Company Interview / Credit where Credit’s due: CCP looking at diversifing earnings

Key points:

Full-year profit rises 16% to $94.1 million at Credit Corp (ASX:CCP) US division sees 12% collections growth, 28% productivity increase, and $164 million investment pipeline for FY26 Consumer lending profit after tax surges 31%, loan book sets record at $466 million New UK market entry and launch of Wallet Wizard digital credit card diversify earnings

Credit Corp (ASX:CCP) posts a 16% jump in full-year profit to $94.1 million, driven by robust growth in its consumer lending division and improved collections within its US debt buying segment. Thomas Beregi highlights a 12% increase in US collections and a 28% boost in productivity, resulting in a record $164 million investment pipeline for fiscal 2026. Beregi notes collection performance has held up well over the past 18 months, with market uncertainty potentially creating new acquisition opportunities.

Beregi outlines that consumer lending profit after tax rises 31% to a record $54.3 million, with the loan book reaching a high of $466 million, up 5%. Diversification efforts include Credit Corp’s expansion into the UK via acquisition of a licensed shell, with lending expected to commence in the first half, and the introduction of the Wallet Wizard digital credit card, targeting consumers underserved by major banks. The company forecasts fiscal 2026 profit of $100-$110 million, suggesting growth as high as 17%, and plans a final dividend of $0.36 per share.

Beregi remarks that demand in the Australian and New Zealand consumer lending market has moderated due to cost-of-living pressures, but expects lower rates to ultimately favour employment and spending. Credit Corp is also weighing further capital deployment opportunities in the US, Australia, and the UK.