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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

IPF says first quarter ahead of plan amid demand for consumer credit

Shares in unsecured consumer lending provider International Personal Finance (LSE:IPF) rose 6% to 101p after the reported trading ahead of plan in the first quarter.

It said all its divisions started the year well, with 15% growth in customer lending compared to a year ago.

"There has been no discernible impact from the cost-of-living crisis on customer repayment behaviour and our portfolio quality remains good," it said, but added that it is "continuing to maintain a cautious approach to lending given the macroeconomic backdrop".

Broker Shore Capital said it expects growth to "moderate somewhat" as the year progresses, given the impact of a new price cap and affordability regulations in Poland.

Analyst Gary Greenwood noted that the group has outperformed management expectations on costs, with the cost-to-income ratio improving to 58.8% versus 60.9% in the preceding quarter and 67.3% this time last year.

Following this update, he expects to upgrade adjusted PBT forecast for the full year by circa 8% to around £66mln, with earnings per share of roughly 17.7p to "capture better than expected performance on costs".

"We expect a more muted impact on future years’ forecasts viewing this as faster delivery on an anticipated trajectory."

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