfolio secured , up from 12 % • 66 % of net loan advances in the quarter were issued to new customers , up from 50 % • 41 % of applications acquired online , up from 38 % • 25 % of new loans issued through point - of - sale financing , up from 18 % • 4 % of new loans issued auto financing , a new product category in 2021 • Average loan book per branch improved to $ 4.0 million , an increase of 6 % • Weighted average interest yield of 33.6 % , down from 38.3 % • Record operating income of $ 90.6 million , up 42 % • Operating margin of 49.7 % , down from 50.7 %