Highlights:

  • CCP shares fell 17.06% over five days to AUD 11.70.
  • Brokers Canaccord Genuity and Jefferies maintain buy ratings with targets of AUD 19.70 and 17.
  • Credit Corp projects FY26 NPAT growth of 6–17%, supported by US and AU/NZ operations.

Credit Corp Group Ltd (ASX:CCP) shares fell 1.64% to AUD 11.70 on 4 February 2026, marking a 17.06% decline over the past five trading days and a 25.08% drop over the past year. Despite the share price pressure, brokers Canaccord Genuity and Jefferies maintained buy ratings, with target prices of AUD 19.70 and 17, respectively.

US and AU/NZ Operations Drive Growth

Credit Corp reported that US collections grew 23% compared to the prior corresponding period (pcp), with productivity up 41%. Payment arrangements, including litigated accounts, ended the half 5% higher than pcp. Operational improvements focused on the outsourced legal collections channel and adjustments to the third-party attorney network, which are expected to support future earnings.

In AU/NZ, record half-year loan volumes were achieved, with new customer growth up 25% versus the pcp. The Wallet Wizard product expanded its market share in the credit-impaired segment, with the loan book reaching AUD 442 million. The Wizit digital credit card added more than 4,000 customers, with the book growing to AUD 17 million.

Debt Ledger Investment and Capital Management

AU/NZ debt buying faced temporary disruptions, but backlog files and additional one-off purchases brought the FY26 investment pipeline to AUD 120 million. Full-year US PDL investment is expected to reach AUD 160–180 million. Interim dividends of 32 cents per share were declared, consistent with FY25 levels, and net gearing remained at 32%, reflecting a conservative capital structure.

Credit Corp remains on track to achieve a Return on Equity of 13% in FY26, up from 11% in FY25, with additional improvement expected from the US segment in the medium term.

Strategic Expansion and Outlook

Credit Corp continues discussions for the potential acquisition of Humm Group Ltd, which would expand its point-of-sale distribution and UK lending presence. Regardless of the Humm acquisition outcome, organic growth initiatives in both AU/NZ and US markets support the Company’s FY26 guidance.

While CCP shares have faced short-term declines, operational performance in the US and AU/NZ, debt ledger investment, and broker support suggest potential for earnings growth and share price recovery over FY26.

Frequently Asked Questions (FAQ)

Q1: Why did CCP shares drop recently?
A1: Shares declined 17.06% over five days due to short-term market pressure despite ongoing operational growth.

Q2: What is Credit Corp’s FY26 earnings guidance?
A2: CCP expects NPAT growth of 6–17%, with total NPAT projected between AUD 100–110 million.

Q3: What initiatives are supporting future growth?
A3: Growth is driven by US and AU/NZ debt buying, expansion of Wallet Wizard and Wizit products, and potential acquisition of Humm Group Ltd.