IPF helped by strong fourth quarter

3rd Mar 2010 07:36

Profits fell last year at lender International Personal Finance, though the final quarter saw the best performance for two years as Mexico moved into the black and Hungary recovered a little.Pre-tax profits fell to £61.7m from £76.3m despite the first full year profit from Mexico. IPF added that the result overall benefited by approximately £10m from a decision to change product terms and pricing in the second half. This benefit will continue into the first half of 2010 but will be offset by increased early settlement rebates on the introduction of the EU Consumer Credit Directive in 2010.Customer numbers, receivables and revenue remained relatively flat. Impairment costs increased by £37.1m (31%) but were largely offset by a reduction in agents' commission costs of £8m (9%) and other costs of £23.2m (5%). Finance costs increased by 5% reflecting the increase in funding costs since October 2008. Mexico chipped in £0.3m, though Hungary lost £7.2m despite a second half rally."Economic conditions, whilst uncertain, are continuing to improve and although severe weather in Central Europe has affected performance in January and early February, we expect the impact of this to unwind later in the year and so aim to carry the momentum achieved in the second half of 2009 into 2010, and to deliver improved results," chief executive John Harnett said.The dividend for the year is unchanged at 5.7p.