Daily Roundup

CCP.ASX NAB.ASX JBH.ASX ZIP.ASX MDR.ASX

Solid Performance Across the Board for Credit Corp Group

Credit Corp Group has provided an upbeat market update for the 2025 financial year, highlighting continued growth in its key business segments. The company's US debt buying operations are on track to make up almost 20% of FY25 net profit, driven by operational improvements and productivity gains. In Australia and New Zealand, the consumer lending business has helped offset the decline in the debt buying segment, with the lending book plateauing and producing strong earnings growth.

Maintaining a conservative capital structure remains a priority, with gearing staying below 30% of financial assets. Credit Corp has also expanded its debt facilities to $505 million, providing substantial cash and headroom for opportunistic investment. While the company has reduced its AU/NZ debt buying investment guidance due to renewed competition, it remains a large part of the diminished market.

Overall, Credit Corp is well-positioned to deliver earnings growth in FY25 and beyond, with its new lending products, including the Wizit digital credit card and CarStart auto finance, poised to sustain the lending segment's momentum.

NAB Delivers Solid Half-Year Results

National Australia Bank has reported its 2025 half-year results, with cash earnings up 0.8% compared to the prior half. The bank's underlying profit grew 1.9%, benefiting from improved Markets and Treasury income and disciplined cost management.

NAB is executing its refreshed strategy, focused on driving stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation. This is supporting key priorities such as growing deposits, improving proprietary lending, and expanding business banking.

While the bank is optimistic about the underlying growth outlook for the Australian and New Zealand economies, it notes that escalating global trade tensions remain a key source of uncertainty. NAB has maintained strong balance sheet settings, with a CET1 ratio of 12.01% and well-progressed term funding for FY25.

Looking ahead, NAB expects to deliver mid-single digit revenue growth (ex Markets & Treasury) in FY25, with operating expenses increasing at a lower rate. The bank's credit impairment charge is expected to remain at the lower end of its through-the-cycle range.

JB Hi-Fi Delivers Solid Q3 Sales Growth

JB Hi-Fi Limited has reported solid comparable sales growth across all its brands in the third quarter of the 2025 financial year. The company's flagship JB Hi-Fi stores in Australia and New Zealand performed particularly well, with comparable sales up 6.0% and 7.5%, respectively.

The Good Guys and e&s brands also delivered solid sales growth of 4.1% and 0.9% on a comparable basis. On a total sales basis, the growth was 6.5% for JB Hi-Fi Australia, 17.5% for JB Hi-Fi New Zealand, 4.6% for The Good Guys, and 1.9% for e&s.

CEO Terry Smart commented that the company is pleased to see the sales momentum continue, despite the challenging and competitive retail market. As JB Hi-Fi approaches the important end-of-financial-year trading period, it remains focused on delivering consistently high levels of customer service and exceptional value.

Zip Co Reconfirms FY25 Guidance

Zip Co Limited provided an update on its trading conditions and performance for April 2025, reconfirming its FY25 guidance for cash EBTDA of at least $153.0 million, including cash opex growth of around 10%.

The company stated that it remains on track for its FY25 results to be within the two-year target ranges as previously announced with its 1H25 results. Zip also noted that momentum in TTV growth has continued across both the US and ANZ markets, with the US seeing year-on-year TTV growth for April above 40%.

The update also highlighted that Zip's portfolios in both regions continue to perform well, with no material changes to credit loss performance. The company has also purchased 3.9 million shares for $6.4 million as part of its $50 million on-market share buyback program.

MedAdvisor Receives Non-Binding Offer for ANZ Business

MedAdvisor Limited has received a non-binding letter of intent from a prominent multinational listed software business to acquire the company's ANZ business division for cash. The directors believe the proposed offer represents a materially higher value than the current MedAdvisor share price.

The receipt of the letter of intent is in line with MedAdvisor's previously announced review of strategic options, which aimed to consider various initiatives to bridge the valuation gap between the market capitalization and the Board's perceived fair value of its ANZ and US business units.

The ANZ business continues to perform strongly, achieving record revenue of A$2.9 million in April 2025. The proposed transaction is subject to customary conditions, including a period of exclusivity to conduct due diligence, and is expected to be executed within the next 5 to 7 weeks.

In a separate announcement, MedAdvisor has requested a trading halt on its securities pending the release of an announcement regarding this strategic options update and the non-binding proposal.