Credit lender IPF sees profits plunge as growth in Europe slows

IPF, which provides small personal loans to over 2.7 million borrowers in Europe and Mexico, said pre-tax profit before exceptional items fell to £116.1m in the year ended December 31, compared with £123.5m a year earlier.

The Leeds-based finance company saw revenue fall 6.5 per cent to £735.4m.

Gerard Ryan, chief executive of IPF, said: “We delivered a robust financial performance in 2015, despite a number of significant regulatory matters impacting the business.

“It was an excellent year for IPF Digital and Mexico and we intend to increase our investment and accelerate expansion plans in these businesses.”

IPF Digital saw a 34 er cent growth in credit issued and 46 per cent increase in customers to 134,000.

Mr Ryan added: “Our European home credit businesses, with the exception of the Czech-Slovakia market, increased underlying profit growth in challenging trading conditions.

“New legislation in Poland and Slovakia will impact our profitability materially in 2016 and beyond, and we expect regulatory headwinds to continue.

“We are, nevertheless, committed to delivering sustainable returns to our shareholders and have evolved our strategy to reflect the changing market environment in order to underpin this commitment.”

David Broadbent, chief commercial officer, resigned from the board on February 23 and will leave the credit lender on March 7.

The redundancy comes after a review of the cost base of the IPF’s head office as part of a broader consultation.

Mr Broadbent has been a director of IPF since July 2007, following its demerger from Provident Financial Group - which he joined in August 1999.