Lender IPF reveals record results

CREDIT lender International Personal Finance reported a 50 per cent rise in first quarter profits thanks to an increase in customer numbers and higher loan values.

By The Newsroom

Published 26th Apr 2013, 01:01 BST

The Leeds-based company said the key driver of its record results was an 11 per cent increase in the amount of credit issued.

Chief executive Gerard Ryan said the group is lending larger loans and is testing longer loan periods. The company, which lends to 2.4 million borrowers across eastern Europe and Mexico, has launched a 90-week loan in Poland and a 100-week loan in the Czech Republic and Slovakia.

The top seven per cent of customers – those who repay on time – are also being offered preferential rates.

These initiatives helped it to increase pre-tax profits to £9.1m from £6.1m the year before.

IPF said macroeconomic conditions in its European markets were characterised by low growth and low but stable consumer confidence. In contrast, it said economic growth and trading conditions in Mexico were stronger.

The company raised £70m this week through a retail bond.