Credit Corp Group's FY2024 Highlights

Credit Corp Group Limited (ASX: $CCP) reported a solid finish to the 2024 fiscal year, with an 18% growth in lending segment net profit after tax (NPAT) and a 24% growth in the consumer loan book to a record gross closing balance of $445 million. The US operational performance improved over the final quarter of FY2024, and the company secured a strong FY2025 US investment pipeline. However, underlying NPAT fell by 11% over the prior year to $81.2 million due to continued run-off in the core AU/NZ debt buying business and degraded US collection conditions.

Executive Commentary

Operational improvement has made Credit Corp more competitive in the market, securing more than half of the expected annual US investment during the month of July alone. The company's enhanced management of the legal collection channel has delivered positive results, and it anticipates favorable purchasing conditions in the US with steady pricing and supply expected to increase over the near-term. The consumer lending book grew to a record gross closing balance of $445 million, and the company expects a more modest book growth in FY2025. Credit Corp also noted that medium-term growth in the consumer lending division depended on product and/or geographic diversification.

Summary of FY2024 and Outlook

Credit Corp Group's FY2024 saw significant growth in the lending segment NPAT and the consumer loan book, despite a decline in underlying NPAT. The company's improved US operational performance and secured investment pipeline for FY2025 indicate a positive outlook. Credit Corp aims for an expected 27% increase in lending segment NPAT in FY2025, driven by higher interest income from the record starting loan book. The company also extended and increased its banking facilities, providing medium-term funding certainty. The outlook for FY2025 NPAT is $90-100 million, representing a 17% increase relative to FY2024, with guidance provided for the year ahead.