Reimagining opportunity to drive growth
for Canadian communities
The Company cautions readers not to place undue reliance on forward-looking statements when making decisions, as many risks and uncertainties could cause actual results, performance or achievements to be materially different from any future results, including those described in the Company's annual information form, management's discussion and analysis and other documents filed under the Company's profile on SEDAR+ athttps://www.sedarplus.ca. Certain statements included in this presentation may also be considered a "financial outlook" for purposes of applicable Canadian securities laws. The Company presents its outlook to assist shareholders in understanding management's assumptions and expectations on how the future will impact financial performance of the Company, and as such, these statements may not be appropriate for purposes other than this presentation. The Company does not undertake to update any forward-looking statements, whether oral or written, except as required by securities laws.
Non-GAAP and Other Financial MeasuresThis investor presentation references a number of non-GAAP and other financial measures and ratios to assess the Company's performance such as return on average shareholders' equity, spread of non-securitized mortgages over term deposit interest and liabilities, spread of securitized mortgages over liabilities, pre-provision pre-tax income and book value per common share. These measures are not calculated in accordance with International Financial Reporting Standards ("IFRS"), are not defined by IFRS and do not have standardized meanings that would ensure consistency and comparability between companies using these measures. These metrics are considered to be non-GAAP and other financial measures and are defined and reconciled to the most directly comparable IFRS measure in the "Non-GAAP and Other Financial Measures" section of the Company's 2025 Annual MD&A available on SEDAR+ athttps://www.sedarplus.ca , which section is incorporated herein by reference.
3
Business Overview
- 33% Y/Y uninsured residential mortgage originations growth
- Launch of our uninsured securitization program with a major Canadian bank
- 5% Y/Y growth in our construction and commercial loans
- Total AUM growth outpacing growth in our capital reflecting focus on capital optimization
- Q1 2026 dividend declared of $0.43 per share (5% increase from last quarter)
$74.9M
(PPPT Income1,2 $88.1M)$1.89(PPPT EPS1,2 $2.23)12.07%$6.5B$7.8BNet Income Earnings per ShareReturn on Average Shareholders' Equity1
Total Assets
(+21% YTD)
Assets Under Management1
(+30% YTD)
5
1Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this investor presentation. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
2Pre-provision, pre-tax
$1.7
2.46%
2.31%
1.69%
$29.3
$14.1
$44.5
$15.2
$45.3
$16.6
$47.6
2.34%
$13.6
$52.7
2.61%
$0.3
$0.3
$0.7
$(0.2)
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
$12.5
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
PCL - Impaired Mortgage Loans ($M)
Net impaired loans - residential Net impaired loans - construction
Impaired non-securitized mortgage ratio1
- Impaired ratio declined in the current quarter due to positive resolution on construction loans
- Continued focus on underwriting with loans originated at prudent LTV ratios
- Ongoing management of impaired loans
- Increase in PCL on impaired loans mainly due to provisions for accrued interest
$0.9
$1.3
$1.9 $2.0
$2.8
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
1Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section
of this investor presentation. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, 6
therefore, may not be comparable to similar terms used by other issuers.
3%
CAGR1 of
regular dividends
$1.48
$1.56
$1.36
$0.85
$1.44
$0.97
$1.36
$1.64
2020 2021 2022 2023 2024 2025
Regular Dividend per Share Special Stock Dividend per Share
5,375%
TSR1 since inception
1992 1997 2001 2006 2011 2016 2021 Today
Total shareholder return: 94% (3-year), 147% (5-year), 389% (10-year)
MCAN Financial S&P/TSX Composite
- 33-year history of paying dividends
- Q1 2026 dividend declared of $0.43 per share (5% increase from last quarter)
- Long-term objective of sustained and prudent dividend growth
1Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures"
section of this investor presentation. Non-GAAP and other financial measures and ratios used in this document are not defined terms 7
under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
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 Professional as a Top Mortgage Employer for 2025
MCAN recognized for 2025 Best Workplace Culture and Canadian HR Team of the Year (Finance/ Insurance) by HR Directors of Canada and The Canadian HR Reporter
8
Federally Regulated Financial Institution since 1991
- Strong governance and risk management practices
- Compared to OSFI peers,focus on residential real estate lending
- Uniquely structured as Canada's largest federally regulated Mortgage Investment Corporation1
- Not taxed at the corporate level - all taxable earnings flow-through to shareholders via regular quarterly dividends
- Compared to Mortgage Investment Corporation peers:
- Lower risk profile
- Higher returns driven by lower funding costs from CDIC-insured deposits
Unique Business Model with Strong Fundamentals
Attractive Financial Profile & Growth
Investment in MCAP, a Source of Growing Value
Seasoned Management Team with Industry Track Record
Consistent and Attractive Dividend Yield
1MCAN is a Mortgage Investment Corporation ("MIC") under the Income Tax Act (Canada). A MIC is a flow-through vehicle that is able to deduct from income for tax purposes dividends paid within 90 days of year-end. The Company expects to pay sufficient dividends to ensure that it is not subject to income taxes in the MIC entity. MCAN would be subject to tax at a statutory tax rate of 39.5% to the extent that it does not pay sufficient dividends to eliminate its taxable income.
