International Personal Finance's first quarter profits rise

Home credit business International Personal Finance saw an increase in profits in the first quarter boosted by new customers and growing loan values.

Pre-tax profit jumped by 49% year-on-year to £9.1m on the back of strong underlying profit increase of £5.1m.

The key driver of results was a credit issued growth of 11% which was achieved through increasing customer numbers and a rise in loan values through selective credit easing and re-serving quality client with longer-term loans.

The strategy pushed up average net receivables by 13% to £664.2m and revenue by 8.0%.

Finance costs grew by 9.0% but the company said it managed expenses tightly, resulting in a 0.5 percentage point improvement in the annualised cost-income ratio to 39.3% from 41.3%.

A plan to launch home credit operations in Bulgaria and Lithuania during 2013 remains on track, the company added.

"We have made a positive start to the year, building on our strong 2012 trading performance and delivering a record first quarter profit," said Chief Executive Officer Gerard Ryan.

"I am delighted with the success of our retail bond offering which I see as further endorsement of our ability to fund the business at lower cost and I am confident that IPF is well positioned for further good progress in 2013."

RD