Lender IPF enjoys good start to the year but Europe proves a drag
CREDIT LENDER International Personal Finance said it has made a good start to the year and trading is in line with expectations.
The Leeds-based firm saw a 3 per cent increase in credit issued in the first quarter of 2018, driven by IPF Digital and Mexico home credit, although it was offset partially by a modest contraction in its European home credit markets.
The group said credit quality and collections remain good.
Credit issued in Europe fell year-on-year by 4 per cent, reflecting a challenging regulatory and competitive environment. A stronger than expected performance in Romania was offset by a slightly weaker outcome in the other markets.
IPF said the quality of its European loan portfolio remains good and it saw a strong collections performance. It said there has been no update from the Polish Ministry of Justice on its proposal to reduce the existing non-interest pricing cap in Poland.
In Mexico, the group said its home credit operation performed well and delivered a 5 per cent increase in credit issued growth in the first quarter against strong comparative numbers.
The firm reported positive momentum in IPF Digital which made good progress with credit issued growth of 24 per cent.
Analyst Stuart Duncan at Peel Hunt said: “Although regulation remains a constant backdrop, we continue to see good upside in the shares given the modest rating of less than eight times.” Analyst Gary Greenwood at Shore Capital said: “A price cap in Romania is currently being debated and looks likely to be implemented shortly, which the group expects to result in a material negative impact on profitability from this business.”