REG - Intnl Personal Fin - 2025 Final Results and Accounts
25/02/2026 07:05
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RNS Number : 2453U International Personal Finance Plc 25 February 2026
25 February 2026
International Personal Finance plc
Full-year financial report for the year ended 31 December 2025
Principal activity
International Personal Finance ("IPF" or "the Group") is helping to build a
better world through financial inclusion by providing affordable credit
products and insurance services to underserved consumers across nine markets.
Increased growth and strong strategic progress
Key highlights
Another year of delivery
· Group pre-exceptional profit before tax of £88.6m(1) (2024: £85.2m(1)),
driven by strong operational delivery and continued progress against our Next
Gen strategy.
· Final dividend of 9.0 pence per share proposed (2024: 8.0 pence),
resulting in a full-year dividend of 12.8 pence (2024: 11.4 pence).
Increased growth underpinned by good demand, disciplined execution and robust
credit quality
· Customer numbers up by 4.7% year on year to 1.7m, supported by robust
demand and an expanded product set.
· Customer lending growth and closing net receivables increased by
11.8%(2) and 13.9%(2), respectively, with all three divisions delivering good
growth.
· Robust credit quality and customer repayment performance across the
Group delivered an impairment rate of 9.0% (2024: 9.6%), whilst absorbing
higher up-front IFRS 9 impairment charges.
Strong funding and capital position
· Headroom on undrawn funding facilities and non-operational cash balances
of £129m, provides significant capacity to support further growth.
· Equity to receivables ratio of 51% (2024: 54%) supports the Group's
growth plans whilst maintaining a progressive dividend policy.
Next Gen growth strategy driving scale and efficiency
· Nearly 200,000 customers are now enjoying the utility of ProviSmart
credit cards in Poland, and a credit card pilot has recently been launched in
Romania.
· Retail partnership credit now live in 1,700 offline and online stores
in Romania and over 1,000 in Mexico.
· Geographic expansion in Provident Mexico continues, with new branches
opened in Monterrey and Ensenada.
· Following successful pilots of short-term loan products in Mexico and
Poland, both countries have now moved into full roll-out.
· An additional £5m per annum will be invested in new initiatives over
the next two to three years to strengthen the Group's medium-term performance.
Proposed acquisition by IPF Parent Holdings Limited ("BasePoint")
· The Board has recommended BasePoint's proposed acquisition of the
Group at an increased final offer value, separately announced today, of 250
pence per share (inclusive of a 15 pence per share special dividend),
representing a premium of approximately 40% to the closing price of 179.2
pence per IPF share on 29 July 2025, being the last business day prior to the
commencement of the offer period.
Group key statistics FY-25 FY-24 YoY change
Customer numbers (000s) 1,729 1,652 4.7%
Customer lending (£m) 1,342.0 1,214.5 11.8%(2)
Closing net receivables (£m) 1,061.3 870.0 13.9%(2)
Pre-exceptional PBT (£m)(1) 88.6 85.2 4.0%
Statutory PBT (£m) 85.3 73.3 16.4%
Pre-exceptional EPS (pence)(1,3) 26.3 24.9 5.6%
Full-year dividend per share (pence) 12.8 11.4 12.3%
TNAV per share(4) 2.14 1.87 14.4%
(1 ) Prior to a pre-tax exceptional charge of £3.3m in 2025 and £11.9m in
2024 (see note 9 for details).
(2 ) At constant exchange rates (CER).
(3 ) Prior to an exceptional tax credit of £17.4m in 2024 (see note 9 for
details).
(4 ) Total net asset value (TNAV) per share is calculated as net assets
(2025: £546.0m, 2024: £466.3m) less goodwill and intangible assets (2025:
£76.5m, 2024: £59.7m) divided by the number of shares with voting rights
(2025: 219.8m, 2024: 217.4m). The main driver of the increase in TNAV per
share of 14.9% in the year relates to the £47m foreign exchange gain taken to
reserves (approximately 80% of the gain).
Gerard Ryan, Chief Executive Officer at IPF commented:
"I am pleased with the Group's performance in 2025. Our overarching aim for
the year was to accelerate the pace of growth and change across the business,
whilst delivering our Next Gen strategy. Our growth rate improved as the year
progressed, reflecting good consumer demand, disciplined execution and
improving momentum from our new products and distribution channels. All three
divisions contributed to this progress, with growth in customer numbers,
lending and receivables, and we aim to increase our investment in new products
and channels to maintain this momentum. Customer repayment performance
continues to be robust and credit quality remains well controlled.
This financial performance, together with our strong funding and capital
position, has enabled us to continue investing in growth while maintaining a
progressive dividend. Looking ahead, we entered 2026 with a solid balance
sheet and a clear strategy to scale the business sustainably. I would like to
thank our colleagues across the Group for their continued commitment and focus
on fulfilling our purpose of building financial inclusion for our customers,
which remains central to delivering long-term value for all our stakeholders."
Alternative performance measures
This full-year financial report provides alternative performance measures
(APMs) which are not defined or specified under the requirements of
International Financial Reporting Standards. We believe these APMs provide
stakeholders with important additional information on our business. To support
this, we have included an accounting policy note on APMs in the notes to this
financial report, a glossary indicating the APMs that we use, an explanation
of how they are calculated and how we use them, and a reconciliation of the
APMs we use to a statutory measure, where relevant.
Investor relations and media contact:
Rachel Moran - Investor Relations +44 (0)7760 167637
Georgia Dunn - Deputy Company Secretary +44 (0)7584 615230
Investor and analyst webcast
International Personal Finance will host a webcast of its 2025 full-year
results presentation at 09.00hrs (GMT) today - Wednesday 25 February, which
can be accessed here
(https://flyonthewall.videosync.fi/full-year-results-2025) .
A copy of this statement can be found on our website at www.ipfin.co.uk
(http://www.ipfin.co.uk) .
Legal Entity Identifier: 213800II1O44IRKUZB59
Chief Executive Officer's review
Group performance
I am pleased with the Group's financial and operational performance in 2025
which delivered a year-on-year increase in pre-exceptional profit before tax
of £3.4m (4.0%) to £88.6m (2024: £85.2m).
One of the highlights of 2025 was the Group's return to customer growth for
the first time in 10 years. Overall, our customer numbers increased by 4.7% to
over 1.7 million, with the rate of growth building through the year, supported
by our Polish business returning to growth and the growing contribution from
new products and expanded distribution channels. Based on the strong customer
appeal and growing momentum from our new products and distribution channels,
we will be investing a further £5m per annum in these initiatives over the
next two to three years through additional marketing and brand-building costs,
enhancing our colleague capability, as well as incurring additional up-front
impairment charges as we refine our credit scorecards. Whilst this may impact
our returns in 2026 and 2027, we believe this investment will sustain our
growth rates and allow us to more effectively fulfil our purpose of building
financial inclusion.
Customer lending increased by 11.8% (at CER), outpacing customer number
growth, with all three divisions delivering good performances of between 7%
and 13%. This was supported by our continued focus on enhancing our customer
proposition and broadening our product set. As a result of the growth in
customer lending, closing net receivables increased by 13.9% (at CER) to
£1,061.3m (2024: £870.0m).
Customer repayment performance continued to be excellent across all our
divisions, notwithstanding the impact of accelerating growth and the
associated higher up-front IFRS 9 impairment charges. The combination of
consistent customer repayment behaviour and a strong debt sale market led to a
small improvement in the Group's impairment rate to 9.0% (2024: 9.6%).
Our balance sheet and funding position continued to be strong. During the
year, we extended our maturity profile by securing £55m of new bank
facilities and successfully priced a SEK 1bn (c.£80m) senior unsecured
floating-rate bond issuance, due in 2028. We ended the year with headroom on
debt facilities of £129m and an equity to receivables ratio of 51% (2024:
54%), providing a strong platform to continue investing in growth while
maintaining a progressive dividend policy.
Based on the Group's capital strength and the Board's confidence in our
outlook, we are pleased to declare a 12.5% increase in the proposed final
dividend to 9.0 pence per share (2024: 8.0p), in line with the Group's
progressive dividend policy. Together with the 2025 interim dividend of 3.8
pence per share (2024: 3.4p), the total dividend for 2025 has increased by
12.3%. The final dividend will be paid on 8 May 2026 to shareholders on the
register at the close of business on 27 March 2026. The shares will be marked
ex-dividend on 26 March 2026.
Full details of the Group's financial performance are detailed in the
financial review section.
Purpose and strategy
We are committed to building a better world through financial inclusion by
providing affordable, responsible credit to people who are often underserved
by mainstream lenders. Today, we support more than 1.7 million customers
across nine markets, and we are focused on growing our reach to 2.5 million
people in the medium term, while continuing to meet customers' everyday
financial needs in a responsible way.
Our Next Gen strategy is delivering results. It is helping us grow faster,
serve customers better and operate more efficiently across the Group. Progress
has been made across all three strategic pillars, with clear momentum in
product expansion, digital capability and operational efficiency. This focused
approach is strengthening our customer proposition, improving scale and
supporting sustainable value creation as the business continues to grow.
Next Gen financial inclusion
We are building products, channels and territories to ensure our propositions
are attractive to the next generation of customers.
Building on the success of our established products, we are introducing proven
offerings, channels and customer experiences from one market to another. This
approach gives customers a wider choice of products that meet their needs,
enhances efficiency and strengthens our presence in our existing markets. As
part of this evolution, we have renamed "European home credit" to "Provident
Europe" and "Mexico home credit" to "Provident Mexico" to better reflect the
broader product set and distribution channels provided by both divisions as
well leveraging the strong brand name both have in their respective
geographies.
Our credit card business in Poland showed good growth momentum in 2025, with
nearly 200,000 active credit cards now in issue. This includes 2,000 customers
using the fully digital credit card we launched towards the end of the year, a
product that we expect to be a key driver of future growth. Credit card
lending now accounts for around 50% of receivables within the Polish
portfolio, with customers actively using their card both in-store and online.
The card's strong customer appeal has supported our extension of the product
into Romania, where testing commenced in late 2025 for an expected full launch
to consumers in this market in the third quarter of 2026.
We continued to scale our retail partnerships model, providing tailored credit
solutions at the point of sale. In Romania, purchase finance is now available
across more than 1,700 offline and online retail locations. In Mexico, we have
expanded the partnerships proposition, with retail finance available at over
100 online merchants and in over 900 physical stores, including a large
flagship retailer which was launched in the fourth quarter and is showing
encouraging signs in terms of future potential for growth.
In Provident Mexico, we opened two new branches in 2025 - the first in
Monterrey, and a second in Ensenada, south of Tijuana. With momentum
building across the business, expanding into new areas will support Provident
Mexico in delivering longer-term, sustainable growth.
Responding to the demand for small, fast-repay borrowing, we introduced
short-term digital loans in Mexico and Poland. Offering credit in the
£100-£200 range repaid within 30-60 days, these loans complement our
longer-term products and provide an effective way to attract new customers and
introduce them to our broader offering, including longer duration loans,
credit lines and credit cards. Customers needing more time to repay can also
switch to a longer-term plan, with more affordable instalments.
Australia represents an attractive growth market for our digital business,
with significant scope to increase market share. To support this ambition, we
have invested in automation and enhancements to the customer journey and, in
mid-2025, began to invest in our Credit24 brand to increase brand recognition,
increase customer acquisition and drive market share gains. These actions have
supported customer numbers increasing by 17% and net receivables growing by
23% during the year.
Next Gen organisation
We are continuing our journey to become a more efficient organisation that
makes a positive impact on society. Through our Next Gen Organisation pillar,
we are building a workplace where people feel empowered, connected and proud
of what they do. We are also driving efficiency improvements across the
business.
We are updating our technology and introducing more conforming internal
processes to reduce complexity, improve efficiency and make day-to-day work
simpler for colleagues so they can focus more time on customers and
value-adding activities. One example is ONE IPF, our multi-year programme to
implement a new enterprise resource planning system that will replace multiple
legacy platforms, transforming how our finance, HR and procurement colleagues
carry out their work. The programme will standardise processes, improve data
quality and speed, and drive greater efficiency, giving colleagues better
tools and insights to work more effectively and support decision-making across
the Group.
Our Provident Mexico division expanded its "Power of Women" programme to
support career progression and leadership development. More than 90 colleagues
completed learning modules and this programme has been a key contributing
factor to women now representing over half of our 1,050 Development Managers
in Mexico.
In 2025, the Group achieved ISO 45003 certification across all our Provident
businesses and IPF Digital in Poland, marking a significant milestone in
strengthening psychological health and safety. This complements our
long-standing ISO 45001 accreditation, which was successfully retained during
the year, and reinforces our commitment to a safe, supportive and
high-performing workplace.
