Credit Corp FY profit up 17pct as US grows

Debt collector and lender Credit Corp has posted a 17 per cent increase in profit, courtesy of its US business and increased lending at home.

Debt collector and lender Credit Corp has posted double-digit growth in full-year profit, boosted by a first profit from its US business and growing consumer lending at home.

Credit Corp's net profit for 2017/18 rose by 17 per cent to $64.3 million, up from $55.2 million a year earlier.

Revenue rose to $299 million, up from $265.9 million, with 19 per cent growth in revenue from Australian lending, to $79.3 million, and 83 per cent growth from US debt recovery to $24 million.

The US debt business delivered an inaugural profit of $1.9 million and profit from Australian lending, which includes the Wallet Wizard cash loan service, up 31 per cent to $16.1 million.

Credit Corp says Wallet Wizard, which issues short-term loans at an effective annual interest rate of 47.8 per cent, grew its loan book by 14 per cent to $183 million.

Credit Corp CEO Thomas Bergei said in a statement the increase in demand was due to stricter lending criteria from big banks, which had also retreated from some forms of lending.

Mr Bergei also said Credit Corp's debt buying business in the US was growing "rapidly," with the company having relocated to Utah and doubled its staff to 400.

Credit Corp shares were up 35 cents, or 1.9 per cent, at $19.31 at 1216 AEST, their highest level since May.


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Source: AAP


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