Credit Corp shares soar on full-year result, FY26 outlook
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More news: Credit Corp was the best performer on the ASX 200 in early trade after the debt collector reported sharp rise in full-year net profit after tax, roughly in line with analyst forecasts.
Shares were up 15.5% to $17.63 at 10:50am AEST, lifting its 12 month return to 17.7%.
The company also lifted its final dividend from a year earlier and guided a 12% increase in net profit after tax for fiscal 2026.
Credit Corp posts 86% profit jump, hikes dividend
The news: Debt collector Credit Corp has reported an 86% jump in full-year net profit after tax to $94.1 million, shy of market estimates of $94.8 million, according to Visible Alpha data. The result is up from last year's total of $50.7 million.
The numbers: The company, which purchases and collects debts in Australia, New Zealand and the US, declared a total dividend of 68 cents per share, up from 38 cents last year, but missing average forecasts of 70.1 cents per share.
It has guided FY26 net profit after tax of between $100 million and $110 million. The midpoint of this range implies at 12% increase relative to FY25.
The context: Credit Corp said the result was underpinned by strong earnings growth in its consumer lending segment, as lending volumes moderated after several years of post-COVID re-leveraging. US debt buying segment earnings also grew over the prior year, the company noted.
