Company Interview / Credit Corp capitalises on US growth

Key points:

• US segment earnings growth and legal collections expansion

• Stronger Australian debt purchasing pipeline and rising unsecured credit usage

• Earnings guidance upgrade supported by lending book growth and ROE improvement

Credit Corp (ASX:CCP) posts what Thomas Beregi characterises as record results, driven largely by a strong recovery in its US debt purchasing operations. Beregi states earnings from the US segment rise 57% year on year, underpinned by several years of operational improvement and increased investment. He views the US as the largest debt purchasing market globally, where Credit Corp holds only a small market share and sees substantial upside, provided purchasing discipline is maintained amid rising portfolio prices and aggressive listed competitors accessing deep US bond markets.

In Australia and New Zealand, Beregi points to improving conditions as consumers draw more on unsecured credit. He notes Reserve Bank of Australia data showing solid growth in interest‑bearing credit card balances, feeding into higher charge‑offs and more debt sale opportunities. Credit Corp’s purchasing in Australia is said to be up 50% on the prior year, with potential larger portfolios in the pipeline for FY27. Group guidance is set at $110–118 million in earnings, implying 4–12% growth, supported by the US turnaround, the Australian business, and a consumer lending book now above $500 million.

Beregi maintains an interest in acquiring Humm’s point‑of‑sale lending business, while also pursuing organic growth in the UK and Australia. He highlights disciplined capital allocation, ongoing US execution, and careful management of credit losses as the key risks and focus areas for sustaining returns and improving Credit Corp’s share price over time.