Credit Corp Group Limited has signed a binding agreement to acquire HSBC Bank Australia Limited’s credit card run-off book for approximately A$150 million, marking a significant expansion of its Australian debt acquisition portfolio. The transaction is expected to complete in early 2027, following HSBC’s de-activation process for cards currently on issue, and remains subject to regulatory approval. This move represents a strategic extension of Credit Corp’s core business into a segment it has not historically pursued at scale.
A credit card run-off book consists of charged-off debts that cardholders have failed to repay. Unlike the traditional charged-off debts that Credit Corp typically acquires, credit card receivables have a shorter maturity profile and higher volatility in repayment timing. Despite this structural difference, Credit Corp’s management expects the transaction to meet the company’s hurdle rate of return, indicating that the pricing reflects both the risk profile and the shorter duration of the asset class.
The acquisition has prompted Credit Corp to revise its FY27 market guidance upward. Personal debt letter acquisitions, which include the HSBC book, have been increased from A$200-280 million to A$300-380 million, a substantial adjustment reflecting the company’s confidence in the transaction. Within that range, AU/NZ acquisitions alone are now guided at A$200-250 million, up from A$100-150 million previously. US acquisitions remain guided at A$100-130 million, unchanged.
Net profit after tax guidance for FY27 has been modestly increased from A$110-118 million to A$112-120 million. At the mid-point of the revised range, this guidance implies 10 percent earnings growth relative to FY26. The company has also provided H1 FY27 NPAT guidance of A$45-55 million. Gross lending volumes remain unchanged at A$445-495 million, indicating that the HSBC acquisition is an add-on to rather than a substitution within Credit Corp’s acquisition strategy.
For investors, the transaction signals Credit Corp’s willingness to diversify its acquisition sources beyond its traditional playbook and its confidence in its ability to extract value from shorter-duration receivables. The pricing to hurdle rate suggests management has been disciplined in its valuation approach. The uptick to FY27 earnings guidance, while modest, reflects the accretive nature of the transaction from day one of consolidation.
Regulatory approval remains the key hurdle ahead. The timing of completion in early 2027 also means the full impact will span two fiscal periods and the realization of management’s value assumptions will become clearer in FY27 earnings reports and subsequent disclosures. Investors should monitor regulatory feedback over coming months and track actual acquisition volumes as the year unfolds. This announcement is price sensitive and has been classified as a material disclosure by the ASX.
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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