MANAGEMENT'S DISCUSSION AND ANALYSIS



For the three and twelve months ended
September 30, 2011

(restated)











|
|



TABLE OF CONTENTS







|EXPLANATORY
    NOTE                                                                                 | 4 
|---------------------------------------------------------------------------------------------------- | --
|                                                                                                     |   
|Adjustments
    related to prior period financial statements                                         | 4 
|                                                                                                     |   
|BUSINESS
    PROFILE AND STRATEGY                                                                    | 6 
|                                                                                                     |   
|Accelerate
    Direct Lending Model                                                                  | 6 
|Introduce
    Additional New Products and Services                                                   | 6 
|Continue
    to Grow Canadian Operations                                                             | 7 
|Pursue
    International Expansion                                                                   | 7 
|SELECTED
    FINANCIAL INFORMATION                                                                   | 8 
|                                                                                                     |   
|OVERALL
    FINANCIAL PERFORMANCE                                                                    | 9 
|                                                                                                     |   
|2011
    Highlights and Outlook                                                                      | 9 
|                                                                                                     |   
|SELECTED
    FINANCIAL INFORMATION                                                                   | 12
|                                                                                                     |   
|FINANCIAL
    ANALYSIS                                                                               | 13
|                                                                                                     |   
|Branch
    Count                                                                                     | 13
|Revenue                                                                                              | 14
|Same
    Branch Revenues                                                                             | 16
|Branch
    Operating Income                                                                          | 16
|Expenses
    (excluding retention payments, depreciation, amortization and class action settlements) | 17
|Retention
    Payments                                                                               | 17
|Depreciation
    and Amortization                                                                    | 18
|Income
    Taxes                                                                                     | 18
|                                                                                                     |   
|LIQUIDITY
    AND CAPITAL RESOURCES                                                                  | 19
|                                                                                                     |   
|Consumer
    Loans Receivable                                                                        | 19
|Normal
    Course Issuer Bid                                                                         | 20
|Contractual
    Obligations                                                                          | 20
|                                                                                                     |   
|SUMMARY
    OF QUARTERLY RESULTS                                                                     | 21
|                                                                                                     |   
|Fourth
    Quarter                                                                                   | 22
|                                                                                                     |   
|RELATED
    PARTY TRANSACTIONS (restated)                                                            | 25
|                                                                                                     |   
|The
    Cash Store Australia Holdings Inc. (“AUC”)                                                   | 25
|RTF
    Financial Holdings Inc. (“RTF”)                                                              | 25
|Third-party
    lenders (restated)                                                                   | 25
|                                                                                                     |   
|RISK
    FACTORS AFFECTING PERFORMANCE                                                               | 26
|                                                                                                     |   
|Consumer
    Protection Regulations                                                                  | 26
|Legal
    Proceedings                                                                                | 28
|Third
    Party Lenders/Retention Payments                                                           | 29
|                                                                                                     |   
|CRITICAL
    ACCOUNTING ESTIMATES                                                                    | 30
|                                                                                                     |   
|Revenue
    Recognition                                                                              | 30
|Retention
    Payments                                                                               | 31
|Provisions
    for Loan Losses                                                                       | 31
|Stock
    Based Compensation                                                                         | 32
|Consumer
    Loans Receivable                                                                        | 32
|Income
    Tax Estimates and Future Income Taxes                                                     | 32



- 2 -







|
|



|Long-term
    investments                                            | 32
|-------------------------------------------------------------------- | --
|Amortization
    Policies and Useful Lives                           | 33
|Intangible
    Assets                                                | 33
|Goodwill                                                             | 33
|Accounting
    for the Impairment of Long-Lived Assets               | 34
|Leases                                                               | 34
|Contingencies                                                        | 34
|                                                                     |   
|CHANGES
    IN ACCOUNTING POLICIES AND PRACTICES                     | 34
|                                                                     |   
|RECENT
    ACCOUNTING PRONOUCEMENTS NOT YET ADOPTED                  | 34
|                                                                     |   
|International
    Financial Reporting Standards                      | 34
|                                                                     |   
|CONTROLS
    AND PROCEDURES (restated)                               | 35
|                                                                     |   
|Evaluation
    of disclosure controls and procedures                 | 35
|Management’s
    Report on Internal Control over Financial Reporting | 35
|Changes
    in Internal Control Over Financial Reporting (restated)  | 36
|                                                                     |   
|OUTSTANDING
    SHARE DATA                                           | 37
|                                                                     |   
|DIVIDENDS                                                            | 37
|                                                                     |   
|OTHER                                                                | 37
|                                                                     |   
|Cautionary
    Statement Regarding Forward-looking Information       | 37
|Non-GAAP
    Measures                                                | 38
|EBITDA
    Reconciliation                                            | 39



- 3 -







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|



EXPLANATORY NOTE



May 24, 2013



The following management discussion
and analysis for the three and twelve months ended September 30, 2011 has been restated. This restated annual Management’s
Discussion and Analysis (MD&A) should be read in conjunction with The Cash Store Financial Services Inc.’s (“Cash
Store Financial” or the “Company”) restated audited consolidated financial statements for the twelve and fifteen
months ended September 30, 2011 and September 30, 2010, respectively. The Company’s board of directors (the
“Board of Directors”), on the recommendation of the Company’s audit committee (“Audit Committee”),
approved the content of this MD&A on May 24, 2013.



All figures are presented in Canadian dollars
and are reported in accordance with Canadian generally accepted accounting principles.



Adjustments related to prior period financial statements



| | a) | These
                                                                                                                                                 consolidated
                                                                                                                                                 financial
                                                                                                                                                 statements
                                                                                                                                                 for
                                                                                                                                                 the
                                                                                                                                                 year
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2012
                                                                                                                                                 and
                                                                                                                                                 the
                                                                                                                                                 year
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2011,
                                                                                                                                                 as
                                                                                                                                                 initially
                                                                                                                                                 reported,
                                                                                                                                                 have
                                                                                                                                                 been
                                                                                                                                                 amended
                                                                                                                                                 and
                                                                                                                                                 restated
                                                                                                                                                 to
                                                                                                                                                 correct
                                                                                                                                                 for
                                                                                                                                                 an
                                                                                                                                                 error
                                                                                                                                                 resulting
                                                                                                                                                 from
                                                                                                                                                 the
                                                                                                                                                 misunderstanding
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 settlement
                                                                                                                                                 terms
                                                                                                                                                 and
                                                                                                                                                 conditions
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 March
                                                                                                                                                 5,
                                                                                                                                                 2004
                                                                                                                                                 British
                                                                                                                                                 Columbia
                                                                                                                                                 Class
                                                                                                                                                 Action
                                                                                                                                                 claim,
                                                                                                                                                 which
                                                                                                                                                 resulted
                                                                                                                                                 in
                                                                                                                                                 the
                                                                                                                                                 application
                                                                                                                                                 of
                                                                                                                                                 an
                                                                                                                                                 accounting
                                                                                                                                                 principle
                                                                                                                                                 to
                                                                                                                                                 measure
                                                                                                                                                 and
                                                                                                                                                 record
                                                                                                                                                 the
                                                                                                                                                 liability
                                                                                                                                                 as
                                                                                                                                                 at
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2010
                                                                                                                                                 and
                                                                                                                                                 subsequent
                                                                                                                                                 reporting
                                                                                                                                                 periods,
                                                                                                                                                 that
                                                                                                                                                 was
                                                                                                                                                 not
                                                                                                                                                 appropriate
                                                                                                                                                 in
                                                                                                                                                 the
                                                                                                                                                 circumstances.
                                                                                                                                                 The
                                                                                                                                                 restatement
                                                                                                                                                 impacts
                                                                                                                                                 the
                                                                                                                                                 year
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2011
                                                                                                                                                 and
                                                                                                                                                 the
                                                                                                                                                 fifteen
                                                                                                                                                 months
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2010.
                                                                                                                                                 The
                                                                                                                                                 restatement
                                                                                                                                                 resulted
                                                                                                                                                 in
                                                                                                                                                 a
                                                                                                                                                 reduction
                                                                                                                                                 in
                                                                                                                                                 net
                                                                                                                                                 income
                                                                                                                                                 in
                                                                                                                                                 the
                                                                                                                                                 fifteen
                                                                                                                                                 months
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2010
                                                                                                                                                 of
                                                                                                                                                 $6.6
                                                                                                                                                 million,
                                                                                                                                                 and
                                                                                                                                                 an
                                                                                                                                                 increase
                                                                                                                                                 in
                                                                                                                                                 net
                                                                                                                                                 income
                                                                                                                                                 in
                                                                                                                                                 the
                                                                                                                                                 year
                                                                                                                                                 ended
                                                                                                                                                 September
                                                                                                                                                 30,
                                                                                                                                                 2011
                                                                                                                                                 of
                                                                                                                                                 $1.5
                                                                                                                                                 million.
| | -- | 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-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The correction of the error
will result in the previously disclosed maximum settlement exposure of $18.8 million being expensed with the majority of the expense
being recognized in the fifteen month period ended September 30, 2010. The correction had an impact on our Consolidated Statements
of Operations and Comprehensive Income and resulted in an increase in diluted earnings per share of $0.09 for the fiscal year
ended September 30, 2011 and a decrease of $0.38 for the fifteen months ended September 30, 2010. The correction had no impact
on total revenues, operating margin, or cash position and had no impact on compliance with debt covenants in any periods presented.



As a result of the restatements,
the previously filed consolidated financial statements of the Company for the year ended September 30, 2011, and the fifteen month
period ended September 30, 2010, and the associated MD&A disclosure for the applicable periods should no longer be relied
upon.



- 4 -







|
|



Effects of the restatement



The effect of the restatement on the consolidated
statement of operations and comprehensive income for the year ended September 30, 2011 and fifteen-month period ended September
30, 2010 is as follows:



|                                                   |  | Year
    ended September 30 2011 |        |   | 15
    months ended September 30 2010 |  
|-------------------------------------------------- |  | -------------------------------- | ------ | - | ------------------------------------- | -
|                                                   |  | As
    Reported                  |        |   | Adjustments                           |  
|                                                   |  |                                  |        |   |                                       |  
|Interest expense                                   |  |                                  | -      |   |                                       | $
|Class action settlements                           |  | $                                | 3,206  |   |                                       | $
|INCOME BEFORE INCOME TAXES                         |  |                                  | 14,667 |   |                                       |  
|PROVISION FOR INCOME TAXES - Future
    (recovery) |  |                                  | (532   | ) |                                       |  
|NET INCOME AND COMPREHENSIVE INCOME                |  |                                  | 9,042  |   |                                       |  
|                                                   |  |                                  |        |   |                                       |  
|BASIC EARNINGS PER SHARE                           |  | $                                | 0.52   |   |                                       | $
|DILUTED EARNINGS PER SHARE                         |  |                                  | 0.51   |   |                                       |  



The effect of the restatement on the consolidated
balance sheets as at September 30, 2011 and 2010 is as follows:



|                                         |  | September
    30 2011 |        |  | September
    30 2010 |  
|---------------------------------------- |  | --------------------- | ------ |  | --------------------- | -
|                                         |  | As
    Reported       |        |  | Adjustments           |  
|                                         |  |                       |        |  |                       |  
|Other receivables                        |  | $                     | 12,575 |  |                       | $
|Current future income taxes              |  |                       | 1,516  |  |                       |  
|Accounts payable and accrued liabilities |  |                       | 22,989 |  |                       |  
|Retained earnings                        |  |                       | 37,019 |  |                       |  



The effect of the restatement on the consolidated
statement of cash flows for the years ended September 30, 2011 and fifteen-month period ended September 30, 2010 is as follows:



|                                                |  | Year
    ended September 30 2011 |        |   | 15
    months ended September 30 2010 |  
|----------------------------------------------- |  | -------------------------------- | ------ | - | ------------------------------------- | -
|                                                |  | As
    Reported                  |        |   | Adjustments                           |  
|                                                |  |                                  |        |   |                                       |  
|Net income                                      |  | $                                | 9,042  |   |                                       | $
|Future income taxes (recovery)                  |  |                                  | (532   | ) |                                       |  
|Other receivables and long-term
    receivables |  |                                  | (2,866 | ) |                                       |  
|Accounts payable and accrued liabilities        |  |                                  | 6,617  |   |                                       | $



| | b) | Independent
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 restatement
                                                                                                                                                 outlined
                                                                                                                                                 in
                                                                                                                                                 a)
                                                                                                                                                 above,
                                                                                                                                                 we
                                                                                                                                                 have
                                                                                                                                                 also
                                                                                                                                                 restated
                                                                                                                                                 Related
                                                                                                                                                 Party
                                                                                                                                                 Transactions
                                                                                                                                                 -
                                                                                                                                                 Third
                                                                                                                                                 party
                                                                                                                                                 Lenders,
                                                                                                                                                 to
                                                                                                                                                 disclose
                                                                                                                                                 related
                                                                                                                                                 party
                                                                                                                                                 transactions
                                                                                                                                                 with
                                                                                                                                                 a
                                                                                                                                                 privately
                                                                                                                                                 held
                                                                                                                                                 entity
                                                                                                                                                 that
                                                                                                                                                 raises
                                                                                                                                                 capital
                                                                                                                                                 and
                                                                                                                                                 provides
                                                                                                                                                 advances
                                                                                                                                                 to
                                                                                                                                                 the
                                                                                                                                                 Company’s
                                                                                                                                                 customers
                                                                                                                                                 (third-party
                                                                                                                                                 lender).
                                                                                                                                                 The
                                                                                                                                                 privately
                                                                                                                                                 held
                                                                                                                                                 entity
                                                                                                                                                 is
                                                                                                                                                 controlled
                                                                                                                                                 by
                                                                                                                                                 the
                                                                                                                                                 father
                                                                                                                                                 of
                                                                                                                                                 Cameron
                                                                                                                                                 Schiffner,
                                                                                                                                                 the
                                                                                                                                                 Senior
                                                                                                                                                 Vice
                                                                                                                                                 President
                                                                                                                                                 of
                                                                                                                                                 Operations
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 Company.
                                                                                                                                                 The
                                                                                                                                                 addition
                                                                                                                                                 of
                                                                                                                                                 this
                                                                                                                                                 disclosure
                                                                                                                                                 did
                                                                                                                                                 not
                                                                                                                                                 impact
                                                                                                                                                 the
                                                                                                                                                 previously
                                                                                                                                                 reported
                                                                                                                                                 financial
                                                                                                                                                 position
                                                                                                                                                 or
                                                                                                                                                 results
                                                                                                                                                 of
                                                                                                                                                 operations
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 Company.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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- 5 -







|
|



BUSINESS PROFILE AND STRATEGY



This section contains forward-looking statements.
See Cautionary Statement Regarding Forward-Looking Information located at the end of this MD&A.



Cash Store Financial is an alternative
to traditional banks, providing short-term advances and other financial services, to serve the needs of everyday people in Canada
through our two branch banners: Cash Store Financial and Instaloans.  Cash Store Financial and Instaloans act as brokers
and lenders to facilitate short-term advances and to provide other financial services to income-earning consumers. We also
provide a range of financial products that are not supplied by traditional financial institutions. As of September 30, 2011, we
owned and operated 586 branches in nine Canadian provinces, two Canadian territories and the United Kingdom (the “UK”).
Our workforce is dynamic and we operate within a performance-based culture. We employ approximately 2,300 associates across Canada
and the UK.  Cash Store Financial is the only broker and lender of short-term advances and provider of other financial services
in Canada that is publicly traded on both the Toronto and New York Stock Exchanges. Cash Store Financial trades under the symbol
“CSF” on the Toronto Stock Exchange and under the symbol “CSFS” on the New York Stock Exchange.



Our business is based on the recognition
that the needs of a segment of the Canadian and UK population are not being properly serviced by traditional financial institutions.
Our strategic objective is to establish Cash Store Financial and Instaloans as the provider of choice, in the jurisdictions in
which we operate, for short-term advances and other financial services by offering a wide range of products, a high level of customer
service and convenient locations and hours of operation.



In addition to meeting our customers’
needs by providing small, short-term loans which can be accessed quickly, we also offer financial product insurance, cheque cashing
products, bank accounts, money transfers, pre-paid master cards, debit cards, and prepaid phone cards.



A key component of our long-term business
strategy has been product diversification. This strategy has and should continue to assist us in offsetting downward pressure
on revenue and earnings resulting from provincially regulated rate caps on payday loans. In the third quarter of 2010, through
an agency agreement with DC Bank, a federally regulated Canadian Schedule 1 bank, we introduced a basic deposit account product.
A new premium bank account product that features unlimited free cheque cashing and free on-line bill payments was introduced in
late Q2 2011. Both types of account are insured by the Canada Deposit Insurance Corporation. On a national basis, consumer acceptance
of both products has been high.



