The Globe and Mail reports in its Wednesday, March 11, edition that goeasy shocked investors by announcing surging loan losses and suspending its quarterly dividend on Tuesday, sending its shares tumbling 57 per cent.
The Globe's Tim Kiladze writes that from 2015 to 2025, its shares surged over 1,000 per cent.
Concerns have recently emerged regarding the quality of goeasy's loans, partly due to a short seller's report in September that questioned underwriting standards. goeasy firmly denied the report's claims.
The K-shaped economy is creating a divide, with wealthy consumers enjoying gains from rising stock markets and low unemployment, while lower-income workers and newcomers to Canada face a worsening job market and limited financial opportunities.
goeasy's customers average 43 years old, earn about $62,000 annually and have a median credit score of 590. In 2024, the company reported an average interest rate of 29.3 per cent for all loans.
On Tuesday, goeasy said it will book an incremental $178-million charge for bad loans when it reports fourth quarter earnings for 2025 at the end of the month, as well as a $55-million writedown for loan interest and fees.
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