INVESTOR PRESENTATION
TSX:PRL
February 3, 2022
FORWARD-LOOKING INFORMATION
Certain statements made in this presentation may constitute forward-looking information under applicable securities laws. These statements may relate to our future financial outlook, our preliminary Q4 2021 operational results along with anticipated events or results and include the reaffirmation
of our short-term operating and financial targets. Such statements are based on management’s reasonable assumptions and beliefs in light of the information currently available to us and is made as of the date of this presentation. However, we do not undertake to update any such forward-looking
information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors,
including those described in “Risk Factors”. Additional risks and uncertainties are discussed in the Company’s materials filed with the Canadian securities regulatory authorities from time to time, including the Company’s final initial public offering prospectus dated October 13, 2021 (the
“Prospectus”). These factors are not intended to represent a complete list of the factors that could affect us; however, these factors should be considered carefully. A copy of the Prospectus and the Company’s other publicly filed documents can be accessed under the Company’s profile on the
System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. Often but not always, the words “anticipate”, “believes”, “expect”, “estimate”, “intend”, “opportunity”, “potential”, “seek”, “strategy”, or “target” or variations of such words and phrases or statements that certain
future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions, including references to assumptions, identify forward-looking information. Implicit in
forward-looking statements in respect of the Company's expectations for: (i) Ending Combined Loan and Advance Balances CAGR; (ii) Revenue Yield; (iii) Adjusted EBITDA Margin; and (iv) Net Income Margin for the 12 to 18 month period following the date of the prospectus, are certain
assumptions relating to the COVID-19 pandemic and related government subsidies, the regulatory landscape, our continued expansion of our Bank Partner relationships, the availability and cost of debt capital, the maintenance and expansion of our marketing partnerships and the overall
macroeconomic environment, each as further set out in the Prospectus. The Company cautions that the list of risk factors and uncertainties described in the Prospectus is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties
and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as the date they are
otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable
securities laws.
PRESENTATION OF PRELIMINARY Q4 2021 OPERATIONAL RESULTS
The preliminary, unaudited operational results as at and for the quarter ended December 31, 2021 included in this presentation are based on information available to the Company as of the date of this presentation. Final reported results could differ from these preliminary results following the
completion of year-end accounting procedures, final adjustments and other developments arising between now and the time that the Company's financial results are finalized, and such changes could be material. The Company's independent auditor has not audited, reviewed or performed any
procedures with respect to the preliminary results included in this presentation, and accordingly does not express an opinion or any other form of assurance with respect thereto. In addition, these preliminary results are not a comprehensive statement of the Company's financial results for the
quarter and fiscal year ended December 31, 2021. They should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the Company's results for any future period.
NON-IFRS MEASURES AND INDUSTRY METRICS
This presentation makes reference to certain non-IFRS measures and industry metrics. These measures are not recognized measures under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) and do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from
management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including “EBITDA”, “Adjusted EBITDA”, “Combined Loan and Advance Balances”, “Net
Charge-Offs”. This presentation also makes reference to “Annualized Revenue Yield” and “Total Originations Funded”, which are operating metrics used in our industry. These non-IFRS measures and industry metrics are used to provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and industry metrics in the evaluation of issuers.
Our management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Please refer to Appendix B of this
presentation for the reconciliation of EBITDA and Adjusted EBITDA, Net Charge-Offs and Combined Loan and Advance Balances presented by the Company to the most directly comparable IFRS measure. For definitions of these non-IFRS measures and industry metrics, please refer to the
Company’s most recent MD&A available on www.sedar.com. For reconciliations of these non-IFRS measures to the relevant reported measures, please see Appendix “B” to this presentation.
MARKET AND INDUSTRY DATA
Market and industry data and forecasts contained in this presentation have been obtained from third-party sources, industry publications and reports, websites and other publicly available information. We believe that the market and economic data presented throughout this presentation is
accurate but we cannot offer any assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market and economic data presented throughout this presentation are not guaranteed and we make no representation as to the accuracy of such data. Actual outcomes
may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. Although we believe it to be reliable, we have not independently verified any of the data from third-party
sources referred to in this presentation, or analyzed or verified the underlying market, economic and other assumptions relied upon by such sources.
