Credit Corp Boosts US Debt Buying and Confirms Strong FY25 Growth Outlook
Credit Corp Group reported steady H1 FY25 results with operational improvements and confirmed full-year guidance, driven by growth in US debt buying and stable Australian/New Zealand lending.
- H1 FY25 revenue up 6% to $271.5 million
- US debt buying collections and productivity improved despite market challenges
- Consumer lending volumes stabilised with strong credit metrics
- Full-year NPAT guidance confirmed at $90–100 million, projecting 11–23% growth
- Maintained low regulatory complaint rates and responsible lending practices
Operational Momentum in a Competitive Market
Credit Corp Group has reported its half-year results for FY25, demonstrating operational resilience and financial performance largely in line with market expectations. The company’s diversified approach across US and Australian/New Zealand debt buying, alongside consumer lending, continues to underpin its leadership in the credit-impaired consumer segment.
Despite a challenging environment marked by reduced investment over the past two years and intensified competition, Credit Corp’s US debt buying segment showed notable operational improvements. Collections grew and productivity per hour increased by 28% year-on-year, reflecting enhanced purchasing discipline and efficiency gains. The company is on track to secure at least $150 million in US debt purchasing for FY25, with a focus on shorter-duration credit card portfolios.
Stable Lending and Credit Quality
In the Australian and New Zealand markets, consumer lending volumes have moderated, with Wallet Wizard new customer acquisition stabilising. Importantly, credit metrics remain robust, with losses consistently below the pro-forma loss provisions. The company’s unique statistical underwriting and analytical monitoring continue to support disciplined risk management, contributing to a low 30+ days arrears rate and strong loss provisioning coverage.
Credit Corp is also advancing its product innovation pipeline, with the Wizit digital credit card expected to exit pilot phase in the second half of FY25. Meanwhile, the company is closely monitoring used car price deflation, which is approaching levels that could trigger renewed growth in its auto lending segment.
Financial Performance and Guidance
Financially, Credit Corp reported total revenue of $271.5 million for H1 FY25, a 6% increase over the prior corresponding period. Pre-impairment NPAT rose 32% to $44.1 million, although the US portfolio impairment of $65 million weighed on overall earnings. The company declared a 15 cent dividend and basic EPS more than doubled to 64.8 cents.
Looking ahead, Credit Corp reaffirmed its FY25 guidance, targeting NPAT growth of 11–23% to a range of $90–100 million. The company plans ledger investment between $200–250 million and net lending of $45–55 million, maintaining a conservative gearing ratio and strong liquidity position to support growth initiatives.
Responsible Lending and Market Position
Credit Corp continues to distinguish itself as a responsible operator, with low regulatory complaint rates and APRs below mainstream credit caps. The group’s commitment to consumer hardship response has been recognised by financial counsellors, and its net promoter score remains positive. This responsible stance, combined with operational excellence and technological investment, positions Credit Corp well amid evolving regulatory and competitive pressures.
Overall, Credit Corp’s H1 FY25 results reflect a company balancing growth ambitions with disciplined risk and cost management, leveraging data analytics and operational scale to maintain its market leadership.
Bottom Line?
Credit Corp’s steady progress and disciplined investment set the stage for sustained growth, but market competition and economic shifts warrant close investor attention.
Questions in the middle?
- How will Credit Corp’s US debt buying strategy adapt if economic conditions deteriorate further?
- What impact will the full launch of the Wizit digital credit card have on lending volumes and profitability?
- Can the company sustain its low regulatory complaint rates amid increasing scrutiny in consumer credit markets?
