International Personal Finance's first quarter profits rise

25th Apr 2013 08:23

Home credit business International Personal Finance saw an increase in profits in the first quarter boosted by new customers and growing loan values. Pre-tax profit jumped by 49% year-on-year to £9.1m on the back of strong underlying profit increase of £5.1m.The key driver of results was a credit issued growth of 11% which was achieved through increasing customer numbers and a rise in loan values through selective credit easing and re-serving quality client with longer-term loans.The strategy pushed up average net receivables by 13% to £664.2m and revenue by 8.0%.Finance costs grew by 9.0% but the company said it managed expenses tightly, resulting in a 0.5 percentage point improvement in the annualised cost-income ratio to 39.3% from 41.3%. A plan to launch home credit operations in Bulgaria and Lithuania during 2013 remains on track, the company added. "We have made a positive start to the year, building on our strong 2012 trading performance and delivering a record first quarter profit," said Chief Executive Officer Gerard Ryan. "I am delighted with the success of our retail bond offering which I see as further endorsement of our ability to fund the business at lower cost and I am confident that IPF is well positioned for further good progress in 2013."RD