Better than expected progress at credit provider

Leeds-based unsecured consumer credit provider, International Personal Finance (IPF), which has today issued a quarter three 2023 trading update, says it has continued to perform well ahead of its internal plans.

The business says it has a strong balance sheet to fund growth with headroom on undrawn facilities and non-operational cash balances of £100m as of 30 September 2023, an increase of £16m since the half year.

It adds that customer repayment performance remains strong and impairment rates continue to track in line with expectations.

Gerard Ryan, chief executive officer, said: “All our markets continue to deliver good growth in customer lending and receivables, the only exception being Poland where, as expected, lending has moderated as we adapt to serving our customers under the new pricing and affordability regulations there.

“I am pleased with the progress we are making with our new credit card offering in Poland, and we have now surpassed the 100,000 cards issued mark. The new product is clearly highly valued by our customers who are using the added utility of a credit card.

“Credit quality is very good throughout the group, and our balance sheet and funding position remains robust.

“We continue to make good progress in raising new funding and refinancing our existing facilities which will support our future growth plans.”

IPF notes all three of its divisions continued to perform well in the third quarter as it continues to execute well against a strategy to broaden the business’s product set and extend geographic reach.

The business says its disciplined approach to granting credit in a responsible manner continues to be reflected in its good portfolio quality and healthy rate of customer repayments.

IPF says it has not seen any discernible impact from the cost-of-living crisis on customer repayment performance.

In its outlook statement, the business adds: “There is significant demand for affordable credit within our target demographic, and we see substantial and sustainable long-term growth opportunities through meeting the needs of more consumers with an increased choice of products and distribution channels.

“We will continue to maintain a cautious approach to lending given the uncertain macroeconomic landscape and maintain tight cost control across the group to drive cost efficiencies.”