4th May 2018 10:50
LONDON (Alliance News) - International Personal Finance PLC said Friday that strong top-line growth in the digital division and Mexican home credit business resulted in a 3% year-on-year growth in credit issued for the three months to March-end.
The home credit and digital loans provider said IPF Digital recorded 24% growth in credit issued for the period.
The digital division delivered particularly well in the established markets, reaching a 21% increase, with Finland as the top performer. Credit issue in new markets grew year-on-year by 29%.
The company said that the annualised impairment as a percentage of IPF Digital decreased by 4.5% reaching a total of 41.1% from 45.6% at the end of 2017.
The group's Mexican home credit business delivered a 5% growth in credit issued for the first quarter. Expectations for the whole year are positive, between 12% to 15% growth in credit issued, driven by the planned opening of five new branches in the second quarter of 2018.
"We expect this rate of growth to accelerate as we move through 2018 driven by geographical expansion, increased micro-business lending and improving customer penetration rates in selected longer-established branches," International Personal Finance said.
Credit issued in the European home credit division contracted by 4% due to changes in the regulatory and competition environment. The annualised impairment as a percentage of revenue decreased 1.7%, to 19.0%.
International Personal Finance said the proposed implementation of an APR cap at 18% in Romania is likely to have have a material adverse effect on its Romanian business.
Shares in the company were trading 2.1% lower at 232.80 pence on Friday.
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