Credit Corp Group (ASX:CCP) CEO Thomas Beregi told investors the company is targeting earnings growth while maintaining what it considers “acceptable returns,” defined as a 16% return on equity with a conservative capital structure, as it continues to expand its lending and purchased debt ledger portfolios.
In a presentation of the company’s 2026 half-year results, Beregi said Credit Corp operates “at the risky end of the consumer credit spectrum,” serving customers who have typically defaulted on a previous obligation. He framed the strategy around staying ahead in analytics, operational execution, and compliance, noting the business is more likely to engage with customers experiencing hardship or vulnerability.
First-half profit flat as investment ramps
He said the company’s asset growth was reflected in both key portfolios, with “both our loan book and purchased debt ledger book recording growth over the prior year.”
Second-half uplift expected; full-year guidance reiterated
Management expects earnings to skew toward the second half. Beregi said net profit after tax is projected to rise from AUD 44.1 million in the first half to AUD 61 million in the second half, driven by higher interest income from the expanded loan book, seasonal reductions in marketing and provisioning costs, and increased collections from the larger purchased debt ledger book.
For the full year, the company reiterated guidance for net profit after tax of AUD 100 million to AUD 110 million, which Beregi said would represent growth of 6% to 17% over the prior year. He added that guidance was unchanged from the start of the year.
U.S. results improve; buying pipeline outlined
Beregi said the company’s U.S. business “has continued to improve,” citing productivity gains that lifted segment earnings by 63% to $11.7 million. He said the improved performance supported continued investment in the market.
He also provided an update on purchasing capacity and expected volumes in the U.S., stating that the full-year committed U.S. purchasing pipeline stood at AUD 157 million. He said there were opportunities to expand that to a range of AUD 160 million to AUD 180 million.
Lending hits a half-year record; ANZ debt buying resumes momentum
On the consumer lending side, Beregi said refreshed marketing and strong operations contributed to a 14% increase in total lending volume to a half-year record. He said this growth lifted the loan book to “almost AUD 500 million.”
In the Australia and New Zealand debt buying business, Beregi said the segment ended the half “in a strong position,” despite disruptions during the period to forward-flow purchasing arrangements. He said much of that disruption was remedied with the receipt of backlog files in December.
Beregi also highlighted success in securing one-off purchases, including “a large credit card runoff book” acquired in January. He said the committed purchasing pipeline for Australia stood at AUD 120 million, with additional opportunities to grow from there.
Balance sheet capacity and Humm Group acquisition interest
Beregi said Credit Corp’s capital position remained strong, with net borrowing at 32% of financial assets. He said the company had undrawn credit lines and the ability to expand its access to finance to fund potential opportunities.
One of those opportunities is a potential acquisition of Humm Group Limited. Beregi said Credit Corp was “presently working towards gaining access to due diligence information,” and described Humm as complementary to Credit Corp’s consumer lending ambitions.
Beregi outlined several areas where he believes Humm could broaden or accelerate Credit Corp’s strategy:
- Distribution: Credit Corp’s consumer lending is currently distributed directly through advertised channels, while Humm has a retail network for point-of-sale distribution.
- U.K. presence: Credit Corp has commenced building a business in the U.K., while Humm has an established and “extensively profitable” platform in that market.
- Commercial exposure: Credit Corp does not undertake commercial lending, while Humm has what Beregi called a “large and high-quality commercial leasing business” that Credit Corp would seek to grow.
- Potential synergies: Beregi said he expects synergies from combining aspects of the two businesses.
However, Beregi cautioned that the outcome is “very uncertain,” and said that even without a transaction, Credit Corp has a “strong organic growth agenda capable of delivering substantial value.”
Looking ahead, Beregi said the company now expects an increased proportion of purchased debt ledger investment to be in Australia and a smaller component in the U.S., while maintaining all other guidance. He said the ability to shift investment by market reflects one benefit of operating across multiple regions.
About Credit Corp Group (ASX:CCP)
Credit Corp Group Limited engages in the provision of debt ledger purchase and collection, and consumer lending services in Australia, New Zealand, and the United States. It operates through three segments: Debt Ledger Purchasing Australia and New Zealand; Debt Ledger Purchasing United States; and Consumer Lending Australia, New Zealand and the United States. The company offers debt sale, contingency and agency collection, local government debt recovery, and hardship and insolvency management services, as well as various loan products.
