That's also my understanding - when the loans roll off, without incurring the expected losses, it'll be added back on. Probably the main reason why the segment profit held up despite the considerably lower loan book and associated revenue.
There's talk here that the company is overly conservative with their accounting treatment - both on the PDL and consumer lending side. I view it with a different lens.
They are definitely a lot more conservative in PDLs, relative to their competitors. But the competition have blown up and incurred substantial write-downs during periods of benign economic conditions. So obviously the competitors were wrong for being so aggressive.
Also the ASX graveyard is full of previously fast growing consumer and SME lenders. It should be an expectation that Credit Corp is more conservative in the accounting treatment than each and one of them.
CCP Price at posting:
$29.75 Sentiment: None Disclosure: Held
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