International Personal Finance (IPF) H2 2023 earnings summary

Executive summary

• FY23 profit before tax £83.9m, up 8.4% reported YoY; pre-exceptional EPS 23.2p, up 12% YoY.

• Financial results exceeded the original plan; RORE rose to 14.8%, close to the 15%–20% target range.

• Strong momentum carried into 2024, with growth focused on broader product choice, digital services and geographic reach.

Financial highlights

• Revenue £767.8m, up 18.9% reported and 11.7% at CER; revenue less impairment £598.4m, up 11.1% reported and 4.7% at CER.

• Impairment expense £169.4m vs £106.7m in FY22; costs £437.6m vs £393.3m and interest expense £76.9m vs £68.1m.

• Reported EPS 21.5p included a £4m exceptional tax charge related to Hungary; pre-exceptional EPS was 23.2p vs 20.8p.

• Effective tax rate 38% vs 40% in FY22; PBT growth of 8% reflected operational execution and favourable FX movements.

Outlook and guidance

• Strong 2023 momentum and demand for affordable consumer credit expected to support good-quality growth in 2024.

• Mexico home credit customer lending expected to grow 8%–10% in 2024, with tighter credit standards maintained.

• Financial model targets RORE of 15%–20%, revenue yield of 56%–58%, impairment rate of 14%–16% and cost-income ratio of 49%–51%.

• Poland operations continue adapting to customer needs and the evolving regulatory environment; strict cost control remains a priority.