Profits rebound at listed lender as pandemic restrictions ease

Group pre-tax profits have increased by £108.4m to £67.7m at unsecured consumer credit provider, International Personal Finance (IPF) which has issued its full-year financial report for the period ended 31 December 2021.

Revenues were £548.7m (2020: £661.3m) with the Leeds-headquartered business also reporting a 33% increase in credit issued year on year, and all its business divisions profitable.

It says it saw a steady increase in levels of customer demand for credit from quarter two, driven by the easing of freedom of movement rules in most markets, the opening up of retail and hospitality sectors and the progression of Government vaccination programmes.

Gerard Ryan, chief executive officer, said: “We are firmly in growth mode and our customers are benefiting from new products and improved customer journeys. 

“We also attracted new bond investors and extended relationships with a number of international banking partners, which supported an improved credit outlook from Fitch Ratings.

“Looking ahead, we intend to meet increasing customer demand and accelerate customer receivables growth by further investing in our technology, and product and channel development so consumers can access our credit offerings in a way that suits them, whether that be through our customer representative service or digitally.”

IPF says it has continued to maintain tight control on costs, while investing more in marketing to drive its successful growth strategy.

The Group’s IPF Digital division delivered a record profit before tax of £8.7m, a significant year on year improvement of £27.9m.

But the business’s report adds: “While our digital business made strong financial progress overall, we made the difficult decision in December 2021 to stop new lending to customers in Spain.  

“Although our team had worked diligently to build a viable business with a new product construct, the regulatory environment meant it was no longer possible to make an acceptable return for our shareholders.

“In line with our disciplined use of capital, we have decided to redeploy our resources elsewhere.”