TRADEMARKS
This presentation includes certain trademarks, such as “MoneyKey”, “CreditFresh” and “Propel”, which are protected under applicable intellectual property laws and are the property of Propel. Solely for convenience, our trademarks referred to in this presentation may appear without the ® or ™
symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks to the fullest extent under applicable law. All other trademarks used in this presentation are the property of their respective owners.
FINANCIAL INFORMATION
We publish our consolidated financial statements in U.S. dollars. In this presentation, unless otherwise specified, all monetary amounts are in U.S. dollars, all references to ‘‘C$’’, ‘‘CDN$’’, ‘‘CAD$’’ mean Canadian dollars and all references to ‘$”, ‘‘US$’’, ‘‘USD’’ and “dollars” mean U.S. dollars.
CERTAIN OTHER MATTERS
Any graphs, tables or other information demonstrating our historical performance or any other entity contained in this presentation are intended only to illustrate past performance of such entities and are not necessarily indicative of our future performance or such entities.
Unless otherwise indicated, information provided in this presentation is provided as of September 30, 2021.
2
Disclaimer
3
Investment Highlights
▪ Consumer-focused fintech lending platform
▪ Leading-edge, AI-driven, agile tech
infrastructure unlocking credit market
opportunity
▪ Innovative, transparent products and services,
including 3 transformational bank programs
▪ Profitable, scalable business with ample growth
opportunity
▪ Experienced and proven team with
deep industry knowledge
4
OUR MISSION
Inclusion
Every individual deserves
access to credit
Evolution
Help consumers evolve to better
credit products over time
Experience
Provide a best-in-class
consumer experience
We facilitate access to credit for underserved consumers through our belief that every individual deserves credit, our
desire to be an integral part of their evolution to better financial health, and our commitment to provide a best-in-
class customer experience
Despite regulatory encouragement, +60M U.S. adults lack access
to traditional credit from mainstream credit providers, making even
a small unexpected expense a financial crisis.
5
More than 25% of U.S. adults
are unable to afford a
$400 emergency expense
3 in 10 U.S. adults
experience hardships due to
income volatility
6
PROPEL: the fintech platform for
underserved consumers focused on
helping 25% of U.S. adults get access
to the credit they need
Financial Inclusion for the Underserved Population
7
Online, scalable fintech
offering convenient, fair
and transparent access
to credit with potential
to build credit and NO
surprise fees,
origination fees, late
fees or prepayment
penalties
Since 2008, mainstream credit providers have
pulled back ~$142B in consumer credit
> 300% APR< 36% APR
Creditworthy, underserved consumers
deserve better options
Very high APR options
Tier 1 Bank Credit Union LTO Payday
Loans
Tribal
Lenders
Bank
Overdraft
DECLINED
Mainstream Bank Credit Products Legacy Products
Propel Today
8
789,000
funded loans and
lines of credit*
~7M
unique applications per year**
*From inception through to September 30, 2021.
**This figure represents the run rate for 2021 .
$571M
in originations*
8
Highly profitable, diversified and scalable business
with significant growth opportunity
At Scale
20,000+
unique applications per
day and growing
~88%
of applications
auto-decisioned
Fintech
<10 second
initial credit decisions
3
Bank Partnerships
400+
Employees
2
Operations Centers
100%
online
$8.8M
Net Income YTD Q3 2021
73%
YOY growth in revenue
YTD Q3 2021
Profitable
$23M
Adjusted EBITDA YTD Q3 2021
9
“MoneyKey was there for me when no one else was. They help give me the money for bills I did [not] have a clue if I could pay.
I’m really thankful that they came through for me.”
