24
October 2024
International Personal
Finance plc
Q3 2024 trading
update
International Personal Finance plc
("IPF" or the "Group") is helping to build a better world through
financial inclusion by providing unsecured consumer credit to
underserved consumers across nine markets.
Highlights
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Strong third quarter financial
performance supports the Group's full-year PBT guidance1
provided at the interim results.
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Customer lending grew by 7%
year-on-year and receivables grew by 11% (both excluding Poland and
at constant exchange rates (CER)).
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Excellent customer repayment
performance and credit quality driving a further 2.8ppt
year-on-year improvement in the Group's annualised impairment rate
to 9.2%.
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Successful completion of the £15m
share buyback programme.
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1 Full-year
profit before taxation guidance of between £78m and £82m, prior to
exceptional items.
Gerard Ryan, Chief Executive Officer
at IPF commented:
"Our financial performance in the third quarter continued to
be strong, with good growth in customer lending and receivables, as
we implement our Next Gen strategy. The demand for our expanding
portfolio of credit and insurance products is robust, and we
continue to see very strong repayments and credit quality. With the
progress we're making across our strategic priorities, we're
confident in delivering full-year results in line with the guidance
provided at our interim results as well as strong shareholder
returns into the future. I would like to thank our dedicated team
for their commitment to serving our customers and advancing
financial inclusion across all our markets."
Group overview
The strong financial performance in
the first half of the year continued through into the third
quarter.
Group customer lending (excluding
Poland) grew 7% year on year, and Poland has now delivered 4%
year-on-year growth at the end of the third quarter. With
excellent credit quality across the Group, we are well positioned
to deliver further growth in the fourth quarter and
beyond.
Group net receivables now stand at
£842m at the end of the third quarter, showing growth of 11%
(excluding Poland and at CER). Poland receivables have now
stabilised at £180m, in line with the level at the interim
results.
Customer numbers increased by 2%,
excluding the impact of Poland where customer numbers have declined
by 19%.
Customer repayment performance
continued to be very strong in all our markets and credit quality
is excellent. As a result, the annualised impairment rate improved
by 2.8ppts year-on-year to 9.2%, well below our target of 14% to
16%.
The Group annualised revenue yield has reduced by 0.3ppts to 55.1% since the interim
results and the Group's annualised cost-income ratio has increased
by 1.1ppts, both due to the expected reduction in revenue
yield in our Polish businesses. Excluding Poland, the
Group's annualised revenue yield was 57.6%,
within the Group's target range of 56% to 58%, and the Group's
annualised cost-income ratio was 55.1%, compared with our target
range of 49% to 51%.
Funding and balance sheet
The Group's equity to receivables
ratio stands at 53% at the end of the third quarter, down from 56%
at June. This reflects the successful completion of the £15m share
buyback programme and the recent depreciation in the Mexican
peso.
The Group had funding headroom
of £151m at the end of the third
quarter.
Regulatory update
The new total cost of credit cap in
Romania comes into force on 11 November
2024. As previously reported, we do not
expect the impact on the Group to be material.
We continued to engage with the
Polish financial supervision authority in respect of our
application for a full payment institution licence which will
enable our Polish business to issue a greater volume of credit
cards in Poland.
Outlook
The strong financial performance in
the third quarter and excellent credit quality underpins our
confidence in delivering full-year profits in line with the
guidance1 provided at the interim results.
Investor and analyst conference call
International Personal Finance plc
will host a conference call for investors and analysts at 09.00hrs
(BST) today, Thursday 24 October 2024.
To participate in the conference
call please use the dial-in or register online using the link
below. Once registered, you will receive an email with your
online access link.
For
further information, please contact:
International Personal Finance
plc
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Rachel Moran (Investor
Relations)
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+44 (0)7760 167637
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Marsha Watson (Interim Deputy
Company Secretary)
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+44 (0)7707 857286
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A copy of this statement can be
found on our website - www.ipfin.co.uk
Legal Entity Identifier:
213800II1O44IRKUZB59