International Personal Finance is trading well ahead of the planned takeover

(Sharecast News) – International Personal Finance announced Thursday that it is off to a good start in 2026, with customer loans, receivables and customer numbers all increasing as demand remains strong in its markets.

The FTSE 250 consumer credit provider said consumer lending grew 23% year-on-year at constant exchange rates in the first quarter, supported by operational momentum and the implementation of its Next Gen strategy.

Customer numbers increased by 5% to 1.724 million, while closing receivables increased by 16% to £1.08bn.

Chief executive Gerard Ryan said the IPF entered 2026 with “very good momentum”, improving its performance by 2025.

“Demand for our products remains strong, and we are seeing the continued benefits of our Next Gen strategy through growth in customer numbers, lending and receivables,” he said.

Provident Europe was the strongest performer, with customers borrowing 30%, mainly driven by the credit card lending boom in Poland.

The IPF said the performance reflects the continued reconstruction of Poland’s credit card receivables book from the second quarter of 2025, and that the growth rate was expected to moderate during the year.

IPF Digital and Provident Mexico also delivered loan growth, up 17% and 11%, respectively.

The group said all three divisions recorded double-digit revenue growth year-on-year.

Annual income margin fell 2.0 percentage points year-on-year to 52.2%, reflecting lower central bank interest rates in all IPF markets over the past 18 months and stronger growth in low-yielding receivables in Poland.

Customer payments remain strong across the group, supporting credit quality.

As expected, the annual default rate increased by 1.3 percentage points from the end of 2025 to 10.3%, reflecting an increase in lending.

IPF said it continued to focus on efficiency and cost control, with the cost-to-income ratio improving by 0.3 percent year-on-year to 61.1 percent.

Ryan said the group is making progress in expanding its products, strengthening digital capabilities and improving the customer experience.

“Coupled with the right behavior and strong credit quality, we are in a good position to continue to deliver sustainable growth,” he said.

The group said its balance sheet and funding position remained strong, with a total of £95m of debt charges at the end of the quarter.

It said it had secured £11m of banking services in the year to date.

IPF also provided an update on the proposed acquisition of the group by IPF Parent Holdings, a newly formed company in the same group as BasePoint Capital.

The shareholders approved the resolutions regarding the transaction at the court meeting and the general meeting on March 11.

The company said regulatory approvals have been received in all jurisdictions except Estonia and Poland.

Depending on the conditions that have already been satisfied or waived, the parties continue to target completion by the end of the second quarter of 2026.

In terms of legislation, IPF said plans for the implementation of the second Consumer Credit Directive continue to emerge in all its European markets, except for Hungary where the process has been completed.

The group said it is monitoring the potential impact and is working with industry bodies to ensure the regulatory changes are supported by the credit commitments given.

Looking ahead, IPF said it continued to see good credit demand, with a Next Gen strategy fueling growth through an expanded product set, broader distribution channels, improved customer journey and greater digital capabilities.

It said it will continue to invest in growth opportunities, particularly in Mexico and Australia, as well as product development and customer acquisition channels.

“With our strong balance sheet and funding position, we remain confident in our ability to invest in our key initiatives, increase capitalization and execute against our operating and financial plans,” said Ryan.

At 0826 BST, shares in International Personal Finance were up 0.2% at 247.5p.

Josh White of Sharecast.com reports.

See the latest RNS on Investegate

Inter. Pers.