22 October 2025

International Personal Finance plc

Q3 2025 trading update

Strong third quarter with accelerating growth

International Personal Finance plc ("IPF" or the "Group") is helping to build a better world through financial inclusion by providing unsecured consumer credit to underserved consumers across nine markets.

Highlights

Gerard Ryan, Chief Executive Officer at IPF commented:

"I am very pleased with the Group's strong operational and financial performance in the third quarter, reflecting the continued delivery of our Next Gen strategy across all our markets.  This is supporting growth, expanding customer access to our credit products, and driving further improvements in service and efficiency.

We continue to see good demand from consumers for our expanded product set alongside excellent repayment performance and robust credit quality, all of which underpin our strong financial position. With this strong progress, we remain on track to deliver full-year results in line with the guidance provided at the half-year, while continuing to advance financial inclusion and deliver sustainable returns for all our stakeholders. I would like to thank our colleagues whose commitment and customer focus are making this success possible."

Group overview

The Group has delivered another strong quarter of growth and financial performance, and we continue to successfully execute against our Next Gen strategy.

Customer demand remains robust and we are very encouraged by the momentum of our newer products, including credit cards, partnerships, digital hybrid loans and shorter-term lending. Group customer lending accelerated to 14% in the third quarter and lending growth year on year now stands at 12%. The standout performers continue to be Mexico digital (+40% year-on-year growth) and Australia digital (+25%) as well as Romania home credit (+20%) and Poland (+17%). Mexico home credit delivered 11% year-on-year growth in the third quarter (1.6% in the first half) and, with good momentum returning to the business, we expect stronger growth during the fourth quarter against the weaker comparatives of last year.

Overall, Group customer numbers have returned to growth, with a year-on-year uplift of 2.3% at the end of the third quarter to 1.7 million. Over 40,000 new customers were added in the third quarter alone with our new short-term loan product playing a key role alongside growth in our home credit and digital businesses in Mexico.

Group net receivables have now surpassed £1 billion, ending September at £1,007m, representing growth of 14% year on year. Supported by sustained lending momentum and favourable year-on-year comparatives, we expect receivables growth to continue to accelerate through the remainder of the year.

We are also very pleased to report that customer repayment behaviour remains excellent across all our markets, underpinning consistently strong credit quality. Reflecting the acceleration in growth and associated higher up-front IFRS 9 impairment charges, particularly from new products which by their nature carry deeper initial investment, the annualised impairment rate increased by 1.5ppts from the half-year to 9.8%. We anticipate the rate will continue to move towards our target range of 14% to 16% over the next two years as lending volumes continue to increase, particularly in the newer product lines.

The Group's annualised revenue yield at 53.0% was broadly unchanged from the half-year results as the flow-through impact of Polish rate caps and changes to the lending mix in Mexico home credit have now abated. Looking ahead, the transition to higher-yielding products, including growth in Polish credit cards and new customer acquisition in Mexico, is expected to grow the Group's annualised revenue yield towards our target range of 56% to 58%.

The Group's annualised cost-income ratio showed a modest reduction to 61.4% at the end of September. We expect to continue to deliver progress towards our 49% to 51% medium-term target as revenue growth and efficiency gains take effect.

Note - all growth rates in this announcement are based on constant exchange rates.

Funding and balance sheet

The Group continues to have a robust capital and funding position to support our growth plans. Headroom on debt facilities was £83m at the end of the third quarter and the Group's equity to receivables ratio was 52% compared with our target of 40%. The Group has successfully secured £58m of bank facilities in the third quarter and £141m in the year to date. The Group is planning on returning to debt capital markets shortly.

Regulatory update

There are no updates in respect of the potential rate cap in the Czech Republic, our smallest home credit operation, or the transposition plans of our European markets to the second Consumer Credit Directive (CCD II) which must be complied with by December 2026. All of our European markets are actively progressing their transposition plans to ensure compliance and we continue to monitor any potential impact on the Group.

Outlook

We enter the fourth quarter with strong momentum across the Group, excellent credit quality and a robust balance sheet. With our Next Gen strategy driving growth and efficiency, we are well placed to deliver a full-year financial result in line with the guidance provided at the half-year results. As we look forward to 2026, and based on current market conditions, we see good opportunities to reinvest the benefits of our current success in furthering our growth plans, particularly in Mexico, Australia and our new digital products and platforms.

Investor and analyst conference call

International Personal Finance plc will host a conference call for investors and analysts at 09.00hrs (BST) today, Wednesday 22 October 2025. 

To participate in the conference call please use the dial-in or register online using the link below.  Once registered, you will receive an email with your online access link.

For further information, please contact:

International Personal Finance plc

A copy of this statement can be found on our website - www.ipfin.co.uk

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