Cash Store Financial’s strategic priorities are:



Accelerate Direct Lending Model



| | · | Reducing
                                                                                                                                                                                                     our
                                                                                                                                                                                                     cost
                                                                                                                                                                                                     of
                                                                                                                                                                                                     capital.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Introduce Additional New Products and Services



Growing existing product lines
and implementation of new product initiatives



| | · | Providing
                                                                                                                                                                                                     superior
                                                                                                                                                                                                     service
                                                                                                                                                                                                     in
                                                                                                                                                                                                     relation
                                                                                                                                                                                                     to
                                                                                                                                                                                                     existing
                                                                                                                                                                                                     product
                                                                                                                                                                                                     offerings;
                                                                                                                                                                                                     and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Accelerating
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     growth
                                                                                                                                                                                                     through
                                                                                                                                                                                                     further
                                                                                                                                                                                                     new
                                                                                                                                                                                                     product
                                                                                                                                                                                                     initiatives.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 6 -







|
|



Continue to Grow Canadian Operations



Driving market penetration



| | · | Maximizing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     potential
                                                                                                                                                                                                     of
                                                                                                                                                                                                     our
                                                                                                                                                                                                     expanding
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     network;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Continuing
                                                                                                                                                                                                     to
                                                                                                                                                                                                     focus
                                                                                                                                                                                                     on
                                                                                                                                                                                                     improving
                                                                                                                                                                                                     Branch
                                                                                                                                                                                                     Operating
                                                                                                                                                                                                     Income
                                                                                                                                                                                                     (“BOI”)
                                                                                                                                                                                                     margins
                                                                                                                                                                                                     for
                                                                                                                                                                                                     all
                                                                                                                                                                                                     our
                                                                                                                                                                                                     branches;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Continuing
                                                                                                                                                                                                     to
                                                                                                                                                                                                     educate,
                                                                                                                                                                                                     motivate
                                                                                                                                                                                                     and
                                                                                                                                                                                                     improve
                                                                                                                                                                                                     the
                                                                                                                                                                                                     performance
                                                                                                                                                                                                     of
                                                                                                                                                                                                     our
                                                                                                                                                                                                     associates
                                                                                                                                                                                                     through
                                                                                                                                                                                                     an
                                                                                                                                                                                                     integrated
                                                                                                                                                                                                     communication
                                                                                                                                                                                                     and
                                                                                                                                                                                                     training
                                                                                                                                                                                                     strategy
                                                                                                                                                                                                     that
                                                                                                                                                                                                     includes
                                                                                                                                                                                                     Cash
                                                                                                                                                                                                     Store
                                                                                                                                                                                                     Financial
                                                                                                                                                                                                     College,
                                                                                                                                                                                                     Cash
                                                                                                                                                                                                     Store
                                                                                                                                                                                                     FinancialTV
                                                                                                                                                                                                     and
                                                                                                                                                                                                     our
                                                                                                                                                                                                     annual
                                                                                                                                                                                                     President’s
                                                                                                                                                                                                     Forum
                                                                                                                                                                                                     with
                                                                                                                                                                                                     every
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     manager;
                                                                                                                                                                                                     and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Providing
                                                                                                                                                                                                     strong
                                                                                                                                                                                                     leadership
                                                                                                                                                                                                     through
                                                                                                                                                                                                     in-the-field,
                                                                                                                                                                                                     hands-on
                                                                                                                                                                                                     involvement
                                                                                                                                                                                                     of
                                                                                                                                                                                                     senior
                                                                                                                                                                                                     management
                                                                                                                                                                                                     and
                                                                                                                                                                                                     getting
                                                                                                                                                                                                     back
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     basics
                                                                                                                                                                                                     throughout
                                                                                                                                                                                                     the
                                                                                                                                                                                                     company.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



New branch openings



| | · | Further
                                                                                                                                                                                                     expanding
                                                                                                                                                                                                     our
                                                                                                                                                                                                     position
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     Canadian
                                                                                                                                                                                                     alternative
                                                                                                                                                                                                     financial
                                                                                                                                                                                                     services
                                                                                                                                                                                                     industry
                                                                                                                                                                                                     through
                                                                                                                                                                                                     organic
                                                                                                                                                                                                     growth
                                                                                                                                                                                                     into
                                                                                                                                                                                                     underserved
                                                                                                                                                                                                     communities
                                                                                                                                                                                                     based
                                                                                                                                                                                                     on
                                                                                                                                                                                                     new
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     profitability
                                                                                                                                                                                                     or
                                                                                                                                                                                                     via
                                                                                                                                                                                                     the
                                                                                                                                                                                                     acquisition
                                                                                                                                                                                                     of
                                                                                                                                                                                                     existing
                                                                                                                                                                                                     operators.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Pursue International Expansion



| | · | Aggressive
                                                                                                                                                                                                     expansion
                                                                                                                                                                                                     of
                                                                                                                                                                                                     our
                                                                                                                                                                                                     network
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK;
                                                                                                                                                                                                     and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Establish
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK
                                                                                                                                                                                                     to
                                                                                                                                                                                                     facilitate
                                                                                                                                                                                                     aggressive
                                                                                                                                                                                                     expansion.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Cash Store Financial has recognized its
corporate responsibility to contribute to the communities in which we do business. In 2008, we partnered with the Alberta Diabetes
Foundation to raise $7.5 million for research to be undertaken at the Alberta Diabetes Institute, a globally-recognized centre
of research excellence. In 2010 the Company was one of 16 companies recognized with a “Roll of Honour” award by the
Alberta Association of Fund Raising Executives. The “Roll of Honour” award celebrates extraordinary commitment and
contributions to the non-profit sector from corporate citizens and individuals around Alberta. In calendar 2011, Cash Store Financial
hosted 33 “freedom” runs across Canada.



- 7 -







|
|



SELECTED ANNUAL INFORMATION



|Thousands
    of dollars, except for per share amounts and branch figures |        | Twelve
    Months
    Ended |         |     | Fifteen
    Months
    Ended |   |         | Twelve
    Months
    Ended | 
|------------------------------------------------------------------------- | ------ | --------------------------- | ------- | --- | ---------------------------- | - | ------- | --------------------------- | 
|Consolidated results                                                      |        | September 30                |         |     | September 30                 |   |         | June 30                     | 
|                                                                          |        | 2011                        |         |     | 2010                         |   |         | 2009                        | 
|                                                                          |        | (restated)                  |         |     | (restated)                   |   |         |                             | 
|No. of branches                                                           | Canada |                             |         | 574 |                              |   |         | 542                         | 
|United Kingdom                                                            |        |                             | 12      |     |                              |   | 2       |                             | 
|                                                                          |        |                             | 586     |     |                              |   | 544     |                             | 
|Revenue                                                                   |        |                             |         |     |                              |   |         |                             | 
|Loan fees                                                                 |        | $                           | 136,623 |     |                              | $ | 170,659 |                             | 
|Other
    income                                                          |        |                             | 53,276  |     |                              |   | 49,859  |                             | 
|                                                                          |        |                             | 189,899 |     |                              |   | 220,518 |                             | 
|                                                                          |        |                             |         |     |                              |   |         |                             | 
|Branch expenses                                                           |        |                             |         |     |                              |   |         |                             | 
|Salaries and benefits                                                     |        |                             | 57,576  |     |                              |   | 62,265  |                             | 
|Retention payments                                                        |        |                             | 26,786  |     |                              |   | 28,167  |                             | 
|Selling, general and administrative                                       |        |                             | 17,518  |     |                              |   | 21,673  |                             | 
|Rent                                                                      |        |                             | 18,216  |     |                              |   | 17,868  |                             | 
|Advertising and promotion                                                 |        |                             | 5,440   |     |                              |   | 5,535   |                             | 
|Provision for loan losses                                                 |        |                             | 2,559   |     |                              |   | 788     |                             | 
|Depreciation
    of property and equipment                                |        |                             | 6,803   |     |                              |   | 7,006   |                             | 
|                                                                          |        |                             | 134,898 |     |                              |   | 143,302 |                             | 
|Branch operating income                                                   |        |                             | 55,001  |     |                              |   | 77,216  |                             | 
|                                                                          |        |                             |         |     |                              |   |         |                             | 
|Regional expenses                                                         |        |                             | 16,749  |     |                              |   | 13,359  |                             | 
|Corporate expenses                                                        |        |                             | 18,266  |     |                              |   | 21,127  |                             | 
|Interest expense                                                          |        |                             | 616     |     |                              |   | -       |                             | 
|Other depreciation and amortization                                       |        |                             | 2,113   |     |                              |   | 2,054   |                             | 
|Income before income taxes and class action settlements                   |        |                             | 17,257  |     |                              |   | 40,676  |                             | 
|Class action settlements                                                  |        |                             | 368     |     |                              |   | 11,685  |                             | 
|EBITDA *                                                                  |        |                             | 27,352  |     |                              |   | 39,329  |                             | 
|Net income and comprehensive
    income                                   |        | $                           | 10,579  |     |                              | $ | 19,863  |                             | 
|Weighted average number of shares outstanding                             |        |                             |         |     |                              |   |         |                             | 
|- basic                                                                   |        |                             | 17,259  |     |                              |   | 16,913  |                             | 
|- diluted                                                                 |        |                             | 17,663  |     |                              |   | 17,522  |                             | 
|Basic earnings per share                                                  |        |                             |         |     |                              |   |         |                             | 
|Net income and comprehensive income                                       |        | $                           | 0.61    |     |                              | $ | 1.17    |                             | 
|Diluted earnings per share                                                |        |                             |         |     |                              |   |         |                             | 
|Net
    income and comprehensive income                                   |        | $                           | 0.60    |     |                              | $ | 1.13    |                             | 
|Consolidated Balance Sheet Information                                    |        |                             |         |     |                              |   |         |                             | 
|Working capital                                                           |        | $                           | 12,058  |     |                              | $ | 8,379   |                             | 
|Total assets                                                              |        |                             | 123,323 |     |                              |   | 116,414 |                             | 
|Total long-term liabilities                                               |        |                             | 9,082   |     |                              |   | 9,882   |                             | 
|Total liabilities                                                         |        |                             | 41,041  |     |                              |   | 39,660  |                             | 
|Cash dividends declared per share                                         |        |                             | 0.46    |     |                              |   | 0.54    |                             | 
|Shareholders' equity                                                      |        | $                           | 82,282  |     |                              | $ | 76,754  |                             | 

*EBITDA – earnings from operations before interest, income
taxes, stock-based compensation, depreciation of property and equipment and amortization of intangible assets.



- 8 -







|
|



OVERALL FINANCIAL PERFORMANCE



2011 Highlights
and Outlook



This section contains forward-looking statements.
See “Cautionary Statement Regarding Forward-Looking Information” located at the end of the MD&A.



|Thousands
    of dollars, except for per share amounts                                                                                        |  | Three
    Months Ended |        |  | Twelve
    Months
    Ended |   |        | Twelve
    Months
    Ended |  |   | Fifteen
    Months
    Ended | 
|--------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------- | ------ |  | --------------------------- | - | ------ | --------------------------- |  | - | ---------------------------- | 
|Consolidated results                                                                                                                          |  | September 30           |        |  | September 30                |   |        | September 30                |  |   | September 30                 | 
|                                                                                                                                              |  | 2011                   |        |  | 2010                        |   |        | 2011                        |  |   | 2010                         | 
|                                                                                                                                              |  | (restated)             |        |  | (restated)                  |   |        | (restated)                  |  |   | (restated)                   | 
|Revenue                                                                                                                                       |  | $                      | 47,181 |  |                             | $ | 49,279 |                             |  | $ | 189,899                      | 
|Branch operating income                                                                                                                       |  |                        | 13,913 |  |                             |   | 16,640 |                             |  |   | 55,001                       | 
|Net income                                                                                                                                    |  |                        |        |  |                             |   |        |                             |  |   |                              | 
|Before class action expenses net of normalized
    tax                                                                                        |  |                        | 2,035  |  |                             |   | 7,682  |                             |  |   | 11,277                       | 
|Net income and comprehensive income                                                                                                           |  |                        | 1,914  |  |                             |   | 1,081  |                             |  |   | 10,579                       | 
|Earnings before interest,
    taxes, depreciation, amortization, class action expenses and effective interest component of retention payments |  |                        | 11,321 |  |                             |   | 16,476 |                             |  |   | 49,005                       | 
|Earnings before interest,
    taxes, depreciation and amortization                                                                            |  |                        | 6,209  |  |                             |   | 2,362  |                             |  |   | 27,352                       | 
|Diluted earnings per share                                                                                                                    |  |                        |        |  |                             |   |        |                             |  |   |                              | 
|Before class action expenses net of normalized
    tax                                                                                        |  | $                      | 0.12   |  |                             | $ | 0.42   |                             |  | $ | 0.64                         | 
|Net income and
    comprehensive income                                                                                                       |  | $                      | 0.11   |  |                             | $ | 0.06   |                             |  | $ | 0.60                         | 



Net income and comprehensive income for
the twelve months ended September 30, 2011, was $10.6 million (after removing class action settlement costs including related
interest expenses and related taxes of $11.3 million), compared to $14.2 million (after removing class action settlement costs
and related taxes of $22.9 million) for the twelve months ended September 30, 2010.



Net income and comprehensive income was
$19.9 million (after removing class action settlement costs and related taxes was $28.5 million) for the fifteen months ended
September 30, 2010.



Diluted earnings per share were $0.60 for
the twelve months ended September 30, 2011 ($0.64 after removing class action settlement costs including related interest expenses
and related taxes), compared to $0.81 ($1.31 after removing class action settlement costs and related taxes) for the twelve months
ended September 30, 2010. Loan volumes and loan fees were lower than anticipated leading to lower than expected earnings during
the year in addition to an increase in expenditures relating to regulations and increased infrastructure costs associated with
collections, future expansion in the UK and new product additions.



Diluted earnings per share were $1.13 ($1.63
after removing class action settlement costs including related interest expenses and related taxes) for the fifteen months ended
September 30, 2010.



Significant factors impacting the twelve
months results as compared to the trailing twelve month results of 2010 and fifteen month results of 2010 include:



| | · | Revenue
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     6.1%
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010.
                                                                                                                                                                                                     For
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     overall
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     13.9%;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Loan
                                                                                                                                                                                                     fees
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     slightly
                                                                                                                                                                                                     by
                                                                                                                                                                                                     0.1%
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010.
                                                                                                                                                                                                     The
                                                                                                                                                                                                     slight
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     is
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     decreases
                                                                                                                                                                                                     in
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     volumes,
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     as
                                                                                                                                                                                                     it
                                                                                                                                                                                                     relates
                                                                                                                                                                                                     to
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     fees,
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba,
                                                                                                                                                                                                     and
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia
                                                                                                                                                                                                     offset
                                                                                                                                                                                                     by
                                                                                                                                                                                                     44
                                                                                                                                                                                                     new
                                                                                                                                                                                                     branches.
                                                                                                                                                                                                     Loan
                                                                                                                                                                                                     fees
                                                                                                                                                                                                     were
                                                                                                                                                                                                     down
                                                                                                                                                                                                     19.9%
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $136.6
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $170.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     given
                                                                                                                                                                                                     decreases
                                                                                                                                                                                                     in
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     volumes,
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     as
                                                                                                                                                                                                     it
                                                                                                                                                                                                     relates
                                                                                                                                                                                                     to
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     fees,
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba,
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia
                                                                                                                                                                                                     and
                                                                                                                                                                                                     Ontario
                                                                                                                                                                                                     and
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     given
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end.
                                                                                                                                                                                                     The
                                                                                                                                                                                                     effect
                                                                                                                                                                                                     of
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     reduced
                                                                                                                                                                                                     our
                                                                                                                                                                                                     rates
                                                                                                                                                                                                     by
                                                                                                                                                                                                     4.1%,
                                                                                                                                                                                                     0.8%
                                                                                                                                                                                                     and
                                                                                                                                                                                                     3.4%
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba,
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia
                                                                                                                                                                                                     and
                                                                                                                                                                                                     Ontario
                                                                                                                                                                                                     respectively;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 9 -







