The evolution of Credit Corp from a debt collection company into a consumer lender continues.
Revenue from consumer lending in Australia and New Zealand for Credit Corp was $98.3 million over the half year to December 2024.
This is a high margin segment, with the segment profit $42.3 million over the half.
Total net profit for Credit Corp over the half was $44.1 million.
The lending segment profit increased by 70 per cent over the year.
Wallet Wizard is the firm’s primary consumer brand in this segment, and the firm says loans under its consumer brands do not represent (heavily regulated) payday loans.
Credit Corp may be willing to forgo margin to drive growth.
“Lower pricing [is] disrupting the market” the firm said in the investor presentation for its half year results yesterday.
The firm says it is moderating growth in the Wallet Wizard product, and will soon ramp up finance via its buy now, pay later product Wizit.