Company Interview / Credit Corp's international earnings strategy

Key points:

Credit Corp (ASX:CCP) targets full-year NPAT of up to $105 million, with strong H2 performance forecastUS profits up 60%, operational improvements to continueUK market entry underway, Australian debt buying pipeline strengtheningConsumer lending volumes up 25% YOY, strong growth from new products including digital credit card WizardHUM Group (ASX:HUM) identified as a potential acquisition for expansion and synergy opportunities

Credit Corp Group (ASX:CCP) forecasts full-year growth in net profit after tax of 6 to 17%, projecting earnings to reach approximately $105 million – a significant milestone for the company. Chief executive, Thomas Beregi highlights strong lending activity, with consumer loan origination setting a new record, up 14% year-on-year. This has slightly suppressed first-half profits, which came in at $44 million, due to upfront loss provisions, but is expected to significantly boost interest income and profitability in the second half. Credit Corp will pay an interim dividend of $0.32 per share and has appointed Sarah Brennan as a non-executive director.

Beregi points to a robust performance in the US, with profits more than 60% higher than the prior year and ongoing operational improvements expected to further drive uplift. The company is also broadening its global footprint through the acquisition of a licensed entity in the UK and intends to launch its lending business there by June. In Australia, signs of a strengthening debt purchasing pipeline signal recovery post-Covid.

Locally, Credit Corp sees continued growth in its consumer lending segment, with customer volumes rising over 25% and new products like the digital credit card Wizard gaining traction. Beregi confirms negotiations with HUM Group (ASX:HUM), a potential acquisition the company finds attractive for its complementary operations and UK presence.