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.

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

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021