Credit Corp Group has guided to record investment and record earnings in FY2027, with net profit after tax expected to reach $112-120 million compared to $106 million in FY2026, representing 10% growth at the midpoint. The forecast reflects the impact of acquiring HSBC’s credit card run-off book, a $150 million addition to the company’s Australian debt buying pipeline that will settle in early H2 FY2027.
The earnings growth comes from diversified expansion across the company’s three main segments. Ledger investment is guided to $300-380 million while the gross lending book is expected to reach $445-495 million. Consumer lending has already demonstrated momentum, with volume up 19% and the loan book up 12% in the most recent quarter. Newer lending products including PowerUp line of credit and an emerging home loan product are on track to contribute to results, with the home loan product expected to reach break-even run rate in late FY2027.
The US debt buying segment is showing operational improvement despite moderating investment levels. Legal collections grew 50% year-on-year while asset turnover improved to 0.85 from 0.70, placing the company’s performance in the upper quartile of listed competitors. However, elevated pricing in the secondary market is constraining purchasing, with investment guidance of $100-130 million down from $149 million in FY2026. Management flagged that an improved operating platform is in place to lift investment once pricing eases.
Australian and New Zealand debt buying continues to benefit from acquisition opportunities despite intensified competitive dynamics. The company’s purchasing pipeline has grown to $225 million including the HSBC opportunity, with guidance of $200-250 million excluding this one-off acquisition. Collections strength persists, with the arrangement book reaching $1,173 million and collections climbing 15% year-on-year.
The company is celebrating a decade of compliance leadership. Its Australian dispute rate ranks well below competing debt buyers and banks, while its US dispute rate is among the lowest of publicly traded competitors. Financial counsellors ranked Credit Corp highest for response to consumer hardship in their 2026 assessment, positioning the company distinctly in a sector often marked by regulatory scrutiny and consumer criticism.
A rules-based approach to leveraged ETFs
See how our quantitative strategy works and who it suits.
Explore the strategyBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CARKey items to monitor include the timing and execution of the HSBC card run-off book integration scheduled for early H2 FY2027, secondary market pricing conditions and whether US investment levels normalize as expected, and the trajectory of newer lending products as they scale. This announcement is price sensitive and has been flagged as material 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.
If you would like to discuss this announcement, request a callback or call us on 1300 889 603.
Learn to trade with a plan
Our free 5-day course covers entries, exits and risk management.
Start the free courseBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CAR