In 2025, we invested around £500,000 in our local communities, with
colleagues actively supporting a wide range of local initiatives, including
our Invisibles and Financial Education programmes focused on vulnerable and
often overlooked groups in society. This reflects our continued commitment to
making a positive and lasting impact in the markets in which we operate.
Next Gen technology and data
In 2025, we invested a record £35.2m (2024: £24.2m) in capital expenditure
to accelerate the transition to becoming a data driven, technology-enabled
partner for our customers. We are enhancing customer experience through better
use of data, digital tools and automation - making our services faster, more
personalised and easier to use for colleagues and customers alike. These
changes are also improving accuracy and efficiency, helping to build a more
connected, responsive and resilient business that delivers lasting value for
customers, colleagues and investors.
We are improving customer experience through smarter digital connections. In
Provident Europe, more customers are using our new omnichannel platform, which
brings together call centres, websites and mobile apps into one seamless
journey. This integration gives us a complete view of each customer, enabling
more personalised, efficient and consistent service. As part of our digital
transformation, we also launched web chat in all four of our Provident Europe
markets, giving customers more choice in how they interact with us.
We focused on continuing to develop our mobile apps for customers in Provident
Europe, with a new app going live in Hungary at the end of 2025, and the Czech
Republic and Romania set to launch in the first half of 2026. These complement
our existing apps in Mexico and Poland. In IPF Digital, we also expanded the
reach of our mobile wallet, giving more than 185,000 customers faster, simpler
and more secure access to credit.
In Mexico, we introduced new digital and in-store payment options that give
customers more flexibility and convenience when repaying their loans. From
secure online payment links to partnerships with major retailers, these
improvements make repayments easier, strengthen financial inclusion for the
communities we serve and reduce costs.
We are using AI to support how we build and deploy technology, helping make
software development faster and more efficient. This approach is speeding up
delivery, improving accuracy and helping us bring new digital capabilities to
customers more quickly. We also launched pilot projects using AI and digital
avatars to create more engaging learning experiences for our customer service
teams.
To support the three pillars of our strategy and the ongoing transformation of
the Group, we expect to accelerate capital expenditure in 2026 and 2027 to
between £45m to £50m per annum before reducing expenditure thereafter to a
more normalised run rate of between £25m to £30m per annum.
Regulatory update
The second Consumer Credit Directive (CCD II) came into force in December
2023, with EU Member States required to comply within 24 months. With the
exception of Hungary, where the process has been completed, implementation
plans within our European markets are continuing to evolve. As part of the
transposition of CCD II, a number of regulatory changes enabled or driven by
the Directive are being considered and debated in each jurisdiction as the
deadline for implementation approaches. Discussions include, but are not
limited to: (i) the introduction of caps on lending-related fees; (ii) the
introduction of a rate cap in the Czech Republic; (iii) enhancements to
affordability assessments; (iv) changes to rebates on early settlement of
credit agreements; (v) additional training for colleagues and customer
representatives; (vi) increasing restrictions on the advertising of credit
agreements; (vii) tightening the rules governing the selling of value-added
services; and (viii) the introduction of free credit sanctions. We continue to
monitor the potential impact on the Group and work with industry bodies in our
markets to ensure that any changes in regulation are appropriate and assist
the provision of responsibly provided credit to those in need. Whilst the
scope of the potential change is broad, we have demonstrated a good track
record in adapting to regulatory interventions across the Group, including the
implementation of CCD I, new rate caps and enhanced creditworthiness
requirements.
Potential acquisition by BasePoint
On 24 December 2025, the boards of IPF Parent Holdings Limited ("BasePoint"),
a newly formed company in the same group as BasePoint Capital LLC, and IPF
announced that they had reached agreement on the terms of a recommended cash
offer to be made by BasePoint for the entire issued and to be issued ordinary
share capital of IPF, to be implemented by way of a court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006. Under the final terms of
the acquisition, as announced today, IPF shareholders will be entitled to
receive 250 pence in cash for each IPF share, comprising 235 pence for each
IPF share and a special dividend payment of 15 pence per IPF share, which is
expected to be paid by IPF within 14 days of the effective date. As previously
announced, eligible IPF shareholders remain entitled to retain the final
dividend of 9.0 pence per share declared today (the "Permitted Dividend").
On 15 January 2026, IPF published a Scheme Document which, amongst other
things, sets out the full terms and conditions of the acquisition. The
acquisition remains conditional on the satisfaction (or waiver, where
applicable) of various conditions, including the receipt of certain financial
regulatory, antitrust and foreign investment clearances, the approval by the
requisite majorities of IPF shareholders and the sanction by the High Court in
the UK.
In order to approve the terms of the acquisition, the required majority of
Scheme Shareholders will need to vote in favour of the resolution to be
proposed at the Court Meeting and the required majority of IPF Shareholders
will need to vote in favour of the resolution to be proposed at the General
Meeting. As announced on 11 February 2026, the Court Meeting and the General
Meeting are expected to be held on 11 March 2026.
Subject to the satisfaction (or waiver, where applicable) of the various
conditions, the parties are now aiming to complete the acquisition by the end
of Q2 2026.
Outlook
We have entered 2026 with good momentum, underpinned by robust credit quality
and a strong balance sheet. There continues to be good demand for credit, and
while consumer expectations continue to evolve, we are well positioned to meet
these needs through our diversified product set, strong local market positions
and clear strategic focus. Our Next Gen strategy provides a disciplined
framework for investment, prioritising growth, efficiency and scalable digital
capability. We see clear opportunities to further invest for growth in key
markets, particularly Mexico and Australia, alongside continued development of
our new products and customer acquisition channels. We therefore plan to
increase our investment in these new initiatives by approximately £5m per
annum over the next two to three years. Although this may impact returns in
2026 and 2027, we believe it will sustain our growth rates and allow us to
more effectively fulfil our purpose of building financial inclusion.
We remain confident in our ability to deliver against the operational and
financial plans we have set, supported by prudent risk management and our
strong capital position. Looking ahead, the Board believes the Group is well
placed to continue making progress towards its long-term purpose of increasing
financial inclusion, while delivering attractive and sustainable returns.
Financial review
Group
The Group delivered another good financial performance in 2025, reflecting our
disciplined execution of our Next Gen strategy, continued growth in customer
lending and robust credit quality across the Group. Pre-exceptional profit
before tax increased to £88.6m (2024: £85.2m), up 4.0% year on year (or 7.7%
on a constant currency basis), despite the adverse IFRS 9 impact of stronger
growth on impairment and our investment in new growth initiatives across the
Group, including further investment in partnerships, hybrid digital lending,
short-term lending and launching credit cards in Romania.
The full-year result includes exceptional one-off costs of £3.3m relating to
the potential acquisition of the Group by BasePoint (2024: exceptional costs
of £11.9m, comprising £6.1m of restructuring costs in Provident Europe and
£5.8m of costs associated with the refinancing of the Group's Eurobond in
June 2024). Statutory profit before tax was therefore £85.3m (2024: £73.3m).
An analysis of the full-year divisional results is shown below:
FY-25 FY-24 Change Change
£m £m £m %
Provident Europe 63.2 57.4 5.8 10.1
Provident Mexico 26.6 26.0 0.6 2.3
IPF Digital 14.1 17.0 (2.9) (17.1)
Central costs (15.3) (15.2) (0.1) (0.7)
Pre-exceptional profit before taxation 88.6 85.2 3.4 4.0
Exceptional items (3.3) (11.9) 8.6 72.3
Profit before taxation 85.3 73.3 12.0 16.4
The detailed income statement of the Group, together with associated KPIs, is
set out below:
Change at CER
FY-25 FY-24 Change Change %
£m £m £m %
Customer numbers (000s) 1,729 1,652 77 4.7
Customer lending 1,342.0 1,214.5 127.5 10.5 11.8
Average gross receivables 1,405.9 1,327.5 78.4 5.9 7.5
Closing net receivables 1,061.3 870.0 191.3 22.0 13.9
Revenue 737.5 726.3 11.2 1.5 4.2
Impairment (126.8) (127.5) 0.7 0.5 (5.8)
Revenue less impairment 610.7 598.8 11.9 2.0 3.8
Costs (450.8) (443.2) (7.6) (1.7) (3.3)
Interest expense (71.3) (70.4) (0.9) (1.3) (2.4)
Pre-exceptional profit before taxation 88.6 85.2 3.4 4.0
Exceptional items (3.3) (11.9) 8.6 72.3
Profit before taxation 85.3 73.3 12.0 16.4
Revenue yield 52.5% 54.7% (2.2) ppts
Impairment rate 9.0% 9.6% 0.6 ppts
Cost-income ratio 61.1% 61.0% (0.1) ppts
Pre-exceptional EPS(1,2) 26.3p 24.9p 5.6%
Pre-exceptional RoRE(1,2,3) 14.9% 15.7% (0.8) ppts
Reported RoE 10.7% 12.6% (1.9) ppts
(1 ) Prior to a pre-tax exceptional charge of £3.3m (2024: £11.9m) (see
note 9 for details).
(2 ) Prior to an exceptional tax credit of £17.4m in 2024 (see note 9 for
details).
(3 ) Based on required equity to receivables of 40%.
Consistent consumer demand and continued product innovation drove an increase
in customer lending growth throughout the course of the year. Group customer
lending increased by 11.8% year on year, reflecting positive momentum across
all divisions. Demand for our newer products is encouraging, including credit
cards, retail partnerships, digital hybrid loans and shorter-term lending,
which have supported both improved customer acquisition and increased
engagement.
Group customer numbers returned to growth during the year, increasing by 4.7%
to 1.7m, with momentum improving as the year progressed, demonstrating the
appeal of both our core and new products. Customer numbers increased by 46,000
in Mexico during the second half, with Mexico digital growing by 24,000
customers and Provident Mexico growing by 22,000. In Provident Europe, Romania
and Poland both added 10,000 customers in the second half.
Group net receivables broke through the £1bn mark in 2025, closing at
£1,061.3m, representing year-on-year growth of 14% (at CER). All three
divisions delivered double-digit growth. With good customer demand and our
continued focus on disciplined growth, we expect receivables to continue to
show similar growth in 2026.
Our financial model is designed to deliver sustainable returns by optimising
three core value drivers - revenue yield, credit performance and operational
efficiency - and we remain firmly focused on managing these levers to support
delivery of our growth ambitions and drive long-term shareholder value.
The Group's revenue yield decreased by 2.2ppts to 52.5% driven primarily by
the impact of lower interest base rates set by central banks in our markets
during the year. Excluding Poland, which has been adversely impacted by the
reduction in rate caps implemented over recent years, the Group's revenue
yield of 56.0% was in line with our target range of 56% to 58%. Looking ahead,
the transition to higher-yielding products, including further growth in Polish
credit cards and new customer acquisition in Mexico, is expected to grow the
overall Group revenue yield towards our target range.
Consistent customer repayment performance continued to support very good
credit quality across the Group. Together with a strong debt sale market and a
further £8m reduction in the Group's cost of living provision (2024: £7m
reduction), this resulted in a 0.6ppt improvement in the impairment rate to
9.0% (2024: 9.6%) despite the impact of higher up-front IFRS 9 impairment
charges. Excluding Poland, the Group's impairment rate was 13.3%, just below
the Group's target range of 14% to 16%. As Poland continues to regrow, we
expect the overall Group impairment rate to trend back towards the target
level over the next two years. The strong repayment performance has resulted
in a reduction in the impairment coverage provision from 32.9% at December
2024 to 31.1% at December 2025.
Cost growth of 3.3% in the year was lower than the average inflation rate in
our markets, as the Group maintained cost discipline whilst continuing to
invest in sales activities and enhancing our strategic capabilities. The
Group's cost-income ratio remained broadly flat at 61.1% (2024: 61.0%), mainly
reflecting the reduction in the Group's revenue yield and the current lack of
scale in Poland following the changes in regulation and transition of the
business over the last three years. Excluding Poland, the Group's cost-income
ratio was 56.2%, compared with 55.7% in 2024. Whilst the ratio remains above
the Group's medium-term target range, the underlying trajectory is positive,
and we continue to expect further progress towards our 49% to 51% target as
scale benefits are realised and revenue growth continues to outpace cost
growth.
Pre-exceptional earnings per share increased by 5.6% year on year to 26.3p
(2024: 24.9p), higher than the 4.0% growth in pre-exceptional profit before
tax, reflecting the reduction in shares in issue following the share buyback
in the second half of 2024. Reported earnings per share reduced by 9.2% to
24.8p (2024: 27.3p), as 2024 included an exceptional tax credit of £17.4m.
The Group continued to deliver attractive returns during the year. Consistent
with our guidance, pre-exceptional RoRE moderated to 14.9% in 2025 (2024:
15.7%), reflecting the investment in new products and channels and
acceleration in growth. The Group's reported RoE, based on statutory earnings
and on actual average equity, reduced from 12.6% to 10.7% in 2025, again
reflecting the impact of the exceptional tax credit in 2024.
