International Personal Finance (IPF) H1 2024 earnings summary

Executive summary

• Pre-exceptional profit before tax rose 25% year-on-year to £47.3m, exceeding internal targets and driven by the Next Gen strategy, robust portfolio quality, and digital expansion.

• Interim dividend increased 9.7% to 3.4p per share, with a share buyback of up to £15m announced, reflecting strong capital and funding positions.

• Major Eurobond refinancing completed, extending debt maturity to 2029 and leading to a Fitch rating upgrade to BB.

• Next Gen strategy focused on financial inclusion, organizational efficiency, technology investment, and digital/mobile wallet growth in key markets.

• Strong demand for credit, with customer lending (ex-Poland) up 7% and receivables (ex-Poland) up 12% year-over-year.

Financial highlights

• Group revenue was £371.7m, down 2.2% year-over-year; impairment charges fell 27.9% to £64.3m.

• Pre-exceptional EPS rose 24% to 12.6p; reported EPS up 4.8% to 8.8p after exceptional items.

• Interim dividend of 3.4p per share, up 9.7% year-on-year, and a share buyback of up to £15m announced.

• Receivables ended H1 at £864m, flat year-on-year; excluding Poland, receivables grew 12%.

• Annualized pre-exceptional RORE at 16.2% and ROE at 12.1%, both improved year-on-year.

Outlook and guidance

• Full-year pre-exceptional profit before tax expected between £78m–£82m, ahead of market consensus.

• H2 profits expected to be lower than H1 due to credit card repricing in Poland and IFRS 9 impairment charges from lending growth.

• Customer numbers expected to return to growth in H2, with a small single-digit year-on-year increase targeted.

• Focus remains on executing the Next Gen strategy, expanding product distribution, and maintaining cost control.

• Well-capitalized balance sheet and robust funding position support growth, dividend, and buyback plans.