9
Financial Overview
In $M, unless otherwise noted and except for per share amounts |
2025 |
Y/Y |
Net interest income |
$95.8 |
-1% |
Non-interest income |
$51.4 |
+37% |
Provision for credit losses |
$13.5 |
+313% |
Net income |
$74.9 |
-3% |
Earnings per share |
$1.89 |
-8% |
Return on average shareholders' equity1 |
12.07 % |
-10% |
Total assets ($M) |
$6,477 |
+21% |
Uninsured mortgages ($M) |
$1,290 |
+16% |
Insured mortgages ($M) |
$3,319 |
+30% |
Construction mortgages ($M) |
$1,136 |
+4% |
Book value per share |
$15.93 |
+3% |
Total capital ratio |
19.14 % |
-0.14% |
Income tax assets to capital ratio |
5.10 |
-3% |
- Net interest income only down slightly as higher asset growth was offset by lower net interest margins in a declining rate environment
- Non-interest income up from higher MCAP income and changes in fair value of securities
- Provision for credit losses impacted by current economic and geopolitical environment - solid LTVs of 66% for Uninsured and 60% for Construction
- Significant growth in mortgage balances due to strong origination volume and service to our originators and customers
- Lower capital ratio reflects focus on capital optimization
1Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of
this investor presentation. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, 11
therefore, may not be comparable to similar terms used by other issuers.
- NII stable Y/Y as loan growth offset lower spreads
- While prime rates declined 100bps in 2025, our spread only reduced by 17 bps due to pricing and hedging strategies, and floors on our floating-rate residential construction loans
- Non-securitized spread up slightly Q/Q, primarily due to pricing and hedging strategies
- NII higher Q/Q due to loan growth, particularly uninsured residential mortgage originations to support our uninsured securitization program
Net Interest Income ($M) and Spread1
$3.6
$3.1
$3.8
$4.3
$21.1
$20.7
$3.1
$20.5
$20.0
$20.3
5.45%
4.95%
4.95%
4.70%
4.45%
2.83%
2.89%
2.74%
2.63%
2.66%
0.54%
0.50%
0.50%
0.47%
0.46%
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Spread of non-securitized mortgages over term deposit interest and expenses Spread of insured securitized mortgages over liabilities
Prime rate
12
1Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this investor presentation. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
- Mortgage balances higher Q/Q despite tough market
- Total uninsured residential mortgage balances (securitized and non-securitized) increased by 16% Y/Y
- Total insured residential mortgage balances (securitized and non-securitized) increased by 30% Y/Y
- We securitized $500M of insured residential mortgages acquired from our strategic partner MCAP
- Strong originations and fundings in our lending businesses
- 33% Y/Y growth in uninsured and 38% Y/Y growth in insured residential mortgage originations
- Residential mortgage originations driven by borrowers motivated by lower rate environment
- Construction and commercial fundings driven by strong deal flow in the quarter
Mortgage Balances ($M)
+12%
$1,291
$1,254
$2,354
$1,240
$1,224
$2,420
$1,441
$1,301
$2,429
$1,235
$1,301
$2,781
$4,884 $4,898 $5,170 $5,317
+24%
+2%
-7%
$5,938
$1,150
$1,330
$3,459
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Residential mortgages
Construction, completed inventory and commercial mortgages Securitized mortgages
Mortgage Fundings and Originations ($M)
+23%
$495
$280
$96
$351
$165
$89
$637
$545
-9%
$219
$174
$129
$241
+116%
$668
-3%
$192
$311
$169
$280
$118 $97 $134
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Uninsured residential originations
