Q2 2024 goeasy Ltd Earnings Call Transcript
Key Points
- Record originations and loan book growth, with loan originations reaching $827 million, up 24% year-over-year.
- Total revenue for the quarter was a record $378 million, up 25% compared to the same period in 2023.
- The company added over $450 million of debt funding capacity, solidifying its position in the market.
- The efficiency ratio improved to a record 26.9%, a reduction of 430 basis points from the previous year.
- Adjusted net income reached a record $71.3 million, up 27% from the prior year.
- The delinquency rate ticked up, and the value of loans in the Stage 3 bucket increased significantly.
- The annualized net charge-off rate was 9.3%, which is on the higher end of the target range of 8% to 10%.
- The company had to tighten collection policies and underwriting requirements due to economic pressures.
- The weighted average interest rate charged to customers reduced slightly, impacting overall yield.
- The upcoming CEO transition may introduce some uncertainty, although continuity is expected with the outgoing CEO remaining on the Board.
Good morning. My name is [Constantine], and I will be your conference operator today. At this time, I would like to welcome everyone to the goeasy Limited second quarter 2024 earnings conference call. (Operator Instructions)
Thank you. Mr. Farhan Ali Khan, you may begin your conference.
Thank you, Constantine, and good morning, everyone. My name is Farhan Ali Khan, the company's Chief Corporate Development Officer, and thank you for joining us to discuss goeasy results for the second quarter ended June 30, 2024
The news release, which was issued yesterday after the close of market is available goeasy website. Today, Jason Mullins, who is President and Chief Executive Officer, will review the results for the second quarter and provide an outlook for the business. Hal Khouri, the company's Chief Financial Officer will provide an overview of our capital and liquidity position. Jason Appel, the company's Chief Risk Officer, is also on the call. After the
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