~ Christopher, MoneyKey Customer
Inclusive Transparent Evolving
PRODUCTS
Brands & Products
10
Product and service offerings are underpinned by robust operations and
compliance capabilities
State-Licensed Direct Lender
Credit Services Organization/Credit Access
Business
Bank Sub-servicer
10
Bank Partner
Fully amortizing installment
loans
Open-ended Lines of Credit
Open-ended Lines of Credit
Propel Brand
Consumer Product Operating Structure
Putting Consumers First
11
Employed
Low-Moderate Income
Bank Account
Mobile-oriented
Limited Access to Credit
Graduation
Programs
• Propel platform
offers the
capability for
existing
customers (direct
or bank
customers) to
graduate to lower
rates and higher
loan amounts
Consistently Lowered
Cost of Credit Over Time
• Over the last 2+ years,
the cost of credit of
products offered
through the Propel
platform have been
reduced by almost half
while the loan
amounts offered to
customers have
almost doubled
Ability to Improve
Credit Score
• Some programs
offered through
the Propel
platform offer the
opportunity for
consumers to
positively impact
their credit rating
Financial Wellness
and Education
• Financial literacy
resources
provided to
consumers free of
charge
Part of the consumer’s evolution to better financial health
OUR TYPICAL CONSUMER:
11
12
“I would like to thank this company for helping me through this tough time. […] I would like for you to know that they see the
best in you and will help in your time of need thank you so much.”
~ TyJuan, MoneyKey Customer
Convenient Seamless Mobile
Platform to Succeed
Industry-Leading Proprietary Technology
Designed for Consumer Needs
13
~88%
of applications
auto-decisioned
30-person
in-house tech team
proven 6-week Agile delivery cycle
Cloud-hosted
scalable, resilient architecture
Open architecture
integrates easily and securely with:
• 28 marketing partners &
channels
• 10+ data providers
• 3 partner banks
• 2 CSO lenders
• 5 transaction processors
Robust, flexible, scalable, mobile first
~70%
of ad hoc card payments
made online
20,000+
unique applications
per day and growing
>150,000
debit and credit transactions
per month and growing
13
+ $12M
invested to date
Major subsystems:
• Acquisition and underwriting engine (AI-powered)
• Loan management system
• Customer self-service portal (mobile optimized)
0%
2%
4%
6%
8%
10%
12%
14%
16%
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
2015 2016 2017 2018 2019 2020 2021
14
Looking Beyond Traditional Credit Scores
Our sophisticated AI-powered engine with machine learning algorithms
provides opportunities for creditworthy consumers
Employment Data
Alternative Credit Bureau Data
Income Verification
Consumer Behaviour
Transactional Data
Consumer Verification Data
Sub-10 second,
automatic credit adjudication
1,000+ Attributes Evaluate Credit Worthiness
Unlocking opportunities for millions of creditworthy consumers
Missed Payment
Rate Declined
Reduce Risk
Fund More
Cumulative $ Funding
Increasing
“I believe CreditFresh helped me out in a very difficult time. They were enthusiastic,
supportive, interested in my personal needs… Thank you CreditFresh!!”
World Class Operations Team
Relentless focus on service and performance
15
Serving customers with urgency, respect and exceptional customer service
Excellent 4.6 and 4.7 ratings from
thousands of consumers
24 / 7
online platform
7 days
a week live agent
service
200+
strong operations team across
2 centralized locations
~ Joseph, CreditFresh Customer
16
“CreditFresh accepted me when no one else would. The process was quick and easy. The loan was very helpful. Thank you.”
~ Benjamin, CreditFresh Customer
Profitable Diversified Resilient
FINANCIAL OVERVIEW
17
Preliminary Q4 2021 Update
▪ Record Q4 2021 Loans and Advances Receivable and Total Originations Funded*
▪ Ending Combined Loan and Advance Balances* expected to grow over 110% compared to the prior year
▪ Advancing mission for greater credit inclusion
▪ Accelerated originations for newly launched capabilities: variable pricing and graduation
▪ Expansion of bank partner programs to six new states through MoneyKey, seven new states for CreditFresh
