IPF triples its profits in first half of 2010

CREDIT lender International Personal Finance has bounced back from the recession by tripling its pre-tax profits to £30.5m in the first half of 2010.

The Leeds-based group, formerly the international division of Bradford-based Provident Financial, had pre-tax profits of £9.1m in the same period in 2009.

The £30.5m is also 16% higher than the pre-recession result in 2008 (£26.3m).

Its half-yearly financial report for the first six months of 2010 show that all markets are now in profit – including its maiden first half profits in Mexico and Romania.

Personal Finance has also increased its number of customers by 7.5% to 21m and simultaneously increased the amount of credit it provides by 6.7%.

The company has also announced that it intends to increase its interim dividend payment by 10% to 2.53p per share.

Chief executive John Harnett said: “This is a strong performance in challenging times, delivered through a combination of steady growth, improved credit quality and tight control of costs.

“The increased dividend reflects these good first half results and our confidence that we are on course to deliver a good performance for the year as a whole.”

The report later states: “Nevertheless, economic risks remain, both from the global economy and the economies in which we operate, particularly from the fiscal tightenings planned in Romania and Hungary.

“Accordingly our credit controls and growth plans remain prudently set.”

The company has also restructured its Hungarian operations which has resulted in a “strong recovery”.

International Personal Finances’s full year results for 2009 show that its revenue for the year was £550.2m down from £557.1m in 2008. 

In 2009, its profits before tax also slipped to £61.7m from £76.3m the previous year.