Half-year Report - 30 June 2021

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International Personal Finance plc 
Consolidated Half-year Financial Report for the period ended 30 June 2021
Management Board Report
Principal activity
International Personal Finance plc specialises in providing unsecured consumer credit to 1.7 million customers across 11 markets.  We operate the world's largest home credit business and a fintech operator, IPF Digital.

Financial and operational highlights

Significantly improved financial performance and dividend restored
Group profit before tax of £43.3 million and all divisions profitable (H1 2020: Loss of £53.3m)
Proposed interim dividend of 2.2 pence per share (H1 2020: Nil)
Robust trading performance
Very good progress made in rebuilding the business and serving our customers safely
Successful strategy of selectively relaxing credit settings delivered 25% increase in credit issued year on year, with Q2 15% ahead of Q1
Closing receivables increased by 5% (at CER) since the 2020 year end
Significant improvement in impairment as a percentage of revenue to 13.7% (FY 2020: 37.4%) enabled by continued strong collections performance
Cost saving benefits from 2020 rightsizing programme delivered - Other costs £13.4 million lower year on year
Strong funding position and well capitalised balance sheet
Equity to receivables ratio 53.8% at 30 June 2021
Bond and bank facilities total £596 million to support future growth
Undrawn facilities and non-operational cash balances of £173 million 
Group key statistics H1 2020 H1 2021 YOY change at CER
Customer numbers (000s) 1,818 1,679 (7.6%)
Credit issued (£m) 378.2 459.5 25.1%
Revenue (£m) 362.2 262.9 (25.4%)
Annualised impairment % revenue 37.5% 13.7% 23.8 ppts
Annualised cost-income ratio 44.3% 53.8% (9.5 ppts)
Statutory (LBT) / PBT (£m) (53.3) 43.3
Statutory (LPS) / EPS (pence) (27.7) 10.3
Half-year dividend per share (pence) - 2.2


Gerard Ryan, Chief Executive Officer at IPF commented:"Our business plays a very important role in society by providing credit responsibly to those who are underbanked or underserved and, against a challenging backdrop of frequently changing lockdown restrictions, our teams have worked hard to serve our customers safely and rebuild our business.  I am very pleased to report a significantly improved financial performance, with the Group delivering £43.3 million profit in the first half of the year. Demand for credit is beginning to recover in our segment and we are well positioned to meet the significant longer-term demand for affordable credit from the consumers we serve and deliver long-term value to our stakeholders.  Based on our rapid and sustainable return to profitability and the undoubted strength of our balance sheet, the Board has recommended a resumption of dividend payments to shareholders."

Please refer to the associated PDF document to view the full announcement.

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