Unsecured consumer credit provider International Personal Finance (IPF) made pre-tax profits of £33.8m (H1 2021: £43.3m) in the six months to June 30, 2022.
Underlying pre-tax profit for the Leeds-based business in the first half of the year increased by 45%, after excluding reversals of Covid-19 impairment provisions in the first half of 2021 of £20 million.
Gerard Ryan, Managing Director of IPF, said: “We have seen strong growth and a very good one financial performance of the entire Group during the first half of the year.
“I am pleased to report 45% growth in underlying pre-tax profit, with all of our businesses profitable during the period.
“We continued to successfully execute our growth strategy and attracted more customers, increased customer lending across all of our divisions and maintained our goal of excellent credit quality.
“As the external landscape has become more challenging due to global inflationary pressure and uncertainties caused by the war in Ukraine, we have seen a steady improvement in demand during the second quarter, which continued into the third quarter. .”
IPF adds that its customer loans increased by 14%, thanks to improved demand, while also reporting customer growth of 2% to 1.72 million customers.
The company says it has headroom on £68m funding facilities, which supports the group’s growth plans through to the fourth quarter of 2023.
IPF says: “We believe we have managed the impact of the pandemic better than most of our competitors thanks to our strong focus on our colleagues, our loyal customers and cash management.
“While we have seen some market rationalization from our competitors, the major incumbents remain broadly the same, with marketing spend returning to pre-Covid-19 levels.
“We have seen very few new entrants trying to serve our segments.”