MCAN FINANCIAL GROUP ANNOUNCES STRONG 2023 RESULTS AND INCREASES ITS REGULAR CASH DIVIDEND 5.4%

TORONTO, Feb. 26, 2024 /CNW/ - MCAN Mortgage Corporation d/b/a MCAN Financial Group ("MCAN", the "Company" or "we") (TSX: MKP) reported our highest annual net income in our history of $77.5 million ($2.22 earnings per share) for 2023, an increase from net income of $55.4 million ($1.77 earnings per share) for the prior fiscal year. Return on average shareholders' equity¹ was 15.05% for 2023 compared to 12.47% for the prior fiscal year. We reported higher total net income for the year mainly as a result of higher net corporate mortgage spread income as we continued to adjust our portfolio to take advantage of the higher interest rate environment. Our net corporate mortgage spread income¹ increased by $30.7 million for the current fiscal year compared to the prior fiscal year. For the fourth quarter of 2023, we reported net income of $19.9 million ($0.56 earnings per share), a decrease from net income of $24.1 million ($0.75 earnings per share) in the fourth quarter of 2022. Fourth quarter 2023 return on average shareholders' equity¹ was 15.01% compared to 21.17% for the same period in the prior year. While net corporate mortgage spread income was strong and ahead of the prior year, a number of factors impacted our Q4 results, including recording a higher provision for credit losses in the current year. We are committed to a strategy of managing controllable factors to protect our bottom line and taking advantage of opportunities that arise in the current market environment.