September 2025 Quarter Lending Data Signal Positive Momentum for Financials

This report is an updated version of the report published on 13 November 2025 at 11:26 AM AEDT 

Company Overview

Company Overview: McMillan Shakespeare Limited (ASX: MMS) is an Australia-based company, which is engaged in the provision of salary packaging, novated leasing, disability plan management and support co-ordination, asset management and related financial products and services. Its segments include Group Remuneration Services, Asset Management Services and Plan and Support Services. 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 core pillar of the economy, dominated by major banks, insurers, wealth managers and an expanding non-bank lending ecosystem. The sector benefits from robust regulatory oversight under APRA and ASIC, strong capital positions and a highly digitalised banking environment. Credit growth is supported by population expansion, a resilient labour market and sustained housing demand, while rising migration continues to lift demand for mortgages and financial services. Key growth areas include digital payments, private credit and wealth management. However, the sector remains sensitive to interest-rate movements, housing market trends, funding conditions and cybersecurity risks amid increasing competition.

Sector Catalysts

Index Performance

Investment theme and stocks under discussion (MMS, 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/Cash Flow and Price/Book Value based relative valuation methods, respectively.

1. ASX: MMS (McMillan Shakespeare Limited)

(Recommendation: ‘Speculative Buy’ at AUD 16.040; Potential Upside: Low Double-Digit; MCap: AUD 1.11bn)

MMS is an Australia-based company, which is engaged in the provision of salary packaging, novated leasing, disability plan management and support co-ordination, asset management and related financial products and services. Its segments include Group Remuneration Services, Asset Management Services and Plan and Support Services.

The stock has declined by ~5.70% in last one month, and over the past six months, it has fallen by ~1.60%. The stock has a 52-week low and 52-week high of AUD 13.01 and AUD 20.10, respectively and is currently trading near its 52-week high-low average.  MMS was last covered in a report dated ‘16 October 2025’.

2. ASX: CCP (Credit Corp Group Limited)

(Recommendation: ‘Speculative Buy’ at AUD 13.655; Potential Upside: Low Double-Digit; MCap: AUD 931.83mn)

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 ~7.93% in last one month, and over the past six months, the stock is down by 3.29%. 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 ‘2 October 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 13 November 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.