Construction, completed inventory and commercial advances
Insured residential originations 13
+23%
- Funding base well established and diversified to support business growth
- Securitization and term deposits provide a source of low-cost funding
- MCAN Wealth direct-to-consumer term deposits product continues to develop
- In 2025, MCAN launched its uninsured securitization program with one of the major Canadian banks, further expanding sources of funding
$5.8
| $5.2 $5.0 | |||||
$4.7 |
$4.8 | |||||||||||
48% |
48% |
46% |
46% |
39% | ||||||||
5% | ||||||||||||
3% | ||||||||||||
51% |
49% |
48% |
50% |
54% | ||||||||
Direct to Consumer Term Deposits (MCAN Wealth)
14
Well Reserved for Current Mortgage Credit Cycle- Performing (Stage 1 and 2)
- Increase due to asset growth and current economic environment
- Impaired (Stage 3)
- Q/Q increase due primarily to interest accruals on impaired construction loans
- Continued close monitoring of impaired loans and progress to resolution
Allowance on Performing Mortgage Loans ($M)
$7.3
$1.1
$1.7 $10.1
Allowance Dec 31, 2024
Macroeconomic Factors
Portfolio Change
Allowance Dec 31, 2025
Allowance on Impaired Mortgage Loans ($M)
$6.3 $13.2
$6.0
$0.9
Allowance Dec 31, 2024
Macroeconomic Factors
Accrued Interest & Portfolio Change
Allowance
Dec 31, 2025 15
Non-Interest Income ($M) |
2025 |
Y/Y | ||
Equity income from MCAP Commercial LP |
33,444 |
16 % | ||
Distribution income from securities |
9,933 |
(8)% | ||
Fees |
3,485 |
(1)% | ||
Net gain (loss) on securities |
2,109 |
133 % | ||
Other |
2,447 |
n/a | ||
Gain on dilution of investment in MCAP Commercial LP |
- |
(100)% | ||
Total non-interest income |
51,418 |
37 % |
- Equity income from MCAP - higher income from more assets under management, particularly higher securitization income and lower non-securitized interest expenses.
- Net gain (loss) on securities - higher due to improvement in overall market.
16
$16.6
69%
38%
39%
43%
33%
39%
40%
36%
30%
$6.4
$8.2
$6.9
$7.7
$7.1
$7.8
$6.9
$8.2
$8.8
$7.8
$14.9 $14.6 $15.1 $14.6
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Salaries and benefits
Efficiency ratio
17
1Calculated as total non-interest expenses divided by total net interest income and total non-interest income.
- Non-interest expense trending lower in 2025 due primarily to:
- Salaries and benefits - lower share-based payment accruals and severance accruals
- General and administrative - ongoing initiatives to support and continue to grow the business
- Efficiency ratio trend returning to historical levels.
- Q4 2024 impacted mainly by unrealized fair value losses on securities.
19.28%
19.43%
19.22%
19.32%
19.14%
9.72%
9.64%
9.32%
9.27%
8.61%
5.24
5.41
5.42
5.45
5.10
- Capital ratios continue to reflect the realization of our business strategy of optimizing the balance sheet by growing assets and utilizing excess capital
- In 2025, shareholders' equity grew by 8% while total assets grew by 21% reflecting an efficient use of our capital
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Income tax assets to capital ratio
Total capital ratio
18
Closing Comments - 2025 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
Capital optimization with assets growing faster than capital
Long Term Objectives
1
Sustained 13-15% average ROE
2
3
Sustained 10% average annual growth in assets Sustained and prudent dividend growth
Derek Sutherland
President and Chief Executive Officer
MCAN Financial Group
700-200 King Street West, Toronto, ON M5H 3T4
(416) 572-4880 |mcanexecutive@mcanfinancial.commcanfinancial.com | TSX: MKP
(416) 203-5931
Santokh Birk
SVP and Chief Financial Officer
(289) 454-4196