Receivables manager Credit Corp has made a higher return on equity chasing after banks' bad debts than the banks have been making on their good ones.Yesterday, Credit Corp reported a net profit of A$26.6 million for the year to June - a 26 per cent increase on the 2010/11 year. The company's ROE was up 1.5 percentage points to 23.5 per cent.Credit Corp chief executive Thomas Beregi said: "We take on a bit more risk with the debts we are buying, so we are aiming for a higher return."We don't have a big marketing organisation to support. We have one job to do and we can really focus on that."Credit Corp purchased $91.5 million of debt ledgers in 2011/12, which was down slightly on the previous year. The face value of debt on its books is $3.6 billion.Strong cash flow has allowed the company to reduce its need for borrowings to purchase debt. At the end of the financial year less than $1 million of the company's $60 million facility limit was drawn down, compared with $25 million drawn down the previous year.Beregi said it was hard to predict the amount of debt the company was likely to buy in the current year. "Lenders are offloading non-performing debt because it helps with their cost management," he said."However, it is a very competitive market and at the moment the price of debt is high. We were pleased with the amount were able to secure during the year."Credit Corp launched a United States division during the year and purchased A$2.2 million of debt there.Beregi said: "We made our first purchase in conjunction with a local buyer. Our focus was on looking at how the market worked. "We have taken the next step and set up our own operation there now and we are purchasing in our own right. It is a very small toe in the water, but to date it looks favourable."The company has also started a consumer lending business that is focused on borrowers with impaired credit records. The loan book stood at $6 million at June 30.