Credit Corp Group Limited reports solid first half results for FY24

Credit Corp Group Limited (ASX: $CCP) has reported solid first half results for the 2024 fiscal year, with a 16% growth in the consumer loan book to a record gross closing balance of $414 million. The company also noted a tripling in consumer lending Net Profit after Tax (NPAT) over the prior comparative period (pcp). Despite a statutory NPAT loss of $12.1 million, the underlying NPAT for the period was 5% higher than the pcp at $33.5 million, excluding the impact of the previously announced impairment of the Company's US Purchased Debt Ledger (PDL) book.

Executive commentary on first half performance and outlook

Mr Thomas Beregi, CEO of Credit Corp, highlighted the prospect of securing further US PDL volume at favorable pricing, noting the increasing supply being offered for sale by many clients. He also mentioned that strong credit demand was continuing into the second half and that Credit Corp would look to maintain its share. Mr. Beregi emphasized the responsible nature of Wallet Wizard, which is meeting the requirements of a growing number of consumers with limited borrowing alternatives.

Summary of first half results and outlook for FY24

Credit Corp Group Limited (ASX: $CCP) has reported a solid first half performance for the 2024 fiscal year, with significant growth in the consumer loan book and improved US operational performance. The company's outlook indicates the potential for increased consumer lending division earnings over the second half, contingent on lending volume remaining strong. Credit Corp has refined its FY24 guidance to reflect the debt ledger pipeline already secured and the record lending volumes. The company will pay an interim dividend for the 2024 financial year of 15 cents per share, in line with a full year payout rate of approximately 50% of the mid-point of EPS guidance. Credit Corp's management remains focused on mitigating the impact on earnings as the AU/NZ PDL book runs-off and collections decrease. The company encourages stakeholders to review the full media release in conjunction with the Appendix 4D and Consolidated Interim Financial Statements and the results presentation available on their website.