Credit Corp Group Limited · ASX:CCP
Credit — Investor Presentation (May 2025)
17 slides from Credit's investor presentation, May 7, 2025
Slide 1: Market Update
7 May 2025 Market. Thomas Beregi Michael Eadie Chief Executive Officer Chief Financial Officer
Slide 2: Leadership across the credit-impaired consumer segment…
Leadership across the credit-impaired consumer segment… Analytics and discipline Operational excellence Responsibility & compliance US DEBT BUYING • Large market opportunity • Significant productive capacity • Low regulator complaint rate TARGET • Diversified purchasing across across several sites L
Slide 3: …will produce earnings growth in FY25 and beyond…
…will produce earnings growth in FY25 and beyond… • US on track to make up almost 20 per cent of FY25 NPAT • Consumer lending growth has straddled the long-term decline in AU/NZ debt buying NPAT ($m) 120 100 80 60 40 20 - 1 2 3 FY21 FY22 FY23 FY24 FY25 projection AU/NZ debt buying and collection ser
Slide 4: …while maintaining a conservative capital structure
…while maintaining a conservative capital structure • Gearing remains below 30 per cent of financial assets • Facilities expanded in July 2024 to $505 million - Substantial cash and headroom available for opportunistic investment Cash Facilities ($m) and Gearing (%) 400 32% 350 300 28% 250 200 24% 1
Slide 5: The AU/NZ debt buying market remains subdued…
The AU/NZ debt buying market remains subdued… • Aggregate interest-bearing credit card balances still almost 30 per cent below pre-Covid levels • Renewed competition in FY25 has reduced investment to a guidance midpoint of $90 million • Credit Corp remains a large part of the diminished market Austr
Slide 6: …while there has been continued operational improvement in the US…
…while there has been continued operational improvement in the US… • Step up in labour productivity • Sustained YoY collections growth US Productivity Per Hour (US $) US Collections and Arrangement Book (US $m) 40 330 350 ↑ 12% ↑ 12% ↑ 13% 310 280 30 290 210 20 270 140 10 250 70 - 230 Q1 Q2 Q3 - FY2
Slide 7: …enabling increased investment to drive future earnings growth
…enabling increased investment to drive future earnings growth • FY25 pipeline now at full year guidance of A$150 million • Annualised investment run rate presently A$200 million • Pricing remains steady as aggregate credit and charge-off rates stabilise US PDL Investment Volume (A$m) US Revolving C
Slide 8: The loan book has plateaued, producing strong earnings growth…
The loan book has plateaued, producing strong earnings growth… • While year-to-date Wallet Wizard new customer volume is 20 per cent below the prior year, it remains in line with pre-Covid peaks and is slightly ahead of expectations • Market data suggests that consumer demand in the sector has retur
Slide 9: …and new products are poised to sustain lending segment growth in the medium term
…and new products are poised to sustain lending segment growth in the medium term Wizit digital credit card and line of credit • Testing of a range of marketing channels currently occurring • Expected to conclude on marketing mix and release product from pilot during Q1 FY26 CarStart auto finance •
Slide 10: FY25 NPAT guidance unchanged
FY25 NPAT guidance unchanged FY25 Guidance FY25 Guidance Issued Jul-24 Revised May-25 Ledger investment $200 - $250 million $200 - $250 million Net lending $45 - $55 million $60 - $70 million 1 NPAT $90 - $100 million $90 - $100 million EPS (basic) 132 - 147 cents 132 - 147 cents 1. Net lending trac
Slide 11: Appendices: Key Operating Metrics
APPENDICES: KEY OPERATING METRICS Credit Corp Group FY25 Market Update — 11
Slide 12: Appendices: Key Operating Metrics
APPENDICES: KEY OPERATING METRICS APPENDIX 1: Payers base 13 APPENDIX 2: Productivity 14 APPENDIX 3: Collections life cycle 15 APPENDIX 4: Operational and total headcount 16 Credit Corp Group FY25 Market Update — 12
Slide 13: Appendix 1: Payers base
Appendix 1: Payers base Portfolio summary: Debt buying Combined AU/NZ/US Total portfolio Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Mar-25 Face value $11.8b $12.7b $12.8b $12.9b $13.0b $12.8b $12.8b Number of accounts 2,863,000 2,993,000 2,952,000 2,904,000 2,820,000 2,740,000 2,703,000 Payment arran
Slide 14: Appendix 2: Productivity
Appendix 2: Productivity Productivity per Hour (A$) 1 400 YTD MAR-25 average 350 FY25: $330 FY24: $296 300 250 200 150 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12m to Mar-24 12m to Mar-25 1. Combined AU/NZ and US segment productivity Credit Corp Group FY25 Market Update — 14
Slide 15: Appendix 3: Collections life cycle
Appendix 3: Collections life cycle PDL Collections by Vintage ($m) 1 160 ↑ 2% 2 140 120 29% 33% 34% 33% 30% 32% 33% 37% 33% 32% 100 33% 33% 40% 39% 40% 35% 41% 43% 44% 43% 34% 40% 43% 12% 12% 19% 44% 80 18% 13% 19% 14% 20% 15% 15% 15% 15% 13% 16% 18% 16% 14% 17% 17% 60 25% 17% 16% 20% 17% 16% 17% 17
Slide 16: Appendix 4: Operational and total headcount
Appendix 4: Operational and total headcount Period End Headcount (FTE) 2,500 Dec-23 Jun-24 Dec-24 Mar-25 2,000 Debt buying operations 1,184 1,142 1,082 1,024 1,500 Collection services 613 628 599 571 Lending 253 254 263 266 1,000 Support 213 207 201 194 500 Total 2,263 2,231 2,145 2,055 Support % 9%
Slide 17: For more information please contact:
For more information please contact: THOMAS BEREGI MICHAEL EADIE Chlef Executive Officer Chief Financial Officer | Tel +61 2 8651 5777 Tel +61 2 8651 5542 AA tberegi@creditcorp.com.au meadie@creditcorp.com.au