Credit Corp (ASX:CCP) doubles its US earnings to $17.7 mil

Company News

by Lauren Evans

Credit Corp (ASX:CCP) has posted an 11 per cent increase in net profit over the prior year, to $88.1 million at the end of FY21.

The US debt-buying business was the biggest single contributor to earnings growth in 2021, with net profit doubling to $17.7 million and a 26 per cent increase in collections from the previous year.

The debt facilitator recorded a purchased debt ledger (PDL) investment outlay of $293 million. Australia and NZ PDL collections were within 4 per cent of FY2020’s stimulus-induced result. This followed a reduced PDL supply from the Covid-19 pandemic.

The lending business experienced a rapid increase in demand, particularly from returning customers when they returned to pre-covid settings at the start of the fourth quarter. Second half of FY21's lending volume reached a record $105 million. 

Credit Corp CEO Thomas Beregi said, “Our tightly integrated US platform has the operational effectiveness and infrastructure required to achieve, and surpass, our medium term objective of $200 million in annual US PDL investment."

Shares in Credit Corp (ASX:CCP) are trading 0.6 per cent lower at $28.35.

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