▪ Declared C$0.095 quarterly dividend per common share, 3.8% yield**
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
** Based on share price as of February 2, 2022.
Loans and Advances Receivable
Total Originations Funded*
$13
$26
$52
2018 2019 2020 2021
$72
$79
$102
$46
2018 2019 2020 2021 Q4 2020 Q4 2021
$103-$106
$225-$227
US$M
US$M
$88-$90
Q3 2021 Financial Performance
Track Record of Profitable Growth
18
Revenue
US$M
Adjusted EBITDA*
Net Income
US$MUS$M
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
$60.2
$68.0
$73.5
$51.0
$88.5
$16.5
$32.7
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
-$0.2
$2.0
$7.3
$8.5
$8.8
$2.6
$0.6
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
$4.2
$8.0
$20.0
$16.0
$22.7
$6.8
$5.0
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
Q3 2021 Financial Performance
19
Revenue
US$M
$60.2
$68.0
$73.5
$51.0
$88.5
$16.5
$32.7
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
▪ Record Originations and Ending Loan and Advance Balances
▪ Expansion and growth in bank programs
▪ Propel platform facilitating lower cost products,
increasing credit spectrum coverage
▪ New marketing partners and channels
▪ Wider access to Propel products and services across
the U.S.
▪ Return to demand for products facilitated through
Propel platform
▪ Annualized Revenue Yield* 143% in Q3 2021 and 152% for
YTD Q3 2021
▪ Higher relative growth of particular bank programs
▪ General reduction in rates of products facilitated
through Propel platform
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
Q3 2021 Financial Performance
20
Provision for loan losses and other liabilities (“Provision”) and
Net Charge-offs*
37%
33%
22%
18%
49%
42%
34%
37%
2018 2019 2020 YTD Q3
2021
Provision % Revenue
Net Charge-offs as % of Funded
▪ Credit metrics improving over the long-term due to
evolution towards lower-risk consumers
▪ Q3 2021 performance reflects:
▪ Q3 2020 uncharacteristically low due to COVID-
related factors, resulted more mature portfolio
▪ Rapid acceleration in originations in Q3 2021
▪ Newer customers have higher default rates
▪ IFRS-9 requires high provisioning at origination,
without commensurate revenue
8%
19%
28%
47%
Q3 2020 Q3 2021
Provision % Revenue
Net Charge-offs as % of Funded
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
Q3 2021 Financial Performance
21
Net Income
US$M
-$0.2
$2.0
$7.3
$8.5
$8.8
$2.6
$0.6
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
▪ In Q3 2021, Net Income impacted by:
▪ Low portfolio growth in Q3 2020, therefore lower
provisioning and customer acquisition costs in that
period
▪ Atypically high credit quality in Q3 2020
▪ Return to normalized growth and seasonality patterns
in profitability metrics in Q3 2021
▪ $0.3 million in one-time transaction related expenses
Q3 2021 Financial Performance
22
Adjusted EBITDA*
US$M
$4.2
$8.0
$20.0
$16.0
$22.7
$6.8
$5.0
2018 2019 2020 YTD Q3
2020
YTD Q3
2021
Q3 2020 Q3 2021
▪ Adjusted EBITDA excludes transaction costs and
provisioning for Stage 1 loans, better reflective of operating
performance
▪ Variances consistent with the factors impacting Net
Income:
▪ Low portfolio growth in Q3 2020, therefore lower
provisioning and customer acquisition costs in that
period
▪ Atypically high credit quality in Q3 2020
▪ Return to normalized growth and seasonality patterns
in profitability metrics in Q3 2021
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
Solid Financial Position
▪ Ending Combined Loan and Advance Balances*
of $96.8 million as of September 30, 2021
▪ Over $83 million in undrawn credit capacity as
of September 30, 2021
▪ Debt:equity 2.1x at quarter-end , post-IPO 0.7x
▪ Net proceeds from IPO and over-allotments
~C$70 million
▪ Cost of credit has declined to 9.2% in Q3 2021,
from 12.8% in Q3 2020
23
Outstanding Debt Maturities
(in US$M )
MoneyKey (Capacity)
MoneyKey (Utilized)
CreditFresh (Capacity)
CreditFresh (Utilized)
$20.0
$120.0
$48.5
Utilized
$71.5
Capacity
$11.7
$8.3
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
Target CAGR Short-
Term Target
Ending Combined Loan and Advance Balances* Facilitated
over the Propel Platform
100%
Maintaining Financial Targets
24
Target Metric Short-
Term Target
Annualized Revenue Yield* 140% - 150%
Annualized Adj. EBITDA Margin* 22% - 26%
Annualized Net Income Margin 8% - 10%
*See "Disclaimer – Non-IFRS Measures and Industry Metrics“ and “Appendix B”
25
“Excellent staff, outstanding services, affordable payment rates, very customer-friendly – CreditFresh is the best…!”
