Credit Corp Group, which buys bad debts from other companies at a discount before collecting them, posted a record $105.5 million net profit in 2025/26 and is on track for another standout result this year.
The listed business, which also loans to people struggling to access credit, is targeting a profit of between $112 million and $120 million in the current financial year.
"Our leadership and focus has us on track for another record result," chief executive Thomas Beregi told shareholders at the group's annual meeting in Sydney.
Credit Corp's purchase of one of HSBC's run-off credit card books was a key driver of its likely success this year, while investment in debts in New Zealand was also on the increase.
The company has backed off on a US debt buying spree due to higher costs and is instead looking to improve its operations across the Pacific.
The US, which has a staggering $US18.8 trillion ($A26.8 trillion) in household debt, according to its central bank, remains a key target market for the Australian debt collector.
"Our investment levels will fluctuate dramatically, and there is foreseeably a scenario where investment in debt buying, particularly in the US, increases very dramatically," Mr Beregi said on Tuesday.Â
"Particularly if we hit our metrics in terms of operational improvement this year, and prices do ease, then we could find ourselves investing many hundreds of millions of dollars in the US."
Household debts in Credit Corp's target markets of Australia, the US, the United Kingdom and NZ have been soaring as inflation drives up living costs and interest rates rise.
The debts it targets tend to come from banks and utilities companies and are generally unpaid for more than six months.
Credit Corp's consumer lending businesses, which operate in Australia, NZ and the UK, grew by almost a fifth in the September quarter compared to a year earlier to $108 million.
Its Wallet Wizard product, which offers unsecured loans of up to $8,000 at a massive annual interest rate of 47.8 per cent, accounted for most of Credit Corp's lending growth, with volumes up 35 per cent on the prior year.
The company says it treats its customers respectfully, and that it ranks highly among financial counsellors and regulators.
"We are more likely to encounter people in hardship, some form of financial hardship or suffering from a vulnerability," Mr Beregi said.
"So we have to be very responsible and compliant to deliver on our promise to our debt sale clients, other stakeholders, and the community."
Credit Corp shares were about half a percentage point lower at $14.68 around noon.
