A deterioration in the position of its US debt buyig business means the 2024 financial year “was a year of underperformance” Credit Corp has told shareholders in its annual report. 

Credit Corp  reported a 44 per cent fall in net profit to $50.7 million.

“Despite recent challenges, the US remains Credit Corp’s most significant growth opportunity” the company said. 

“Purchasing was moderated as the focus shifted to operational improvement. 

“While the company looks to capitalise on improved US buying conditions, ongoing uncertainty means that operational improvement will remain the priority. 

“Purchased Debt Ledger prices have fallen to levels not seen for several years, while leading indicators suggest that supply may continue to increase. 

“Collection outcomes [in the US] have, however, not been as strong they have been in the past, despite relatively solid macroeconomic statistics for the US.”

In Australia and New Zealand “debt buying sale volumes remained low, producing a continued contraction in collections.”

On the flip side, Credit Corp’s consumer lending business in Australia – primarily via its Wallet Wizard brand – “delivered record lending volume in FY2024, growing the total loan book by 24 per cent to $445 million. 

“The expanded book will translate into significant revenue growth for the year ahead” the company said.