|
|



| | · | Other
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     26.2%
                                                                                                                                                                                                     or
                                                                                                                                                                                                     $11.1
                                                                                                                                                                                                     million
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     reflecting
                                                                                                                                                                                                     continued
                                                                                                                                                                                                     success
                                                                                                                                                                                                     on
                                                                                                                                                                                                     our
                                                                                                                                                                                                     product
                                                                                                                                                                                                     diversification
                                                                                                                                                                                                     strategy.
                                                                                                                                                                                                     As
                                                                                                                                                                                                     a
                                                                                                                                                                                                     percentage
                                                                                                                                                                                                     of
                                                                                                                                                                                                     total
                                                                                                                                                                                                     revenue,
                                                                                                                                                                                                     other
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     to
                                                                                                                                                                                                     28.1%
                                                                                                                                                                                                     from
                                                                                                                                                                                                     23.6%
                                                                                                                                                                                                     or
                                                                                                                                                                                                     a
                                                                                                                                                                                                     19.0%
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     month
                                                                                                                                                                                                     periods.
                                                                                                                                                                                                     When
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     we
                                                                                                                                                                                                     grew
                                                                                                                                                                                                     other
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     by
                                                                                                                                                                                                     6.9%
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $53.3
                                                                                                                                                                                                     million.
                                                                                                                                                                                                     For
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     other
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     was
                                                                                                                                                                                                     28.1%
                                                                                                                                                                                                     of
                                                                                                                                                                                                     total
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     22.6%
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     or
                                                                                                                                                                                                     a
                                                                                                                                                                                                     24.1%
                                                                                                                                                                                                     increase;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Loan
                                                                                                                                                                                                     volumes
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     6.3%
                                                                                                                                                                                                     from
                                                                                                                                                                                                     $772.6
                                                                                                                                                                                                     million
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010,
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     openings.
                                                                                                                                                                                                     Loan
                                                                                                                                                                                                     volumes
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     were
                                                                                                                                                                                                     down
                                                                                                                                                                                                     12.5%
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $821.4
                                                                                                                                                                                                     million
                                                                                                                                                                                                     as
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     month
                                                                                                                                                                                                     period
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reduced
                                                                                                                                                                                                     volumes,
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba,
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia
                                                                                                                                                                                                     and
                                                                                                                                                                                                     Ontario
                                                                                                                                                                                                     and
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     due
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Earnings
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $9.2
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     a
                                                                                                                                                                                                     drag
                                                                                                                                                                                                     on
                                                                                                                                                                                                     earnings
                                                                                                                                                                                                     from
                                                                                                                                                                                                     new
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     openings;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Retention
                                                                                                                                                                                                     payments
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $3.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     or
                                                                                                                                                                                                     16.1%
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     the
                                                                                                                                                                                                     effects
                                                                                                                                                                                                     of
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     regulated
                                                                                                                                                                                                     provinces.
                                                                                                                                                                                                     Retention
                                                                                                                                                                                                     payments
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $1.4
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     when
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010.
                                                                                                                                                                                                     The
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     is
                                                                                                                                                                                                     due
                                                                                                                                                                                                     to
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     given
                                                                                                                                                                                                     the
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Provision
                                                                                                                                                                                                     for
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     losses
                                                                                                                                                                                                     for
                                                                                                                                                                                                     on-balance
                                                                                                                                                                                                     sheet
                                                                                                                                                                                                     lending
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     $1.8million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     a
                                                                                                                                                                                                     full
                                                                                                                                                                                                     year’s
                                                                                                                                                                                                     lending
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     one
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year.
                                                                                                                                                                                                     Comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     the
                                                                                                                                                                                                     provision
                                                                                                                                                                                                     for
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     losses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $1.8
                                                                                                                                                                                                     million;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Branch
                                                                                                                                                                                                     selling,
                                                                                                                                                                                                     general
                                                                                                                                                                                                     and
                                                                                                                                                                                                     administration
                                                                                                                                                                                                     (“SG&A”)
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     1.5%
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010.
                                                                                                                                                                                                     During
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     and
                                                                                                                                                                                                     for
                                                                                                                                                                                                     comparative
                                                                                                                                                                                                     quarters
                                                                                                                                                                                                     certain
                                                                                                                                                                                                     fees
                                                                                                                                                                                                     that
                                                                                                                                                                                                     were
                                                                                                                                                                                                     previously
                                                                                                                                                                                                     recorded
                                                                                                                                                                                                     as
                                                                                                                                                                                                     an
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     to
                                                                                                                                                                                                     SG&A
                                                                                                                                                                                                     have
                                                                                                                                                                                                     been
                                                                                                                                                                                                     reclassified
                                                                                                                                                                                                     to
                                                                                                                                                                                                     other
                                                                                                                                                                                                     income.
                                                                                                                                                                                                     Branch
                                                                                                                                                                                                     SG&A
                                                                                                                                                                                                     costs
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     $4.2
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     given
                                                                                                                                                                                                     cost
                                                                                                                                                                                                     containment
                                                                                                                                                                                                     measures
                                                                                                                                                                                                     at
                                                                                                                                                                                                     the
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     level
                                                                                                                                                                                                     and
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     given
                                                                                                                                                                                                     the
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Corporate
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     7.6%
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     professional
                                                                                                                                                                                                     and
                                                                                                                                                                                                     legal
                                                                                                                                                                                                     fees,
                                                                                                                                                                                                     UK
                                                                                                                                                                                                     expansion
                                                                                                                                                                                                     costs,
                                                                                                                                                                                                     and
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     corporate
                                                                                                                                                                                                     salary
                                                                                                                                                                                                     costs.
                                                                                                                                                                                                     Corporate
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $2.9
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     when
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     due
                                                                                                                                                                                                     to
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     given
                                                                                                                                                                                                     the
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end
                                                                                                                                                                                                     offset
                                                                                                                                                                                                     by
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     professional
                                                                                                                                                                                                     and
                                                                                                                                                                                                     legal
                                                                                                                                                                                                     fees,
                                                                                                                                                                                                     UK
                                                                                                                                                                                                     expansion,
                                                                                                                                                                                                     and
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     corporate
                                                                                                                                                                                                     salary
                                                                                                                                                                                                     costs;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 10 -







|
|



| | · | Regional
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     50.2%
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     given
                                                                                                                                                                                                     enhancements
                                                                                                                                                                                                     to
                                                                                                                                                                                                     collection
                                                                                                                                                                                                     infrastructure,
                                                                                                                                                                                                     a
                                                                                                                                                                                                     reorganization
                                                                                                                                                                                                     at
                                                                                                                                                                                                     the
                                                                                                                                                                                                     regional
                                                                                                                                                                                                     and
                                                                                                                                                                                                     division
                                                                                                                                                                                                     vice
                                                                                                                                                                                                     president
                                                                                                                                                                                                     level
                                                                                                                                                                                                     and
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     additions
                                                                                                                                                                                                     in
                                                                                                                                                                                                     both
                                                                                                                                                                                                     Canada
                                                                                                                                                                                                     and
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK.
                                                                                                                                                                                                     Regional
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $3.4
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     versus
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fifteen
                                                                                                                                                                                                     months
                                                                                                                                                                                                     given
                                                                                                                                                                                                     enhancements
                                                                                                                                                                                                     to
                                                                                                                                                                                                     collection
                                                                                                                                                                                                     infrastructure,
                                                                                                                                                                                                     a
                                                                                                                                                                                                     reorganization
                                                                                                                                                                                                     at
                                                                                                                                                                                                     the
                                                                                                                                                                                                     regional
                                                                                                                                                                                                     and
                                                                                                                                                                                                     division
                                                                                                                                                                                                     vice
                                                                                                                                                                                                     president
                                                                                                                                                                                                     level,
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     additions
                                                                                                                                                                                                     in
                                                                                                                                                                                                     both
                                                                                                                                                                                                     Canada
                                                                                                                                                                                                     and
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK
                                                                                                                                                                                                     offset
                                                                                                                                                                                                     by
                                                                                                                                                                                                     three
                                                                                                                                                                                                     fewer
                                                                                                                                                                                                     months
                                                                                                                                                                                                     of
                                                                                                                                                                                                     reported
                                                                                                                                                                                                     results
                                                                                                                                                                                                     given
                                                                                                                                                                                                     the
                                                                                                                                                                                                     change
                                                                                                                                                                                                     in
                                                                                                                                                                                                     year-end;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Class
                                                                                                                                                                                                     action
                                                                                                                                                                                                     settlement
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     and
                                                                                                                                                                                                     related
                                                                                                                                                                                                     interest
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $11.3
                                                                                                                                                                                                     million
                                                                                                                                                                                                     and
                                                                                                                                                                                                     $616,000
                                                                                                                                                                                                     respectively
                                                                                                                                                                                                     when
                                                                                                                                                                                                     comparing
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     and
                                                                                                                                                                                                     2010
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     the
                                                                                                                                                                                                     March
                                                                                                                                                                                                     5,
                                                                                                                                                                                                     2004
                                                                                                                                                                                                     British
                                                                                                                                                                                                     Columbia
                                                                                                                                                                                                     Class
                                                                                                                                                                                                     Action
                                                                                                                                                                                                     claim;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Revenues
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba
                                                                                                                                                                                                     and
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $2.3
                                                                                                                                                                                                     million
                                                                                                                                                                                                     and
                                                                                                                                                                                                     $578,000
                                                                                                                                                                                                     respectively
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     twelve
                                                                                                                                                                                                     months
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression;
                                                                                                                                                                                                     and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Working
                                                                                                                                                                                                     capital
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $3.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     year
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



EBITDA was $26.7 million for the year ended
September 30, 2011, compared to $28.6 million for the twelve months ended September 30, 2010. This decrease is due to rate compression,
reduced loan volumes, increased regional and corporate infrastructure costs compared to the same period last year partially offset
by increases in other revenues. EBITDA, adjusted to remove class action settlements and the effective interest component of retention
payments, was $49.0 million for the year, compared to $59.2 million in the twelve month period ended September 30, 2010.



EBITDA for the fifteen months ended September
30, 2010 was $39.3 million. This decrease in the current year compared to the fifteen month period ended September 30, 2010 is
due to the same reasons noted above for the twelve months and three fewer months of reported results given the change in the year-end
periods. EBITDA, adjusted to remove class action settlements including related interest expenses and the effective interest component
of retention payments, was $74.0 million for the fifteen month period ended September 30, 2010.



The implementation of provincial industry
rate regulations commenced in August 2009 and continued through until March 2010. Rate regulations have been implemented in British
Columbia, Alberta, Ontario, Manitoba and Nova Scotia, representing markets in which 86% of our branches are located.  Although
we have experienced a decrease in our margins as a result of provincial rate caps, we continue to view regulation as positive
for the industry and critical to our long-term growth and success.



Product and revenue diversification initiatives
continue to generate positive results. Revenue from other services (including fees from bank accounts, financial product insurance,
pre-paid master cards, debit cards, money transfers, cheque cashing and prepaid phone cards) increased to $53.3 million in the
year, up $11.1 million from $42.2 million in the twelve months ended September 30, 2010. We have made significant improvements
in products and services which complement our existing product lines. We will continue to progress towards our objectives of diversifying
our revenue stream with products which enhance and augment our core products, and increasing the value generated from our existing
suite of products. When comparing to the fifteen month ended September 30, 2010 our revenue from other services went up $3.4 million.



- 11 -







|
|



There has been a significant realignment
of the regional and senior management structure of our operations group. We expect that these changes will lead to strong growth
in future periods. Further expansion of our infrastructure will take place in order to facilitate our aggressive growth plans
in the UK.



SELECTED FINANCIAL INFORMATION



|Thousands
    of dollars, except for per share amounts and branch figures |        | Three
    Months Ended |         |     | Twelve
    Months
    Ended |   |         | Twelve
    Months
    Ended |  |   | Fifteen
    Months
    Ended |    
|------------------------------------------------------------------------- | ------ | ---------------------- | ------- | --- | --------------------------- | - | ------- | --------------------------- |  | - | ---------------------------- | ---
|Consolidated results                                                      |        | September 30           |         |     | September 30                |   |         | September 30                |  |   | September 30                 |    
|                                                                          |        | 2011                   |         |     | 2010                        |   |         | 2011                        |  |   | 2010                         |    
|                                                                          |        | (restated)             |         |     | (restated)                  |   |         | (restated)                  |  |   | (restated)                   |    
|No. of branches                                                           | Canada |                        |         | 574 |                             |   |         | 542                         |  |   |                              | 574
|United Kingdom                                                            |        |                        | 12      |     |                             |   | 2       |                             |  |   | 12                           |    
|                                                                          |        |                        | 586     |     |                             |   | 544     |                             |  |   | 586                          |    
|Loan volumes                                                              |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Loan fees included                                                        |        | $                      | 201,720 |     |                             | $ | 216,027 |                             |  | $ | 821,401                      |    
|                                                                          |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Revenue                                                                   |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Loan fees                                                                 |        | $                      | 33,552  |     |                             | $ | 36,195  |                             |  | $ | 136,623                      |    
|Other
    income                                                          |        |                        | 13,629  |     |                             |   | 13,084  |                             |  |   | 53,276                       |    
|                                                                          |        |                        | 47,181  |     |                             |   | 49,279  |                             |  |   | 189,899                      |    
|                                                                          |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Branch expenses                                                           |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Salaries and benefits                                                     |        |                        | 14,490  |     |                             |   | 13,698  |                             |  |   | 57,576                       |    
|Retention payments                                                        |        |                        | 6,245   |     |                             |   | 6,934   |                             |  |   | 26,786                       |    
|Selling, general and administrative                                       |        |                        | 4,156   |     |                             |   | 4,545   |                             |  |   | 17,518                       |    
|Rent                                                                      |        |                        | 4,656   |     |                             |   | 4,219   |                             |  |   | 18,216                       |    
|Advertising and promotion                                                 |        |                        | 1,398   |     |                             |   | 1,223   |                             |  |   | 5,440                        |    
|Provision for loan losses                                                 |        |                        | 580     |     |                             |   | 454     |                             |  |   | 2,559                        |    
|Depreciation
    of property and equipment                                |        |                        | 1,743   |     |                             |   | 1,566   |                             |  |   | 6,803                        |    
|                                                                          |        |                        | 33,268  |     |                             |   | 32,639  |                             |  |   | 134,898                      |    
|Branch operating income                                                   |        |                        | 13,913  |     |                             |   | 16,640  |                             |  |   | 55,001                       |    
|                                                                          |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Regional expenses                                                         |        |                        | 4,523   |     |                             |   | 2,358   |                             |  |   | 16,749                       |    
|Corporate expenses                                                        |        |                        | 5,177   |     |                             |   | 5,026   |                             |  |   | 18,266                       |    
|Interest expense                                                          |        |                        | 163     |     |                             |   | -       |                             |  |   | 616                          |    
|Other depreciation and amortization                                       |        |                        | 570     |     |                             |   | 13      |                             |  |   | 2,113                        |    
|Income before income taxes and class action settlements                   |        |                        | 3,643   |     |                             |   | 9,243   |                             |  |   | 17,257                       |    
|Class action settlements                                                  |        |                        | -       |     |                             |   | 8,770   |                             |  |   | 368                          |    
|EBITDA *                                                                  |        |                        | 6,046   |     |                             |   | 2,362   |                             |  |   | 27,352                       |    
|Net income and comprehensive
    income                                   |        | $                      | 1,914   |     |                             | $ | 1,081   |                             |  | $ | 10,579                       |    
|Weighted average number of shares outstanding                             |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|- basic                                                                   |        |                        | 17,407  |     |                             |   | 17,071  |                             |  |   | 17,259                       |    
|- diluted                                                                 |        |                        | 17,643  |     |                             |   | 17,533  |                             |  |   | 17,663                       |    
|Basic earnings per share                                                  |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Income before class action settlement
    costs net of taxes              |        | $                      | 0.12    |     |                             | $ | 0.44    |                             |  | $ | 0.64                         |    
|Net income and comprehensive income                                       |        | $                      | 0.11    |     |                             | $ | 0.06    |                             |  | $ | 0.61                         |    
|Diluted earnings per share                                                |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Income before class action settlement
    costs net of taxes              |        | $                      | 0.12    |     |                             | $ | 0.42    |                             |  | $ | 0.64                         |    
|Net
    income and comprehensive income                                   |        | $                      | 0.11    |     |                             | $ | 0.06    |                             |  | $ | 0.60                         |    
|Consolidated Balance Sheet Information                                    |        |                        |         |     |                             |   |         |                             |  |   |                              |    
|Working capital                                                           |        | $                      | 12,058  |     |                             | $ | 8,379   |                             |  | $ | 12,058                       |    
|Total assets                                                              |        |                        | 123,323 |     |                             |   | 116,414 |                             |  |   | 123,323                      |    
|Total long-term liabilities                                               |        |                        | 9,082   |     |                             |   | 9,882   |                             |  |   | 9,082                        |    
|Total liabilities                                                         |        |                        | 41,041  |     |                             |   | 39,660  |                             |  |   | 41,041                       |    
|Shareholders' equity                                                      |        | $                      | 82,282  |     |                             | $ | 76,754  |                             |  | $ | 82,282                       |    

*EBITDA – earnings from operations before interest, income
taxes, stock-based compensation, depreciation of property and equipment and amortization of intangible assets.



- 12 -







|
|



FINANCIAL ANALYSIS



This analysis provides an overview of our
financial results for the twelve months ended September 30, 2011, compared to the fifteen months ended September 30, 2010. Certain
comparative figures have been reclassified to conform to the presentation adopted for the current period. Specifically, certain
amounts that were previously recorded within SG&A expense have been reclassified to other income for all periods presented.



Branch Count



This section contains forward-looking statements.
See “Cautionary Statement Regarding Forward-Looking Information” located at the end of the MD&A.



At September 30, 2011 we had a total of
586 branches in operation, an increase of 42 branches, compared to 544 branches at the end of the last year. During the year,
44 new branches were opened, one branch was acquired and three branches were consolidated. Branch performance continues to be
monitored and branch consolidations will occur when efficiencies can be achieved.







We increased our net number of branches
by 42 over the year as compared to 93 over the twelve month period ended September 30, 2010 or 120 branches over the fifteen months
ended September 30, 2010. For the year ended September 30, 2011 we consolidated three branches compared to six branches for the
fifteen month period last year. We reached our goal of having 12 branches in the UK by the end of this year.



Material factors that determine the number
of branch openings include availability of suitable locations with suitable lease terms, branch performance within similar areas
and favorable market rates. In the coming year, we will be aggressively growing our branch network in the UK. We anticipate adding
minimal branches next year in Canada.



- 13 -







|
|



Revenue



For the year ended September 30, 2011,
revenues increased by $10.9 million to $189.9 million or 6.1% as compared to the twelve months ended 2010 which is mainly due
to record other revenue. Loan volumes were $821.4 million in the year, up 6.3% from $772.6 million for the twelve months last
year. Loan fees for the year were down slightly by 0.1% to $136.6 million compared to $136.8 million for the twelve month period
last year. The slight decrease is as a result of decreases in same branch loan volumes, same branch revenues as it relates to
loan fees, rate compression in Manitoba, Nova Scotia and Ontario offset by 44 new branches.



