REG - Intnl Personal Fin - Q1 2026 Trading Update

International Personal FinanceAnnouncement

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RNS Number : 4723C  International Personal Finance Plc  30 April 2026

30 April 2026

 

 

 

International Personal Finance plc

Q1 2026 trading update

 

A positive start to 2026

 

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 positive start to 2026, with continued operational momentum underpinning
           confidence in delivering our financial and strategic plans.

 ·         Customer lending growth increased by 23% year on year, supported by robust
           demand and strong execution of our Next Gen Strategy.

 ·         Group customer numbers continue to build, growing by 5% year on year to
           1,724m.

 ·         Closing net receivables increased by 16% to £1,081m, reflecting sustained
           lending momentum across all three divisions.

 ·         Customer repayments remained robust and, as expected, the annualised
           impairment rate increased to 10.3%, reflecting the strong growth in customer
           lending.

 ·         Well-capitalised balance sheet and strong funding position provides
           significant capacity to support further growth and ongoing investment in
           strategic initiatives.

Note - all growth rates in this announcement are based on constant exchange
rates.

 

Gerard Ryan, Chief Executive Officer at IPF commented:

 

"We have entered 2026 with very good momentum, building on our performance in
2025. Demand for our products remains robust, and we are seeing continued
benefits from our Next Gen strategy through growth in customer numbers,
lending and receivables.

 

We are also making good progress in expanding our product offering,
strengthening our digital capabilities and enhancing the customer experience.
Together with disciplined execution and strong credit quality, we are well
positioned to continue delivering sustainable growth.

 

With a strong balance sheet and funding position, we remain confident in our
ability to invest in our strategic priorities, increase financial inclusion
and deliver against our operational and financial plans."

 

Group overview

 

The Group has made a good start to 2026, with continued strong growth in
customer numbers, lending and receivables across all three divisions supported
by robust consumer demand and  excellent operational execution.

 

Group customer lending increased by 23% year on year. Provident Europe was the
stand-out performer, delivering 30% growth, primarily driven by strong
momentum in credit card lending in Poland. The particularly strong performance
reflects the continued rebuild of the credit card receivables book since the
second quarter of 2025, and the growth rate is expected to moderate from
current levels over the course of the year. IPF Digital and Provident Mexico
both continue to perform well, delivering year-on-year lending growth of 17%
and 11% respectively.

 

The rate of customer number growth continued to build, increasing by 5% year
on year to 1.724 million. This was supported by growth in Poland, as well as
the continued momentum from our other new products and expanded distribution
channels.

 

Good customer demand and our continued focus on disciplined lending growth
delivered a 16% increase in closing net receivables to £1,081m at the end of
the first quarter. All three divisions delivered double-digit year-on-year
receivables growth.

 

Our financial model underpins our purpose to build a better world through
financial inclusion and we remain focused on delivering our medium-term
targets for revenue yield, impairment rate and cost-income ratio which support
sustainable growth and returns.

 

The Group annualised revenue yield reduced by 2.0ppts to 52.2% year on year
driven by the impact of lower interest base rates set by central banks in our
markets over the past 18 months together with the strong growth in Poland
receivables which have a lower relative yield.

 

Customer repayment performance remains strong across the Group, supporting
robust credit quality. As expected, the Group's annualised impairment rate for
the first quarter moved up by 1.3ppts since the 2025 year end to 10.3%
reflecting the growth in customer lending.

 

We continue to maintain a strict focus on operational efficiency and cost
control, and the Group's cost-income ratio improved year on year by 0.3ppts to
61.1%.

 

Funding and balance sheet

 

The Group continues to have a robust capital and funding position to support
our growth plans. Headroom on debt facilities was £95m at the end of the
first quarter and the Group has successfully secured £11m of bank facilities
in the year to date.

 

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. 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.

 

Acquisition update

As announced on 11 March 2026, each of the resolutions in connection with the
acquisition of the Group by IPF Parent Holdings Limited ("BasePoint"), a newly
formed company in the same group as BasePoint Capital LLC, were approved by
the requisite majorities of Scheme Shareholders and IPF Shareholders at the
Court Meeting and General Meeting.

 

Basepoint has continued to work towards satisfying the outstanding conditions
of the Scheme including the receipt of certain financial regulatory change of
control approvals, antitrust and foreign investment clearances, and the
sanction by the High Court in the UK. Regulatory approvals have now been
received in all jurisdictions other than in Estonia and Poland.

 

Subject to the satisfaction (or waiver, where applicable) of the remaining
conditions, the parties continue to aim to complete the acquisition by the end
of Q2 2026, as previously announced on 25 February 2026.

 

A further update and notice of the time and date of the Scheme Sanction
Hearing will be published in due course. Full details of the offer and related
documentation are available at www.ipfin.co.uk (http://www.ipfin.co.uk) .

 

Outlook

 

We have entered 2026 with continued positive growth momentum, supported by
robust credit quality and a strong balance sheet. We see good demand for
credit, with our Next Gen strategy driving growth through our expanded product
set and distribution channels, enhanced customer journeys and increasing
digital capability. We continue to invest in key growth opportunities,
particularly in Mexico and Australia, alongside further development of our
products and customer acquisition channels. Whilst this may impact returns in
the short term, it is expected to support sustainable growth over the medium
term.

 

For further information, please contact:

International Personal Finance plc

 Rachel Moran (Investor Relations)        +44 (0)7760 167637
 Georgia Dunn (Deputy Company Secretary)  +44 (0)7584 615230

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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