~ Linus, CreditFresh Customer
Poised Focused Strategic
READY FOR TOMORROW
26
Evolving into a Diversified Online Global
Fintech Company
Serving lower risk
markets
• Extension of existing
product suite into
near-prime market
as rates continue to
decrease
Graduating
consumers up the
credit spectrum
• Continue to
graduate existing
clients to new
products with
lower cost of credit
Adjacent products
• Design, deliver and
cross-sell
complementary
products aligned
with Propel’s core
purpose
Geographic expansion
• Expansion into
new states and
jurisdictions
Inclusion. Evolution. Experience.
27
Appendix A
Our Management Team
28
Clive Kinross
Co-Founder and
Chief Executive Officer
Gary Edelstein
President
Noah Buchman
Co-Founder and
Executive Vice President;
President of CreditFresh
Sheldon Saidakovsky
Co-Founder and
Executive Vice President;
Chief Financial Officer
Sarika Ahluwalia
Vice President,
Chief Compliance Officer
Propel’s executive team has collectively 80+ years of industry experience
and continues to drive innovation and accelerate growth
Dr. Jonathan Goler
Co-Founder and
Executive Vice President;
Chief Risk Officer
Jay Vaghela
Vice President,
General Counsel
Cindy Usprech
Vice President,
People and Culture
Jonathan Krauklis
Vice President,
Bank Program Operations
Brad Sherk
Vice President,
MoneyKey Operations
and Shared Services
Board of Directors
29
Michael Stein
Mr. Stein is the founder,
Chairman and CEO of
the MPI Group, a
property development
and investment group
with a track record in
incubating, investing in,
and managing
successful companies
including OPENLANE.
Mr. Stein is also a
founder of CAPREIT,
where he served as its
first CEO and continues
to serve as Chairman.
Clive Kinross
Co-Founder and CEO
of Propel Holdings.
Mr. Kinross was
previously the
Co-Founder and President
of OPENLANE, one of the
first online used car
auction businesses,
which sold to ADESA, part
of KAR Auction Services
(NYSE:KAR), in 2012.
Mr. Kinross is a Chartered
Accountant.
Peter Monaco
Mr. Monaco is Managing
Director and member of the
Management Committee at
Raptor Group Holdings, a
diversified investment
holding company.
Prior to joining Raptor
Group, he was a Partner
and Managing Director at
Tudor Investment
Corporation.
Mr. Monaco is a 1986
graduate of Harvard
College and active in a
number of non-profits.
Karen Martin
Ms. Martin was the
Executive Vice President
and Treasurer of Element
Fleet Management Corp
and served in executive
management, treasury and
finance positions in
financial services for over
25 years. Ms. Martin is an
independent director at
ECN Capital where she sits
on the audit committee.
Ms. Martin is a Chartered
Financial Analyst (CFA) and
a Chartered Professional
Accountant (CPA), and
holds the professional
independent director
designation (ICD.D).
Geoff Greenwade
Mr. Greenwade was the
President and CEO of
Green Bank and has 36
years of banking industry
experience, including with
with Bank of America, and
Wells Fargo.
Mr. Greenwade currently
serves as the Chairman of
Texas A&M University Mays
Business School -
Commercial Banking
Program.
Poonam Puri
Ms. Puri is a professor of
business law and
corporate governance at
Osgoode Hall Law School,
and is also a
corporate/securities
lawyer at Davies Ward
Phillips & Vineberg LLP.