Divisional performance
Provident Europe
Change at
FY-25 FY-24 Change Change CER
£m £m £m % %
Customer numbers (000s) 738 725 13 1.8
Customer lending 764.2 662.1 102.1 15.4 13.2
Average gross receivables 757.6 706.0 51.6 7.3 5.8
Closing net receivables 575.4 459.6 115.8 25.2 15.8
Revenue 339.7 328.2 11.5 3.5 2.0
Impairment (5.5) (8.1) 2.6 32.1 32.9
Revenue less impairment 334.2 320.1 14.1 4.4 2.9
Costs (231.8) (225.1) (6.7) (3.0) (1.3)
Interest expense (39.2) (37.6) (1.6) (4.3) (2.9)
Pre-exceptional profit before taxation(1) 57.4
63.2 5.8 10.1
Revenue yield 44.8% 46.5% (1.7) ppts
Impairment rate 0.7% 1.1% 0.4 ppts
Cost-income ratio 68.2% 68.6% 0.4 ppts
Pre-exceptional RoRE(1,2) 19.8% 19.9% (0.1) ppts
(1 ) In 2024, prior to a pre-tax exceptional charge of £6.1m and, in
respect of RoRE, an exceptional tax credit of £1.1m.
(2 ) Based on required equity to receivables of 40%.
Provident Europe delivered a very good financial performance, with
pre-exceptional profit before tax increasing by £5.8m (10.1%) to £63.2m
(2024: £57.4m), reflecting disciplined execution of the Group's strategy and
continued robust credit quality.
Customer lending increased by 13.2% year on year (at CER), with particularly
good performances from Poland and Romania. In Poland, access to the full
payment licence and continued momentum from our evolving and improving credit
card proposition resulted in year-on-year growth in customer lending of 20%
(at CER). Romania, supported by the continued expansion of its retail
partnerships and hybrid digital channels, delivered 18% (at CER) year-on-year
growth. Hungary and the Czech Republic combined delivered growth of 4% (at
CER).
Closing net receivables increased by 15.8% (at CER) to £575.4m (2024:
£459.6m), reflecting 22% growth in Romania, 19% in Poland, 16% in the Czech
Republic and 9% in Hungary.
Customer numbers in Provident Europe increased by 1.8%, ending the year at
738,000. Growth was driven primarily by Romania (7%) with the other three
countries combined broadly flat. Poland added 10,000 customers in the second
half, offsetting the shrinkage experienced in the first six months of the
year.
The revenue yield reduced by 1.7 ppts to 44.8% (2024: 46.5%), reflecting the
impact of reductions in base rate linked rate caps in Poland and Hungary,
together with the introduction of the Total Cost of Credit cap in Romania late
in 2024. We expect the yield to grow in 2026 as credit card lending, which
carries a higher yield than loans, increases in Poland.
Customer repayment behaviour remained robust across Provident Europe and,
together with a strong debt sale market, resulted in a 0.4 ppt improvement in
the impairment rate to 0.7% (2024: 1.1%). Looking ahead, as customer lending
increases, particularly in Poland, we expect the impairment rate to normalise
in the medium term to within the target range for Provident Europe of 8% to
10%.
The cost-income ratio improved by 0.4 ppts year on year to 68.2% (2024:
68.6%). This reflects increasing scale together with continued cost discipline
which was reflected in a modest 1.3% increase in costs (at CER). As revenue
momentum builds and operating leverage increases, particularly in Poland, this
positive trajectory is expected to continue, with the cost-income ratio moving
towards the medium-term target range of 49% to 51%, whilst maintaining
investment to support growth.
Provident Europe continues to generate good returns, delivering a RoRE of
19.8% in 2025 (2024: 19.9%), a slight year-on-year moderation due to the
investment in receivables growth in the year. We expect returns to improve
over the medium term as we invest in rebuilding the receivables book in
Poland.
Provident Mexico
Change at
FY-25 FY-24 Change Change CER
£m £m £m % %
Customer numbers (000s) 705 680 25 3.7
Customer lending 285.9 289.2 (3.3) (1.1) 7.5
Average gross receivables 295.9 306.9 (11.0) (3.6) 4.7
Closing net receivables 191.2 159.4 31.8 19.9 11.5
Revenue 247.1 263.8 (16.7) (6.3) 1.4
Impairment (80.3) (92.4) 12.1 13.1 6.8
Revenue less impairment 166.8 171.4 (4.6) (2.7) 6.0
Costs (126.6) (131.0) 4.4 3.4 (4.7)
Interest expense (13.6) (14.4) 0.8 5.6 (0.7)
Reported profit before taxation 26.6 26.0 0.6 2.3
Revenue yield 83.5% 85.9% (2.4) ppts
Impairment rate 27.1% 30.1% 3.0 ppts
Cost-income ratio 51.2% 49.6% (1.6) ppts
RoRE(1) 24.7% 24.4% 0.3 ppts
( )
(1) Based on required equity to receivables of 40%.
Provident Mexico delivered improved growth and profitability in 2025,
following the disruption to trading activities in the last quarter of 2024
from upgrading the front-end lending technology used by our customer
representatives. On a constant exchange basis, profit before tax increased by
£3.6m (15.7%) year on year to £26.6m, and by £0.6m on a reported basis,
reflecting the impact of the much stronger Peso in the first half of 2024,
prior to its significant weakening in the second half of the year.
Customer lending increased by 7.5% (at CER) year on year with growth in the
second half of 13% supported by the new front-end technology and a softer
second-half comparator. Customer numbers ended the year 3.7% higher than
last year at 705,000, with an increase of 22,000 in the second half as the
business showed good momentum.
Closing net receivables increased by 11.5% year on year (at CER) to £191.2m,
reflecting the improvement in lending growth. The revenue yield moderated
slightly during the year to 83.5% (2024: 85.9%), due to the higher proportion
of lending to existing good-quality customers compared with new customers.
Existing customers tend to be served with higher value, longer duration loans
which have a lower yield but a better impairment rate.
The impairment rate improved year on year to 27.1% (2024: 30.1%) supported by
a greater focus on good-quality existing customers together with targeted
actions to ensure improved lending quality and repayment behaviour. As lending
growth increases, including a greater proportion of new customers, we expect
the impairment rate to move towards the 30% level, in line with our
longer-term expectations.
Our ongoing investment in geographic expansion combined with the one-off cost
of the front-end technology upgrade contributed to an increase in the
cost-income ratio year on year to 51.2% (2024: 49.6%). This is expected to
return to the target range of between 49% to 51% in 2026.
Provident Mexico continues to deliver strong returns and the RoRE of 24.7%,
remained above the Group's target minimum rates of 20% (2024: 24.4%).
IPF Digital
Change at
FY-25 FY-24 Change Change CER
£m £m £m % %
Customer numbers (000s) 286 247 39 15.8
Customer lending 291.9 263.2 28.7 10.9 12.6
Average gross receivables 352.4 314.6 37.8 12.0 13.9
Closing net receivables 294.7 251.0 43.7 17.4 11.7
Revenue 150.7 134.3 16.4 12.2 14.7
Impairment (41.0) (27.0) (14.0) (51.9) (60.8)
Revenue less impairment 109.7 107.3 2.4 2.2 3.6
Costs (77.2) (72.0) (5.2) (7.2) (8.1)
Interest expense (18.4) (18.3) (0.1) (0.5) (2.8)
Reported profit before taxation 14.1 17.0 (2.9) (17.1)
Revenue yield 42.8% 42.7% 0.1 ppts
Impairment rate 11.6% 8.6% (3.0) ppts
Cost-income ratio 51.2% 53.6% 2.4 ppts
RoRE(1) 8.4% 11.4% (3.0) ppts
(1) Based on required equity to receivables of 40%.
IPF Digital delivered strong growth in customer numbers and lending during the
year, and delivered a profit before tax of £14.1m (2024: £17.0m), reflecting
the ongoing investment to build scale.
Demand for fully remote credit solutions remained positive, driving
year-on-year growth in both customer numbers and lending of 16% and 13%
respectively (at CER). This performance was led by Mexico and Australia, which
delivered lending growth of 32% and 19% respectively (both at CER). Mexico
customer numbers have now surpassed 130,000, showing year-on-year growth of
40%, whilst Australia delivered 17% growth. The Group continues to invest in
brand and product propositions to support growth and capture an increasing
share of the significant opportunities available in these markets.
Year-end receivables of £295m, showed year-on-year growth of 12% (at CER),
reflecting consistent execution of the Group's Next Gen strategy across all
markets. Receivables growth was led by Mexico and Australia, with increases of
16% and 23% respectively (both at CER), while the Baltic markets, Poland and
the Czech Republic delivered combined growth of 7%.
The revenue yield increased by 0.1 ppts year on year to 42.8% (2024: 42.7%),
reflecting the net impact of the growth of the receivables book in Mexico,
which carries a higher yield, partly offset by the impact of reductions in
interest-linked caps in the Baltic and Polish markets.
Customer repayment performance and collections discipline remained robust
across all IPF Digital markets, underpinning very good portfolio quality. As
expected, the impairment rate increased to 11.6% (2024: 8.6%), reflecting the
growth of the portfolio, particularly in Mexico which carries a higher
impairment rate.
To support growth and customer acquisition in our competitive digital markets,
we continued to invest in strengthening our brand positioning and enhancing
technology to improve the customer journey, particularly in Mexico and
Australia. These investments, which are expected to deliver scale and
long-term value, contributed to an increase in operating costs of 8.1% (at
CER) in 2025. Notwithstanding this investment, the cost-income ratio improved
by 2.4 ppts to 51.2% (2024: 53.6%) as scale benefits were realised. As the
portfolio continues to grow, the cost-income ratio is expected to move
progressively towards the medium-term target for IPF Digital of approximately
45%.
IPF Digital's RoRE moderated year on year by 3.0 ppts to 8.4% (2024: 11.4%)
reflecting continued investment to support its growth. We expect returns to
strengthen towards the Group's 15% to 20% target range as the division scales
and matures. The business has generated good momentum and remains well
positioned to continue delivering improving returns as it scales its digital
proposition across multiple markets.
Taxation
The pre-exceptional tax charge on the profit for 2025 is £31.1m, which
represents an effective tax rate of approximately 35% (2024: 35%).
There was no tax credit in respect of the exceptional costs of £3.3m in 2025.
The 2024 results reflected an exceptional tax credit of £17.4m comprising:
(i) a £15.2m tax credit following reinstatement of amounts previously paid to
HMRC in respect of the Group's financing company arrangements following a
favourable judgement by the European Court of Justice - the monies in respect
of this matter were repaid to the Group by HMRC during 2025; and (ii) a tax
credit of £2.2m in respect of the costs incurred on the refinancing of the
Group's Eurobond and restructuring of the Provident Poland business in 2024.
Funding and balance sheet
We maintained a conservatively capitalised balance sheet and a strong funding
position throughout 2025.
As at 31 December 2025, the Group held total debt facilities of £750m,
comprising £483m in bonds and £267m in bank funding, including £55m of new
bank facilities arranged during the year. Net borrowings at the end of 2025
totalled £621m and the Group has funding headroom of £129m.
In March 2025, and as reported at the half year, we repaid at par and
subsequently delisted the remaining €66.7m of our 2020 Eurobond. The strong
secondary market performance of our €341m 2029 Eurobonds and 2027 retail
sterling bond reflected continued investor confidence in our business and, as
such, we took the opportunity in the second half of the year to successfully
secure SEK 1bn (c.£80m) senior unsecured floating rate notes due 2028 at an
issue price of 100 per cent. The notes carry a floating interest rate of
three-month STIBOR plus 5.75% and have been admitted to trading on the
Frankfurt Open Market (Freiverkehr).
Our blended cost of funding reduced steadily and was 12.2% at the end of
December 2025 (2024: 13.3%) due to the reduction in interest rates across
our markets as well as lower costs of hedging as interest differentials
narrowed.
Both Fitch Ratings and Moody's Ratings reviewed the Group's long-term credit
ratings and reaffirmed their previous assessments. Fitch maintained its rating
at BB with a Stable outlook in the first half of the year, while Moody's
confirmed its Ba3 rating, also with a Stable outlook in early 2026.
At the end of December, the Group's equity to receivables ratio was 51% (2024:
54%), compared with our target of 40%. The reduction in the ratio reflects the
growth in receivables during 2025 partly offset by a foreign exchange gain of
£47m taken to reserves as the majority of our currencies strengthened against
sterling. Our strong capital position supports the Group's ambitious growth
plans and progressive dividend policy through to the point at which we are
delivering management's target returns and operating in line with our
financial model which we expect to be in 2028.
