Thanks Michael....I agree with all your points, so thanks for tabling them. I think that the lending business will grow to dominate their NPAT as regulated banks continue to exit this space (to the extent they were there at all!).
The bit I cant seem to square is that CCP want to reduce the PDL book from $145m to $70-$90m (they haven't yet at ~$120m-$130m , but that is their intention) , so the annualised NPAT contribution for PDL of around $38m could go to ~$20-$25m. So even if we get the growth from Lending up to $10m, we are still net down on FY15 guidance of $35-$36m at ~$30-$35 going forward into FY16 and beyond.
I guess it depends on how quickly they can replace the PDL revenues from lending, and then have the US come on stream.
Any insights on why they are intent on reducing domestic PDLs by around 50%??
CCP Price at posting:
$11.65 Sentiment: None Disclosure: Not Held
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