Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

CORRECTED-UPDATE 1-International Personal Finance's H1 profit rises

Published 26/07/2017, 05:56 pm
© Reuters.  CORRECTED-UPDATE 1-International Personal Finance's H1 profit rises
IPF
-

(Corrects second paragraph to say '2.4 million', not 'more than 2.8 million')

July 26 (Reuters) - Consumer credit lender International Personal Finance IPF.L reported a higher pretax profit from continuing operations in the first half, boosted primarily by positive currency translations.

IPF, which provides small personal loans to 2.4 million borrowers in Europe and Mexico, said pretax profit from continuing operations rose to 43 million pounds ($56 million) in the six months ended June, from 33 million pounds a year earlier.

Positive forex movements added 6.7 million pounds to the group's profit. rose 2.6 percent to 400.8 million pounds.

"Our ongoing European home credit businesses performed in line with expectations, Mexico continued to deliver positive business momentum and IPF Digital reported excellent top-line growth," Chief Executive Gerard Ryan said.

The company said it was continuing to engage with the Polish Ministry of Justice concerning proposed changes to the total cost of credit regulations.

Poland, which together with Lithuania makes up IPF's biggest market, has proposed to lower the limit on non-interest costs to 75 percent of the amount of the loan from 100 percent.

"While we expect the regulatory landscape in Europe to remain challenging, we continue to believe our Mexico home credit business and IPF Digital offer significant growth opportunities," Ryan said.

The company, which provides small personal loans in eastern Europe and Mexico, has shut shop in Slovakia, Bulgaria and stopped lending to high-risk customers in Poland.

IPF's home credit business has been troubled by intense competition as well as regulatory upheavals. The unit saw profit rising to 58.3 million pounds in the first half, from 45 million pounds a year earlier.

Home credit business accounted for more than 90 percent of the company's total revenue in 2016, but digital lenders were luring away IPF's higher creditworthy customers, forcing the company to spend more to retain them.

IPF maintained its interim dividend at 4.6 pence per share.

Total credit issued in the period rose 9.9 percent to 616 million pounds, driven by strong demand in Mexico for home credit and its digital business.

($1 = 0.7678 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.