The Group's gearing ratio was 1.2 times (2024: 1.2 times) at the end of
December 2025 and is well within our covenant limit of 3.75 times. Our
interest cover covenant was 2.6 times (2024: 2.6 times) and, again, is well
within our covenant limit of 2.0 times.
Notes
This report has been prepared to provide additional information to
shareholders to assess the Group's strategies and the potential for those
strategies to succeed. The report should not be relied on by any other party
or for any other purpose. The report contains certain forward-looking
statements. These statements are made by the directors in good faith based on
the information available to them up to the time of their approval of this
report, but such statements should be treated with caution due to the inherent
uncertainties, including both economic and business risk factors, as well as
any forward-looking information. Percentage change figures for all performance
measures, other than profit before taxation and earnings per share, unless
otherwise stated, are quoted after restating prior year figures at a constant
exchange rate (CER) for the period to present the performance variance.
International Personal Finance plc
Consolidated income statement for the year ended 31 December
2025 2024
Notes £m £m
Revenue 4 737.5 726.3
Impairment 4 (126.8) (127.5)
Revenue less impairment 610.7 598.8
Interest expense 5 (71.3) (70.4)
Other operating costs (137.9) (135.1)
Administrative expenses (312.9) (308.1)
Total costs (522.1) (513.6)
Profit before taxation and exceptional items 4 88.6 85.2
Exceptional items 9 (3.3) (11.9)
Profit before taxation 85.3 73.3
Tax income/(expense)
- UK 1.5 0.2
- Overseas (32.6) (30.0)
Tax expense before exceptional items 6 (31.1) (29.8)
Exceptional tax income 6, 9 - 17.4
Total tax expense (31.1) (12.4)
Profit after taxation attributable to owners of the Company
54.2 60.9
Earnings per share - statutory
2025 2024
Notes pence pence
Basic 7 24.8 27.3
Diluted 7 23.6 25.9
Earnings per share - before exceptional items
2025 2024
Notes pence pence
Basic 7 26.3 24.9
Diluted 7 25.0 23.5
The notes to the financial information are an integral part of this
consolidated financial information.
Consolidated statement of comprehensive income for the year ended 31 December
2025 2024
£m £m
Profit after taxation attributable to owners of the Company 54.2 60.9
Other comprehensive income/(expense)
Items that may subsequently be reclassified to income statement:
Exchange gains/(losses) on foreign currency translations 46.9 (57.3)
Net fair value gains/(losses) - cash flow hedges 0.2 (0.4)
Tax (charge)/credit on items that may be reclassified (0.1) 0.1
Items that will not subsequently be reclassified to income statement:
Actuarial gains/(losses) on retirement benefit obligation 0.4 (2.0)
Tax (charge)/credit on items that will not be reclassified (0.1) 0.5
Other comprehensive income/(expense) net of taxation 47.3 (59.1)
Total comprehensive income for the year attributable to owners of the Company
101.5 1.8
The notes to the financial information are an integral part of this
consolidated financial information.
Balance sheet as at 31 December
2025 2024
Notes £m £m
Assets
Non-current assets
Goodwill 10 23.8 22.6
Intangible assets 11 52.7 37.1
Property, plant and equipment 12 16.3 14.0
Right-of-use assets 13 20.5 17.7
Amounts receivable from customers 15 291.1 245.6
Deferred tax assets 14 107.4 106.7
Retirement benefit asset 18 5.0 4.4
516.8 448.1
Current assets
Amounts receivable from customers 15 770.2 624.4
Derivative financial instruments 17 1.5 2.6
Cash and cash equivalents 30.4 27.6
Other receivables 15.5 22.9
Current tax assets 2.9 16.1
820.5 693.6
Total assets 1,337.3 1,141.7
Liabilities
Current liabilities
Borrowings 16 (58.9) (92.8)
Derivative financial instruments 17 (4.0) (1.6)
Trade and other payables (133.4) (125.1)
Provisions for liabilities and charges 19 - (2.8)
Lease liabilities 13 (8.4) (8.1)
Current tax liabilities (9.5) (6.0)
(214.2) (236.4)
Non-current liabilities
Deferred tax liabilities 14 (4.1) (4.1)
Lease liabilities 13 (14.2) (11.8)
Borrowings 16 (558.8) (423.1)
(577.1) (439.0)
Total liabilities (791.3) (675.4)
Net assets 546.0 466.3
Equity attributable to owners of the Company
Called-up share capital 22.5 22.5
Other reserve (22.5) (22.5)
Foreign exchange reserve 21.6 (25.3)
Hedging reserve - (0.1)
Own shares (15.4) (24.9)
Capital redemption reserve 3.2 3.2
Retained earnings 536.6 513.4
Total equity 546.0 466.3
The notes to the financial information are an integral part of this
consolidated financial information.
Statement of changes in equity
Called-up share capital
£m
Other Other Retained Total
reserve reserves* earnings equity
£m £m £m £m
At 1 January 2024 23.4 (22.5) (2.2) 503.2 501.9
Comprehensive income:
Profit after taxation for the year - - - 60.9 60.9
Other comprehensive (expense)/income:
Exchange losses on foreign currency translation - - (57.3) - (57.3)
Net fair value losses - cash flow hedges - - (0.4) - (0.4)
Actuarial loss on retirement benefit obligation - - - (2.0) (2.0)
Tax credit on other comprehensive expense - - 0.1 0.5 0.6
Total other comprehensive expense - - (57.6) (1.5) (59.1)
Total comprehensive (expense)/income for the year
- - (57.6) 59.4 1.8
Transactions with owners:
Share-based payment adjustment to reserves - - - 2.9 2.9
Acquisition of own shares (0.9) - 0.9 (15.1) (15.1)
Shares acquired by employee trust - - (1.3) - (1.3)
Shares granted from treasury and employee trust - - 13.1 (13.1) -
Dividends paid to Company shareholders - - - (23.9) (23.9)
At 31 December 2024 22.5 (22.5) (47.1) 513.4 466.3
At 1 January 2025 22.5 (22.5) (47.1) 513.4 466.3
Comprehensive income:
Profit after taxation for the year - - - 54.2 54.2
Other comprehensive income/(expense):
Exchange gains on foreign currency translation - - 46.9 - 46.9
Net fair value gains - cash flow hedges - - 0.2 - 0.2
Actuarial gain on retirement benefit obligation - - - 0.4 0.4
Tax charge on other comprehensive income - - (0.1) (0.1) (0.2)
Total other comprehensive income - - 47.0 0.3 47.3
Total comprehensive income for the year - - 47.0 54.5 101.5
Transactions with owners:
Share-based payment adjustments to reserves - - - 3.5 3.5
Deferred tax on share-based payment transactions - - - 0.5 0.5
Shares granted from treasury and employee trust - - 9.5 (9.5) -
Dividends paid to Company shareholders - - - (25.8) (25.8)
At 31 December 2025 22.5 (22.5) 9.4 536.6 546.0
* Includes foreign exchange reserve, hedging reserve, capital redemption
reserve and amounts paid to acquire shares held in treasury and by employee
trust.
Cash flow statement for the year ended 31 December 2025 2024
£m £m
Cash flows from operating activities
Cash generated from operating activities 69.8 114.1
Finance costs paid (69.7) (72.3)
Finance income received 2.0 1.3
Income tax paid (21.8) (18.3)
Repayment in respect of State Aid 15.2 -
Net cash (used in)/generated from operating activities (4.5) 24.8
Cash flows from investing activities
Purchases of intangible assets (27.8) (17.8)
Purchases of property, plant and equipment (7.4) (6.4)
Proceeds from sale of property, plant and equipment - 0.1
Net cash used in investing activities (35.2) (24.1)
Net cash (used in)/generated from operating and investing activities (39.7) 0.7
Cash flows from financing activities
Proceeds from borrowings 140.0 313.2
Repayment of borrowings (61.2) (273.5)
Principal elements of lease payments (12.8) (12.2)
Acquisition of own shares - (15.1)
Shares acquired by employee trust - (1.3)
Cash received on share options exercised 0.5 0.2
Dividends paid to Company shareholders (25.8) (23.9)
Net cash generated from/(used in) financing activities 40.7 (12.6)
Net increase/(decrease) in cash and cash equivalents 1.0 (11.9)
Cash and cash equivalents at beginning of year 27.6 42.5
Exchange gains/(losses) on cash and cash equivalents 1.8 (3.0)
Cash and cash equivalents at end of year 30.4 27.6
1. Basis of preparation
The financial information, which comprises the consolidated income statement,
statement of comprehensive income, balance sheet, statement of changes in
equity, cash flow statement and related notes, is derived from the full Group
Financial Statements for the year ended 31 December 2025, which have been
prepared in accordance with International Financial Reporting Standards
('IFRSs') and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. It does not constitute full Financial Statements within
the meaning of section 434 of the Companies Act 2006.
Statutory Financial Statements for the year ended 31 December 2024 have been
delivered to the Registrar of Companies and those for 2025 will be delivered
following the Company's annual general meeting. The auditor has reported on
those Financial Statements: its reports were unqualified, did not draw
attention to any matters by way of emphasis and did not contain statements
under s498 (2) or (3) of the Companies Act 2006.
The directors are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, a period of not less than 12
months from the date of this report. Accordingly, they continue to adopt the
going concern basis in preparing this financial information (see note 24 for
further details).
The accounting policies used in completing this financial information have
been consistently applied in all periods shown. These accounting policies are
detailed in the Group's Financial Statements for the year ended 31 December
2025 which can be found on the Group's website (www.ipfin.co.uk
(http://www.ipfin.co.uk) ).
The following amendments to standards are mandatory for the first time for
the financial year beginning 1 January 2025 but do not have any material
impact on the Group:
· Amendments to IAS 21 'The Effects of Changes in Foreign Exchange
Rate: Lack of Exchangeability'
The following standards, interpretations and amendments to existing standards
are not yet effective and have not been early adopted by the Group:
· IFRS S1 'General Requirements for Disclosure of
Sustainability-related Financial Information';
· IFRS S2 'Climate-related Disclosures';
· IFRS 18 'Presentation and Disclosure in Financial Statements';
· IFRS 19 'Subsidiaries without Public Accountability: Disclosures';
· Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: 'Disclosures: Classification and Measurement of Financial
Instruments'; and
· Annual Improvements to IFRS standards - Volume 11.
Exceptional items
Exceptional items are items that are unusual because of their size, nature or
incidence and which the directors consider should be disclosed separately to
enable a full understanding of the Group's underlying results.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Consolidated Financial Statements requires the Group to
make estimates and judgements that affect the application of policies and
reported accounts.
Critical judgements represent key decisions made by management in the
application of the Group accounting policies. Where a significant risk of
materially different outcomes exists due to management assumptions or sources
of estimation uncertainty, this will represent a critical accounting estimate.
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Actual results may differ
from these estimates.
The estimates and judgements which have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities are
discussed below.
Key sources of estimation uncertainty
In the application of the Group's accounting policies, the directors are
required to make estimations that have a significant impact on the amounts
recognised, and to make estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The following are the critical estimations, that the directors have made in
the process of applying the Group's accounting policies and that have the most
significant effect on the amounts recognised in the Financial Statements.
Revenue recognition
The estimate used in respect of revenue recognition is the methodology used to
calculate the effective interest rate (EIR). In order to determine the EIR
applicable to loans an estimate must be made of the expected life of each loan
and hence the cash flows relating thereto. These estimates are based on
historical data and are reviewed regularly. Based on a 3% variation in the EIR
(2024: 3%), it is estimated that the amounts receivable from customers would
be higher/lower by £12.8m (2024: £9.6m). This sensitivity is based on
historic fluctuations in EIRs.
Amounts receivable from customers
The Group reviews its portfolio of customer loans and receivables for
impairment on a weekly or monthly basis. The Group reviews the most recent
repayments performance to determine whether there is objective evidence which
indicates that there has been an adverse effect on expected future cash flows.
For the purposes of assessing the impairment of customer loans and
receivables, customers are categorised by division and product type, into
stages based on days past due as this is considered to be the most reliable
predictor of future payment performance. The level of impairment is calculated
using historical payment performance to generate both the estimated expected
loss and also the timing of future cash flows for each agreement. The expected
loss is calculated using probability of default (PD) and loss given default
(LGD) parameters.
Recurring post-model overlays on amounts receivable from customers
Impairment models are monitored regularly to test their continued capability
to predict the timing and quantum of customer repayments in the context of the
recent customer payment performance. The models used typically have a strong
predictive capability reflecting the relatively stable nature of the business
and therefore the actual performance does not usually vary significantly from
the estimated performance. The models are ordinarily updated at least twice
per year. Where the models are expected to show an increase in the expected
loss or a slowing of the future cashflows in the following 12 months, an
adjustment is applied to the models. At 31 December 2025, this adjustment was
a reduction in receivables of £15.1m (2024: reduction of £7.9m).
