Credit Corp H1 FY17 Results
Tuesday, 31 Jan 2017
The directors of Credit Corp Group Limited (Credit Corp) are pleased to report a strong result for the first half of the 2017 financial year (FY2017). Key highlights are as follows:
- 19 per cent increase in Net Profit after Tax (NPAT) over the prior corresponding period (pcp)
- Record first half purchased debt ledger (PDL) acquisitions of $143 million
- 16 per cent growth in the consumer loan book over the first half to $156 million, gross of provisions
Increased PDL collections and growth in the loan book produced a 15 per cent increase in revenue over the pcp. Strong core domestic debt buying performance combined with a doubling in profits from the consumer lending business to produce 19 per cent growth in NPAT over the pcp.
The debt buying business performed solidly, benefitting from increased purchasing. Collection efficiency was in line with the prior year and collection effectiveness was maintained with a 6 per cent increase in collections on PDLs purchased more than two years ago. Ongoing effectiveness will be underpinned by the recurring payment arrangement book, which grew by 5 per cent over the half year to a face value of more than $1.2 billion.