September 2025 Quarter GDP Data Bode Well for Financial Sector

Company Overview

Company Overview: Latitude Group Holdings Limited (ASX: LFS) is engaged in the sales finance and consumer lending business. Its segments include Australia and New Zealand Pay (A&NZ Pay), Australia and New Zealand Money (A&NZ Money), and Other. Credit Corp Group Limited (ASX: CCP) is an Australian debt purchasing, collection, and consumer lending company with operations in Australia, the USA, and New Zealand. Established over 25 years ago, Credit Corp is dedicated to offering sustainable financial solutions, such as flexible repayment plans, to help improve customers' financial well-being. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.

Investment Summary

Sector Overview and Supporting Drivers

Australia’s financial sector is a cornerstone of the economy, underpinned by a stable regulatory framework, stable capital positions and a diversified mix of banks, insurers, superannuation funds and fintechs. The major banks dominate lending and deposit markets, while the world-leading superannuation system continues to drive long-term investment flows. Sector performance is closely tied to economic conditions, housing activity and interest rate trends. Digital transformation and competition from fintechs are reshaping product delivery and operational models. Although exposed to risks such as margin pressure, cyber threats and regulatory demands, the sector benefits from population growth, rising household incomes and expanding wealth management needs, positioning it for steady long-term growth.

Sector Catalysts

Index Performance

Investment theme and stocks under discussion (LFS, CCP)

After understanding the sector, let us now look at two companies from the financial sector listed on the ASX. The price potential of the companies under discussion have been analysed based on Price/Book Value based relative valuation method. 

1. ASX: LFS (Latitude Group Holdings Limited)

(Recommendation: ‘Speculative Buy’ at AUD 1.095; Potential Upside: Low Double-Digit; MCap: AUD 1.14bn)

LFS is engaged in the sales finance and consumer lending business. Its segments include Australia and New Zealand Pay (A&NZ Pay), Australia and New Zealand Money (A&NZ Money), and Other.

The stock has witnessed a decline of ~3.09% in the last one month, and over the past nine months, the stock is down by 5.19%. The stock has a 52-week low and 52-week high of AUD 1.075 and AUD 1.250, respectively and is currently trading close to the 52-week low level. LFS was last covered in a report dated ‘23 October 2025’.

2. ASX: CCP (Credit Corp Group Limited)

(Recommendation: ‘Speculative Buy’ at AUD 13.950; Potential Upside: Low Double-Digit; MCap: AUD 965.18mn)

CCP is an Australian debt purchasing, collection, and consumer lending company with operations in Australia, the USA, and New Zealand. Established over 25 years ago, Credit Corp is dedicated to offering sustainable financial solutions, such as flexible repayment plans, to help improve customers' financial well-being.

The stock has witnessed a decline of ~15.51% in last three months, and over the past 12 months, the stock is down by 16.27%. The stock has a 52-week low and 52-week high of AUD 11.275 and AUD 18.480, respectively and is currently trading below the mid-point of its 52-week high and low. CCP was last covered in a report dated ‘13 November 2025’.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 11 December 2025. The reference data in this report has been partly sourced from REFINITIV. 

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.