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%.

For once good results shows a higher share price, rather than a fall. In this case thought this is likely as the results published yesterday were better than expected and the confirmation that FY22 guidance is on track.

Other positives:

• First half revenue up 8% to $203.9 million
• Net profit after tax up 8% to $45.7 million
• Earnings per share of 67.7 cents
• Fully franked interim dividend of 38 cents per share 

For the dividend investors this is a 5.5% increase in the dividend which has been stable at 36c all the way back since 2018.

The growth in revenue is predominately on the back of the US business which showed over 30% increase to 8M. On revenue, the business is looking to other financial products including BNPL (who isn’t) as well as auto loans to expand their offerings.

This is one I hold here and in a real portfolio. As lankypom says, sometimes boring is good.