Credit Corp FY25 NPAT Hits $94.1M, US Investment Pipeline at $164M
Credit Corp Group delivered a robust FY25 with a 16% increase in net profit after tax, driven by US debt buying and Australian/NZ lending growth. The company sets an ambitious FY26 outlook, underpinned by a record US investment pipeline and new product launches.
- 16% NPAT growth to $94.1 million in FY25
- US debt buying and Australian/NZ lending segments lead revenue gains
- Strong capital position with $150 million excess capital and low gearing
- Record FY26 US investment pipeline secured at $164 million
- Launch of Wizit digital credit card and UK sub-prime lending entry planned
Solid FY25 Performance Amid Market Challenges
Credit Corp Group has reported a solid financial recovery for FY25, with net profit after tax (NPAT) rising 16% to $94.1 million. This marks a significant rebound supported by growth in its US debt buying operations and Australian/New Zealand lending activities. Despite a contraction in the Australian and New Zealand debt buying segment, the company’s diversified portfolio and operational discipline have helped stabilise performance.
The company’s leadership highlighted a focus on analytics, operational excellence, and regulatory compliance as key drivers behind the results. Emphasis on payment arrangements over litigation and maintaining low regulator complaint rates have underpinned sustainable collections and customer engagement.
Growth Engines – US Debt Buying and Lending Segments
The US debt buying segment showed a 14% revenue increase on a constant currency basis, reflecting steady pricing and a strategic pivot towards shorter duration, lower balance credit card receivables to mitigate risk amid moderating sale volumes. Meanwhile, Australian and New Zealand lending revenue grew 31%, bolstered by refreshed marketing efforts and the launch of innovative products like the Wizit digital credit card, which has moved beyond pilot phase.
Credit Corp also announced plans to enter the UK sub-prime consumer lending market, pending regulatory approvals, by acquiring a licensed entity. This expansion signals the company’s intent to leverage its expertise in consumer finance across new geographies.
Strong Capital Position and Operational Efficiency
The group maintained a conservative gearing ratio of 28.5% and reported excess capital of $150 million, providing ample capacity to accelerate investment. Operational productivity improved, particularly in the US, with a 28% increase in collections productivity per hour. The company’s focus on technology and data analytics continues to enhance collection efficiency and reduce costs.
Ambitious FY26 Guidance and Strategic Outlook
Looking ahead, Credit Corp has set FY26 guidance projecting NPAT growth of 12% to a range of $100 million to $110 million. Ledger investment is expected to rise to between $280 million and $330 million, with gross lending forecast at $350 million to $390 million. Notably, 70% of the midpoint of the US ledger investment guidance is already under contract, reflecting strong confidence in the US market’s growth potential.
The company’s strategic priorities include expanding its addressable market, improving margins through system consolidation, and exploring growth opportunities in auto lending. The combination of disciplined risk management, regulatory compliance, and operational excellence positions Credit Corp well to navigate evolving market conditions.
Bottom Line?
Credit Corp’s FY25 momentum and strategic investments set the stage for a promising FY26, but regulatory approvals and market dynamics remain key watchpoints.
Questions in the middle?
- How will Credit Corp manage regulatory risks in its UK sub-prime lending expansion?
- What impact will intensified competition in Australian/NZ debt buying have on margins?
- Can the company sustain US debt buying growth amid moderating credit demand?
