RE:CIBCI pulled some of the delinquency numbers from the Q2 MD&A's over the past 4 years....makes sense why the market has reacted to the Q2 results as mentioned in the CIBC commentary. I will be watching these numbers moving forward....
| GSY | | | | |
| See ~Page 28 of MD&A's | | | |
| 2024 (Q2) | 2023 (Q2) | 2022 (Q2) | 2021 (Q2) | Description |
| 4,138,155 | 3,200,213 | 2,369,843 | 1,795,844 | Gross Consumer Loans Receivable |
| 321,045 | 163,867 | 130,927 | 84,082 | Total loans past due |
| 7.76% | 5.12% | 5.52% | 4.68% | Percentage of loans past due of Gross Loans Receivable |
| | | | | |
| 124,262 | 83,229 | 70,495 | 48,246 | Total loans LESS than 30 days past due |
| 3.00% | 2.60% | 2.97% | 2.69% | Percentage of Gross loan receivables LESS than 30 days past due |
| | | | | |
| 196,783 | 80,638 | 60,432 | 35,836 | Total loans GREATER than 30 days past due |
| 4.76% | 2.52% | 2.55% | 2.00% | Percentage of loans GREATER than 30 days past due of Gross loan receivables |
Rising delinquency rates, however, tempered the market reaction.
Despite the positive takeaways outlined above, goeasy shares traded down ~4% on announcement. The proportion of loans more than 30 days past due increased from 3.0% in the prior quarter to 4.7% in Q2. This stood out as the highest delinquency rate in at least the past decade (and by a healthy margin). Considering that delinquencies are interpreted as a leading indicator for future credit losses, we suspect that the trend in Q2 detracted (in terms of the market perception) from an otherwise solid quarter.