As compared to the fifteen months ended
September 30, 2011, revenues were down 13.9% compared to $220.5 million. Loan volumes were $821.4 million in the year, down 12.5%
from $938.5 million for the fifteen months last year. Loan fees for the year were down 19.9% to $136.6 million compared to $170.7
million for the fifteen month period last year. The loan fees were down in the year as a result of decreased loan volumes, rate
compression and three fewer months of reported results given the change in year-end.



The implementation of cost of borrowing
rate caps commenced in August 2009 and continued through until April 2011. The following cost of borrowing rate caps are currently
in place: Nova Scotia - $25 per hundred dollars loaned; British Columbia - $23 per hundred dollars loaned; Ontario - $21 per hundred
dollars loaned; Manitoba - $17 per hundred dollars loaned; Alberta - $23 per hundred dollars loaned. We had an average loan fee
of $25.30 per hundred dollars loaned prior to regulations. For the twelve and fifteen months year ended September 30, 2010, our
average loan fee earned per hundred dollars loaned was $20.30. For the year ended September 30, 2011, our average loan fees earned
per hundred dollars was $19.70. This equates to a 3% reduction in loan fees earned.



The table below illustrates branch aging
categories by year opened (twelve versus twelve months).



|                                                  |  |           |     |  |              |   |         |              |  |   |         |  |  | Average
    Revenue per Branch per |    
|------------------------------------------------- |  | --------- | --- |  | ------------ | - | ------- | ------------ |  | - | ------- |  |  | ---------------------------------- | ---
|(Thousands
    of dollars, except branch figures) |  |           |     |  | Revenues     |   |         |              |  |   | Quarter | 
|                                                  |  | Number of |     |  | September 30 |   |         | September 30 |  |   | %       |  |  | September 30                       |    
|Year Opened                                       |  | Branches  |     |  | 2011         |   |         | 2010         |  |   | Change  |  |  | 2011                               |    
|2001*                                             |  |           | 94  |  |              | $ | 35,402  |              |  | $ | 38,617  |  |  |                                    | -8 
|2002                                              |  |           | 13  |  |              |   | 6,367   |              |  |   | 7,274   |  |  |                                    | -12
|2003                                              |  |           | 35  |  |              |   | 15,351  |              |  |   | 16,374  |  |  |                                    | -6 
|2004                                              |  |           | 52  |  |              |   | 20,762  |              |  |   | 21,941  |  |  |                                    | -5 
|2005                                              |  |           | 66  |  |              |   | 24,777  |              |  |   | 25,989  |  |  |                                    | -5 
|2006                                              |  |           | 50  |  |              |   | 17,945  |              |  |   | 19,020  |  |  |                                    | -6 
|2007**                                            |  |           | 37  |  |              |   | 12,083  |              |  |   | 9,943   |  |  |                                    | 22 
|2008                                              |  |           | 34  |  |              |   | 10,367  |              |  |   | 11,081  |  |  |                                    | -6 
|2009                                              |  |           | 48  |  |              |   | 12,340  |              |  |   | 11,567  |  |  |                                    | 7  
|2010                                              |  |           | 112 |  |              |   | 26,900  |              |  |   | 15,093  |  |  |                                    | 78 
|2011                                              |  |           | 45  |  |              |   | 5,732   |              |  |   | -       |  |  |                                    | 100
|                                                  |  |           | 586 |  |              |   | 188,026 |              |  |   | 176,899 |  |  |                                    | 6  
|Consolidation of branches                         |  |           |     |  |              |   | 128     |              |  |   | 880     |  |  |                                    |    
|Other                                             |  |           |     |  |              |   | 1,745   |              |  |   | 1,203   |  |  |                                    |    
|Continuing operations                             |  |           |     |  |              | $ | 189,899 |              |  | $ | 178,982 |  |  |                                    |    

* Instaloans branches were acquired by Cash Store Financial
on April 22, 2005; they have been operating since 2001.

** EZ Cash branches were acquired by Cash Store Financial on
April 26, 2010; they have been assumed on average to be operating since 2007.



- 14 -







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|



Set forth below is a breakdown of our revenue
that can be attributed to payday loans, segregated by loans internally originated and loans generated by third-party lenders.
Types of revenue that can be attributed to the generation of payday loans include brokerage and loan fees, interest income and
default fees. For the year ended September 30, 2011, the following table summarizes the allocation of types of revenue segregated
between internally originated loans and third-party funded loans:



|                       |  | Third Party Funded |         |  | Internally      |  |       |       | 
|---------------------- |  | ------------------ | ------- |  | --------------- |  | ----- | ----- | 
|(thousands of dollars) |  | Loan               |         |  | Originated Loan |  |       | Total | 
|Loan fees              |  |                    | 126,681 |  |                 |  | 9,943 |       | 
|Interest               |  |                    | -       |  |                 |  | 523   |       | 
|Default fees           |  |                    | 3,429   |  |                 |  | 150   |       | 



Loan volumes related to internally originated
loans increased to $41.4 million in the year from $7.9 million in the twelve month period last year.



For the fifteen month period ended September
30, 2010, the following table summarizes the allocation of types of revenue segregated between internally originated loans and
third-party funded loans:



|                       |  | Third Party Funded |         |  | Internally      |  |       |       | 
|---------------------- |  | ------------------ | ------- |  | --------------- |  | ----- | ----- | 
|(thousands of dollars) |  | Loan               |         |  | Originated Loan |  |       | Total | 
|Loan fees              |  |                    | 169,363 |  |                 |  | 1,297 |       | 
|Interest               |  |                    | -       |  |                 |  | 23    |       | 
|Default fees           |  |                    | 2,011   |  |                 |  | 121   |       | 



The following table depicts the split between
loan fees, agency fees, and other revenues:



|                       |  | Three        |        |  | Three        |   |        | Twelve       |  |   | Twelve       | 
|---------------------- |  | ------------ | ------ |  | ------------ | - | ------ | ------------ |  | - | ------------ | 
|(thousands of dollars) |  | Months Ended |        |  | Months Ended |   |        | Months Ended |  |   | Months Ended | 
|                       |  | September 30 |        |  | September 30 |   |        | September 30 |  |   | September 30 | 
|                       |  | 2011         |        |  | 2010         |   |        | 2011         |  |   | 2010         | 
|Loan fees              |  | $            | 33,552 |  |              | $ | 36,195 |              |  | $ | 136,623      | 
|Agency fees            |  |              | 12,308 |  |              |   | 9,916  |              |  |   | 46,809       | 
|Other                  |  |              | 1,321  |  |              |   | 3,168  |              |  |   | 6,467        | 
|Total Revenue          |  | $            | 47,181 |  |              | $ | 49,279 |              |  | $ | 189,899      | 



When comparing the twelve months ended
September 30, 2011 and 2010 overall loan fees decreased slightly by 0.1% given the decreases in same branch revenues as it relates
to loan fees offset by the increased number of branches in operation during fiscal 2011. For the twelve months ended September
30, 2011, loan fees were $136.6 million compared to $170.7 million for the fifteen months ended September 30 2010. The decline
was due to three fewer months of reported results given change in year-end, decreases in same branch revenues as it relates to
loan fees and decreases in same branch loan volumes.



Certain comparative figures have been reclassified
to conform to the presentation adopted for the current period. Specifically, certain amounts previously recorded within SG&A
expense have been reclassified to other income for all periods presented.



- 15 -







|
|



Revenue from other services (including
fees from bank accounts, financial product insurance, pre-paid master cards, debit cards, money transfers, cheque cashing and
prepaid phone cards) for the year was $53.3 million, up 26.2% from $42.2 million for the same period last year. Agency fee income
has increased significantly as a result of the introduction of new products and other product enhancements namely bank accounts.
These new products and enhancements are part of our long-term strategy to diversify revenue streams by providing our customers
with a broader suite of financial services and products. Other revenue increased 6.9% or 28.1% of total revenue, up from $49.9
million or 22.6% of revenue as compared to the fifteen month period ended September 30, 2010.



The most significant components of “other”
revenue were agency fees at $46.8 million in the year, which represented 87.9% of other revenue for the year or a 17.8% increase
in the year. Compared to the twelve month period last year, agency fees were $42.2 million or 74.6% of other revenue. Agency fees
include fees earned from the provision of debit and prepaid credit cards and all other agency fees we earn from financial product
insurance, money transfers and prepaid phone cards. The largest contributor to the increase was the introduction of bank accounts
being offered to our customers. For the year, 99% of customers who secured a loan also purchased one or more of the following
optional financial services: bank accounts, financial product insurance, pre-paid master cards, and/or debit cards, which is similar
to the twelve and fifteen months ended September 30, 2010.



For the fifteen month period last year,
agency fees were $36.7 million or 73.6% of other revenue. As a percentage of other revenue, these agency fees increased 19.3%
in the year.



In the year ended September 30, 2011, the
average loan size was $492 compared to $469 per loan for the twelve and fifteen month period last year.



Due to the seasonal nature of our business,
we anticipate revenues will decrease next quarter as compared to the current quarter.



Same Branch Revenues



Same branch revenues for the 445 locations
open since October 1, 2009 decreased by 5.1% as compared to the same twelve month period last year, with same branch revenues
averaging $356,250 in the year compared to $375,400 in the same period last year. Same branch revenues decreased as a result of
rate compression in Alberta, Manitoba and Nova Scotia and a drop in same branch loan volumes. The corresponding decreases in same
branch revenues for Alberta, Manitoba and Nova Scotia in total were $2.0 million, $2.8 million and $535,000 respectively in the
year.



Also, same branch revenue, as it relates
to the brokering of loans, was down 10.9% for the year as a result of loan fee rate compression in Alberta, Manitoba and Nova
Scotia coupled with decreased loan volumes. The corresponding decreases in total same branch revenue, as it relates to the brokering
of loans in Alberta, Manitoba and Nova Scotia were $3.2 million, $3.4 million and $710,000 respectively for the year ended September
30, 2011.



Branch Operating
Income



BOI in the year was $55.0 million (29.0%
of revenue), compared to $61.6 million (34.4% of revenue) for the twelve months ended September 30, 2010. BOI was $77.2 million
(35.0% of revenue) for the fifteen month period last year.



- 16 -







|
|



BOI was down as a percentage of revenue
as a result of decreased same branch revenues, increases in expenses due to the opening of 44 new branches adding to the drag
on earnings, and provision for loan losses. The decreased margins and increased expenses have been partially offset by positive
trending in revenues from other services.



BOI, by maturity level is outlined
below (twelve months versus twelve months):

|(Thousands
    of dollars, except branch figures) |  | BOI
    (Loss) |     |  | BOI
    % of Revenues |  
|------------------------------------------------- |  | -------------- | --- |  | --------------------- | -
|                                                  |  | Number of      |     |  | September 30          |  
|Year
    Opened                                   |  | Branches       |     |  | 2011                  |  
|2001*                                             |  |                | 94  |  |                       | $
|2002                                              |  |                | 13  |  |                       |  
|2003                                              |  |                | 35  |  |                       |  
|2004                                              |  |                | 52  |  |                       |  
|2005                                              |  |                | 66  |  |                       |  
|2006                                              |  |                | 50  |  |                       |  
|2007**                                            |  |                | 37  |  |                       |  
|2008                                              |  |                | 34  |  |                       |  
|2009                                              |  |                | 48  |  |                       |  
|2010                                              |  |                | 112 |  |                       |  
|2011                                              |  |                | 45  |  |                       |  
|                                                  |  |                | 586 |  |                       |  
|Branches not yet open                             |  |                |     |  |                       |  
|Consolidation of branches                         |  |                |     |  |                       |  
|Other                                             |  |                |     |  |                       |  
|Branch Operating Income                           |  |                |     |  |                       | $

* Instaloans branches were acquired by Cash Store Financial
on April 22, 2005; they have been operating since 2001.

** EZ Cash branches were acquired by Cash Store Financial on
April 26, 2010; they have been assumed on average to be operating since 2007.



Expenses(excluding retention payments, depreciation, amortization and class action settlements)



Expenses increased by $19.6 million or
16.8% given the addition of 44 new branches, increased professional fees, increased collection infrastructure costs, increased
provision for loan losses for on-balance sheet lending, an increase in regional and corporate infrastructure costs and costs associated
with expanding into the UK when comparing the twelve months ended September 30, 2011 and 2010. Expenses in the year have decreased
to $136.3 million, compared to $142.6 million for the fifteen month period last year. The decrease is primarily due to three fewer
months of reported results given change in the year-end periods which offset the addition of 44 new branches, increased professional
fees, collection fees, increased provision for loan losses for on-balance sheet lending, an increase in regional and corporate
infrastructure costs and costs associated with expanding into the UK.



Retention Payments



Third-party lender retention payments for
the year totalled $26.8 million (3.3% of loans brokered), compared to $23.1 million (3.0% of loans brokered) for the twelve months
ended September 30, 2010. Retention payments as a percentage of loan fees have increased to 19.6% in the year ended September
30, 2011, compared to 16.9% in the twelve month period last year. The increases as a percentage of loan fees and loans brokered
are primarily as a result of rate compression. In the fifteen months ended September 30, 2010, retention payments were $28.2 million
(3.0% of loans brokered). As a percentage of loan fees, retention payments have increased to 16.5% in the fifteen month period
last year.



- 17 -







|
|



Depreciation and
Amortization



Depreciation of property and equipment
and amortization of intangible assets for the year totalled $8.9 million, compared to $7.2 million in the twelve month period
ended September 30, 2010 and $9.1 million in the fifteen month period last year. Amortization increased for the year as compared
to the twelve month period last year as a result of 44 new branches and a large scale refresh program for our mature branches.



Income Taxes



Our effective tax rate was 37.4% in the
year, compared to 42.7% for the twelve month period last year and 31.5% for the fifteen month period last year. The effective
tax rate is higher than the statutory tax rate of 28.0% due to adjustments for prior year immaterial errors.



- 18 -









|
|



LIQUIDITY AND CAPITAL RESOURCES



Our cash decreased by $348,000 to $19.3
million at September 30, 2011 compared to $19.6 million as of September 30, 2010. Our cash, excluding restricted cash, decreased
by $348,000 to $13.0 million at September 30, 2011 compared to $13.4 million as of September 30, 2010. Significant items impacting
cash in the year ended September 30, 2011 included:



| | · | Cash
                                                                                                                                                                                                     generated
                                                                                                                                                                                                     from
                                                                                                                                                                                                     operating
                                                                                                                                                                                                     activities,
                                                                                                                                                                                                     before
                                                                                                                                                                                                     non-cash
                                                                                                                                                                                                     operating
                                                                                                                                                                                                     items,
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $23.0
                                                                                                                                                                                                     million;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | A
                                                                                                                                                                                                     $3.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     in
                                                                                                                                                                                                     amounts
                                                                                                                                                                                                     due
                                                                                                                                                                                                     from
                                                                                                                                                                                                     suppliers,
                                                                                                                                                                                                     $2.2
                                                                                                                                                                                                     million
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     in
                                                                                                                                                                                                     prepaids,
                                                                                                                                                                                                     $2.0
                                                                                                                                                                                                     million
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     in
                                                                                                                                                                                                     income
                                                                                                                                                                                                     taxes
                                                                                                                                                                                                     payable
                                                                                                                                                                                                     offset
                                                                                                                                                                                                     by
                                                                                                                                                                                                     a
                                                                                                                                                                                                     $2.8
                                                                                                                                                                                                     million
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     in
                                                                                                                                                                                                     amounts
                                                                                                                                                                                                     due
                                                                                                                                                                                                     third
                                                                                                                                                                                                     party
                                                                                                                                                                                                     lenders;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | A
                                                                                                                                                                                                     $3.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     in
                                                                                                                                                                                                     other
                                                                                                                                                                                                     receivables
                                                                                                                                                                                                     and
                                                                                                                                                                                                     long
                                                                                                                                                                                                     term
                                                                                                                                                                                                     receivables
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | A
                                                                                                                                                                                                     $616,000
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     in
                                                                                                                                                                                                     accounts
                                                                                                                                                                                                     payable
                                                                                                                                                                                                     and
                                                                                                                                                                                                     accrued
                                                                                                                                                                                                     liabilities
                                                                                                                                                                                                     for
                                                                                                                                                                                                     class
                                                                                                                                                                                                     action
                                                                                                                                                                                                     settlements.
                                                                                                                                                                                                     Subsequent
                                                                                                                                                                                                     to
                                                                                                                                                                                                     year-end
                                                                                                                                                                                                     all
                                                                                                                                                                                                     funds
                                                                                                                                                                                                     segregated
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     BC
                                                                                                                                                                                                     class
                                                                                                                                                                                                     action
                                                                                                                                                                                                     were
                                                                                                                                                                                                     transferred
                                                                                                                                                                                                     to
                                                                                                                                                                                                     a
                                                                                                                                                                                                     third
                                                                                                                                                                                                     party
                                                                                                                                                                                                     administrator;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Property
                                                                                                                                                                                                     and
                                                                                                                                                                                                     equipment
                                                                                                                                                                                                     and
                                                                                                                                                                                                     intangible
                                                                                                                                                                                                     asset
                                                                                                                                                                                                     expenditures
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $10.0
                                                                                                                                                                                                     million;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Cash
                                                                                                                                                                                                     required
                                                                                                                                                                                                     for
                                                                                                                                                                                                     on
                                                                                                                                                                                                     balance
                                                                                                                                                                                                     sheet
                                                                                                                                                                                                     lending
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $2.9
                                                                                                                                                                                                     million;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Dividend
                                                                                                                                                                                                     payments
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $7.9
                                                                                                                                                                                                     million;
                                                                                                                                                                                                     and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Issuance
                                                                                                                                                                                                     of
                                                                                                                                                                                                     common
                                                                                                                                                                                                     shares
                                                                                                                                                                                                     for
                                                                                                                                                                                                     proceeds
                                                                                                                                                                                                     from
                                                                                                                                                                                                     exercised
                                                                                                                                                                                                     options
                                                                                                                                                                                                     and
                                                                                                                                                                                                     warrants
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $2.1
                                                                                                                                                                                                     million.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



At September 30, 2011, our working capital
position totalled $12.1 million compared to $8.4 million as at September 30, 2010. We expect our cash to decrease in the future
due to growth in our UK consumer loans receivable.



