The Credit Corp Group Ltd (ASX: CCP) share price is down 9% after the company reported its FY26 result.
Credit Corp is one of the largest debt collectors in Australia, with a presence in the US. It also provides consumer lending in Australia and New Zealand.
FY26 half-year result
Let’s look at the highlights for the 12 months to 30 June 2026.
- Total revenue grew by 7% to $586 million
- Net profit after tax (NPAT) rose 12% to $105.5 million
- Earnings per share (EPS) rose 12% to $1.55
- Annual dividend hiked by 14% to $0.775
- Final dividend of $0.455 per share
There are three segments to the business and each of them saw a different level of performance.
US debt buying
The segment that’s driving the business the most is US debt buying, which saw revenue rise 26% to $150.5 million. This supported 57% net profit growth of the segment to $26.2 million.
Credit Corp said increased investment and a focus on operational improvement accelerated the turnaround in the US’ segment performance. Collections grew by 24%, while productivity and asset return measures also improved.
The company said the US operations finished FY26 in a stronger competitive position.
It said it’s well positioned to add to its current pipeline and invest between A$100 million to A$130 million during FY27.
ANZ buying and collection services
The ANZ debt buying and collection services revenue grew slightly to $220.6 million, helping the segment’s net profit rise 5% to $23.4 million.
Credit Corp said that ANZ sale volumes are showing signs of recovery, though the market remains small and competitive.
It said the acquisition of a credit card run-off book in the third quarter of FY26 pushed investment to $136 million, up 50% compared to FY25.
Credit Corp said it enters FY27 with an ANZ debt buying investment pipeline of $54 million. It expects to spend between $100 million to $150 million over the year.
ANZ lending
Credit Corp reported that ANZ lending revenue grew 8% to $214.9 million and the profit increased 3% to $55.9 million.
The company said that improved marketing and underwriting accuracy contributed to total lending and new customer volume growth of 15% and 22%, respectively.
The result was suppressed by the impact of volume growth on loan provisioning and increased start-up losses associated with new products and markets.
After adjusting for the increased earnings drag from new products and markets, the segment’s earnings growth was 9%.
This segment had a closing lending book of $510.5 million, which can help offset further earnings drag and produce net profit growth in FY27.
UK lending operations started during FY26, with the first loans to UK customers issued early in July 2026. UK lending represents an opportunity to establish a strong business in a large and presently underserved market.
Credit Corp said the UK represents an opportunity to establish a strong business in a large and presently underserved market.
Outlook for the Credit Corp share price
The business has provided guidance about what it expects in FY27.
Purchased debt ledger (PDL) acquisitions guidance is between $220 million to $280 million, suggesting a decline of 21% at the mid-point of those numbers.
Gross lending volume is guided at between $445 million to $495 million, implying a possible rise of 11% at the mid-point.
Net profit is expected to grow by 8% at the mid-point of the guidance of $110 million to $118 million.
It’s now valued at 8x FY27’s guided profit, at worst. That may look very undervalued, particularly with the large dividend yield.
But, there are other ASX dividend shares that could be more appealing opportunities less exposed to households repaying their debts.
