Credit Corp Profits Surge on US Recovery

Credit Corp has reported a 16 per cent increase in full-year profit, reaching $94.1 million. This growth was primarily fuelled by a significant recovery in US debt collections and robust earnings growth within its consumer lending division. Credit Corp specialises in debt purchasing and collection, and also provides consumer lending services. The company operates in Australia, New Zealand, and the United States.

The US division experienced a 12 per cent increase in collections and a 28 per cent improvement in productivity. This performance has enabled the group to secure a record $164 million investment pipeline for the fiscal year 2026. Despite ongoing market uncertainties, Credit Corp noted that collection performance has remained consistent over the past 18 months. The company anticipates further purchasing opportunities in the coming year.

Consumer lending profit after tax saw a substantial rise of 31 per cent, achieving a record $54.3 million. This increase was supported by slower loan book growth, which reduced upfront provisioning costs. In an effort to diversify its earnings, Credit Corp has expanded its lending operations to the UK and introduced its Wizit digital credit card.

Looking ahead, Credit Corp is projecting a fiscal year 2026 profit ranging from $100 million to $110 million. This guidance implies a potential growth rate of up to 17 per cent.