Company’s net profit for FY25 reached $94.1 million, which is a 16% increase over the previous year
SYDNEY: Credit Corp Group Limited (ASX: CCP), a provider of debt purchasing and consumer lending services, announced a solid recovery for the 2025 financial year (FY25) and presented a strong outlook for FY26.
The company’s net profit after tax (NPAT) for FY25 reached $94.1 million, which is a 16% increase over the previous year’s underlying NPAT of $81.2 million.
The positive results were driven by the company’s consumer lending segment, which saw significant earnings growth as lending volumes stabilized following several years of substantial post-COVID re-leveraging.
The segment’s NPAT was a record $54.3 million, marking a more than 30% increase from FY24. The consumer loan book also grew by 5%, reaching a record gross closing balance of $466 million.
In the United States, the debt buying segment showed improved operational performance with a 12% increase in ledger collections and a 28% rise in productivity. This improvement has led to a record contracted investment pipeline for FY26 of A$164 million, which is expected to drive strong segment earnings growth.
Thomas Beregi, Credit Corp’s CEO, noted that the company has diversified its purchasing across various sellers and focused on acquiring lower-balance credit card receivables to improve cash conversion and shorten the duration of its U.S. book. Despite ongoing uncertainty for U.S. consumers, collection outcomes have not shown signs of deterioration over the last 18 months, with delinquency on existing payment arrangements remaining similar to mid-2023 levels.
For the Australia and New Zealand (AU/NZ) consumer lending market, the company’s core Wallet Wizard product continues to attract a large number of new customers monthly. Credit Corp is also diversifying its offerings with the release of the Wizit digital credit card from its pilot phase, which appeals to consumers with less immediate credit needs.
Looking forward, Credit Corp plans to begin lending operations in the United Kingdom in the first half of FY26, viewing the UK as a significant opportunity to achieve its targeted rate of return.
While the AU/NZ debt buying market remains constrained with sales volumes below pre-COVID levels, Credit Corp anticipates that the impact of a 29% decline in purchasing will be offset by benefits from systems consolidation in its collection services division.
Credit Corp has issued guidance for FY26 with a projected NPAT of $100-$110 million, which at the midpoint, represents a 12% increase over FY25. The company also plans to pay a final dividend of 36 cents per share for FY25, representing a full-year payout ratio of 49%.