Credit Corp Group Surges 15% on Strong Full-Year Profit Growth

Highlights:

• Credit Corp Group Limited (ASX: CCP) reported a 16% rise in full-year net profit to $94.1 million, driven by a strong recovery in its US debt collections and solid performance in its consumer lending division.
• Shares of Credit Corp surged 16.06% intraday to $17.71 at the time of writing, reflecting investor optimism over the company’s improved earnings and growth outlook.
• The company expects continued earnings growth in FY25, with strategic focus on expanding US operations and enhancing digital lending capabilities.

Credit Corp Group Limited (ASX: CCP) shares soared as much as 15% after the company reported a 16% increase in full-year net profit to $94.1 million, fueled by a robust rebound in its US debt collection segment and continued strength in consumer lending.

US Debt Collections Drive Recovery

The sharp turnaround in Credit Corp’s US operations was a key contributor to the profit uplift. After facing significant headwinds in previous years, the US debt ledger business delivered a notable performance, with collections exceeding expectations. Management attributed the recovery to improved operational efficiencies and a more stable macroeconomic environment, which helped bolster repayments from American consumers.

Consumer Lending Business Continues to Excel

Credit Corp’s consumer lending division also posted strong earnings growth, supported by increased loan originations and steady demand for its personal finance products. The company noted that disciplined credit risk management and enhanced digital lending platforms played a crucial role in expanding its customer base while maintaining credit quality.

Shares Jump 16% Intraday

At the time of writing, shares of Credit Corp Group Limited (ASX: CCP) were trading at $17.71, marking a significant intraday increase of $2.45 or 16.06%. This sharp rise reflects investor confidence in the company’s diversified growth strategy and its ability to capitalise on recovery trends across its key markets.

Outlook Remains Positive

Looking ahead, Credit Corp expressed optimism about sustained earnings growth in FY25, with further expansion anticipated in the US and Australia. The company reaffirmed its focus on disciplined capital deployment and leveraging technology to drive efficiencies across its operations.

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