Post model overlays (PMOs) on amounts receivable from customers
2025 Hungary
Cost-of-living moratorium
PMO PMO Total PMOs
£m
£m
£m
Provident Europe and Provident Mexico 1.0 0.7 1.7
IPF Digital - - -
Group 1.0 0.7 1.7
2024 Hungary
Cost-of-living moratorium
PMO PMO Total PMOs
£m
£m
£m
Provident Europe and Provident Mexico 6.7 1.1 7.8
IPF Digital 1.8 - 1.8
Group 8.5 1.1 9.6
A full assessment of the impact of the global economic volatility has been
performed and concluded that there remains an inherent macroeconomic risk in
Romania where inflation rates are at an unprecedented level and economic
forecasts suggest a recession is possible in 2026. A PMO has been established
and, based on management's current expectations, the impact of this PMO was to
increase impairment provisions at 31 December 2025 by a further £1.0m (2024:
£8.5m). The reduction in the year reflects the fact that the risks associated
with the cost of living crisis has eased across most markets. This represents
management's current assessment of the impact that the global economic
volatility may have on the Group's customer receivables, however, given the
levels of uncertainty in this area, the impacts (if any) may be greater or
lower than the amount determined.
The Hungarian debt moratorium, which initially began in March 2020, ended in
December 2022. There remains a small proportion of the portfolio that has at
some point been in the moratorium. Given the age of these loans, PMOs have
been applied to the impairment models in order to calculate the continued
risks that are not fully reflected in the standard impairment models. Based on
management's current expectations, the impact of these PMOs was to increase
impairment provisions at 31 December 2025 by £0.7m (2024: £1.1m). In order
to calculate the PMO, the portfolio was segmented by analysis of the most
recent payment performance and, using this information, assumptions were made
around expected credit losses. This represents management's current assessment
of a reasonable outcome from the actual repayment performance on the debt
moratorium impacted portfolio.
Tax
Estimations must be exercised in the calculation of the Group's tax provision,
in particular with regard to the existence and extent of tax risks.
Deferred tax assets arise from timing differences between the accounting and
tax treatment of revenue and impairment transactions and tax losses.
Estimations must be made regarding the extent to which timing differences
reverse and an assessment must be made of the extent to which future profits
will be generated to absorb tax losses. A shortfall in profitability compared
to current expectations may result in future adjustments to deferred tax asset
balances.
Alternative performance measures
In reporting financial information, the Group presents alternative performance
measures (APMs), which are not defined or specified under the requirements of
IFRS.
The Group believes that these APMs, which are not considered to be a
substitute for or superior to IFRS measures, provide stakeholders with
additional helpful information on the performance of the business. The APMs
are consistent with how the business performance is planned and reported
within the internal management reporting to the Board. Some of these measures
are also used for the purpose of setting remuneration targets.
Each of the APMs, used by the Group are set out in this report including
explanations of how they are calculated and how they can be reconciled to a
statutory measure where relevant.
The Group reports percentage change figures for all performance measures,
other than profit or loss before taxation and earnings per share, after
restating prior year figures at a constant exchange rate. The constant
exchange rate, which is an APM, retranslates the previous year measures at the
average actual periodic exchange rates used in the current financial year.
These measures are presented as a means of eliminating the effects of exchange
rate fluctuations on the year-on-year reported results.
The Group makes certain adjustments to the statutory measures in order to
derive APMs where relevant. The Group's policy is to exclude items that are
considered to be significant in both nature and/or quantum and where treatment
as an adjusted item provides stakeholders with additional useful information
to assess the year-on-year trading performance of the Group.
2. Principal risks and uncertainties
In accordance with the Companies Act 2006, a description of the principal
risks and uncertainties (and the mitigating factors in place in respect of
these) is included below. Effective management of risks, uncertainties and
opportunities is critical to our business in order to deliver long-term
shareholder value and protect our people, assets and reputation. We manage
risk strategically using our enterprise risk management (ERM) framework, which
enables us to identify, assess and respond to a wide range of risks and
opportunities across the Group in an integrated and efficient manner. Risk
appetite is a core consideration within our ERM approach and plays an
important role in addressing the Group's key risks effectively. The way we
implement risk management also supports our understanding and ability to
address our capacity to sustain risk over time, ensure risks are considered in
decision-making across the Group and enable the Board to perform its
supervisory role.
Risk environment
↑ IPF Risk environment improving
↔ IPF Risk environment remains stable
↓ IPF Risk environment worsening
1. Credit risk ↔
The risk of the Group suffering financial loss if our customers fail to meet
their contracted repayment obligations; or the Group fails to optimise
profitable business opportunities because of our credit, collection or fraud
strategies and processes.
Impact
Consumer demand for borrowing remained strong, supporting a robust credit
performance across the Group and keeping the level of risk comfortably within
appetite. Credit losses for the year remained in line with plan. An excellent
customer repayment performance supported an improvement in the Group's
impairment rate to 9.0%, despite the impact of accelerating growth and higher
up-front IFRS 9 charges. This remains well within our risk appetite and
below the target range of 14% to 16%.
How it is managed
- Detailed, regular monitoring of customer repayments to identify
specific issues.
- Detailed analysis, testing and enhancement of our credit scorecards and
Credit Policy to ensure they remain optimal.
- Tightening of lending rules as necessary, to protect customers and the
quality of the portfolio.
- Regular assessment of the external macroeconomic environment, regulatory
landscape and competitor activities.
- Ensuring repayments and arrears management activities remain a key part of
customer representative and field management incentive schemes.
2. Future legal and regulatory development risk ↔
The risk that the Group suffers loss as a result of new, or a change in,
existing legislation or regulation.
Impact
We continue to manage a range of regulatory risks across the Group's markets,
with a particular focus on price legislation, employment models and licensing
frameworks.
CCD II remains the primary regulatory focus across Europe, with national
transposition completed by November 2025 and full application required by the
end of November 2026. In Romania, a Consumer Protection Authority proposal
linked to CCD II is under review, while in the Czech Republic, a price cap
proposal remains active.
There were no material changes to risks related to employment models or
licensing frameworks. We continue to monitor developments and maintain
readiness to adapt where needed.
How it is managed
- Horizon-scanning, monitoring political, legislative and regulatory
developments and risks.
- Engagement with regulators, legislators, politicians and other
stakeholders.
- Active participation in relevant sector associations.
- Contingency plans in place for significant regulatory changes.
3. Funding, liquidity, market and counterparty risk ↑
The risk of insufficient availability of funding, unfavourable pricing, or
that performance is impacted significantly by interest rate or currency
movements, or failure of a banking counterparty.
Impact
Despite an uncertain macroeconomic and geopolitical backdrop globally, we
continued to strengthen the Group's funding position. At the year end, the
Group held total debt facilities of £750m, comprising £483m in bonds and
£267m in bank funding, including £55m of new bank facilities arranged in
2025. We also successfully secured SEK 1,000,000,000 senior unsecured floating
rate notes due 2028.
Monetary policy easing across our markets supported funding costs, with
central banks in Mexico, Australia, and the Eurozone reducing base interest
rates. These reductions are also expected to have a positive impact on the
Group's financing costs going forward. Foreign exchange movements have also
benefited the Group's net asset position.
How it is managed
- Board-approved policies require us to maintain a resilient funding
position with a good level of headroom on undrawn bank facilities, appropriate
hedging of market risk, and appropriate limits to counterparty risk.
- Compliance with these policies is monitored on a monthly basis by the
Group's Treasury Committee which is chaired by the Chief Financial Officer.
- The Board receives a comprehensive funding and liquidity overview as
part of the Chief Financial Officer's report.
- The Group's funding and liquidity is managed centrally by the Group
Treasurer and qualified treasury personnel.
- The Group sets cash management controls for operating markets that are
subject to independent annual testing.
4. Reputation risk ↔
Risk of reputational damage due to our methods of operation, ill-informed
comment, malpractice, fines or activities of some of our competition.
Impact
The Group continues to manage a range of reputational risks linked to
stakeholder perceptions, regulatory expectations and broader sector dynamics.
The financial sector remains under scrutiny, particularly given political
developments in some markets.
We maintain strong relationships with key stakeholders to enhance
understanding of our business model, purpose and societal role. We remain
alert to the reputational risks within the non-bank financial institution
(NBFI) sector, particularly where poor practices by other providers could
influence public and regulatory sentiment. We also monitor risks arising from
non-compliance investigations, mystery shopping exercises and customer
complaints, which could lead to adverse media coverage.
To mitigate these risks, we have strengthened compliance oversight, enhanced
controls around customer interactions and marketing, and maintained active
engagement with regulators and policymakers.
Our participation in industry associations continues to support best practice
in lending and the fair treatment of customers.
Our working practices are subject to rigorous oversight to ensure compliance
with legislation and alignment with customer expectations, helping safeguard
the Group from reputational harm. In 2025, we were again recognised for
responsible business practices, customer service excellence, and as a leading
employer.
How it is managed
- Clearly defined corporate values and ethical standards are communicated
throughout the organisation.
- Employees and customer representatives undertake annual ethics
e-learning training.
- Regular monitoring of key reputation drivers both internally and
externally.
- Strong oversight by the senior leadership team on reputation
challenges.
- Regular monitoring of internal and external reputation indicators,
with agreed actions taken in response to findings.
- Ongoing media tracking, including bi-monthly Group-level reviews, to
assess reputational performance and emerging risks.
5. Taxation risk ↔
The risk of failure to comply with tax legislation or adoption of an
interpretation of the law which cannot be sustained together with the risk of
a higher future tax burden.
Impact
We continue to monitor EU and OECD developments which might be of application
to the Group on an ongoing basis. The Group's first year within the scope of
the OECD's Pillar 2 rules was 2024, and for this year the safe harbour
provisions applied across all territories. An assessment has been carried out
and it is expected that the Group will again fall within the safe harbour
provisions with respect to all of the territories in which it operates for
2025 and accordingly no top-up tax is expected to arise.
For some years, the Group had an Irish finance company which benefited from
the Group Financing Exemption contained in the UK's Controlled Foreign
Companies legislation. This legislation was the subject of a State Aid
challenge by the European Commission in April 2019. In September 2024, the
European Commission's Decision was annulled by a judgement of the Court of
Justice of the European Union, and amounts paid under the original State Aid
challenge were repaid in full, along with circa £1.6m repayment interest
during 2025.
In Hungary, the extra profit special tax will also apply in 2026 and the rate
has increased. The liability for 2026 is estimated at c.£2.3m.
How it is managed
- Tax strategy and policy in place.
- Qualified and experienced tax teams at Group level and in market.
- External advice taken on material tax issues in line with Tax
Policy.
- Binding rulings or clearances are obtained from authorities where
appropriate.
- Appropriate oversight at Board level over taxation matters.
6. Change management risk ↔
The risk that the Group suffers losses or fails to optimise profitable growth
resulting from change initiatives failing to deliver to agreed scope, time,
cost and quality measures, or failing to realise desired benefits.
Impact
Effectively managing change and transformation risk remains critical to
minimising financial impacts, maintaining employee engagement and ensuring
successful delivery of strategic priorities. We continue to manage a large and
complex change agenda across the Group driven by three key factors:
- regulatory-driven change, which can have a significant impact if not
addressed and prioritised;
- migration to 'Next Gen' platforms, which mitigates technology debt and
end-of-life risk; and
- business-driven change, aligned to strategic objectives and performance
improvement.
In 2025, we worked on a Group Change Framework to strengthen consistency and
control across divisional change functions. The establishment of a Business
Transformation Office in Q4 2025 will enhance strategic prioritisation and
improve oversight of market-level impacts.
We also increased scrutiny of business case development and benefits
realisation. Group-wide change initiatives are also now tracked through a
single Project Portfolio Management tool, improving visibility and control.
How it is managed
- Business Transformation Office.
- Change management framework and monitoring process in place.
- Appropriate methods and resources used in the delivery of change
programmes.
- Continuous review of change programmes, with strong governance of all
major delivery activity including:
- alignment with Investment Appraisal Policy, owned by the finance
function; and
- a Group change capability established in 2024, focused on synergy and
consistency across the Group, and agreeing a Group-wide approach for oversight
of change and transformation.
7. Brand and proposition risk ↔
The risk of brand perception deteriorating and failing to respond to market
trends can limit profitable growth.
Impact
Competitive activity remained elevated across our markets in 2025, with
heightened pressure on brand visibility and product relevance. While there
were no major new entrants serving our core consumer base, competition
intensified particularly in Mexico where fintech offerings continued to evolve
and attract prime segment customers.
We increased marketing investment across key markets and plan to maintain this
momentum to reinforce brand visibility and strengthen customer engagement.
