Thanks for the clarification. From memory two brokers mentioned...

Thanks for the clarification. From memory two brokers mentioned by FNArena missed their NPAT expectations for the same reason, up-front provisioning of loans, and they mentioned provisioning to excuse “missing the target”. Had these guys known CCP as well as they should have, they would not have expected otherwise.

Up-front provisioning

CCP's up-front loan provisioning has the effect that what is positive (success in increasing the Loan Book) manifests as a negative (lower reported NPAT) at that point in time. Let us say the provisioning is 18%, then at the point a $1,000 loan is made, reportable NPAT declines by $180, and the $180 is recouped, with a profit margin, over the life of the loan. The opposite happens when the growth of the Loan Book slows, or declines. It would be peculiar for the SP to trend downward because CCP's loan business is a conspicuous success. If a scribe bought a new pen, he would immediately have less money, but that does not mean his decision was a loss-making one.

Philippines call-centre quality

My only interface with Telstra's call centre in the Philippines was so effective, that I remember it well years later. I am pedantic to a fault about English usage, and I notice the slightest fault, including poor voice delivery. The Filipina with whom I conversed spoke flawless English. I had gone into a Telstra store, accepted the attendant's advice to change my cell phone plan, and he went through the motions of doing as much. Many months later, I discovered that the old plan had not been cancelled. After a brief wait, the woman told me that the matter had been resolved in my favour. In contrast. years later my daughter suggested that I switch to Optus, and she did the online application, and paid $100+. We could not get the connection to work, and after a fruitless attempt to get help, we recharged my Telstra subscription, and we kissed the $100+ goodbye.

Postscript

I'll return via a later post to elaborate on CCP's Philippines-based call centre, and the dire future, or not, of credit cards. Both are Chicken-Licken thought patterns, I think.