Consumer Loans
Receivable



During the year, we increased our overall
consumer loans receivable balance to $4.8 million from $4.5 million in the prior year. We internally originated all our loans
in the UK. Given our strategy of growth in the UK we expect amounts due from consumers will increase substantially in the coming
year.



The benefit to us of originating loans
is to reduce our cost of capital, thereby increasing our profitability. The most significant risk related to originating loans
is that we assume the risk of default.



The aging of customer loans receivable
is as follows:



|                                                                     |  | 2011 |        |   | 2010 |  
|-------------------------------------------------------------------- |  | ---- | ------ | - | ---- | -
|                                                                     |  |      |        |   |      |  
|Consumer loans receivable, net of allowance for consumer loan losses |  |      |        |   |      |  
|Current                                                              |  | $    | 2,176  |   |      | $
|1-30 days past due date                                              |  |      | 856    |   |      |  
|31-60 days past due date                                             |  |      | 531    |   |      |  
|61-90 days past due date                                             |  |      | 417    |   |      |  
|Greater than 90 days past due date                                   |  |      | 3,584  |   |      |  
|Consumer loans receivable                                            |  |      | 7,564  |   |      |  
|Allowance for consumer loan losses                                   |  |      | (2,783 | ) |      |  
|                                                                     |  | $    | 4,781  |   |      | $





- 19 -







Due to certain banking process and collection
restrictions we were unable to effectively process collections on accounts in the UK. These issues were resolved on August 25,
2011.



On average, for internally originated loans
60.2% of our customers or $24.9 million of payday cash advances were paid in full on or before their due date for the year ended
September 30, 2011 as compared to 49.1% of our customers or $3.9 million for the fifteen months ended September 30, 2010.



Normal Course Issuer
Bid



On June 30, 2009, we announced our intention
to make a normal course issuer bid (“Bid”) to purchase, through the facilities of the Toronto Stock Exchange, certain
of our outstanding common shares. We repurchased no common shares (fifteen months ended September 30, 2010 - 387,799 common shares)
during the year ended September 30, 2011 (at a cost of $3.3 million for the fifteen months ended September 30, 2010). Common shares
purchased pursuant to the Bid were cancelled.



Contractual Obligations



Our contractual obligations over the next
five years and thereafter are summarized in the table below. For additional information, see Notes 16 and 21 (a) of our audited
consolidated financial statements for the year ended September 30, 2011:



|Payments
    due by Period(amounts in thousands of $CAN)
|--------------------------------------------------------
|Contractual
    Obligations                             
|Capital
    (Finance) Lease Obligations                 
|Operating
    Lease Obligations                         
|Total:                                                  



- 20 -







|
|



SUMMARY OF QUARTERLY
RESULTS



The financial results for each of the last
eight quarters are summarized in the following table.



In general, more recent results have been
negatively impacted by rate compression in the regulated provinces partially offset by growth in other revenue. There was an increase
in overall revenues over prior periods due to our strategy of diversifying our other revenue. Branch expenses and overall expenses
have also steadily increased due to an increased number of branches in operation and costs associated with growth in the UK, adding
infrastructure at the regional and corporate levels, increased professional and legal fees related to regulatory matters, class
actions, and other lawsuits, and continued costs associated with the class action settlements.



From a seasonality perspective, we believe
that our revenues are generally stronger in the third and fourth quarters followed by the first and second quarter. In addition,
quarterly results of operations are impacted by the number and timing of new branch openings.



|                                                                            |                |            |         |     |            |   |         |            |  |   | Twelve
    Months Ended |    
|--------------------------------------------------------------------------- | -------------- | ---------- | ------- | --- | ---------- | - | ------- | ---------- |  | - | ----------------------- | ---
|(thousands of dollars, except
    for per share amounts and branch figures) |                |            |         |     | 2011       |   |         | 2010       |  |   | September
    30        |    
|                                                                            |                | Q4         |         |     | Q3         |   |         | Q2         |  |   | Q1                      |    
|                                                                            |                | (restated) |         |     | (restated) |   |         | (restated) |  |   | (restated)              |    
|Consolidated Results                                                        |                |            |         |     |            |   |         |            |  |   |                         |    
|No. of branches                                                             | Canada         |            |         | 574 |            |   |         | 574        |  |   |                         | 573
|                                                                            | United Kingdom |            |         | 12  |            |   |         | 8          |  |   |                         | 6  
|                                                                            |                |            | 586     |     |            |   | 582     |            |  |   | 579                     |    
|                                                                            |                |            |         |     |            |   |         |            |  |   |                         |    
|Loan volumes                                                                |                |            |         |     |            |   |         |            |  |   |                         |    
|Loan fees included                                                          |                | $          | 201,720 |     |            | $ | 204,616 |            |  | $ | 198,775                 |    
|Regulated definition (excluding loan fee upon
    regulation)               |                |            | 168,641 |     |            |   | 172,602 |            |  |   | 167,327                 |    
|Loan fees excluded in regulated provinces                                   |                | $          | 168,641 |     |            | $ | 172,602 |            |  | $ | 167,327                 |    
|                                                                            |                |            |         |     |            |   |         |            |  |   |                         |    
|Revenue                                                                     |                |            |         |     |            |   |         |            |  |   |                         |    
|Loan fees                                                                   |                | $          | 33,552  |     |            | $ | 33,944  |            |  | $ | 32,813                  |    
|Other income                                                                |                |            | 13,629  |     |            |   | 14,983  |            |  |   | 13,246                  |    
|                                                                            |                |            | 47,181  |     |            |   | 48,927  |            |  |   | 46,059                  |    
|Branch expenses                                                             |                |            |         |     |            |   |         |            |  |   |                         |    
|Salaries and benefits                                                       |                |            | 14,490  |     |            |   | 14,591  |            |  |   | 14,113                  |    
|Retention payments                                                          |                |            | 6,245   |     |            |   | 6,774   |            |  |   | 6,578                   |    
|Selling, general and administrative                                         |                |            | 4,156   |     |            |   | 4,486   |            |  |   | 4,681                   |    
|Rent                                                                        |                |            | 4,656   |     |            |   | 4,589   |            |  |   | 4,566                   |    
|Advertising and promotion                                                   |                |            | 1,398   |     |            |   | 1,313   |            |  |   | 1,303                   |    
|Provision for loan losses                                                   |                |            | 580     |     |            |   | 662     |            |  |   | 654                     |    
|Depreciation
    of property and equipment                                  |                |            | 1,743   |     |            |   | 1,713   |            |  |   | 1,687                   |    
|                                                                            |                |            | 33,268  |     |            |   | 34,128  |            |  |   | 33,582                  |    
|Branch operating income                                                     |                |            | 13,913  |     |            |   | 14,799  |            |  |   | 12,477                  |    
|Regional expenses                                                           |                |            | 4,523   |     |            |   | 4,169   |            |  |   | 3,863                   |    
|Corporate expenses                                                          |                |            | 5,175   |     |            |   | 4,796   |            |  |   | 4,256                   |    
|Interest expenses                                                           |                |            | 163     |     |            |   | 157     |            |  |   | 151                     |    
|Other depreciation and amortization                                         |                |            | 570     |     |            |   | 455     |            |  |   | 547                     |    
|Net income before income taxes and class action
    settlements             |                |            | 3,482   |     |            |   | 5,222   |            |  |   | 3,660                   |    
|Class action settlements                                                    |                |            | -       |     |            |   | -       |            |  |   | 1                       |    
|EBITDA*                                                                     |                |            | 6,209   |     |            |   | 7,752   |            |  |   | 6,259                   |    
|Net income and
    comprehensive income                                     |                | $          | 1,914   |     |            | $ | 3,416   |            |  | $ | 2,387                   |    
|Basic earnings per share                                                    |                |            |         |     |            |   |         |            |  |   |                         |    
|Before class action expenses net of normalized
    tax                      |                | $          | 0.12    |     |            | $ | 0.19    |            |  | $ | 0.15                    |    
|Net income and comprehensive income                                         |                | $          | 0.11    |     |            | $ | 0.20    |            |  | $ | 0.14                    |    
|Diluted earnings per share                                                  |                |            |         |     |            |   |         |            |  |   |                         |    
|Before class action expenses net of normalized
    tax                      |                | $          | 0.12    |     |            | $ | 0.19    |            |  | $ | 0.14                    |    
|Net income
    and comprehensive income                                     |                | $          | 0.11    |     |            | $ | 0.19    |            |  | $ | 0.14                    |    

*EBITDA – earnings from operations before interest,
income taxes, stock-based compensation, depreciation of property and equipment and amortization of intangible assets.



Certain comparative figures have been reclassified
to conform to the presentation adopted for the current period. Specifically, certain amounts previously recorded within SG&A
expense have been reclassified to other income for all periods presented.



- 21 -







|
|



Fourth Quarter



The fourth quarter of 2011 (July 1, 2011
to September 30, 2011) is used as the comparison to the fifth quarter of 2010 (July 1, 2010 to September 30, 2010) as they are
comprised of the same calendar months.



Significant factors impacting the fourth
quarter include:



| | · | Reductions
                                                                                                                                                                                                     in
                                                                                                                                                                                                     overall
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     of
                                                                                                                                                                                                     4.3%
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     three
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011,
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year
                                                                                                                                                                                                     due
                                                                                                                                                                                                     to
                                                                                                                                                                                                     a
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     in
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     as
                                                                                                                                                                                                     it
                                                                                                                                                                                                     relates
                                                                                                                                                                                                     to
                                                                                                                                                                                                     loans
                                                                                                                                                                                                     fees.
                                                                                                                                                                                                     Revenue
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Manitoba
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $883,000
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Loan
                                                                                                                                                                                                     fees
                                                                                                                                                                                                     were
                                                                                                                                                                                                     down
                                                                                                                                                                                                     7.3%
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     three
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011,
                                                                                                                                                                                                     at
                                                                                                                                                                                                     $33.6
                                                                                                                                                                                                     million
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $36.2
                                                                                                                                                                                                     million
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year
                                                                                                                                                                                                     given
                                                                                                                                                                                                     decreases
                                                                                                                                                                                                     in
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     volumes,
                                                                                                                                                                                                     same
                                                                                                                                                                                                     branch
                                                                                                                                                                                                     revenues
                                                                                                                                                                                                     as
                                                                                                                                                                                                     it
                                                                                                                                                                                                     relates
                                                                                                                                                                                                     to
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     fees
                                                                                                                                                                                                     and
                                                                                                                                                                                                     some
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia.
                                                                                                                                                                                                     The
                                                                                                                                                                                                     effect
                                                                                                                                                                                                     of
                                                                                                                                                                                                     rate
                                                                                                                                                                                                     compression
                                                                                                                                                                                                     reduced
                                                                                                                                                                                                     our
                                                                                                                                                                                                     rates
                                                                                                                                                                                                     by
                                                                                                                                                                                                     21.6%
                                                                                                                                                                                                     in
                                                                                                                                                                                                     Nova
                                                                                                                                                                                                     Scotia;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Growth
                                                                                                                                                                                                     in
                                                                                                                                                                                                     other
                                                                                                                                                                                                     income
                                                                                                                                                                                                     of
                                                                                                                                                                                                     4.2%
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $13.6
                                                                                                                                                                                                     million
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     three
                                                                                                                                                                                                     months
                                                                                                                                                                                                     period
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     when
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year.
                                                                                                                                                                                                     As
                                                                                                                                                                                                     a
                                                                                                                                                                                                     percentage
                                                                                                                                                                                                     of
                                                                                                                                                                                                     total
                                                                                                                                                                                                     revenue,
                                                                                                                                                                                                     other
                                                                                                                                                                                                     income
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     to
                                                                                                                                                                                                     28.9%
                                                                                                                                                                                                     from
                                                                                                                                                                                                     26.6%
                                                                                                                                                                                                     or
                                                                                                                                                                                                     an
                                                                                                                                                                                                     8.8%
                                                                                                                                                                                                     increase
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter.
                                                                                                                                                                                                     Agency
                                                                                                                                                                                                     fee
                                                                                                                                                                                                     income
                                                                                                                                                                                                     was
                                                                                                                                                                                                     up
                                                                                                                                                                                                     $24.1%
                                                                                                                                                                                                     or
                                                                                                                                                                                                     $2.4
                                                                                                                                                                                                     million
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     offset
                                                                                                                                                                                                     by
                                                                                                                                                                                                     decreases
                                                                                                                                                                                                     in
                                                                                                                                                                                                     other
                                                                                                                                                                                                     revenue
                                                                                                                                                                                                     of
                                                                                                                                                                                                     $1.8
                                                                                                                                                                                                     million;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Loan
                                                                                                                                                                                                     volumes
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     three
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     were
                                                                                                                                                                                                     down
                                                                                                                                                                                                     6.6%
                                                                                                                                                                                                     to
                                                                                                                                                                                                     $201.7
                                                                                                                                                                                                     million;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Earnings
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $883,000
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     a
                                                                                                                                                                                                     drag
                                                                                                                                                                                                     on
                                                                                                                                                                                                     earnings
                                                                                                                                                                                                     from
                                                                                                                                                                                                     branches
                                                                                                                                                                                                     opened
                                                                                                                                                                                                     less
                                                                                                                                                                                                     than
                                                                                                                                                                                                     one
                                                                                                                                                                                                     year
                                                                                                                                                                                                     and
                                                                                                                                                                                                     the
                                                                                                                                                                                                     decrease
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     class
                                                                                                                                                                                                     action
                                                                                                                                                                                                     settlement
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     including
                                                                                                                                                                                                     related
                                                                                                                                                                                                     interest
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $10.7
                                                                                                                                                                                                     million;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Class
                                                                                                                                                                                                     action
                                                                                                                                                                                                     settlement
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     and
                                                                                                                                                                                                     related
                                                                                                                                                                                                     interest
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $8.8
                                                                                                                                                                                                     million
                                                                                                                                                                                                     and
                                                                                                                                                                                                     $163,000
                                                                                                                                                                                                     respectively
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     the
                                                                                                                                                                                                     March
                                                                                                                                                                                                     5,
                                                                                                                                                                                                     2004
                                                                                                                                                                                                     British
                                                                                                                                                                                                     Columbia
                                                                                                                                                                                                     Class
                                                                                                                                                                                                     Action
                                                                                                                                                                                                     claim;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Retention
                                                                                                                                                                                                     payments
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $689,000
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     three
                                                                                                                                                                                                     months
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Provision
                                                                                                                                                                                                     for
                                                                                                                                                                                                     loan
                                                                                                                                                                                                     losses
                                                                                                                                                                                                     for
                                                                                                                                                                                                     on-balance
                                                                                                                                                                                                     sheet
                                                                                                                                                                                                     lending
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $126,000
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     ended
                                                                                                                                                                                                     September
                                                                                                                                                                                                     30,
                                                                                                                                                                                                     2011
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Branch
                                                                                                                                                                                                     SG&A
                                                                                                                                                                                                     costs
                                                                                                                                                                                                     decreased
                                                                                                                                                                                                     $389,000
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     cost
                                                                                                                                                                                                     containment
                                                                                                                                                                                                     measures
                                                                                                                                                                                                     for
                                                                                                                                                                                                     the
                                                                                                                                                                                                     fourth
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     same
                                                                                                                                                                                                     period
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Regional
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $2.2
                                                                                                                                                                                                     million
                                                                                                                                                                                                     related
                                                                                                                                                                                                     to
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     collection
                                                                                                                                                                                                     related
                                                                                                                                                                                                     costs,
                                                                                                                                                                                                     a
                                                                                                                                                                                                     reorganization
                                                                                                                                                                                                     at
                                                                                                                                                                                                     the
                                                                                                                                                                                                     regional
                                                                                                                                                                                                     and
                                                                                                                                                                                                     division
                                                                                                                                                                                                     vice
                                                                                                                                                                                                     president
                                                                                                                                                                                                     level,
                                                                                                                                                                                                     enhancement
                                                                                                                                                                                                     of
                                                                                                                                                                                                     collection
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     and
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     additions
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Corporate
                                                                                                                                                                                                     expenses
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $151,000
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     due
                                                                                                                                                                                                     to
                                                                                                                                                                                                     the
                                                                                                                                                                                                     UK
                                                                                                                                                                                                     expansion
                                                                                                                                                                                                     and
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     corporate
                                                                                                                                                                                                     salary
                                                                                                                                                                                                     costs
                                                                                                                                                                                                     as
                                                                                                                                                                                                     a
                                                                                                                                                                                                     result
                                                                                                                                                                                                     of
                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                     additions
                                                                                                                                                                                                     in
                                                                                                                                                                                                     marketing,
                                                                                                                                                                                                     training
                                                                                                                                                                                                     and
                                                                                                                                                                                                     new
                                                                                                                                                                                                     product
                                                                                                                                                                                                     development,
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     director
                                                                                                                                                                                                     costs
                                                                                                                                                                                                     and
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     legal
                                                                                                                                                                                                     fees;
                                                                                                                                                                                                     and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Working
                                                                                                                                                                                                     capital
                                                                                                                                                                                                     increased
                                                                                                                                                                                                     by
                                                                                                                                                                                                     $3.7
                                                                                                                                                                                                     million
                                                                                                                                                                                                     in
                                                                                                                                                                                                     the
                                                                                                                                                                                                     quarter
                                                                                                                                                                                                     compared
                                                                                                                                                                                                     to
                                                                                                                                                                                                     last
                                                                                                                                                                                                     year.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 22 -







|
|



EBITDA was $6.2 million for the quarter,
compared to $2.4 million for the same period last year. This decrease in the current quarter is due to rate compression, reduce
loan volumes, and increased regional and corporate infrastructure costs compared to the same period last year partially offset
by increases in other revenues.