Targeted actions were taken in Mexico to improve product competitiveness, and
broader initiatives are underway to enhance prioritisation in product
development and innovation across the Group.
To meet evolving consumer expectations, we continued to invest in customer
experience tools and digital capabilities, including mobile apps and online
communication channels. We also continued to expand our retail credit offering
in Romania and Mexico, refreshed the Provident brand, and sustained investment
in our Creditea digital brand.
How it is managed
- Product development committees and processes in place to review the
product development roadmap, manage product risks and develop new products.
- Product and promotions incorporate adequate risk criteria and
risk assessment protocols.
- Regular monitoring of competitors and their offerings, advertising
and share of voice in our markets.
- Strategic planning and tactical responses on competition
threats.
- Customer engagement and brand tracking surveys.
8. Technology risk ↑
The risk of failure to develop and maintain effective technology solutions.
Impact
We take a proactive approach to technology risk management to maintain the
Group's capabilities and resilience in an increasingly digital environment. In
2025, our focus remained on addressing risks associated with technological
obsolescence, ensuring strategic alignment and building the foundations to
support future investment and growth.
Development of our core technology platforms progressed well including the
establishment of ONE IPF, a programme to implement a new ERP system in 2026 to
provide more integrated, real-time data and strengthen control,
decision-making and efficiency. We also enhanced our omnichannel customer
service platform to further improve customer experience.
Alongside these platform developments, we continued to strengthen our
infrastructure and skills base. Cloud training programmes are underway in
Provident Europe, with AWS certification rolled out to IT teams to improve
capability and support the shift to more modern, scalable technologies.
How it is managed
- Ongoing reviews of partner services and relationships to ensure
effective operations.
- Enterprise architecture tooling to link apps to underlying software
components.
- Utilisation of vulnerability tools to identify gaps in our IT estate for
both retrospective remediation and proactive testing for new developments.
- Annual review to prioritise technology investment and ensure
appropriateness of the technology estate.
- Engaging experienced third parties to handle security penetration
testing and security network operations.
9. People risk ↔
The risk that the achievement of the long-term Group strategy and operational
results may be compromised due to insufficient capacity (number) or capability
(quality) in the workforce, or an inability to recruit external talent,
retain key employees, or engage our people effectively.
Impact
The actions taken to align with our Next Gen strategy continued to shape our
organisational structures and operating processes in 2025. Our employee
value proposition and reward strategy continue to support the attraction and
retention of talent, with vacancy rates remaining within acceptable thresholds
in most markets. We remain committed to developing and engaging colleagues
through expanded learning programmes, structured career pathways, and
recognition initiatives. We also continued to enhance oversight of incentive
scheme performance. Our culture remains strong, supported by high Global
People Survey scores and ongoing ethics and engagement initiatives.
How it is managed
Our HR control environment identifies key people risks and implements controls
to mitigate them, focusing on:
- Monitoring and action: Regularly assessing key people risks and
addressing issues proactively.
- Strategic alignment: Ensuring objectives are aligned with the Group's
strategy.
Our people processes are designed to develop significant strength and depth of
talent across the Group. We also maintain the flexibility to move talent
between countries, reducing our exposure to critical roles being
under-resourced and ensuring continuity in key areas.
10. Data integrity and systems resilience risk ↑
The risk that the Group suffers a significant loss due to either:
- business disruption caused by the unavailability of ICT systems arising
through poorly managed ICT systems; the actions of a malicious third party;
or the failure to adequately manage our third-party providers of ICT
services which support the business.
Or
- the malicious or accidental exposure, loss or corruption of data
arising from a failure to adequately manage and protect all classes of Group
data.
Impact
We continue to evolve our ICT risk management strategy to build a more
resilient, modern, and secure technology environment. In 2025, we made
significant strides in identifying and measuring performance of key controls,
enhancing baseline security, improving detection and response capabilities,
and advancing recovery planning to improve our resilience to modern cyber and
other ICT-related threats.
Recognising the dynamic nature of cyber risk driven by human behaviour, rapid
technological change and legacy system challenges, we are addressing
vulnerabilities and investing in long-term resilience. The global rise of
AI-driven cyber threats and increasingly sophisticated malicious actors
underscores the importance of our strategic focus.
How it is managed
- Group-wide cyber and data risk strategy with executive oversight and
alignment to regulatory and resilience priorities.
- Robust identity and access management including privileged access controls
and user authentication.
- Advanced threat detection and response through enhanced Security
Operations Centre (SOC) capabilities and incident management.
- Comprehensive asset and system mapping to support recovery,
continuity and vulnerability management.
- Ongoing staff training and awareness programme to reduce human error
and strengthen security culture.
3. Related parties
The Group has not entered into any material transactions with related parties
during the year ended 31 December 2025.
4. Segmental analysis
Geographical segments
2025 2024
£m £m
Revenue
Provident Europe 339.7 328.2
Provident Mexico 247.1 263.8
IPF Digital 150.7 134.3
Revenue 737.5 726.3
Impairment
Provident Europe 5.5 8.1
Provident Mexico 80.3 92.4
IPF Digital 41.0 27.0
Impairment 126.8 127.5
Profit before taxation and exceptional items
Provident Europe 63.2 57.4
Provident Mexico 26.6 26.0
IPF Digital 14.1 17.0
Central costs* (15.3) (15.2)
Profit before taxation and exceptional items 88.6 85.2
*Although central costs are not classified as a separate segment in accordance
with IFRS 8 'Operating segments', they are shown separately above in order
to provide reconciliation to profit before taxation and exceptional items.
Further information relating to the exceptional items is shown in note 9.
2025 2024
£m £m
Segment assets
Provident Europe 642.6 530.3
Provident Mexico 279.6 243.3
IPF Digital 337.2 281.3
UK 77.9 86.8
Total 1,337.3 1,141.7
Segment liabilities
Provident Europe (336.3) (285.5)
Provident Mexico (201.4) (127.3)
IPF Digital (251.2) (195.1)
UK (2.4) (67.5)
Total (791.3) (675.4)
4. Segmental analysis (continued)
2025 2024
£m £m
Expenditure on intangible assets (note 11)
Provident Europe - -
Provident Mexico - -
IPF Digital 6.5 5.2
UK 21.3 12.6
Total 27.8 17.8
2025 2024
£m £m
Amortisation (note 11)
Provident Europe - -
Provident Mexico - -
IPF Digital 4.3 4.3
UK 8.5 8.1
Total 12.8 12.4
2025 2024
£m £m
Capital expenditure (note 12)
Provident Europe 2.7 1.9
Provident Mexico 4.3 4.0
IPF Digital 0.3 0.3
UK 0.1 0.2
Total 7.4 6.4
2025 2024
£m £m
Depreciation (note 12)
Provident Europe 2.7 3.7
Provident Mexico 2.9 2.7
IPF Digital 0.3 0.2
UK 0.2 0.2
Total 6.1 6.8
5. Interest expense
2025 2024
£m £m
Interest payable on borrowings 70.7 69.3
Interest payable on lease liabilities 2.6 2.4
Interest income (2.0) (1.3)
Interest expense 71.3 70.4
6. Tax expense
The pre-exceptional taxation charge on the profit for 2025 is £31.1m, which
represents an effective tax rate for the year of approximately 35% (2024:
35%).
7. Earnings per share
2025 2024
pence pence
Basic EPS 24.8 27.3
Dilutive effect of awards (1.2) (1.4)
Diluted EPS 23.6 25.9
Basic earnings per share (EPS) is calculated by dividing the profit
attributable to shareholders of £54.2m (2024: £60.9m) by the weighted
average number of shares in issue during the period of 218.3m which has been
adjusted to exclude the weighted average number of shares held in treasury and
by the employee trust (2024: 222.8m).
2025 2024
pence pence
Basic pre-exceptional EPS 26.3 24.9
Dilutive effect of awards (1.3) (1.4)
Diluted pre-exceptional EPS 25.0 23.5
Basic pre-exceptional EPS is calculated by dividing the pre-exceptional profit
attributable to shareholders of £57.5m (2024: £55.4m) by the weighted
average number of shares in issue during the period of 218.3m which has been
adjusted to exclude the weighted average number of shares held in treasury and
by the employee trust (2024: 222.8m).
For diluted EPS the weighted average number of shares has been adjusted to
229.9m (2024: 235.3m) to assume conversion of all dilutive potential ordinary
share options relating to employees of the Group.
8. Dividends
Dividend per share
2025 2024
Pence pence
Interim dividend 3.8 3.4
Final proposed dividend 9.0 8.0
Total dividend 12.8 11.4
Dividends paid
2025 2024
£m £m
Interim dividend of 3.8 pence per share (2024: interim dividend of 3.4 pence 8.3
per share)
7.7
Final 2024 dividend of 8.0 pence per share (2024: final 2023 dividend of 7.2 17.5
pence per share)
16.2
Total dividends paid 25.8 23.9
Reflecting the continued strong performance of the Group and our strategy to
realise the long-term growth potential of the business, the Board is pleased
to declare a 12.5% increase in the final dividend to 9.0 pence per share
(2024: 8.0 pence per share). This is in line with our progressive dividend
policy and brings the full-year dividend to 12.8 pence per share (2024: 11.4
pence per share), an increase of 12.3% compared with 2024 and represents a
pre-exceptional payout rate of 49% (2024: 46%). Subject to shareholder
approval, the 2025 final dividend will be paid on 8 May 2026 to shareholders
on the register at the close of business on 27 March 2026. The shares will be
marked ex-dividend on 26 March 2026.
9. Exceptional items
The 2025 income statement includes an exceptional item of £3.3m (2024:
exceptional items after tax of £5.5m) which comprises the following items:
2025 2024
£m £m
One-off costs relating to the potential acquisition of the Group by BasePoint (3.3) -
Capital LLC
Eurobond refinance costs - (5.8)
Poland restructuring costs - (6.1)
Exceptional items pre-tax (3.3) (11.9)
Tax credit on Eurobond refinance costs - 1.1
Tax credit on Poland restructuring costs - 1.1
Decision of the General Court of the EU on State Aid - 15.2
Exceptional tax items - 17.4
Exceptional items after tax (3.3) 5.5
10. Goodwill
2025 2024
£m £m
Net book value at 1 January 22.6 23.6
Exchange adjustments 1.2 (1.0)
Net book value at 31 December 23.8 22.6
Goodwill is tested annually for impairment or more frequently if there are
indications that goodwill might be impaired. The recoverable amount is
determined from a value in use calculation, based on the expected cash flows
resulting from the legacy MCB business' outstanding customer receivables. The
key assumptions applied in the value in use calculation relate to the discount
rates and the cash flow forecasts used. The rate used to discount the forecast
cash flows is 12% (2024: 12%) and would need to increase to 14% for the
goodwill balance to be impaired. The cash flow forecasts arise over a 4 year
period (being the expected life of the legacy MCB business's outstanding
customer receivables) and would need to be 17% lower than currently estimated
for the goodwill balance to be impaired.
11. Intangible assets
2025 2024
£m £m
Net book value at 1 January 37.1 32.3
Additions 27.8 17.8
Amortisation (12.8) (12.4)
Exchange adjustments 0.6 (0.6)
Net book value at 31 December 52.7 37.1
Intangible assets comprise computer software and are a mixture of
self-developed and purchased assets. All purchased assets have had further
capitalised development on them, meaning it is not possible to disaggregate
fully between the relevant intangible categories.
12. Property, plant and equipment
2025 2024
£m £m
Net book value at 1 January 14.0 16.0
Exchange adjustments 1.0 (1.5)
Additions 7.4 6.4
Disposals - (0.1)
Depreciation (6.1) (6.8)
Net book value at 31 December 16.3 14.0
As at 31 December 2025, the Group had £7.6m of capital expenditure
commitments contracted with third parties that were not provided for (2024:
£5.5m).
13. Right-of-use assets and lease liabilities
The movement in the right-of-use assets in the period is as follows:
Right-of-use assets
2025 2024
£m £m
Net book value at 1 January 17.7 21.7
Exchange adjustments 1.2 (2.2)
Additions 9.8 8.3
Modifications 1.7 -
Depreciation (9.9) (10.1)
Net book value at 31 December 20.5 17.7
The recognised right-of-use assets relate to the following types of assets:
2025 2024
£m £m
Properties 11.7 8.9
Motor vehicles 8.8 8.8
Total right-of-use assets 20.5 17.7
The movement in the lease liability in the period is as follows:
Lease liability
2025 2024
£m £m
Lease liability at 1 January 19.9 23.6
Exchange adjustments 1.4 (2.2)
Additions 11.5 8.3
Interest 2.6 2.4
Lease payments (12.8) (12.2)
Lease liability at 31 December 22.6 19.9
Analysed as:
Current 8.4 8.1
Non-current:
- between one and five years 12.9 11.4
- greater than five years
1.3
0.4
14.2
11.8
Lease liability at 31 December 22.6 19.9
Lease liabilities are measured at the present value of the remaining lease
payments, discounted using the rate implicit in the lease, or if that rate
cannot be readily determined, at the lessee's incremental borrowing rate. The
weighted average lessee's incremental borrowing rate applied to the lease
liabilities at 31 December 2025 was 10.4% (2024: 9.9%).
