Mcan Mortgage Corporation · TSX:MKP
Mcan Mortgage — Q3 2025 Earnings Presentation
21 slides from Mcan Mortgage's earnings presentation, Nov 5, 2025
Slide 1: Q3 2025 Results
Q3 2025 Results TSX: MKP November 5, 2025
Slide 2: Reimagining opportunity to drive growth for Canadian communities
Reimagining opportunity to drive growth for Canadian communities
Slide 3: Forward-Looking Information
Forward-Looking Information This presentation may contain forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the business and anticipated financial performance of MCAN Mortgage Corporation d/b/a MCAN Financial Group and its subsidiar
Slide 4: Business Overview
Business Overview
Slide 5: Q3 2025 Financial Highlights
Q3 2025 Financial Highlights • Record uninsured $20.5M Net Income (+2% from Q2 2025) residential mortgage (PPPT Income1,2 $22.7M) origination growth • Launch of our uninsured $0.52 Earnings per Share (+2% from Q2 2025) securitization program (PPPT EPS1,2 $0.57) with a major Canadian bank 13.09% Retu
Slide 6: Impaired Loans Trending Steady; PCL Elevated in Current Macro Environment
Impaired Loans Trending Steady; PCL Elevated in Current Macro Environment Impaired Loans ($M) PCL - Performing Loans ($M) $1.7 2.61% 2.46% 2.26% 2.31% 2.34% $0.3 $0.3 $0.1 $(0.2) $47.6 $52.7 $45.3 $44.5 $42.3 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 PCL - Performing $13.6 $15.2 $14.1 $16.6 $13.6 PCL
Slide 7: Quality Returns to Shareholders
Quality Returns to Shareholders Dividends Total Shareholder Return 3% 5,391% compound $0.97 annual total $0.85 growth rate1 shareholder of regular return1 since dividends inception $1.44 $1.48 $1.56 $1.36 $1.36 $1.23 2020 2021 2022 2023 2024 YTD 2025 1992 1997 2001 2006 2011 2016 2021 Today Regular
Slide 8: Recent Awards
Recent Awards MCAN recognized as one of Canada's Best WorkplacesTM in Financial Services and Insurance by Great Places to Work® Canada for 2025 MCAN recognized for 2025 Most Admired Cultures by Waterstone Human Capital MCAN Home, our residential mortgage business, recognized by Canadian Mortgage Pro
Slide 9: Business Model and Value Proposition
Business Model and Value Proposition MCAN is Canada's largest Mortgage Investment Corporation ("MIC") and the only MIC that is federally regulated. Uniquely structured as a flow-through MIC1 • Not taxed at the corporate level; all taxable earnings distributed annually • Compared to MIC peers: ◦ Lowe
Slide 10: Financial Overview
=> Financial Overview L
Slide 11: Q3 2025 Financial Overview
Q3 2025 Financial Overview In $M, unless otherwise noted and Q3 25 Q3 25/Q2 25 Q3 25/Q3 24 • Net interest income except for per share amounts stable, despite ongoing Net interest income $23.8 —% -1% economic uncertainty; loan growth with good Non-interest income $14.1 +1% -12% pricing discipline Pro
Slide 12: Net Interest Income - Non-Securitized Spreads Relatively Stable
Net Interest Income - Non-Securitized Spreads Relatively Stable Net Interest Income ($M) and Spread1 • Non-securitized spread $3.1 $3.6 $3.1 seeing slight decline Q/Q, $3.1 $3.8 primarily due to prime rate $20.8 $21.1 $20.7 $20.5 cut in the quarter and costs $20.0 of hedging to protect spreads 6.45%
Slide 13: Mortgage Balances - Growth Driven by Strong Fundings
Mortgage Balances - Growth Driven by Strong Fundings Mortgage Balances ($M) +3% • Mortgage balances higher Q/Q $5,317 despite tough market $5,170 $4,762 $4,884 $4,898 ◦ $163 million uninsured +15% residential mortgages $2,429 $2,781 $2,290 $2,420 $2,354 were securitized in the quarter as part of our
Slide 14: Funding - Well-Established and Growing Funding Base
Funding - Well-Established and Growing Funding Base Funding ($B) • Funding base well established +13% $5.2 and diversified to support $5.0 business growth $4.7 $4.8 $4.6 • Securitization and term deposits provide a source of low-cost 48% 46% 46% funding 48% 50% • MCAN Wealth direct-to- consumer term
Slide 15: Allowance for Credit Losses - Well Reserved for Current Credit Cycle
Allowance for Credit Losses - Well Reserved for Current Credit Cycle Allowance on Performing Loans ($M) $9.3 $0.0 $0.1 $9.4 • Performing (Stage 1 and 2) ◦ Q/Q stabilization compared to previous quarters • Impaired (Stage 3) ◦ Q/Q increase due primarily to interest accruals on Allowance Macroeconomic
Slide 16: Non-Interest Income
Non-Interest Income Non-Interest Income ($M) Q3 2024 Q2 2025 Q3 2025 Equity income from MCAP Commercial LP 6,667 9,732 10,361 Distribution income from securities 2,731 2,251 2,362 Fees 1,024 761 922 Net gain (loss) on securities 5,671 406 (320) Other — 745 763 Total non-interest income 16,093 13,895
Slide 17: Non-Interest Expense
Non-Interest Expense Non-Interest Expense ($M) Efficiency Ratio1 $16.6 69% $14.9 $15.1 $14.6 $11.8 $7.8 $7.8 $7.7 $8.2 $5.2 40% 38% 38% 36% 43% 39% $8.8 33% $6.6 $7.1 $6.9 $6.9 30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 2023 2023 2024 2024 2024 2024 2025 2025 2025 Salarie
Slide 18: Capital Ratios - Healthy and Within Regulatory and Internal Risk Appetite Guidelines
Capital Ratios - Healthy and Within Regulatory and Internal Risk Appetite Guidelines Capital Ratios 20.19% 19.28% 19.43% 19.22% 19.32% • Capital ratios continue to reflect the realization of our business strategy of optimizing the balance sheet by growing assets utilizing excess capital position 9.9
Slide 19: Closing Comments - Q3 Review
Closing Comments - Q3 Review 1 Successful launch of our uninsured securitization program 2 Strong originations in our mortgage lending business 3 Solid contribution to results from our investment in MCAP 4 Prudent underwriting and appropriate provisioning in existing economic uncertainty 5 Well-capi
Slide 20: Long Term Objectives
Long Term Objectives 1 Sustained 13-15% average ROE 2 Sustained 10% average annual growth in assets 3 Sustained and prudent dividend growth
Slide 21: Contact
Derek Sutherland Santokh Birk President and Chief Executive Officer SVP and Chief Financial Officer (416) 203-5931 (289) 454-4196 MCAN Financial Group 700-200 King Street West, Toronto, ON M5H 3T4 (416) 572-4880 | mcanexecutive@mcanfinancial.com mcanfinancial.com | TSX: MKP