Credit Corp Posts 4% Revenue Rise, Holds Profit Steady at $44.1 Million
Credit Corp Group Limited reported a steady half-year profit with a 4% revenue rise, driven by strong US collections and record lending volumes, while advancing its UK presence through a strategic acquisition.
- Revenue up 4% to $283.6 million
- Net profit after tax stable at $44.1 million
- US collections increase 23%, boosting operational efficiency
- Record loan book growth of 7% in Australia/New Zealand
- Acquisition of UK consumer lending license via Lifestyle Loans Limited
Steady Financial Performance Amid Growth Initiatives
Credit Corp Group Limited has delivered a stable financial performance for the first half of the 2026 fiscal year, reporting revenue growth of 4% to $283.6 million while maintaining net profit after tax (NPAT) at $44.1 million, essentially unchanged from the prior corresponding period. This steady result reflects a balance between robust operational gains and transitional challenges within its debt purchasing and consumer lending segments.
US Operations Drive Momentum
The US segment emerged as a key growth driver, with collections increasing by 23% compared to the previous year. Productivity improvements of 41% and a 5% rise in payment arrangements underscore operational enhancements, particularly in the outsourced legal collections channel where recent restructuring efforts are beginning to bear fruit. The US investment pipeline has expanded to approximately A$157 million, with full-year investment expected between A$160 million and A$180 million, signaling confidence in this market despite broader economic uncertainties.
Record Lending Volumes and Loan Book Expansion
In Australia and New Zealand, Credit Corp achieved record lending volumes, with a 7% growth in its loan book. The Wallet Wizard product continues to capture a growing share of the credit-impaired market, supported by refreshed marketing strategies and operational improvements. Additionally, the Wizit digital credit card has attracted over 4,000 new customers, expanding the loan book to $17 million. These developments highlight the Group’s commitment to diversifying and deepening its consumer lending offerings.
UK Market Entry and Strategic Acquisition
Credit Corp’s acquisition of Lifestyle Loans Limited in October 2025 secured a UK consumer lending license, marking a strategic step into the UK market. This acquisition, accounted for as an asset purchase focused on the lending license, positions the Group to commence lending operations in the UK later in the second half of the fiscal year. Furthermore, ongoing negotiations for the potential acquisition of Humm Group Ltd could further expand Credit Corp’s footprint in consumer lending and point-of-sale financing, although due diligence has yet to begin.
Capital Management and Dividend Consistency
The Group maintains a conservative capital structure with net gearing at 32%, consistent with the prior period. An interim dividend of 32 cents per share, fully franked, was declared, aligning with the previous year’s payout and reflecting a disciplined approach to shareholder returns. Credit Corp anticipates achieving a 13% return on equity for the full year, up from 11% in FY25, driven largely by improved US segment performance.
Outlook and Market Positioning
Credit Corp’s outlook remains unchanged, with a strategic shift towards increased purchased debt ledger investment in Australia and New Zealand offsetting a slightly reduced US component. The Group’s diversified operations across multiple geographies and product lines, combined with ongoing operational enhancements and strategic acquisitions, position it well for sustainable growth in a competitive market.
Bottom Line?
Credit Corp’s steady half-year results and strategic moves set the stage for growth, but the market will watch closely how UK expansion and US operational changes translate into future earnings.
Questions in the middle?
- How will the UK lending operations perform once launched later this year?
- What impact will the potential Humm Group acquisition have on Credit Corp’s growth trajectory?
- Can operational improvements in the US legal collections channel sustain momentum amid economic uncertainties?