The amounts recognised in profit and loss are as follows:
2025 2024
£m £m
Depreciation on right-of-use assets 9.9 10.1
Interest expense on lease liabilities 2.6 2.4
Expense relating to leases of short-term leases 1.4 1.4
Amounts recognised in profit and loss 13.9 13.9
The total cash outflow in the year in respect of lease contracts is £12.8m
(2024: £12.2m).
14. Deferred tax assets
Deferred tax assets have been recognised in respect of tax losses and other
temporary timing differences (principally relating to recognition of revenue
and impairment) to the extent that it is probable that these assets will be
utilised against future taxable profits.
15. Amounts receivable from customers
All lending is in the local currency of the country in which the loan is
issued:
2025 2024
£m £m
Polish zloty 235.9 191.6
Czech crown 66.7 54.1
Euro 122.2 105.6
Hungarian forint 183.4 149.2
Mexican peso 248.9 205.6
Romanian leu 140.1 111.8
Australian dollar 64.1 52.1
Total receivables 1,061.3 870.0
Amounts receivable from customers are held at amortised cost and are equal to
the expected future cash flows receivable discounted at the average annual
effective interest rate of 91% (2024: 99%). The average period to maturity of
the amounts receivable from customers is 13.1 months (2024: 13.5 months). As
at 31 December 2025, in the Polish business, there are £85.2m (2024: £57.1m)
of undrawn granted credit card limits.
Determining an increase in credit risk since initial recognition
IFRS 9 has the following recognition criteria:
· Stage 1: Requires the recognition of 12 month expected credit losses
(the expected credit losses from default events that are expected within 12
months of the reporting date) if credit risk has not significantly increased
since initial recognition.
· Stage 2: Lifetime expected credit losses for financial instruments for
which the credit risk has increased significantly since initial recognition.
· Stage 3: Credit impaired.
When determining whether the risk of default has increased significantly since
initial recognition the Group considers both quantitative and qualitative
information based on the Group's historical experience.
The approach to identifying significant increases in credit risk is consistent
across the Group's products. In addition, as a backstop, the Group considers
that a significant increase in credit risk occurs when an asset is more than
30 days past due.
Financial instruments are moved back to stage 1 once they no longer meet the
criteria for a significant increase in credit risk.
Definition of default and credit impaired assets
The Group defines a financial instrument as in default, which is fully-aligned
with the definition of credit-impaired, when it meets one or more of the
following criteria:
· Quantitative criteria: the customer is more than 90 days past due on
their contractual payments in home credit and 60 days past due on their
contractual payments in IPF Digital.
· Qualitative criteria: indication that there is a measurable movement
in the estimated future cash flows from a group of financial assets. For
example, if prospective legislative changes are considered to impact the
repayments performance of customers.
The default definition has been applied consistently to model the PD, exposure
at default (EAD) and LGD throughout the Group's expected credit loss
calculations.
An instrument is considered to no longer be in default (i.e. to have
recovered) when it no longer meets any of the default criteria.
The breakdown of receivables by stage is as follows:
2025 Stage 1 Stage 2 Stage 3 Total net receivables
£m
£m £m £m
Provident Europe 447.7 44.3 83.4 575.4
Provident Mexico 119.1 21.8 50.3 191.2
IPF Digital 276.8 12.6 5.3 294.7
Group 843.6 78.7 139.0 1,061.3
2024 Stage 1 Stage 2 Stage 3 Total net receivables
£m
£m £m £m
Provident Europe 347.9 37.9 73.8 459.6
Provident Mexico 95.3 18.8 45.3 159.4
IPF Digital 234.7 10.9 5.4 251.0
Group 677.9 67.6 124.5 870.0
The Group has one class of loan receivable and no collateral is held in
respect of any customer receivables.
Gross carrying amount and loss allowance
The amounts receivable from customers includes a provision for the loss
allowance, which relates to the expected credit losses on each agreement. The
gross carrying amount is the present value of the portfolio before the loss
allowance provision is deducted. The gross carrying amount less the loss
allowance is equal to the net receivables.
2025 Stage 1 Stage 2 Stage 3 Total net receivables
£m
£m £m £m
Gross carrying amount 987.1 147.2 405.2 1,539.5
Loss allowance (143.5) (68.5) (266.2) (478.2)
Group 843.6 78.7 139.0 1,061.3
2024 Stage 1 Stage 2 Stage 3 Total net receivables
£m
£m £m £m
Gross carrying amount 802.0 128.9 366.6 1,297.5
Loss allowance (124.1) (61.3) (242.1) (427.5)
Group 677.9 67.6 124.5 870.0
16. Borrowing facilities and borrowings
The maturity of the Group's external bond and external bank borrowings and
facilities is as follows:
2025 2024
Borrowings Facilities Borrowings Facilities
£m £m £m £m
Repayable:
- in less than one year 58.9 143.9 92.8 170.3
- between one and two years 142.7 157.7 47.6 78.9
- between two and five years 416.1 448.2 375.5 407.7
558.8 605.9 423.1 486.6
Total borrowings 617.7 749.8 515.9 656.9
Total undrawn facilities as at 31 December 2025 were £125.2m (2024:
£133.4m), excluding £6.9m unamortised arrangement fees and issue discount
(2024: £7.6m).
17. Derivative financial instruments
At 31 December 2025, the Group had an asset of £1.5m and a liability of
£4.0m (2024: £2.6m asset and £1.6m liability) in respect of foreign
currency contracts. Foreign currency contracts are in place to hedge foreign
currency cash flows. Where these cash flow hedges are effective, in accordance
with IFRS, movements in their fair value are taken directly to reserves.
18. Retirement benefit asset
The amounts recognised in the balance sheet in respect of the retirement
benefit obligation are as follows:
2025 2024
£m £m
Diversified growth funds 4.0 3.1
Corporate bonds 7.4 8.4
Equities 3.2 3.5
Liability driven investments 11.8 10.7
Other 0.5 0.6
Total fair value of scheme assets 26.9 26.3
Present value of funded defined benefit obligations (21.9) (21.9)
Net asset recognised in the balance sheet 5.0 4.4
The credit recognised in the income statement in respect of defined benefit
pension costs is £0.2m (2024: £0.3m).
19. Provisions for liabilities and charges
At 31 December 2024, the Group had £2.8m payable to employees outstanding,
relating to the exceptional item (see note 9) following the restructure
exercise in Poland during 2024. This provision was fully utilised in 2025.
20. Fair values of financial assets and liabilities
IFRS 13 requires disclosure of fair value measurements of derivative financial
instruments by level of the following fair value measurement hierarchy:
· Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1);
· Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (level 2); and
· Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs) (level 3).
With the exception of derivatives, which are held at fair value, amounts
receivable from customers, and bonds, the carrying value of all other
financial assets and liabilities (which are short-term in nature) is
considered to be a reasonable approximation of their fair value. Details of
the significant assumptions made in determining the fair value of amounts
receivable from customers and bonds are included below, along with the fair
value of other Group assets and liabilities.
Except as detailed in the following table, the carrying value of financial
assets and liabilities recorded at amortised cost, which are all short term in
nature, are a reasonable approximation of their fair value:
2025 2024
Carrying value Carrying value
Fair value Fair value
£m £m £m £m
Financial assets
Amounts receivable from customers
1,373.9 1,061.3 1,124.5 870.0
1,373.9 1,061.3 1,124.5 870.0
Financial liabilities
Bonds 511.4 476.2 468.2 433.4
Bank borrowings 141.5 141.5 82.5 82.5
652.9 617.7 550.7 515.9
The fair value of amounts receivable from customers has been derived by
discounting expected future cash flows (as used to calculate the carrying
value of amounts due from customers), net of collection costs, at the Group's
weighted average cost of capital which we estimate to be 12% (2024: 12%) which
is assumed to be a proxy for the discount rate that a market participant would
use to price the asset.
Under IFRS 13 'Fair value measurement', receivables are classed as level 3 as
their fair value is calculated using future cash flows that are unobservable
inputs.
The fair value of the bonds has been calculated by reference to their market
value where market prices are available.
The carrying value of bank borrowings is deemed to be a good approximation of
their fair value. Bank borrowings can be repaid within six months if the Group
decides not to roll over for further periods up to the contractual repayment
date. The impact of discounting would therefore be negligible.
Derivative financial instruments are held at fair value which is equal to the
expected future cash flows arising as a result of the derivative transaction.
For other financial assets and liabilities, which are all short term in
nature, the carrying value is a reasonable approximation of their fair value.
21. Reconciliation of profit after taxation to cash generated from operating
activities
2025 2024
£m £m
Profit after taxation from operations 54.2 60.9
Adjusted for:
Tax charge 31.1 12.4
Finance costs 73.3 71.7
Finance income (2.0) (1.3)
Share-based payment charge 2.1 1.7
Depreciation of property, plant and equipment (note 12) 6.1 6.8
Depreciation of right-of-use assets (note 13) 9.9 10.1
Amortisation of intangible assets (note 11) 12.8 12.4
Short term and low value lease costs (note 13) 1.4 1.4
Changes in operating assets and liabilities:
Increase in amounts receivable from customers (127.3) (58.8)
Decrease/(increase) in other receivables 8.2 (10.4)
(Decrease)/increase in trade and other payables (0.7) 7.6
Change in provisions (2.8) 2.8
Change in retirement benefit asset (0.2) (0.3)
Increase/(decrease) in derivative financial instrument liabilities 3.7 (2.9)
Cash generated from operating activities 69.8 114.1
22. Contingent liabilities
In December 2020, HMRC initiated a review of the Group's finance company's
compliance with certain conditions under the UK domestic tax rules to confirm
whether the company is eligible for the benefits of the Group Financing
Exemption which it has claimed in its historic tax returns. IPF believes that
all conditions have been complied with and have sought legal advice with
regard to the interpretation of the relevant legislative condition. The legal
advice confirmed IPF's view and assessed that, in the event that HMRC were to
take the matter to Tribunal, it is more likely than not that the company would
succeed in defending its position. In the unexpected event that HMRC were to
conclude that the company is not in compliance with the conditions and to
pursue the matter in Tribunal, and won, the amount of tax at stake for all
open years is £8.8m. It is of note that although HMRC issued a protective
Discovery Assessment with respect to 2016, so far no actual challenge has been
made to the company's filing position and HMRC have simply requested
information.
Other legal actions and regulatory matters
In addition, in the course of its business the Group is subject to other
complaints and threatened or actual legal proceedings (including class or
group action claims) brought by, or on behalf of, current or former employees,
customer representatives, customers, investors or other third parties. This
extends to legal and regulatory challenges and investigations (including
relevant consumer bodies) combined with tax authorities taking a view that is
different to the view the Group has taken on the tax treatment in its tax
returns. Where material, such matters are periodically reassessed, with the
assistance of external professional advisers where appropriate, to determine
the likelihood of the Group incurring a liability. In those instances where it
is concluded that it is more likely than not that a payment will be made, a
provision is established based on management's best estimate of the amount
required at the relevant balance sheet date. In some cases, it may not be
possible to form a view, for example because the facts are unclear or because
further time is needed to assess properly the merits of the case, and no
provisions are held in relation to such matters. In these circumstances,
specific disclosure in relation to a contingent liability will be made where
material. However, the Group does not currently expect the final outcome of
any such case to have a material adverse effect on its financial position,
operations or cash flows.
23. Average and closing foreign exchange rates
The table below shows the average exchange rates for the relevant reporting
periods and closing exchange rates at the relevant period ends.
Average Closing Average Closing
2025 2025 2024 2024
Polish zloty 5.0 4.8 5.1 5.2
Czech crown 28.6 27.7 29.6 30.4
Euro 1.2 1.1 1.2 1.2
Hungarian forint 461.2 440.7 466.9 496.9
Mexican peso 25.3 24.2 23.0 26.0
Romanian leu 5.9 5.8 5.9 6.0
Australian dollar 2.0 2.0 1.9 2.0
The £46.9m exchange gain (2024: loss of £57.3m) on foreign currency
translations shown within the statement of comprehensive income arises on
retranslation of net assets denominated in currencies other than sterling, due
to the change in foreign exchange rates against sterling between December 2024
and December 2025 shown in the table above.
