International Personal Finance posts solid quarter, extends deadline for possible offer
By Josh White
Date: Wednesday 22 Oct 2025
(Sharecast News) - International Personal Finance reported a strong third quarter on Wednesday, as its 'Next Gen' strategy drove an acceleration in lending and a return to growth in customer numbers, while the Takeover Panel granted BasePoint Capital an extension to firm up a possible cash offer for the group.
The FTSE 250 consumer lender said customer lending growth quickened to 14% in the quarter, taking year-on-year lending growth to 12%.
Customer numbers rose 2.3% to 1.7 million, with more than 40,000 added in the period, supported by newer products including credit cards, partnerships, digital hybrid loans and shorter-term lending.
Net receivables surpassed £1bn, ending September at £1.007bn, up 14% year on year, and are expected to continue accelerating through the remainder of 2025.
"I am very pleased with the Group's strong operational and financial performance in the third quarter, reflecting the continued delivery of our Next Gen strategy across all our markets," said chief executive Gerard Ryan.
"This is supporting growth, expanding customer access to our credit products, and driving further improvements in service and efficiency.
"We continue to see good demand from consumers for our expanded product set alongside excellent repayment performance and robust credit quality, all of which underpin our strong financial position.
"With this strong progress, we remain on track to deliver full-year results in line with the guidance provided at the half-year, while continuing to advance financial inclusion and deliver sustainable returns for all our stakeholders."
Growth was broad-based, led by Mexico digital up 40% year on year, Australia digital up 25%, Romania home credit up 20% and Poland up 17%.
Mexico home credit rose 11% in the quarter and is expected to strengthen in the fourth quarter against softer comparatives.
Repayment behaviour remained "excellent" across markets, though the annualised impairment rate increased to 9.8% from 8.3% at mid-year, reflecting upfront IFRS 9 charges from faster growth and investment in newer products.
Management said it expected impairment to trend towards its 14% to 16% target range over the next two years as volumes scale.
The annualised revenue yield was 53.0%, broadly unchanged from the half-year, with management targeting 56% to 58% as the mix shifted towards higher-yielding products such as Polish credit cards and new customer acquisition in Mexico.
The annualised cost-to-income ratio eased to 61.4%, with further progress expected towards a 49% to 51% medium-term target as revenue growth and efficiencies flow through.
IPF said it remained well capitalised, with £83 million of headroom on debt facilities at the end of the quarter and an equity-to-receivables ratio of 52% versus a 40% target.
The group secured £58m of bank facilities in the quarter and £141m year to date, and said it planned to return to the debt capital markets shortly.
It noted no change regarding a potential rate cap in the Czech Republic and said its European markets were advancing plans to transpose the second Consumer Credit Directive by December 2026.
Separately, IPF said the Takeover Panel had consented to extend the "put up or shut up" deadline for BasePoint Capital to 1700 GMT on 19 November.
BasePoint had completed due diligence on a revised possible cash offer and was reportedly making "constructive progress" in raising financing, but there was no certainty a firm offer would be made.
The company said it remained in an offer period, and would update shareholders as appropriate.
At 0847 BST, shares in International Personal Finance were down 4.22% at 204.5p.
Reporting by Josh White for Sharecast.com.
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