Net income for the quarter increased to
$1.9 million, compared to $1.1 million for the fifth quarter of 2010. Diluted earnings per share for the quarter were $0.11 per
share ($0.11 basic), compared to $0.06 per share ($0.06 basic) for the fifth quarter of 2010.



BOI for the quarter, by maturity level,
is outlined below:



|(Thousands
    of dollars, except branch figures) |  | BOI
    (Loss) |     |  | BOI
    % of Revenues |  
|------------------------------------------------- |  | -------------- | --- |  | --------------------- | -
|                                                  |  | Number of      |     |  | September 30          |  
|Year
    Opened                                   |  | Branches       |     |  | 2011                  |  
|2001*                                             |  |                | 94  |  |                       | $
|2002                                              |  |                | 13  |  |                       |  
|2003                                              |  |                | 35  |  |                       |  
|2004                                              |  |                | 52  |  |                       |  
|2005                                              |  |                | 66  |  |                       |  
|2006                                              |  |                | 50  |  |                       |  
|2007**                                            |  |                | 37  |  |                       |  
|2008                                              |  |                | 34  |  |                       |  
|2009                                              |  |                | 48  |  |                       |  
|2010                                              |  |                | 112 |  |                       |  
|2011                                              |  |                | 45  |  |                       |  
|                                                  |  |                | 586 |  |                       |  
|Branches not yet open                             |  |                |     |  |                       |  
|Consolidation of branches                         |  |                |     |  |                       |  
|Other                                             |  |                |     |  |                       |  
|Branch
    Operating Income                       |  |                |     |  |                       | $

* Instaloans branches were acquired by Cash Store Financial
on April 22, 2005; they have been operating since 2001.

** EZ Cash branches were acquired by Cash Store Financial on
April 26, 2010; they have been assumed on average to be operating since 2007.



BOI has decreased 16.4% to $13.9 million
in the quarter compared to $16.6 million in the fifth quarter of 2010. The decrease was caused by rate compression, decreased
loan volumes and same branch revenues and increased drag on earnings from new branches.



Revenue for the quarter decreased to $47.2
million, compared to $49.3 million for the fifth quarter of 2010 due to rate compression and decreases in same branch revenues.



- 23 -







|
|



|                                                  |  |           |     |  | Average
    Revenue per Branch per |  
|------------------------------------------------- |  | --------- | --- |  | ---------------------------------- | -
|(Thousands
    of dollars, except branch figures) |  | Revenues  |     |  | Quarter                            |  
|                                                  |  | Number of |     |  | September 30                       |  
|Year Opened                                       |  | Branches  |     |  | 2011                               |  
|2001*                                             |  |           | 94  |  |                                    | $
|2002                                              |  |           | 13  |  |                                    |  
|2003                                              |  |           | 35  |  |                                    |  
|2004                                              |  |           | 52  |  |                                    |  
|2005                                              |  |           | 66  |  |                                    |  
|2006                                              |  |           | 50  |  |                                    |  
|2007**                                            |  |           | 37  |  |                                    |  
|2008                                              |  |           | 34  |  |                                    |  
|2009                                              |  |           | 48  |  |                                    |  
|2010                                              |  |           | 112 |  |                                    |  
|2011                                              |  |           | 45  |  |                                    |  
|                                                  |  |           | 586 |  |                                    |  
|Consolidation of branches                         |  |           |     |  |                                    |  
|Other                                             |  |           |     |  |                                    |  
|Continuing
    operations                         |  |           |     |  |                                    | $

* Instaloans branches were acquired by Cash Store Financial
on April 22, 2005; they have been operating since 2001.

** EZ Cash branches were acquired by Cash Store Financial on
April 26, 2010; they have been assumed on average to be operating since 2007.



Loan fees for the three months ended September
30, 2011 decreased to $33.6 million from $36.2 million in the same period last year, as a result of a decrease in same branch
loan volumes and rate compression of 21.6% in Nova Scotia.



Same branch revenues for the 522 locations
open since the beginning of July 2010 for the three month period, decreased by 9.7% compared to the same period last year, with
same branch revenue averaging $83,800 this period compared to $92,700 in the same period last year. Same branch revenues decreased
as a result of rate compression and decreased loan volumes partially offset by improvements in other revenue. Same branch revenues,
as it relates to the brokering of loans were down 13.2% in the quarter.



Loans brokered for the quarter, were $201.7
million and averaged $501 per loan, compared to $216.0 million and an average of $474 per loan for the three months ended September
30, 2010.



Expenses for the quarter totalled $33.3
million, compared to $32.7 million in the fifth quarter of 2010. These increased costs are due to increases in the number of branches,
infrastructure additions at the regional, corporate levels and in the UK along with increased costs associated with provincial
regulations and legal matters. Retention payments totalled $6.2 million in the quarter, compared to $6.9 million in the fifth
quarter of fiscal 2010. The depreciation of property and equipment and amortization of intangible assets was $2.3 million.



Our effective tax rate was 45.0% for the
quarter, compared to a recovery of 6.6% for the fifth quarter of fiscal 2010. The effective tax rate is higher than the statutory
tax rate of 28.0% due to adjustments for prior year immaterial errors.



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RELATED PARTY TRANSACTIONS



The Cash Store Australia Holdings Inc. (“AUC”)



The Company owns 18.3% of the outstanding
common shares of AUC, which currently operates payday loan branches in Australia under the name “The Cash Store Pty.”
AUC is publicly listed on the TSX Venture exchange under the symbol “AUC”. Included in other receivables as of September
30, 2011, was a $16,000 (September 30, 2010 - $7,000) receivable from AUC. The Company entered into an interim service agreement
with AUC to provide ongoing services such as financial, accounting and HR support and contracts administrative services, and the
use of our IT and telecommunication systems. Included in SG&A expenses is a recovery of $363,000 (September 30, 2010 - $362,000)
related to these services. These transactions were subject to normal trade terms and were measured at the actual exchange amount.
Amounts due are non-interest bearing, unsecured and have no specified terms of repayment. Certain employees, directors, and officers
have an ownership in AUC.



RTF Financial Holdings Inc. (“RTF”)



The Company
owns 15.7% of the outstanding common shares of RTF Financial Holdings Inc., a private company in the business of short-term lending
by utilizing highly automated mobile technology (SMS text message lending). RTF Financial Holdings Inc. currently operates in
Finland, Sweden, Denmark, the Netherlands and the UK with plans to expand to other European countries. Included
in SG&A expenses is a recovery of $240,000 (September 30, 2010 - $120,000) relating to these services. These transactions
were subject to normal trade terms and were measured at the actual exchange amount. We have a $45,000 (September 30, 2010 - $485,000)
receivable from RTF. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment. Certain employees,
directors, and officers have an ownership in RTF.



Third-party lenders (restated)



A privately held entity that raises capital
and provides advances to the Company's customers (third-party lender) is controlled by the father of Cameron Schiffner, the Senior
Vice President of Operations of the Company. In addition, Cameron Schiffner's brother was a member of management of AUC and is
a member of management of the third-party lender. The Company's relationship with the third-party lender predates Cameron Schiffner's
employment with the Company. Included in retention payments are $11.7 million for the year ended September 30, 2011 (fifteen months
ended September 30, 2010 - $13.5 million) of amounts paid or payable directly to this third-party lender. As at September 30,
2011, included in accrued liabilities is $2.2 million (September 30, 2010 - $1.8 million) due to this third-party lender. The
Company’s contingent risk in this third-party lender’s loan portfolio totalled $45.0 million as at September 30, 2011
(September 30, 2010 - $48.4 million).



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RISK FACTORS AFFECTING PERFORMANCE



Our financial and operational performance
is potentially affected by a number of factors including, but not limited to, changing consumer protection regulations, industry
and company specific class action lawsuits, access to third-party lenders and other issues described in our most recent Annual
Information Form (“AIF”). A more detailed discussion of our risk factors is presented in our most recent AIF filed
with the securities regulatory authorities on SEDAR (www.sedar.com). Our Risk Management department works continually to
assess and mitigate the impact of potential risks to our stakeholders.



Consumer Protection
Regulations



“Consumer protection measures”
relates broadly to two categories of regulation: 1) measures that restrict rates or fees that may be charged both in respect of
a loan and regarding other services or fees that may be charged in relation to a payday loan or related services; and 2) general
business practices issues which would include, for example, prohibitions on rollovers, concurrent loans, maximum allowable loans
based on a percentage of a customer’s net income and certain collection practices.  These measures vary considerably
from one jurisdiction to the next.  Rates are generally structured as a maximum allowable charge per $100 loaned.  Interest
may be charged up to a regulated maximum amount when a loan is in default.  This maximum varies by jurisdiction but in no
jurisdiction does it exceed 59% per annum.  Some jurisdictions restrict the amount that may be charged when a customer’s
cheque or pre-authorized debit is dishonored.



The following rate caps are currently in
effect:  Nova Scotia - $25 per hundred dollars loaned; British Columbia - $23 per hundred dollars loaned; Ontario - $21 per
hundred dollars loaned; Manitoba - $17 per hundred dollars loaned; and Alberta - $23 per hundred dollars loaned.  Newfoundland
has announced that it does not intend to implement industry specific consumer protection legislation.  In October 2011, Saskatchewan
received a federal designation that will facilitate implementation of new consumer protection measures, including a rate cap of
$23 per hundred dollars loaned. We anticipate that these measures will be implemented in Saskatchewan early in calendar year 2012. 
The provinces of New Brunswick and Prince Edward Island have passed legislation to facilitate the implementation of rate caps
and other industry specific consumer protection measures; however, at this stage it remains difficult to specify expected rates
for these provinces or when these provinces will actually implement rate caps or other consumer protection measures.  
All Canadian jurisdictions that have implemented industry specific consumer protection measures appear to be committed to facilitating
a competitive industry. Below is a summary of rate caps per province:



|                 | Rate |                    
|---------------- | ---- | -------------------
|                 | per  | Date enacted or    
|                 | $100 | anticipated        
|Nova Scotia      | 25   | April 1, 2011      
|British Columbia | 23   | November 18, 2009  
|Ontario          | 21   | December 15, 2009  
|Alberta          | 23   | March 1, 2010      
|Manitoba         | 17   | October 18, 2010   
|Saskatchewan     | 23   | Early calender 2012



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Restrictions on the size and duration of
a payday loan are uniformly applied in British Columbia, Alberta, Manitoba, Ontario and Nova Scotia. Specifically, a payday loan
is defined by statute or regulation as a loan of $1,500 or less for a period of 62 days or less. Saskatchewan restricts loan sizes
to a maximum of $1,000.  Saskatchewan is expected to adopt the previously described definition of a payday loan, if new regulations
are implemented in 2012 as anticipated.  Similar restrictions do not exist in the Yukon, the Northwest Territories, New Brunswick,
Prince Edward Island and Newfoundland.



In the first quarter of fiscal 2011, the
Nova Scotia Utility and Review Board conducted administrative hearings to review the rate cap of $31 per hundred dollars loaned
that was in force in that province at that time.   As of April 1, 2011 the new rate cap in Nova Scotia is $25 per hundred
dollars loaned.



On November 9, 2010, Consumer Protection
BC issued a compliance order requiring Cash Store Financial to: (i) reimburse all borrowers with loan agreements negotiated with
Cash Store Financial and its subsidiaries between November 1, 2009, and November 9, 2010, the amount charged, required or accepted
in relation to the issuance of a cash card; (ii) provide the option to any borrower negotiating a loan agreement with Cash Store
Financial and its subsidiaries, of receiving a cheque, cash or some other financial instrument which provides the loan proceeds
to the borrower at the time the loan agreement is negotiated; and, (iii) make a payment of $4,006 in respect of costs.



The Company has formally disputed certain
findings upon which this compliance order was based, and on December 9, 2010 filed a Request for Redetermination.  The basis
of our submission is that Cash Store Financial does not issue and has never issued cash cards to its customers. Rather, customers
are issued cash cards by an arms-length third party.  This arms-length third party is a federally regulated Canadian Schedule
I bank.  Cash Store Financial is not a party to any agreements in respect of cash cards.  All contracts in respect of
cash cards are directly between individuals and the arms-length third party. Through agreements with an arms-length third party,
Cash Store Financial’s customers are given the option, following the completion of a loan agreement offered or arranged
by Cash Store Financial, of receiving a cash card and related services from an arms-length third party. All fees associated with
the issuance of these cash cards accrue directly to an arms-length third party. Customers also have the option of receiving their
loan proceeds by way of a cheque.



We anticipate no material impact from the
determination. Consumer Protection BC has advised us they will reconsider their original determination.



On May 10, 2011, Service Alberta issued
an Interim Order (the “Order”) directing Cash Store Financial to cease certain practices. Pursuant to minor adjustments
to our sales processes and compliance systems and ongoing discussions with officials in the Office of the Director of Fair Trade,
we consider this matter to be resolved.  The Government of Alberta had stated in the Order that it had been based on allegations
that unfair lending activities were being practiced by Cash Store Financial.  Of particular concern to Cash Store Financial
were reported allegations that the Company required customers to purchase ancillary services, such as a pre-paid cash card, as
a condition for receiving a loan. This is not and never has been Company policy, but it was the major issue identified in the
Order.  Company policy is to provide customers with the ability to immediately receive proceeds of their loan by way of cheque,
immediately upon request.



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In 2005, Cash Store Financial implemented
a voluntary prohibition on rollovers which is the extension of an existing loan for a fee. More specifically, we disallowed the
provision of a new loan to payout an existing loan.  We do not provide any rollovers in any jurisdictions in Canada. 
Customers must repay a loan in full before a new loan may be secured.  In some jurisdictions customers may borrow against
more than one source of income. In some instances a customer may be indebted to a third-party lender for more than one loan at
a time. In these cases, each of these loans and the repayment requirements for each loan are structured and secured against a
specific source of income.



Legal Proceedings



British Columbia (Restated)



On March 5, 2004, an action under the Class
Proceedings Act was commenced in the Supreme Court of British Columbia by Andrew Bodnar and others proposing that a class action
be certified on his own behalf and on behalf of all persons who have borrowed money from the defendants, The Cash Store Financial
and All Trans Credit Union Ltd. The action stems from the allegations that all payday loan fees collected by the defendants constitute
interest and therefore violate s. 347 of the Criminal Code of Canada (the “Code”). On May 25, 2006, the claim in British
Columbia was affirmed as a certified class proceeding of Canada by the B.C. Court of Appeal. In fiscal 2007, the plaintiffs in
the British Columbia action brought forward an application to have certain of the Company’s customers’ third-party
lenders added to the claim. On March 18, 2008, another action commenced in the Supreme Court of British Columbia by David Wournell
and others against The Cash Store Financial, Instaloans Inc., and others in respect of the business carried out under the name
Instaloans since April 2005. Collectively, the above actions are referred to as the “British Columbia Related Actions”.



On May 12, 2009, the Company settled the
British Columbia Related Actions in principle and on February 28, 2010 the settlement was approved by the Court. Under the terms
of the court approved settlement, the Company is to pay to the eligible class members who were advanced funds under a loan agreement
and who repaid the payday loan plus brokerage fees and interest in full, or who met certain other eligibility criteria, a maximum
estimated amount including legal expenses of $18.8 million, consisting of $9.4 million in cash and $9.4 million in credit vouchers.
The credit vouchers can be used to pay existing outstanding brokerage fees and interest, to pay a portion of brokerage fees and
interest which may arise in the future through new loans advanced, or can be redeemed for cash from January 1, 2014 to June 30,
2014. The credit vouchers are not transferable and have no expiry date. After approved legal expenses of $6.4 million were paid
in March 2010, the balance of the settlement amount remaining to be disbursed was $12.4 million, consisting of $6.2 million of
cash and $6.2 million of vouchers.



By September 30, 2010, the Company received
approximately 6,300 individual claims representing total valid claims in excess of the settlement fund. As the valid claims exceed
the balance of the remaining settlement fund, under the terms of the settlement agreement, the entire settlement fund of $12.4
million will be disbursed to claimants on a pro-rata basis.



In arriving at the liability recorded at
the balance sheet date, the voucher portion of the settlement fund of $6.2 million has been discounted using a discount rate of
16.2%. During the twelve months ended September 30, 2011, the Company recorded accretion expense of $616,000 (fifteen months ended
September 30, 2010 - $nil) in interest expense. The total liability related to the settlement at September 30, 2011 is $10.6 million
(2010: $10.0 million).



