REG - Intnl Personal Fin - Q1 2025 Trading Update

International Personal FinanceAnnouncement

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RNS Number : 9251G  International Personal Finance Plc  01 May 2025

1 May 2025

 

International Personal Finance plc

Q1 2025 trading update

 

A strong start to the year

 

International Personal Finance plc ("IPF" or the "Group") is helping to build
a better world through financial inclusion by providing unsecured consumer
credit to underserved consumers across nine markets.

 

Highlights

 

 ·         A strong start to the year provides an excellent platform for delivering our
           2025 operational and financial plan with confidence.

 ·         Customer lending momentum continued in Q1, up 12% at constant exchange rates
           (CER) year on year, reflecting continued strong demand.

 ·         Closing net receivables increased by 10% year on year at CER to £885m.

 ·         Excellent customer repayment behaviour and credit quality drove a further
           improvement in the Group's annualised impairment rate to 9%.

 ·         Strong balance sheet and funding position, including £36m of new bank
           facilities secured in 2025 and significant headroom of £122m, support our
           plans to accelerate growth.

 

Gerard Ryan, Chief Executive Officer at IPF commented:

 

"We have begun the year with real momentum, which is reflected in the
sustained growth we have delivered in customer lending and receivables
across the Group - particularly in Poland, Romania, and our digital
businesses in Mexico and Australia. We are also very pleased to see continued
strong customer repayment behaviour and excellent credit quality.

 

We are making very good progress in delivering our Next Gen strategy, which is
focused on unlocking the long-term potential of the Group. Our team's efforts
will continue to position the business for success - broadening our product
choice, enhancing the customer journey and improving operational efficiency.

 

Both our balance sheet and funding position are in great shape, and with our
strong first quarter performance, we are confident in our ability to
accelerate growth and increase financial inclusion through the remainder of
2025."

 

Group overview

 

The Group has made a strong start to the year with sustained operational
momentum and customer demand driving good growth in all three of our
divisions.

 

Group customer lending grew by 12% year on year, with Poland, Romania, and our
digital businesses in Mexico and Australia being the standout performers.
Following the completion of the upgrade to our IT systems infrastructure in
Mexico home credit over the last six months, the business is now delivering
year-on-year lending growth in line with our plan.

 

At the end of March, Group net receivables were £885m showing a year-on-year
increase of 10% (at CER) with good growth being delivered by all three
divisions. We expect receivables growth to accelerate through the year,
supported by continued lending momentum and favourable year-on-year
comparatives as Poland regrows, with the aid of the full payment institution
licence, and Mexico home credit accelerates growth. Customer numbers remain
little changed from the year end.

 

We are also very pleased to report continued strong customer repayment
behaviour across all our markets, which has delivered excellent credit
quality. As a result, the annualised impairment rate of just below 9% showed a
reduction from 9.6% at December. This level remains well below our target of
14% to 16% and, with credit performance remaining robust, we are well
positioned to accelerate lending growth during the remainder of the year.

 

As expected, the Group annualised revenue yield showed a modest reduction from
54.7% at December to just above 54%, reflecting the reduction in revenue yield
in our Polish businesses. Excluding Poland, the annualised revenue
yield strengthened to 57% and continues to be within our target range of 56%
to 58%. The Group annualised cost-income ratio remained unchanged from
December at 61%. We expect both the revenue yield and the cost-income ratio to
improve over the course of the year, supported by stronger revenue growth and
continued discipline in cost control through the execution of our cost
efficiency programme.

 

Funding and balance sheet

 

Our strong balance sheet and funding position supports our ambitious future
growth plans.  At the end of the first quarter, the Group had total debt
facilities of £644m comprising £390m of bonds, and £254m of bank facilities
of which £36m were secured successfully in the first quarter. Our borrowings
stood at £522m and, together with undrawn facilities and non-operational cash
balances, the Group's headroom on debt facilities was £122m at 31 March 2025.

 

Taking advantage of the Group's balance sheet strength, we announced in March
our intention to redeem the remaining €66.7m of our 2020 Eurobonds and
repayment was completed successfully on 1 April 2025 at par. The bonds have
now been fully redeemed and delisted from the London Stock Exchange. This
action reflects our proactive approach to capital management and strengthens
our funding position as we progress through 2025.

 

The positive trading performance of the Group's €341m 2029 Eurobonds and the
2027 retail bonds on the secondary market firmly demonstrate that we are well
positioned to undertake a new capital markets transaction when required.

 

The Group's equity to receivables ratio increased from 54% to 55% in the first
quarter, reflecting strong capital generation and favourable exchange rates.

 

Share buyback

 

The £15m share buyback has not yet commenced but is expected to be completed
by the third quarter of 2025, as we set out with the 2024 year end results.

 

Outlook

 

We have strong growth momentum, excellent credit quality and a very robust
funding and capital position. Our strategic progress and track record of
operational resilience give us confidence that we will continue to perform
successfully against our financial plans for 2025.

 

 

Investor and analyst conference call

 

International Personal Finance plc will host a conference call for investors
and analysts at 09.00hrs (BST) today, Thursday 1 May 2025.

 

To participate in the conference call please use the dial-in or register
online using the link below.  Once registered, you will receive an email with
your online access link.

 Registration for online access:

                                  https://www.netroadshow.com/events/login?show=517e3bcb&confId=80591
                                  (https://www.netroadshow.com/events/login?show=517e3bcb&confId=80591)

 Dial-in by phone:                +44 20 3936 2999
 Access code:                     051009

 Replay:                          An audio recording of the conference call will be available in the investors
                                  section of our website at www.ipfin.co.uk (http://www.ipfin.co.uk)

 

 

For further information, please contact:

International Personal Finance plc

 Rachel Moran (Investor Relations)                 +44 (0)7760 167637
 Marsha Watson (Interim Deputy Company Secretary)  +44 (0)7707 857286

 

A copy of this statement can be found on our website - www.ipfin.co.uk
(http://www.ipfin.co.uk)

 

Legal Entity Identifier: 213800II1O44IRKUZB59

 

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