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Pinned straw:

Added one year ago

Credit Corp has released FY2023 results showing:

  • 70% growth in lending segment net profit after tax (NPAT)
  • 43% growth in the consumer loan book to a record gross closing balance of $358 million
  • Recovery in US operational performance over the second half
  • Solid FY2024 US investment pipeline secured in improved pricing conditions


NPAT fell by 5 per cent over the prior year to $91.3 million.

And the market hated it, marking it down by 14%.

lankypom
Added one year ago

You beat me to it @barney . These were my thought on the results.

Fairly mediocre results. NPAT declined 5% to $91.3m, despite revenue increasing 15% to $473.4m. This was towards the bottom end of its guidance. The market reacted fairly savagely. Decline in ANZ collections business is offset by growth in US collections, with a very strong PDL pipeline, but the productivity of US collections operation is not yet good enough to drive significant profitability. The consumer lending business has grown very strongly (revenue +58%), with in-tolerance delinquency rates, and has helped the overall NPAT result be better than otherwise. NPAT target for FY24 is $90-$100 million, i.e. in same range as FY22 so zero growth.

This article provides useful background colour on the state of the ANZ distressed credit market - basically consumers are not very distressed, hence the PDL opportunities are not there. The US by contrast is likely to experience significantly higher opportunity.

https://www.afr.com/chanticleer/why-investors-should-rejoice-in-this-company-s-15pc-plunge-20230731-p5dsqb

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