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Alberta



We have been served in prior fiscal periods
with a Statement of Claim issued in Alberta alleging that we are in breach of s. 347 of the Criminal Code of Canada (the
interest rate provision) and certain provincial consumer protection statutes.



The certification motion has been pending
since fiscal 2006 and has not yet been heard. On January 19, 2010, the plaintiffs in the Alberta action brought forward an application
to have a related subsidiary, certain of our customers’ third-party lenders, directors and officers added to the Claim.



We have agreed to a motion to certify the
class action proceeding if the lender, officers and directors are removed as defendants. Class counsel has agreed to our proposal.



We believe that we conduct our business
in accordance with applicable laws and are defending the action vigorously. However, the likelihood of loss, if any, is not determinable
at this time.



Manitoba



On April 23, 2010, an action under the
Manitoba Class Proceedings Act was commenced in the Manitoba Court of Queen’s Bench by Scott Meeking against The Cash Store
(Canada), Instaloans, and Cash Store Financial proposing that a class action be certified on his own behalf and on behalf of all
persons in Manitoba and others outside the province who elect to claim in Manitoba and who obtained a payday loan from the Cash
Store Financial or Instaloans. The action stems from the allegations that all payday loan fees collected by the defendants constitute
interest and therefore violate s. 347 of the Criminal Code of Canada.



We believe that we conducted our business
in accordance with applicable laws and are defending the action vigorously. Further it will be maintained that most of the proposed
class members are bound by the judgment in the settlement of the Ontario class action in 2008, as approved by the Ontario Superior
Court of Justice and that accordingly the action should be dismissed. However, the likelihood of loss, if any, is not determinable
at this time.



Other



We are also involved in other claims related
to the normal course of operations. Management believes that it has adequately provided for these claims.



Third Party Lenders/Retention
Payments



Most funding of short-term advances is
currently provided by independent third party lenders. As a result, our business is highly dependent on third party lenders who
are willing to make significant funds available for lending to our customers. There are no assurances that the existing or new
third party lenders will continue to make funds available. Any reduction or withdrawal of funds could have a significant material
adverse impact on our results of operations and financial condition.



To facilitate the short-term advance business,
we have entered into written agreements with a number of third party lenders who are prepared to consider lending to our customers.
Pursuant to these agreements, we provide services to the lenders related to the collection of documents and information as well
as loan collection services. Material terms of our agreements with third-party lenders include ensuring that any proposed loan
was applied for through an authorized outlet, ensuring each potential customer meets the loan selection criteria as set forth
by the third-party lender prior to approval and release of funding, satisfying the documentation requirements in a full and timely
manner, providing loan management services throughout the term of the loan, and providing default realization services on behalf
of the third party lender for all loans funded which are not paid in full by the due date, all while ensuring information system
integrity is maintained. Losses suffered on account of uncollectible loans are not contractually the Company’s responsibility
as long as it has performed and fulfilled its duties under the terms of the third party lender agreements.In the event we do not
properly perform our duties and the lenders make a claim as required under the agreement, we may be liable to the lenders for
losses they have incurred. A liability is recorded when it is determined that we have a liability under the agreement.



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Our board of directors regularly approves
a resolution which authorizes us to pay a maximum amount of retention payments per quarter to third-party lenders as consideration
to those lenders who continue to be willing to fund advances to our customers. While the third-party lenders have not been guaranteed
a return, the decision has been made to voluntarily make retention payments to the lenders to deflect the impact of the loan losses
they experienced. Retention payments are recorded in the period in which a commitment is made to a lender pursuant to the resolution
approved by the board of directors.



During the year we have three lenders that
have helped us generate ten percent or more of our consolidated revenues: 367463 Alberta Ltd., Trimor Annuity Focus Limited Partnerships
and Assistive Financial Corp. The loss of any of these three third-party lenders would have a material adverse effect on us if
alternative lenders could not be located or other financing was not available to permit direct lending.



CRITICAL ACCOUNTING ESTIMATES



Our accounting policies are integral to
understanding and interpreting the financial results reported in this MD&A. The significant accounting policies used in preparing
our consolidated financial statements are summarized in Note 1 to those statements which are available on SEDAR at www.sedar.com.
Certain policies included in Note 1 are considered to be particularly important to the presentation of our financial position
and results of operations, because they require Management to make difficult, complex or subjective judgments and estimates, often
as a result of matters that are inherently uncertain, which may result in materially different results under different assumptions
and conditions. The following is a discussion of those critical accounting estimates. These estimates are adjusted in the normal
course to reflect changing underlying circumstances. The impact and any associated risks related to these critical accounting
estimates on our business may also be discussed elsewhere in this MD&A.



Revenue Recognition



Revenue arising from brokering short-term
advances for customers is recognized once all services have been rendered, all advance amounts have been received by the customer,
and the brokerage fee has been received by the Company.



Revenue arising from direct lending of
short-term advances to customers is recognized on a constant yield basis ratably over the term of the related loan.



Revenue from the Company’s cheque
cashing, money order sales, money transfer, bill payment services and other miscellaneous services is recognized when the transactions
are completed at the point-of-sale in the branch and the related fee charged by the Company has been received. Revenue from the
Company’s banking and non-sufficient funds fees are recognized when collected. Revenue from each of these sources is recorded
in other income in the statement of operations.



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Retention Payments



When the Company acts as a broker on behalf
of income earning consumers seeking short-term advances, the funding of short-term advances is provided by independent third party
lenders. The advances provided by the third party lenders are repayable by the customer to the third party lenders and represent
assets of the lenders; accordingly, they are not included on the Company’s balance sheet.



To facilitate the short term advance business,
the Company has entered into written agreements with third party lenders who are prepared to consider lending to the Company’s
customers. Pursuant to these agreements, the Company provides services to the lenders related to the collection of documents and
information as well as loan collection services. Under the terms of the Company’s agreements with third party lenders, responsibility
for losses suffered on account of uncollectible loans rests with the third party lender, unless the Company has not properly performed
its duties as set forth under the terms of the agreement. The significant duties under the terms of the agreements generally include
ensuring that any proposed loan was applied for through an authorized outlet, ensuring each potential customer meets the loan
selection criteria as set forth by the third party lender prior to approval and release of funding, satisfying the documentation
requirements in a full and timely manner, providing loan management services throughout the term of the loan, and providing collection
services on behalf of the third party lender for all loans funded which are not paid in full by the due date, all of which while
ensuring information system integrity is maintained. In the event the Company does not properly perform its duties and the lenders
make a claim as required under the agreement, the Company may be liable to the lenders for losses they have incurred. A liability
is recorded when it is determined that the Company has a liability under the agreement.



The Company’s Board of Directors
regularly approves a resolution which authorizes management to pay a maximum amount of retention payments per quarter to third
party lenders as consideration to those lenders that continue to be willing to fund advances to the Company’s customers.
While the third party lenders have not been guaranteed a return, the decision has been made to voluntarily make retention payments
to the lenders to lessen the impact of loan losses experienced by the third party lenders. Retention payments are recorded in
the period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.



Provisions for Loan Losses



Loans in default consist of direct lending
short-term consumer loans originated by the Company which are past due. The Company defines a past due or delinquent account whereby
payment has not been received in full from the customer on or before the maturity date of the loan. A provision for loan losses
is recorded when the Company no longer has reasonable assurance of timely collection of the full amount of principal and interest
(included in loan fee). In determining whether the Company will be unable to collect all principal and interest payments due,
the Company assesses relevant internal and external factors that affect loan collectability, including the amount of outstanding
loans owed to the Company, historical percentages of loans written off, current collection patterns and other current economic
trends. The provision for loan losses reduces the carrying amount of consumer loan receivables to their estimated realizable amounts.
The provision is primarily based upon models that analyze specific portfolio statistics, and also reflect, to a lesser extent,
management judgment regarding overall accuracy. The analytical model takes into account several factors, including the number
of transactions customers complete and charge-off and recovery rate. The provision is reviewed monthly, and any additional provision
as a result of historical loan performance, current and expected collection patterns and current economic trends is included in
the provision for the loan losses at that time. If the loans remain past due for an extended period of time, an allowance for
the entire amount of the loan is recorded and the loan is ultimately written off. The Company’s policy for charging off
uncollectible consumer loans is to write the loan off when a loan remains in default status for an extended period of time without
any extended payment arrangements made, typically 210 days. Loans to customers who file for bankruptcy are written off upon receipt
of the bankruptcy notice.



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Stock Based Compensation



We have a stock based compensation plan,
which is described in Note 17 (b) of our audited consolidated financial statements. We account for all stock based compensation
payments that are settled by the issuance of equity in accordance with a fair value-based method of accounting. Stock based compensation
awards are recognized in the financial statements over the period in which the related services are rendered, which is usually
the vesting period of the option, or as applicable, over the period to the date an employee is eligible to retire, whichever is
shorter, with a corresponding increase recorded in contributed surplus. The fair value is calculated using the Black-Scholes option-pricing
model. When options are exercised, the proceeds received by us, together with the amount in contributed surplus associated with
the exercised options, are credited to share capital.



Consumer Loans Receivable



Unsecured short-term and longer-term advances
that the Company originates on its own behalf are reflected on the balance sheet in consumer loans receivable. Consumer loans
receivable are reported net of a provision. In regulated jurisdictions, interest is charged on consumer loans commencing upon
default; however, it is not recorded as income until payment is received in full or partially from the consumer. In unregulated
jurisdictions, interest is charged on consumer loans over the period of the loan and is recorded in income as it is earned.



Income Tax Estimates and Future Income Taxes



Income taxes are accounted for under the
asset and liability method. Future tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Future tax
assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or settled. The effect on future tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment or substantive enactment date. A valuation
allowance is recorded against any future tax assets if it is more likely than not that the asset will not be realized.



Long-term investments



We apply the equity method of accounting
for its investment in The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc. These investments are recorded at
cost plus our share of net income or loss to date.



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Amortization Policies and Useful Lives



We depreciate the cost of property and
equipment and intangible assets over the estimated useful service lives of the items. These estimates of useful lives involve
considerable judgment. In determining these estimates, we take into account industry trends and company-specific factors, including
changing technologies and expectations for the in-service period of these assets. On an annual basis, were assess our existing
estimates of useful lives to ensure they match the anticipated life of the asset from a revenue-producing perspective. If the
in-service period change happens more quickly than we have anticipated, we may have to shorten the estimated life of certain property
and equipment or intangible assets, which could result in higher depreciation expenses in future periods or an impairment charge
to write down the value of property and equipment or intangible assets.



Intangible Assets



Intangible assets acquired individually
or as part of a group of other assets are initially recognized and measured at cost. The cost of a group of intangible assets
acquired in a transaction, including those acquired in a business combination that meet the specified criteria for recognition
apart from goodwill, is allocated to the individual assets acquired based on their fair values.



Both internal and external costs incurred
to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes
the computer software project.



Intangible assets with finite useful lives
are amortized over their estimated useful lives. Intangible assets with indefinite useful lives are not amortized and are tested
for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances indicate that such
assets might be impaired.



The amortization methods and estimated
useful lives of intangible assets, which are reviewed annually, are as follows:



|Customer
    list, contracts and relationships | Straight-line
    – 3 years
|---------------------------------------------- | ---------------------------
|Computer software                              | Straight-line –
    5 years
|Non-compete agreements                         | Term of the agreements     
|Brand name                                     | Indefinite life            



Goodwill



Goodwill represents the residual amount
that results when the fair value of an acquired business exceeds the sum of the amounts allocated to the identifiable assets acquired,
and liabilities assumed, based on their fair values. Goodwill is allocated as of the date of the business combination to the Company’s
reporting units that are expected to benefit from the business combination. Goodwill is initially recognized as an asset at cost
and is subsequently measured at cost less any accumulated impairment losses.



Goodwill is not amortized and is tested
for impairment annually on July 1stof each year, or more frequently if events or changes in circumstances indicate
it may be impaired. The impairment test is carried out in two steps. In the first step, the carrying amount of the reporting unit
is compared to its fair value. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting
unit is considered not to be impaired and the second step of the impairment test is unnecessary. The second step is carried out
when the carrying amount of a reporting unit exceeds its fair value, in which case the implied fair value of the reporting unit’s
goodwill is compared with its carrying amount to measure the amount of the impairment loss, if any. The implied fair value of
goodwill is determined in the same manner as the value of goodwill is determined in a business combination described in the preceding
paragraph, using the fair value of the reporting unit.



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When the carrying amount of the reporting
unit’s goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the
excess.



Accounting for the Impairment of Long-Lived Assets



Long-lived assets and identifiable intangibles
subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of a group of assets may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying
amount of an asset to the sum of future undiscounted cash flows expected to be generated from the use and eventual disposition
of the group of assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the group of assets exceeds the fair value of the group of assets. Any assets to be disposed by
sale are reported at the lower of carrying amount or fair value less costs to sell. Such assets are not amortized while they are
classified as held-for-sale.



Leases



Leases are classified as capital or operating
depending upon the terms and conditions of the contracts. Obligations under capital leases are recorded as an asset with a corresponding
liability. Asset values recorded under capital leases are depreciated on a straight-line basis over the estimated useful life.
Obligations under capital leases are reduced by lease payments net of imputed interest. Computer and phone operating lease expenses
are recorded in selling, general, and administrative expenses. Branch leases are recorded in rent.



Contingencies



We are subject to various claims and contingencies
related to lawsuits, taxes and commitments under contractual and other commercial obligations. We recognize liabilities for contingencies
and commitments when a loss is probable and capable of being reasonably estimated. Significant changes in assumptions as to the
likelihood and estimates of the amount of a loss could result in recognition of an additional liability.



CHANGES IN ACCOUNTING POLICIES AND PRACTICES



RECENT ACCOUNTING PRONOUCEMENTS NOT YET
ADOPTED



International Financial Reporting Standards



The Accounting Standards Board of the Canadian
Institute of Chartered Accountants previously announced its decision to require all publicly accountable enterprises to report
under IFRS for years beginning on or after January 1, 2011. However, National Instrument 52-107 allows Securities and Exchange
Commission (“SEC”) registrants, such as the Company, to file financial statements with Canadian securities regulators
that are prepared in accordance with U.S. GAAP. The Company has decided to adopt U.S. GAAP instead of IFRS as its primary basis
of financial reporting commencing in fiscal 2012.



The decision to adopt U.S. GAAP was made
to enhance communication with shareholders and improve the comparability of financial information reported with its U.S. based
competitors and peer group.



- 34 -







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CONTROLS AND PROCEDURES (restated)



Evaluation of disclosure controls and procedures



Our disclosure controls and procedures
are designed to provide reasonable assurance that information we are required to disclose is recorded, processed, summarized and
reported within the time periods specified under Canadian and US securities laws. They include controls and procedures designed
to ensure that information is accumulated and communicated to management, including the President and Chief Executive Officer
and the Chief Financial Officer, to allow timely decisions regarding required disclosures.



As of September 30, 2011, an evaluation
was carried out under the supervision of and with the participation of management, including the Chief Executive Officer and the
Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) and Rule
15d - 15(e) under the US Securities Exchange Act of 1934, as amended, and in National Instrument 52-109 under the Canadian Securities
Administrators Rules and Policies. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that as of September 30, 2011 such disclosure controls and procedures (“DC&P”) were not effective due to the material
weaknesses in the Company’s internal control over financial reporting (“ICFR”) described below.



Management’s Report on Internal Control over
Financial Reporting



Internal control over financial reporting
is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and
of the preparation of financial statements for external purposes in accordance with US GAAP. Management, including the Chief Executive
Officer and Chief Financial Officer, are responsible for establishing and maintaining adequate ICFR, as such term is defined in
Rule 13(a)-15(e) under the US Securities Exchange Act of 1934 and in National Instrument 52-109 under the Canadian Securities
Administrators Rules and Policies. A material weakness in ICFR exists if the deficiency is such that there is reasonable possibility
that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a
timely basis.



Because of its inherent limitations, ICFR
may not prevent or detect misstatements. Also, projections or any evaluation of effectiveness to future periods are subject to
risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.



As of September 30, 2011, we assessed the
effectiveness of our ICFR. In making this assessment, we used the criteria set forth in the Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment,
management has concluded that, as a result of the material weaknesses in our ICFR discussed below, ICFR is not effective as of
September 30, 2011.



The Company has two material weaknesses
as at September 30, 2011. Each of these material weaknesses creates a reasonable possibility that a material misstatement of the
financial statements will not be prevented or detected on a timely basis.



