Fintech division delivers rising revenues for listed home credit business

International Personal Finance (IPF), the Leeds-based home credit business and digital business, has seen revenues grow 7% in the first half of its financial year which is said was driven by its fintech division.

The listed company specialises in providing unsecured consumer credit to more than 2.2 million customers across 11 markets worldwide. The firm operate the world’s largest home credit businesses and a fintech business, IPF Digital.

Reporting on the H1 period ended June 30 2019, IPF said its revenues were up 7% on the same period last year – rising from £419 to £447m. Pre-tax profit remained at £56m. The business added that the revenue growth was mainly due to the success of IPF Digital.

The credit it issued during the period also rose 7%, from £632m to £672m; but its customer numbers dropped 2%.

IPF said its Mexico home credit division had experienced a “challenging first half performance,” with weaker than expected collections. It added that its had taken actions to improve portfolio quality as operations resulted in marginally reduced credit issued.

The firm added that its European home credit division had reported strong operational execution and financial performance.

Chief Executive Officer, Gerard Ryan, added: “We delivered a good financial performance in the first half of the year with credit issued growth of 7% and profit before tax of £56.1 million.  Operational execution by our teams in European home credit was excellent, delivering a strong performance.

“Clearly we were very disappointed by the changes to draft proposals to reduce non-interest charges in Poland, which we are monitoring closely and working on potential responses should they be enacted.  We are clear on the need to improve performance in Mexico, and as previously announced, have changed the leadership and focused on execution to allow us to benefit from the significant growth opportunities that this market continues to present.

“IPF Digital continued to deliver strong growth and is on course to deliver its maiden profit this year.  We expect to deliver a full-year result for the Group in line with market consensus, with a stronger than originally expected performance in European home credit being offset by a weaker outturn in Mexico.”

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