International Personal Finance (IPF) Q3 2024 TU earnings summary

Executive summary

• Achieved a milestone of serving 15 million customers since 1997, reflecting strong financial inclusion efforts.

• Strong Q3 financial performance supports full-year PBT guidance of £78m–£82m, prior to exceptional items.

• Q3 started strongly, maintaining momentum from H1, with results on track to meet full-year guidance.

• Customer lending grew 7% year-over-year (excluding Poland, at CER); receivables up 11%.

• Excellent customer repayment and credit quality, with annualised impairment rate improving to 9.2%.

Financial highlights

• Group net receivables at GBP 842 million at Q3 end, up 11% year-on-year excluding Poland at constant exchange rates.

• Poland receivables stabilized at GBP 180 million, matching interim portfolio size.

• Customer lending up 7% year-on-year (excluding Poland); customer numbers grew 2% in Q3.

• Annualized impairment rate improved by 2.8 percentage points to 9.2%, well below the 13%-16% target.

• Annualized revenue yield decreased by 0.3 percentage points to 55.1%; cost-income ratio increased by 1.1 percentage points.

Outlook and guidance

• Full-year 2024 results guidance reaffirmed, with expectations of double-digit receivables growth in 2025 as Poland regrows.

• Confident in delivering full-year profits in line with interim guidance, supported by strong Q3 and credit quality.

• Anticipates strong bounce-back in Poland's receivables and customer growth next year, targeting a return to GBP 300 million receivables over 1-3 years.

• Well positioned for further growth in Q4 and beyond.