- 35 -







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| | 1) | During
                                                                                                                                                      the
                                                                                                                                                      preparation
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      Company’s
                                                                                                                                                      September
                                                                                                                                                      30,
                                                                                                                                                      2012
                                                                                                                                                      annual
                                                                                                                                                      financial
                                                                                                                                                      statements,
                                                                                                                                                      Management
                                                                                                                                                      determined
                                                                                                                                                      that
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      did
                                                                                                                                                      not
                                                                                                                                                      design
                                                                                                                                                      and
                                                                                                                                                      implement
                                                                                                                                                      effective
                                                                                                                                                      ICFR
                                                                                                                                                      related
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      identification,
                                                                                                                                                      assessment
                                                                                                                                                      and
                                                                                                                                                      disclosure
                                                                                                                                                      of
                                                                                                                                                      related
                                                                                                                                                      parties
                                                                                                                                                      and
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions.
                                                                                                                                                      Specifically,
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      did
                                                                                                                                                      not
                                                                                                                                                      design
                                                                                                                                                      effective
                                                                                                                                                      ICFR
                                                                                                                                                      to
                                                                                                                                                      regularly
                                                                                                                                                      assess
                                                                                                                                                      existing
                                                                                                                                                      business
                                                                                                                                                      relationships
                                                                                                                                                      to
                                                                                                                                                      identify,
                                                                                                                                                      assess
                                                                                                                                                      and
                                                                                                                                                      disclose
                                                                                                                                                      related
                                                                                                                                                      parties
                                                                                                                                                      and
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions
                                                                                                                                                      in
                                                                                                                                                      accordance
                                                                                                                                                      with
                                                                                                                                                      applicable
                                                                                                                                                      accounting
                                                                                                                                                      standards.
                                                                                                                                                      As
                                                                                                                                                      a
                                                                                                                                                      result
                                                                                                                                                      of
                                                                                                                                                      these
                                                                                                                                                      ineffective
                                                                                                                                                      controls,
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      did
                                                                                                                                                      not
                                                                                                                                                      disclose
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions
                                                                                                                                                      with
                                                                                                                                                      a
                                                                                                                                                      third
                                                                                                                                                      party
                                                                                                                                                      lender
                                                                                                                                                      in
                                                                                                                                                      its
                                                                                                                                                      previously
                                                                                                                                                      filed
                                                                                                                                                      financial
                                                                                                                                                      statements;
                                                                                                                                                      however,
                                                                                                                                                      it
                                                                                                                                                      has
                                                                                                                                                      now
                                                                                                                                                      amended
                                                                                                                                                      its
                                                                                                                                                      disclosure
                                                                                                                                                      of
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions
                                                                                                                                                      in
                                                                                                                                                      Note
                                                                                                                                                      23
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      restated
                                                                                                                                                      September
                                                                                                                                                      30,
                                                                                                                                                      2011
                                                                                                                                                      annual
                                                                                                                                                      financial
                                                                                                                                                      statements
                                                                                                                                                      to
                                                                                                                                                      correct
                                                                                                                                                      for
                                                                                                                                                      this
                                                                                                                                                      omission
                                                                                                                                                      in
                                                                                                                                                      disclosure.
                                                                                                                                                      The
                                                                                                                                                      disclosure
                                                                                                                                                      that
                                                                                                                                                      could
                                                                                                                                                      reasonably
                                                                                                                                                      be
                                                                                                                                                      affected
                                                                                                                                                      by
                                                                                                                                                      this
                                                                                                                                                      material
                                                                                                                                                      weakness
                                                                                                                                                      is
                                                                                                                                                      the
                                                                                                                                                      disclosure
                                                                                                                                                      of
                                                                                                                                                      related
                                                                                                                                                      parties
                                                                                                                                                      and
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions.
| | -- | 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| | 2) | During
                                                                                                                                                      the
                                                                                                                                                      preparation
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      Company’s
                                                                                                                                                      March
                                                                                                                                                      31,
                                                                                                                                                      2013
                                                                                                                                                      interim
                                                                                                                                                      financial
                                                                                                                                                      statements,
                                                                                                                                                      Management
                                                                                                                                                      determined
                                                                                                                                                      that
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      did
                                                                                                                                                      not
                                                                                                                                                      design
                                                                                                                                                      and
                                                                                                                                                      implement
                                                                                                                                                      effective
                                                                                                                                                      ICFR
                                                                                                                                                      related
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      review
                                                                                                                                                      and
                                                                                                                                                      interpretation
                                                                                                                                                      of
                                                                                                                                                      complex
                                                                                                                                                      legal
                                                                                                                                                      agreements.
                                                                                                                                                      Specifically,
                                                                                                                                                      the
                                                                                                                                                      Company’s
                                                                                                                                                      ICFR
                                                                                                                                                      did
                                                                                                                                                      not
                                                                                                                                                      correctly
                                                                                                                                                      interpret
                                                                                                                                                      how
                                                                                                                                                      the
                                                                                                                                                      settlement
                                                                                                                                                      terms
                                                                                                                                                      and
                                                                                                                                                      conditions
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      March
                                                                                                                                                      5,
                                                                                                                                                      2004
                                                                                                                                                      British
                                                                                                                                                      Columbia
                                                                                                                                                      Class
                                                                                                                                                      Action
                                                                                                                                                      claim
                                                                                                                                                      impacted
                                                                                                                                                      the
                                                                                                                                                      measurement
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      associated
                                                                                                                                                      liability
                                                                                                                                                      as
                                                                                                                                                      at
                                                                                                                                                      September
                                                                                                                                                      30,
                                                                                                                                                      2010.
                                                                                                                                                      As
                                                                                                                                                      a
                                                                                                                                                      result
                                                                                                                                                      of
                                                                                                                                                      these
                                                                                                                                                      ineffective
                                                                                                                                                      controls,
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      incorrectly
                                                                                                                                                      measured
                                                                                                                                                      and
                                                                                                                                                      recorded
                                                                                                                                                      the
                                                                                                                                                      liability
                                                                                                                                                      in
                                                                                                                                                      its
                                                                                                                                                      previously
                                                                                                                                                      filed
                                                                                                                                                      financial
                                                                                                                                                      statements;
                                                                                                                                                      however,
                                                                                                                                                      it
                                                                                                                                                      has
                                                                                                                                                      now
                                                                                                                                                      corrected
                                                                                                                                                      for
                                                                                                                                                      this
                                                                                                                                                      error
                                                                                                                                                      as
                                                                                                                                                      described
                                                                                                                                                      in
                                                                                                                                                      Note
                                                                                                                                                      3
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      Company’s
                                                                                                                                                      September
                                                                                                                                                      30,
                                                                                                                                                      2011
                                                                                                                                                      restated
                                                                                                                                                      annual
                                                                                                                                                      financial
                                                                                                                                                      statements.
                                                                                                                                                      The
                                                                                                                                                      accounts
                                                                                                                                                      that
                                                                                                                                                      could
                                                                                                                                                      reasonably
                                                                                                                                                      be
                                                                                                                                                      affected
                                                                                                                                                      by
                                                                                                                                                      this
                                                                                                                                                      material
                                                                                                                                                      weakness
                                                                                                                                                      are
                                                                                                                                                      class
                                                                                                                                                      action
                                                                                                                                                      settlement
                                                                                                                                                      expense,
                                                                                                                                                      interest
                                                                                                                                                      expense,
                                                                                                                                                      income
                                                                                                                                                      tax
                                                                                                                                                      expense,
                                                                                                                                                      other
                                                                                                                                                      receivables
                                                                                                                                                      (current
                                                                                                                                                      and
                                                                                                                                                      long
                                                                                                                                                      term),
                                                                                                                                                      deferred
                                                                                                                                                      tax
                                                                                                                                                      asset
                                                                                                                                                      and
                                                                                                                                                      accrued
                                                                                                                                                      liabilities.
| | -- | 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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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Our independent auditor, KPMG LLP, have
issued an adverse opinion on the effectiveness of our internal controls over financial reporting as of September 30, 2011.



Changes in Internal Control
Over Financial Reporting



During the period ended September 30, 2011,
no changes occurred in our internal controls over financial reporting (ICFR) that has materially affected, or is reasonably likely
to materially affect, our ICFR; however, the two material weaknesses in ICFR as described above that were identified as part of
the preparation of the Company’s September 30, 2012 annual financial statements and March 31, 2013 interim financial statements,
were determined to exist as at September 30, 2011.



The Company has taken the following remedial
actions:



| | 1) | In
                                                                                                                                                      response
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      first
                                                                                                                                                      material
                                                                                                                                                      weakness
                                                                                                                                                      described
                                                                                                                                                      above,
                                                                                                                                                      in
                                                                                                                                                      December
                                                                                                                                                      2012,
                                                                                                                                                      management
                                                                                                                                                      implemented
                                                                                                                                                      processes
                                                                                                                                                      and
                                                                                                                                                      controls
                                                                                                                                                      to
                                                                                                                                                      identify
                                                                                                                                                      all
                                                                                                                                                      potential
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      transactions
                                                                                                                                                      identified
                                                                                                                                                      as
                                                                                                                                                      a
                                                                                                                                                      result
                                                                                                                                                      of
                                                                                                                                                      Internal
                                                                                                                                                      Audit’s
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      analysis,
                                                                                                                                                      and
                                                                                                                                                      provide
                                                                                                                                                      disclosures
                                                                                                                                                      required
                                                                                                                                                      by
                                                                                                                                                      applicable
                                                                                                                                                      accounting
                                                                                                                                                      standards.
                                                                                                                                                      In
                                                                                                                                                      addition,
                                                                                                                                                      as
                                                                                                                                                      part
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      financial
                                                                                                                                                      statement
                                                                                                                                                      close
                                                                                                                                                      process
                                                                                                                                                      for
                                                                                                                                                      the
                                                                                                                                                      three
                                                                                                                                                      and
                                                                                                                                                      six
                                                                                                                                                      months
                                                                                                                                                      ended
                                                                                                                                                      March
                                                                                                                                                      31,
                                                                                                                                                      2013,
                                                                                                                                                      the
                                                                                                                                                      Company
                                                                                                                                                      created
                                                                                                                                                      a
                                                                                                                                                      related
                                                                                                                                                      party
                                                                                                                                                      checklist
                                                                                                                                                      that
                                                                                                                                                      is
                                                                                                                                                      reviewed
                                                                                                                                                      and
                                                                                                                                                      assessed
                                                                                                                                                      as
                                                                                                                                                      part
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      quarterly
                                                                                                                                                      disclosure
                                                                                                                                                      committee
                                                                                                                                                      and
                                                                                                                                                      audit
                                                                                                                                                      committee
                                                                                                                                                      meetings.
| | -- | 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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| | 2) | In
                                                                                                                                                      response
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      second
                                                                                                                                                      material
                                                                                                                                                      weakness
                                                                                                                                                      described
                                                                                                                                                      above,
                                                                                                                                                      in
                                                                                                                                                      April
                                                                                                                                                      2013
                                                                                                                                                      management
                                                                                                                                                      established
                                                                                                                                                      a
                                                                                                                                                      process
                                                                                                                                                      to
                                                                                                                                                      coordinate
                                                                                                                                                      communications
                                                                                                                                                      internally,
                                                                                                                                                      as
                                                                                                                                                      well
                                                                                                                                                      as
                                                                                                                                                      to
                                                                                                                                                      regularly
                                                                                                                                                      consult
                                                                                                                                                      with
                                                                                                                                                      legal
                                                                                                                                                      counsel
                                                                                                                                                      and
                                                                                                                                                      the
                                                                                                                                                      third
                                                                                                                                                      party
                                                                                                                                                      settlement
                                                                                                                                                      administrator.
                                                                                                                                                      This
                                                                                                                                                      new
                                                                                                                                                      control
                                                                                                                                                      involves
                                                                                                                                                      a
                                                                                                                                                      review
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      status
                                                                                                                                                      of
                                                                                                                                                      all
                                                                                                                                                      litigation
                                                                                                                                                      and
                                                                                                                                                      claims
                                                                                                                                                      at
                                                                                                                                                      each
                                                                                                                                                      reporting
                                                                                                                                                      period
                                                                                                                                                      in
                                                                                                                                                      order
                                                                                                                                                      to
                                                                                                                                                      assess
                                                                                                                                                      their
                                                                                                                                                      impact
                                                                                                                                                      on
                                                                                                                                                      the
                                                                                                                                                      Company’s
                                                                                                                                                      consolidated
                                                                                                                                                      financial
                                                                                                                                                      statements.
| | -- | 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- 36 -







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There have been significant improvements
made to ICFR subsequent to September 30, 2011 in relation to the material weaknesses described above. The first material weakness
has been remediated as at September 30, 2012. With respect to the second material weakness, management needs sufficient time to
assess the effectiveness of the changes and to implement further improvements before it can conclude that the second material
weakness has been remediated.



OUTSTANDING SHARE DATA



As at November 16, 2011, we had 17,420,880
common shares outstanding. There were also options to purchase 977,502 common shares, which if exercised, would provide us with
proceeds of approximately $9.2 million.



DIVIDENDS



On November 16, 2011, we declared a quarterly
dividend of $0.12 per common share. The dividend is payable on December 14, 2011, to shareholders of record on November 29, 2011.



The Company reviews its dividend distribution
policy on a quarterly basis, evaluating its financial position, profitability, cash flow and other factors the Board of Directors
considers relevant. Prior to August 31, 2007, we had not declared or paid a dividend on the common shares. We declared our first
dividend on August 31, 2007, in the amount of $.025 cents per common share. In total, dividends of $3.6 million were paid to holders
of common shares in fiscal 2008, $5.3 million in fiscal 2009, $9.1 million in the fifteen months of fiscal 2010 and $7.9 million
in fiscal 2011. The following table sets forth the quarterly dividends paid by the Company in the last quarter ended:



|                        | 2011    | 2010    | 2009   | 2008  
|----------------------- | ------- | ------- | ------ | ------
|Dividend per
    share  | $ 0.120 | $ 0.100 | $0.065 | $0.025
|Percentage
    increase | 20%     | 54%     | 160%   |       



OTHER



Cash Store Financial is a Canadian corporation
that is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. operates in the United States
under the name "Cash Store."  Cash Store Financial does not do business under the name "Cash Store" in
the United States and does not own or provide any consumer lending services in the United States.



Cautionary Statement
Regarding Forward-looking Information



This MD&A contains “forward-looking
information” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information
includes, but is not limited to, information with respect to our objectives, strategies, operations and financial results, competition
as well initiatives to grow revenue or reduce retention payments. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "does not anticipate", or "believes" or variations of such words and phrases,
or statements that certain actions, events or results "may", "could", "would", "might",
or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements
of the Company, to be materially different from those expressed or implied by such forward-looking information, including, but
not limited to, changes in economic and political conditions, legislative or regulatory developments, technological developments,
third-party arrangements, competition, litigation, risks associated with but not limited to, market conditions, the availability
of alternative transactions, shareholder, legal, regulatory and court approvals and third party consents, and other factors described
in the our latest AIF filed on SEDAR at www.sedar.comunder the heading “Risk Factors”. Although we have attempted
to identify important factors that could cause actual results to differ materially from those contained in forward-looking information,
there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such information. Accordingly, readers should not place undue reliance on forward-looking information. We do not undertake
to update any forward-looking information, except in accordance with applicable securities laws.



- 37 -







|
|



Non-GAAP Measures



This MD&A refers to certain financial
measures that are not determined in accordance with GAAP in Canada. These measures do not have standardized meanings and may not
be comparable to similar measures presented by other companies. Although a measure such as ‘Earnings Before Interest,
Income Taxes, Stock-based Compensation, Depreciation of Property and Equipment and Amortization of Intangible Assets’(EBITDA)
does not have a standardized meaning prescribed by GAAP, this measure is used herein or can be determined by reference to our
financial statements. “Same branch revenues” is a non-GAAP measure tracked and reported by us and is generally
used to compare the average revenue for a particular group of branches in a current period to that same particular group of branches
in a prior period. This non-GAAP measure is a way to gauge the performance of a particular group of branches and is directly related
to, and helps explain, changes in total revenue. Average revenue is defined as revenue for the period divided by the number of
branches. “BOI” is a non-GAAP measure tracked and reported by us and is generally used to compare the performance
at branch level and includes expenses which primarily relate to the operations of the branch network. “Operating income”
(OI) is a non-GAAP measure tracked and reported by us and is generally used to compare the income before income taxes and other
non-recurring items which primarily relates to the overall operations of the branch, regional and corporate network. “Regional
expenses” is a non-GAAP measure which is used to gauge expenditures at the regional and divisional level and includes compensation
of associates including centralized regional departments, Regional Managers, Divisional Vice Presidents and President, as well
as other expenses related to the functions of these groups. “Corporate expenses” is a non-GAAP measure which is used
to gauge expenditures at the corporate level and includes compensation of associates and related expenses at the corporate office
level. These measures are discussed because management believes that they facilitate the understanding of our results as it relates
to our operational and financial position.



- 38 -







|
|



The following
table provides a reconciliation of net income in accordance with GAAP to EBITDA for the past eight quarters.



EBITDA Reconciliation



|(thousands of dollars)                                                           |  | 2011       |        |  | 2010       |  
|-------------------------------------------------------------------------------- |  | ---------- | ------ |  | ---------- | -
|                                                                                 |  | Q4         |        |  | Q3         |  
|                                                                                 |  | (restated) |        |  | (restated) |  
|Consolidated Results                                                             |  |            |        |  |            |  
|Net
    income and comprehensive income                                          |  | $          | 1,914  |  |            | $
|Interest                                                                         |  |            | 196    |  |            |  
|Income tax                                                                       |  |            | 1,568  |  |            |  
|Stock-based compensation                                                         |  |            | 218    |  |            |  
|Depreciation
    of property and equipment and amortization of intangible assets |  |            | 2,313  |  |            |  
|EBITDA                                                                           |  | $          | 6,209  |  |            | $
|Adjustments:                                                                     |  |            |        |  |            |  
|Class action settlements                                                         |  | $          | -      |  |            | $
|Effective interest
    component of retention payments                           |  |            | 5,112  |  |            |  
|Adjusted EBITDA                                                                  |  | $          | 11,321 |  |            | $



- 39 -