Credit Corp Group delivered record earnings in the 2026 financial year, with adjusted net profit after tax of $106 million representing 12 percent growth on the prior year, alongside an increased dividend to shareholders of 77.5 cents per share, up from 68 cents. The company’s strength came from earnings growth across all three business segments, with particular momentum in the United States debt buying business where revenue surged 26 percent on a constant currency basis.
The Australian and New Zealand operations provided a stable foundation, with debt buying and collection services revenue slightly up to $220.6 million and lending revenue growing 7.6 percent to $214.9 million, driven by expansion across Wallet Wizard unsecured loans, Wizit credit card, and the CarStart auto lending platform. The real growth story, however, came from the US division where revenue reached $150.5 million, up from $125.9 million in the prior year. This US momentum contributed to higher profit at the segment level, with US debt buying profit increasing 57 percent to $26.2 million, though this reflects constant currency comparisons and includes contributions from acquisitions made during the year.
Credit Corp’s balance sheet expanded materially during the year, with gross financial assets growing from $1,292 million to $1,385 million. More importantly for shareholders, return on equity at the company’s pro-forma gearing level of 40 percent improved 200 basis points to 13.1 percent, reflecting both absolute profit growth and the leverage applied to the expanded asset base. The company continues to target a long-term return on equity of 16 percent, suggesting management expects further efficiency gains and scale benefits to flow through.
The strategic roadmap outlined in the results remains focused on disciplined capital deployment across the portfolio. The company commits to approximately $100 million annual investment in Australian and New Zealand debt buying, with US debt buying investment scaling from the current US$120 million to US$150 to US$200 million, and longer-term ambitions of US$200 million or more. The unsecured lending franchises are targeted to grow their combined book from $510 million to $800 million in the medium term and $1 billion longer term, while the company flagged UK expansion as a longer-term aspiration without detailing timing or deployment.
Investors should track execution of these growth plans, particularly the US scaling given the material uplift in profitability already evident and the potential for further margin expansion as the business matures. The company’s ability to maintain underwriting discipline and collection efficiency, demonstrated by low dispute rates and a large database of ongoing repayment arrangements totalling $1.2 billion, will be critical to sustaining returns. This announcement is price sensitive and has been flagged as material by the Australian Securities Exchange.
View the full ASX announcement (PDF)
About Credit Corp Group Limited (ASX: CCP)
Credit Corp Group Limited is an Australian financial services company that specializes in acquiring and managing credit-impaired consumer debt across portfolios. The company operates in Australia, New Zealand, and the United States through multiple business segments including debt ledger purchasing and consumer lending, operating under brands including Baycorp, National Credit Management Limited, Collection House Limited, and CarStart Finance.
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