Credit Corp FY26 NPAT Up 12% to Record $105.5m

Credit Corp (ASX:CCP) Group reported FY2026 net profit after tax of $105.5 million, up 12 per cent and described by the company as a record. Earnings grew across all segments, with the US debt buying segment producing most of the growth. US segment NPAT rose 57 per cent to $26.2 million as collections grew 24 per cent, and US segment return on equity improved by 2 percentage points to 8 per cent at pro-forma 40 per cent gearing. Final quarter US collections were up 25 per cent on the prior corresponding period and legal collections up 36 per cent following a re-engineering of the legal collection channel. Group return on equity rose 2 percentage points to 13 per cent at pro-forma 40 per cent gearing. Credit Corp secured A$166 million of US ledger investment during FY2026 and said the FY2027 pipeline is presently A$62 million, with Managing Director and CEO Thomas Beregi saying the company is well positioned to add to that pipeline and invest A$100 million to A$130 million during FY2027, against what the company described as more challenging investment conditions.

In consumer lending, total lending volume grew 15 per cent to a record level and new customer volume grew 22 per cent, producing a closing book of $510.5 million. Lending segment NPAT rose 3 per cent to $56 million, which the company said was suppressed by the impact of volume growth on loan provisioning and increased start-up losses associated with new products and markets; after adjusting for the increased earnings drag from new products and markets, segment earnings growth was 9 per cent. The Wizit digital credit card and line-of-credit product accounted for 17 per cent of all new customers acquired, with run rate breakeven expected during FY2027. UK lending operations commenced during FY2026, with the first loans to UK customers issued early in July 2026. In AU/NZ debt buying, the acquisition of a credit card run-off book in the third quarter pushed investment to $136 million, 50 per cent higher than FY2025, which the company said helped deliver 4 per cent collections growth and a commensurate 5 per cent increase in NPAT. A final dividend of 45.5 cents per share will be paid on 25 September 2026 and, together with the interim dividend, represents a full-year payout ratio of 50 per cent. Credit Corp is guiding for FY2027 earnings growth of 4 to 12 per cent, with NPAT of $110 million to $118 million and EPS of 161 to 173 cents.