Credit Corp Group has reported record earnings for FY2026, with net profit after tax growing 12 percent to $105.5 million. The company’s performance was driven primarily by strong growth in its US debt buying segment, which saw earnings surge 57 percent. Return on equity improved 2 percentage points to 13 percent at pro-forma 40 percent gearing, while lending volumes grew 15 percent to reach a record $510.5 million closing book. The company also commenced operations in the UK consumer lending market during the period.
The US debt buying segment was the standout performer, with collections growing 24 percent over the year. A re-engineering of the legal collections channel proved particularly effective, producing 36 percent growth in legal collections in the final quarter. This is significant because Credit Corp has historically been less competitive in legal collections against major US peers. Managing Director Thomas Beregi highlighted the importance of this improvement, noting that the competitive gap is closing. The US segment achieved a return on equity of 8 percent at pro-forma 40 percent gearing, a 2 percentage point improvement on the prior year.
The consumer lending segment presented a more mixed picture. Lending NPAT rose just 3 percent to $56 million, with growth constrained by the impact of volume expansion on loan provisioning and start-up losses from new products and geographic markets. However, underlying growth was stronger at 9 percent after adjusting for these headwinds. The company’s Wizit digital credit card and line-of-credit product continues to build traction, now accounting for 17 percent of new customer acquisitions. While currently unprofitable, Wizit is expected to reach run-rate breakeven during FY2027.
For investors, the results demonstrate Credit Corp’s ability to capture market share and drive operational improvements across multiple segments. The turnaround in US collections performance addresses a long-standing competitive weakness, while the 15 percent growth in lending volumes suggests the consumer credit market remains robust. The company achieved this growth despite headwinds in US debt buying investment conditions, with supply contracting and pricing pressuring returns on some larger deals. Credit Corp secured $166 million of US ledger investment during FY2026, with a pipeline of $62 million already established for FY2027.
Looking ahead, management flagged confidence in achieving $100 to $130 million in US investment during FY2027, suggesting continued discipline without compromising return thresholds. The consumer lending platform, built to $510.5 million in closing balances, positions the segment to absorb further earnings drag from new initiatives while still delivering growth. The early-stage UK operations and Wizit’s progression toward profitability represent additional growth vectors to monitor closely. This announcement has been flagged as price sensitive and material by the ASX.
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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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