Mcan Mortgage Corporation · TSX:MKP
Mcan Mortgage — Q2 2025 Earnings Presentation
20 slides from Mcan Mortgage's earnings presentation, Aug 6, 2025
Slide 1: Q2 2025 Results
Q2 2025 Results TSX: MKP August 6, 2025
Slide 2: Forward-Looking Information; Non-GAAP and Other Financial Measures
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 3: Business Overview
Business Overview
Slide 4: Q2 2025 Financial Highlights
Q2 2025 Financial Highlights $20.2M Net Income (+22% from Q1 2025) • Mortgage lending (PPPT Income1,2 $23.0M) business posted strong results despite the current economic uncertainty $0.51 Earnings per Share (+19% from Q1 2025) (PPPT EPS1,2 $0.59) • Record insured mortgage origination and securitizat
Slide 5: Impaired Loans Trending Steady; PCL Elevated in Current Macro Environment
Impaired Loans Trending Steady; PCL Elevated in Current Macro Environment Impaired Loans ($M) PCL - Performing Loans ($M) 3.50% $1.7 2.46% 2.26% 2.31% 2.34% $0.6 $0.3 $0.3 $76.9 $0.1 $47.6 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $45.3 $44.5 $42.3 PCL - Performing $13.6 $15.2 $14.1 $16.6 $10.5 PCL -
Slide 6: Quality Returns to Shareholders
Quality Returns to Shareholders Dividends Total Shareholder Return 3% 4984% 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 $0.82 2020 2021 2022 2023 2024 YTD 2025 1992 1997 2001 2006 2011 2016 2021 Today Regular D
Slide 7: 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 2024 Most Admired Cultures by Waterstone Human Capital (3-year achievement) MCAN Home, our residential mortgage business, recognized by
Slide 8: 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 9: Financial Overview
=> Financial Overview L
Slide 10: Q2 2025 Financial Overview
Q2 2025 Financial Overview In $M, unless otherwise noted and Q2 25 Q2 25/Q1 25 Q2 25/Q2 24 except for per share amounts Net interest income $23.7 —% -1% • Net interest income stable, despite ongoing Non-interest income $13.9 +32% +24% economic uncertainty; Provision for credit losses $2.2 -28% +55%
Slide 11: Net Interest Income - Non-Securitized Spreads Slightly Down
Net Interest Income - Non-Securitized Spreads Slightly Down Net Interest Income ($M) and Spread1 6.95% 6.45% • Non-securitized spread seeing slight decline Q/Q, primarily due to costs of 5.45% $2.6 $3.1 $3.6 $3.1 $3.1 hedging to protect spreads 4.95% 4.95% for potential rate reductions $21.2 $20.8 $
Slide 12: Mortgage Balances - Growth Driven by Strong Fundings
Mortgage Balances - Growth Driven by Strong Fundings Mortgage Balances ($M) +6% $5,170 • Mortgage balances increased $4,762 $4,884 $4,898 $4,670 6% Q/Q despite tough market +3% $2,354 $2,429 $2,420 $2,170 $2,290 • Strong originations and +4% fundings (+82%) in our lending $1,301 $1,166 $1,115 $1,224
Slide 13: Funding - Well-Established and Growing Funding Base
Funding - Well-Established and Growing Funding Base Funding ($B) • Funding base well established +11% and diversified to support $5.0 business growth $4.7 $4.8 $4.5 $4.6 • Securitization and term deposits provide a source of low-cost 48% 48% 46% funding 50% 51% • MCAN Wealth direct-to- consumer term
Slide 14: Allowance for Credit Losses - Well Reserved for Current Credit Cycle
Allowance for Credit Losses - Well Reserved for Current Credit Cycle Allowance on Performing Loans ($M) $9.0 $0.2 $0.1 $9.3 • Performing (Stage 1 and 2) ◦ Q/Q increase due to greater macroeconomic uncertainty • Impaired (Stage 3) ◦ Q/Q increase due primarily to interest accruals on Allowance Macroec
Slide 15: Non-Interest Income
Non-Interest Income Non-Interest Income ($M) Q2 2024 Q1 2025 Q2 2025 Equity income from MCAP Commercial LP 7,726 5,571 9,732 Distribution income from securities 2,765 2,741 2,251 Fees 756 1,080 761 Net gain (loss) on securities (715) 1,099 406 Other 680 12 745 Total non-interest income 11,212 10,503
Slide 16: Non-Interest Expense
Non-Interest Expense Non-Interest Expense ($M) Efficiency Ratio1 $16.6 68.7% $14.9 $14.6 $13.3 $11.8 $7.8 $7.8 $7.7 $6.9 $5.2 41.5% 43.4% 38.8% 37.8% 32.9% 38.4% 35.7% $8.8 $6.3 $6.6 $7.1 $6.9 29.6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 2023 2023 2023 2024 2024 2024 2024
Slide 17: 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% 19.35% 19.28% 19.43% 19.22% • Capital ratios continue to reflect the realization of our business strategy of optimizing the balance sheet by growing assets utilizing excess capital position 9.8
Slide 18: Closing Comments - Q2 Review
Closing Comments - Q2 Review 1 Strong originations in our mortgage lending business 2 Solid contribution to results from our investment in MCAP 3 Prudent underwriting and appropriate provisioning in existing economic uncertainty 4 Well-capitalized to continue to optimize the balance sheet
Slide 19: 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 20: Derek Sutherland, Santokh Birk - 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