Debt collection and lending group Credit Corp has posted a flat interim profit, on the back of lower earnings from its Australian and New Zealand loans book.
The company, which also owns the Wallet Wizard small cash loans and Wizit ‘interest free forever’ credit card businesses, generated a first half net profit of $44.1 million, in line with the previous corresponding period.
Credit Corp’s Australian and NZ debt buying business suffered after several issuers temporarily suspended debt book sales, which impacted its collections volumes.
However, the group did buy several debt piles, including a large credit card book, over December-January, which it said would deliver stronger collections and earnings in the second half of 2025/26.
“While the AU/NZ debt buying market remains competitve, as buyers attempt to secure volume in a diminished post-COVID market, there are some early signs of supply,” it said on Tuesday.
“Interest bearing credit card balances grew 12 per cent over the year.
“In time, this growth will likely be reflected in charge-offs and sales volumes.”
Credit Corp, which has a US operation as well, also noted that the volume growth in new Australian and NZ customers facing credit issues was up 25 per cent in the half year.
These are customers who face hurdles trying to access loans, and are prime targets for its unsecured Wallet Wizard loans business.
“While Reserve Bank of Australia statistics indicate a modest recovering in unsecured credit demand, more granular credit bureau data suggests that credit impaired segment demand has remained flat,” the company said.
“Accordingly, Credit Corp’s market leading Wallet Wizard product has succeeded in growth its share of the credit impaired market segment.”
The Wallet Wizard loan book jumped to $442 million in the half year, while the Wizit digital credit card operations added more than 4000 new customers for a loan book totalling $17 million.
Credit Corp’s earnings guidance for the 2025/26 financial year, of net profit growth of between six and 17 per cent, remains unchanged.
Shares in the group, which has a stock market value of almost $1 billion, closed on Monday at $14.28.
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