Ms. Puri is an independent
director of the Canada
Infrastructure Bank and
CAPREIT, and is a former
Commissioner of the
Ontario Securities
Commission and former
director of the Greater
Toronto Airports Authority
and Arizona Mining.
Yousry Bissada
Mr. Bissada is President
and Chief Executive Officer
and Board Member of
Home Capital Group.
Prior to joining Home
Capital, Mr. Bissada served
as President and CEO of
Kanetix Ltd., and Chief
Financial Officer of
FirstLine Trust Company.
An experienced board
member, Mr. Bissada has
held numerous director
roles including Canadiana
Financial Corp., Paradigm
Quest Inc., Street Capital
Financial Corp., and Equity
Financial Holdings Inc.
30
Appendix B
Non-IFRS Measure Reconciliation
31
Three Months Ended Sept 30, Nine Months Ended Sept 30,
2021 2020 2021 2020
Net Income
626,044 2,566,736 8,775,498 8,463,160
Interest on Debt
1,212,845 902,706 4,124,761 2,888,953
Interest on lease liabilities
106,564 114,941 334,008 356,929
Amortization of intangible assets
493,375 441,239 1,529,846 1,236,002
Depreciation of property and equipment
25,186 38,211 87,191 127,064
Amortization of right
-of-use assets 159,629 179,090 502,129 536,154
Income Tax Expense (Recovery)
225,716 925,422 3,163,956 3,051,343
EBITDA
(1)
2,849,359 5,168,345 18,517,389 16,659,605
EBITDA margin as a % of revenue
(1)
9% 31% 21% 33%
Transaction Costs and Financing Costs
323,216 - 364,821 22,149
Provision for credit losses on current
status accounts
(1)
1,194,979 1,419,197 2,627,786 (274,066)
Provisions for CSO Guarantee liabilities and
Bank Service Program liabilities
640,496 165,724 1,238,627 (415,444)
Adjusted EBITDA
(1
5,008,050 6,753,265 22,748,623 15,992,244
Adj. EBITDA margin as a % of revenue
(1)
15% 41% 26% 31%
1) Provisionincluded for (i)loanlosses on goodstanding currentprincipal (Stage1 — Performing)balances (see“CriticalAccounting Estimates and Judgements — Loans and advancesreceivable” in MD&A).
US$
Non-IFRS Measure Reconciliation
32
Three Months Ended Sept 30, Nine Months Ended Sept 30,
2021 2020 2021 2020
Charge-Offs (12,367,844) (3,213,703) (29,538,250) (20,344,316)
Recoveries 1,896,699 1,216,119 4,315,404 3,551,508
Net Charge-Offs (10,471,145) (1,997,584) (25,222,846) (16,792,808)
Movement in allowance for doubtful accounts (4,271,167) (2,432,155) (6,403,477) 3,041,049
Provision for Loan Losses (14,742,312) (4,429,739) (31,626,323) (13,751,759)
Movement in financial obligation
(1)
(640,496) (165,724) (1,238,627) 415,444
Other cost of revenue items (lender costs) (38,035) (73,264) (310,050) (281,801)
Provision for loan losses and other liabilities (15,420,842) (4,668,726) (33,175,000) (13,618,116)
US$
1) Movement in financial obligation is equivalent to Provisions for CSO Guarantee liabilities and Bank Service Program liabilities.
As at Sept 30, As at Dec 31,
2021 2020 2020
Ending Combined Loan and Advance balances 96,841,775 38,735,070 62,643,735
Less: Loan and Advance balances owned by third party lenders
pursuant to CSO program
(3,204,174) (2,560,981) (2,487,802)
Less: Loan and Advance balances owned by a NBFI pursuant to the
MoneyKey Bank Service program
(9,519,178) (280,498) (3,316,385)
Loan and Advance owned by the Company 84,118,425 35,893,590 56,839,548
Less: Allowance for Credit Losses (19,809,595) (8,304,746) (13,406,118)
Add: Fees and interest receivable 9,076,161 4,177,246 5,262,181
Add: Deferred acquisition and data costs 3,831,373 1,516,036 2,881,948
Loans and Advances Receivable 77,216,364 33,282,125 51,577,558