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...
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