Profits ahead of expectations at credit provider
Leeds-based unsecured consumer credit provider, International Personal Finance (IPF), says it has achieved a strong first-half performance despite high inflation, as it releases its results for the six months ended 30 June 2023.
Reported profit before tax was up 12% to £37.8m (H1 2022: £33.8m), which IPF says was ahead of its internal plans.
Customer numbers remained stable at 1.7m and customer lending up 4.8% to £578.8m (H1 2022: £513.3m). IPF reports closing net receivables of £893m, up 10% year-on-year.
Gerard Ryan, chief executive officer, said: “Our focus on helping more people access affordable credit and excellent execution of our strategy delivered good growth and a strong set of financial results of which we are very proud.
“Notwithstanding the negative impacts of high inflation, all three divisions delivered great performances and we increased receivables by 10%, credit quality remained good and profit before tax was up 12%.
“We made significant progress with the rollout of our new credit card in Poland and further strong growth in Mexico through both our face-to-face and digital channels.
“The Board is pleased to declare an increase in the interim dividend of 15% to 3.1 pence per share, which is fully supported by our strong trading performance and the group’s robust balance sheet.”
IPF says it has headroom on funding facilities of £84m, together with strong cash flow generation, which supports the group’s growth plans into the third quarter of 2024.
It adds that there has been no discernible impact from the rising costs of living on customer demand or repayment performance.
But the group notes it will continue to monitor this closely and maintain a cautious approach to lending given the macroeconomic backdrop.