24. Going concern
In considering whether the Group is a going concern, the Board has taken into
account the Group's financial forecasts and its principal risks (with
particular reference to funding, liquidity and regulatory risks). The
forecasts have been prepared for the two years to 31 December 2027 and include
projected profit and loss, balance sheet, cashflows, borrowings, headroom
against debt facilities and funding requirements. These forecasts represent
the best estimate of the Group's performance, and in particular the evolution
of customer lending and repayments cash flows as well as management's best
assumption regarding the renewal/extension of maturing financing facilities.
The financial forecasts have been stress tested in a range of downside
scenarios to assess the impact on future profitability, funding requirements
and covenant compliance. The scenarios reflect the crystallisation of the
Group's principal risks (with particular reference to funding, liquidity and
regulatory risks). Consideration has also been given to multiple risks
crystallising concurrently and the availability of mitigating actions that
could be taken to reduce the impact of the identified risks. In addition, we
examined a reverse stress test on the financial forecasts to assess the extent
to which a recession would need to impact our operational performance in order
to breach a covenant. This showed that net revenue would need to deteriorate
significantly from the financial forecast and the Directors have a reasonable
expectation that it is unlikely to deteriorate to this extent.
At 31 December 2025, the Group had £129m of non-operational cash and headroom
against its debt facilities (comprising a range of bonds and bank facilities),
which have a weighted average maturity of 2.6 years. Total debt facilities as
at 31 December 2025 amounted to £750m of which £97m (excluding £47m of
uncommitted loans, which do not require extension) is due for renewal over the
following 12 months. A combination of these debt facilities, the embedded
business flexibility in respect of cash generation and a successful track
record of accessing funding from debt capital markets over a long period
(including periods with challenging macroeconomic conditions and a changing
regulatory environment), are expected to meet the Group's funding requirements
for the foreseeable future (12 months from the date of approval of this
report).Taking these factors into account, the Board has a reasonable
expectation that the Group has adequate resources to continue in operation for
the foreseeable future. For this reason, the Board has adopted the going
concern basis in preparing this full-year Financial Report.
25. Post balance sheet event
On 24 December 2025, the boards of IPF Parent Holdings Limited ("BasePoint"),
a newly formed company in the same group as BasePoint Capital LLC, and IPF
announced that they had reached agreement on the terms of a recommended cash
offer to be made by BasePoint for the entire issued and to be issued ordinary
share capital of IPF, to be implemented by way of a court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006.
On 15 January 2026, IPF published a Scheme Document which, amongst other
things, sets out the full terms and conditions of the acquisition. The
acquisition remains conditional on the satisfaction (or waiver, where
applicable) of various conditions, including the receipt of certain financial
regulatory, antitrust and foreign investment clearances, the approval by the
requisite majorities of IPF shareholders and the sanction by the High Court in
the UK.
In order to approve the terms of the acquisition, the required majority of
Scheme Shareholders will need to vote in favour of the resolution to be
proposed at the Court Meeting and the required majority of IPF Shareholders
will need to vote in favour of the resolution to be proposed at the General
Meeting. As announced on 11 February 2026, the Court Meeting and the General
Meeting are expected to be held on 11 March 2026.
Subject to the satisfaction (or waiver, where applicable) of the various
conditions, the acquisition is expected to complete during the third quarter
of 2026.
Responsibility statement
This statement is given pursuant to Rule 4 of the Disclosure Guidance and
Transparency Rules.
It is given by each of the directors as at the date of this report, namely:
Stuart Sinclair, Chair; Gerard Ryan, Chief Executive Officer; Gary Thompson,
Chief Financial Officer; Katrina Cliffe, Senior independent non-executive
director; Richard Holmes, independent non-executive director and Aileen
Wallace, independent non-executive director.
To the best of each director's knowledge:
a) the financial information, prepared in accordance with the IFRSs,
give a true and fair view of the assets, liabilities, financial position and
profit of the Company and the undertakings included in the consolidation taken
as a whole; and
b) the management report contained in this report includes a fair
review of the development and performance of the business and the position of
the Company and the undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and uncertainties
that they face.
Alternative performance measures
This financial report provides alternative performance measures (APMs) which
are not defined or specified under the requirements of International Financial
Reporting Standards. We believe these APMs provide readers with important
additional information on our business. To support this we have included a
reconciliation of the APMs we use, where relevant, and a glossary indicating
the APMs that we use, an explanation of how they are calculated and why we use
them.
APM Closest equivalent Reconciling items to Definition and purpose
statutory measure statutory measure
Income statement measures
Customer lending growth at constant exchange rates (%) None Not applicable Customer lending is the principal value of loans advanced to customers and is
an important measure of the level of lending in the business. Customer lending
growth is the period-on-period change in this metric which is calculated by
retranslating the previous year's customer lending at the average actual
exchange rates used in the current financial year. This ensures that the
measure is presented having eliminated the effects of exchange rate
fluctuations on the period-on-period reported results.
Closing net receivables growth at constant exchange rates (%) None Not applicable Closing net receivables growth is the period-on-period change in closing net
receivables which is calculated by retranslating the previous year's closing
net receivables at the closing actual exchange rate used in the current
financial year. This ensures that the measure is presented having eliminated
the effects of exchange rate fluctuations on the period-on-period reported
results.
Revenue growth at None Not applicable The period-on-period change in revenue which is calculated by retranslating
the previous year's revenue at the average actual exchange rates used in the
constant exchange current financial year. This measure is presented as a means of eliminating
the effects of exchange rate fluctuations on the period-on-period reported
rates (%) results.
Revenue yield (%) None Not applicable Revenue yield is reported revenue divided by average gross receivables (before
impairment provision) and is an indicator of the return being generated from
average gross receivables.
Impairment rate (%) None Not applicable Impairment as a percentage of average gross receivables (before impairment
provision) and represents a measure of credit quality that is used across the
business.
Cost-income ratio (%) None Not applicable The cost-income ratio is costs, including customer representatives'
commission, excluding interest expense, divided by reported revenue. This is
useful for comparing performance across markets.
APM Closest equivalent Reconciling items to Definition and purpose
statutory measure statutory measure
Balance sheet and returns measures
Equity to receivables ratio (%) None Not applicable Total equity divided by amounts receivable from customers. This is a measure
of balance sheet strength and the Group targets a ratio of around 40%.
Headroom (£m) Undrawn Not applicable Calculated as the sum of undrawn external bank facilities and non-operational
cash.
external bank
facilities
Net debt (£m) None Not applicable Borrowings less cash.
Gross receivables (£m) Net customer receivables Not applicable Gross receivables is the same definition as gross carrying amount as per note
15.
Impairment coverage ratio None Not applicable Expected loss allowance divided by gross receivables (before impairment
provision).
RoE (%) None Not applicable Return on equity (RoE) calculated as annual profit after tax divided by
average net assets over the same period.
Pre-exceptional RoRE (%) None Not applicable Return on required equity (RoRE) is calculated as annual pre-exceptional
profit after tax divided by required equity of 40% of average net receivables.
Other measures
Customers None Not applicable Customers that are being served by our customer representatives or through our
money transfer product in the home credit business and customers that are not
in default in our digital business.
Constant exchange rate reconciliations
2025
£m Provident Europe Provident Mexico IPF Digital Central costs Group
Customers (000) 738 705 286 - 1,729
Average gross receivables 757.6 295.9 352.4 - 1,405.9
Closing net receivables 575.4 191.2 294.7 - 1,061.3
Customer lending 764.2 285.9 291.9 - 1,342.0
Revenue 339.7 247.1 150.7 - 737.5
Impairment (5.5) (80.3) (41.0) - (126.8)
Net revenue 334.2 166.8 109.7 - 610.7
Interest expense (39.2) (13.6) (18.4) (0.1) (71.3)
Costs (231.8) (126.6) (77.2) (15.2) (450.8)
Profit/(loss) before tax 63.2 26.6 14.1 (15.3) 88.6
2024 performance, at 2024 average foreign exchange rates
£m Provident Europe Provident Mexico IPF Digital Central costs Group
Customers (000) 725 680 247 - 1,652
Average gross receivables 706.0 306.9 314.6 - 1,327.5
Closing net receivables 459.6 159.4 251.0 - 870.0
Customer lending 662.1 289.2 263.2 - 1,214.5
Revenue 328.2 263.8 134.3 - 726.3
Impairment (8.1) (92.4) (27.0) - (127.5)
Net revenue 320.1 171.4 107.3 - 598.8
Interest expense (37.6) (14.4) (18.3) (0.1) (70.4)
Costs (225.1) (131.0) (72.0) (15.1) (443.2)
Profit/(loss) before tax 57.4 26.0 17.0 (15.2) 85.2
Foreign exchange movements
£m Provident Europe Provident Mexico IPF Digital Central costs Group
Average gross receivables 9.9 (24.2) (5.2) - (19.5)
Closing net receivables 37.2 12.1 12.8 - 62.1
Customer lending 12.7 (23.2) (3.9) - (14.4)
Revenue 4.8 (20.2) (2.9) - (18.3)
Impairment (0.1) 6.2 1.5 - 7.6
Net revenue 4.7 (14.0) (1.4) - (10.7)
Interest expense (0.5) 0.9 0.4 - 0.8
Costs (3.7) 10.1 0.6 - 7.0
0.5 (3.0) (0.4) - (2.9)
2024 performance, restated at 2025 average foreign exchange rates
£m Provident Europe Provident Mexico IPF Digital Central costs Group
Average gross receivables 715.9 282.7 309.4 - 1,308.0
Closing net receivables 496.8 171.5 263.8 - 932.1
Customer lending 674.8 266.0 259.3 - 1,200.1
Revenue 333.0 243.6 131.4 - 708.0
Impairment (8.2) (86.2) (25.5) - (119.9)
Net revenue 324.8 157.4 105.9 - 588.1
Interest expense (38.1) (13.5) (17.9) (0.1) (69.6)
Costs (228.8) (120.9) (71.4) (15.1) (436.2)
Year-on-year movement at constant exchange rates
Provident Europe Provident Mexico IPF Digital Central costs Group
Average gross receivables 5.8% 4.7% 13.9% - 7.5%
Closing net receivables 15.8% 11.5% 11.7% - 13.9%
Customer lending 13.2% 7.5% 12.6% - 11.8%
Revenue 2.0% 1.4% 14.7% - 4.2%
Impairment 32.9% 6.8% (60.8%) - (5.8%)
Net revenue 2.9% 6.0% 3.6% - 3.8%
Interest expense (2.9%) (0.7%) (2.8%) - (2.4%)
Costs (1.3%) (4.7%) (8.1%) (0.7%) (3.3%)
Balance sheet and returns measures
Average gross receivables (before impairment provisions) are used in the
revenue yield and impairment rate calculations.
Average gross receivables
2025 2024
£m £m
Provident Europe 757.6 706.0
Provident Mexico 295.9 306.9
IPF Digital 352.4 314.6
Group 1,405.9 1,327.5
The impairment coverage ratio is calculated as loss allowance divided by gross
carrying amount.
Impairment coverage ratio
2025 2024
£m £m
Closing gross carrying amount 1,539.5 1,297.5
Loss allowance (478.2) (427.5)
Closing net receivables 1,061.3 870.0
Impairment coverage ratio 31.1% 32.9%
Return on equity (RoE) is calculated as annual profit after tax divided by
average equity.
RoE
2025 2024 2023
£m £m £m
Equity (net assets) 546.0 466.3 501.9
Average equity 506.2 484.1
Profit after tax 54.2 60.9
RoE 10.7% 12.6%
Return on required equity (RoRE) is calculated as annual pre-exceptional
profit after tax divided by required equity of 40% of average net receivables.
Pre-exceptional RoRE 2025 Provident Europe Provident Mexico IPF Digital Group
£m £m £m £m
Closing net receivables 2025 575.4 191.2 294.7 1,061.3
Closing net receivables 2024 459.6 159.4 251.0 870.0
Average net receivables 517.5 175.3 272.9 965.7
Equity (net assets) at 40% 207.0 70.1 109.2 386.3
Pre-exceptional profit before tax 63.2 26.6 14.1 88.6
Tax at 35.1% (22.2) (9.3) (4.9) (31.1)
Pre-exceptional profit after tax 41.0 17.3 9.2 57.5
Pre-exceptional RoRE 19.8% 24.7% 8.4% 14.9%
Pre-exceptional RoRE 2024 Provident Europe Provident Mexico IPF Digital
Group
£m £m £m £m
Closing net receivables 2024 459.6 159.4 251.0 870.0
Closing net receivables 2023 475.4 187.1 230.4 892.9
Average net receivables 467.5 173.3 240.7 881.5
Equity (net assets) at 40% 187.0 69.3 96.3 352.6
Pre-exceptional profit before tax 57.4 26.0 17.0 85.2
Tax at 35.0% (20.1) (9.1) (6.0) (29.8)
Pre-exceptional profit after tax 37.3 16.9 11.0 55.4
Pre-exceptional RoRE 19.9% 24.4% 11.4% 15.7%
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