Credit Corp has reaffirmed its guidance for net profit after tax growth of 6 to 17 per cent in 2025-26, following a first-half profit of $44.1 million, consistent with the previous year. The company provides debt purchasing, collection services, and consumer lending solutions. Credit Corp manages purchased debt ledgers and provides consumer finance options, primarily in Australia, New Zealand, and the United States.
The company informed investors that while first-half earnings were affected by robust loan book growth and interruptions to debt purchases in Australia and New Zealand, it anticipates a reversal of this trend in the second half. US collections saw a 23 per cent increase compared to the previous year, alongside a 41 per cent rise in productivity. The book of payment arrangements closed the half 5 per cent higher. The US investment pipeline has expanded to $157 million due to additional forward flow volume, with full-year US investment now projected to reach $160 million to $180 million.
According to Credit Corp chief executive Thomas Beregi, US debt collection outcomes have remained stable since mid-2023, despite a slight increase in unemployment. This stability follows adjustments to the company’s outsourced legal collections network. In Australia and New Zealand, record half-year lending volumes and a 25 per cent increase in new customers boosted the Wallet Wizard loan book to $442 million. Disruptions to debt ledger purchasing were partially compensated by backlog files and one-off purchases, raising the 2025-26 Australia and New Zealand investment pipeline to $120 million and increasing anticipated investment to $120 million to $150 million.
Credit Corp has announced an interim dividend of 32¢ per share, maintained a conservative net gearing of 32 per cent, and stated that it is on track to increase return on equity to 13 per cent in 2025-26. The company is also engaged in preliminary discussions regarding a potential acquisition of Humm.
