IPF’s Q3 2025: Lending Growth Accelerates and Receivables Top £1bn
International Personal Finance (IPF) has delivered a strong third quarter, with growth accelerating across its key markets and products. The headline: net receivables have passed the £1 billion mark for the first time, reaching £1,007 million, up 14% year on year. Customer numbers have also turned a corner, rising 2.3% to 1.7 million.
The strategy doing the heavy lifting here is IPF’s “Next Gen” plan – expanding into newer, higher-yielding products like credit cards, partnerships, digital hybrid loans and shorter-term lending. Management says demand is robust and repayment behaviour remains excellent. Guidance for the full year remains unchanged from the half-year update.
Key numbers from the Q3 trading update
| Metric | Q3 2025 | Context/Target |
|---|---|---|
| Customer lending growth (Q3) | +14% | Acceleration in the quarter |
| Lending growth year on year | +12% | At constant exchange rates |
| Customers | 1.7 million (+2.3% YoY) | 40,000 added in Q3 |
| Net receivables | £1,007m (+14% YoY) | Milestone surpassed |
| Annualised impairment rate | 9.8% | Up from 8.3% at H1; target 14%–16% over 2 years |
| Annualised revenue yield | 53.0% | Target 56%–58% |
| Annualised cost-income ratio | 61.4% | Medium-term target 49%–51% |
| Headroom on debt facilities | £83m | At end of Q3 |
| Equity to receivables ratio | 52% | Above 40% target |
| Bank facilities secured (2025 YTD) | £141m | £58m in Q3 |
Note: All growth rates are at constant exchange rates.
Where growth is coming from: Mexico, Australia, Poland and Romania
The growth story is broad-based, but there are clear standouts. Mexico digital is up 40% year on year and Australia digital is up 25%. Romania home credit grew 20%, and Poland grew 17%.
Mexico home credit is noteworthy too: +11% year on year in Q3 versus just 1.6% in the first half. Management expects stronger growth in Q4 given easier comparatives.
Credit quality and IFRS 9: why the impairment rate is rising
IPF says repayment behaviour is excellent and credit quality remains robust. So why did the annualised impairment rate climb to 9.8% from 8.3% at the half-year? The short answer is growth and mix. Under IFRS 9, expected credit losses are recognised up front, and newer products often require deeper initial investment. As lending scales, especially in newer lines, impairment ratios tend to tick up.
Management expects the impairment rate to move towards 14% to 16% over the next two years as volumes build. That sounds like a negative, but it is actually consistent with their growth plan. The key is whether yields and operating leverage offset the higher loss rates – which brings us to margin and efficiency.
Revenue yield and efficiency: room to expand margins
The Group’s annualised revenue yield held steady at 53.0%. The drag from Polish rate caps and a lending mix shift in Mexico home credit has now worked through. Looking ahead, the product mix is nudging more favourable: higher-yielding Polish credit cards and more new customer acquisition in Mexico are expected to push Group yield towards the 56% to 58% target range.
On costs, the annualised cost-income ratio eased to 61.4%. IPF’s medium-term target is 49% to 51%, so there is a decent runway for operating leverage if volumes keep building and the Next Gen platform continues to drive efficiency gains.
Balance sheet and funding: capacity to keep growing
Capital and funding look supportive. Facility headroom was £83 million at the end of Q3, and the equity to receivables ratio sits at 52%, comfortably above the 40% target. IPF has secured £58 million of new bank facilities in Q3 and £141 million year to date, and plans to return to debt capital markets shortly.
My take: the balance sheet is carrying plenty of firepower to fund growth in Mexico, Australia and digital. Returning to capital markets will bring pricing considerations, but the current equity buffer provides flexibility.
Regulatory landscape: no change, ongoing monitoring
There are no updates on a potential rate cap in the Czech Republic (IPF’s smallest home credit market) or on the EU’s Consumer Credit Directive II (CCD II) transposition. Markets must comply by December 2026, and IPF says all European operations are progressing their plans. No impact is quantified.
Outlook and guidance: momentum into Q4, guidance intact
IPF enters Q4 with good momentum, excellent credit quality and a robust balance sheet. The Group remains on track to deliver full-year results in line with the guidance given at the half-year. Looking to 2026, management sees attractive reinvestment opportunities, particularly in Mexico, Australia, and new digital products and platforms.
In plain terms: growth is accelerating, the mix is tilting to higher-yielding products, and operating leverage should improve as scale builds. The trade-off is a rising impairment ratio towards the 14% to 16% target as newer books season – something to monitor, but consistent with the strategy.
Why this update matters for investors
- Receivables momentum: Crossing £1 billion in net receivables is a real milestone and a clear sign growth is compounding.
- Product mix tailwind: Shifting towards credit cards, shorter-term loans and new customer cohorts should lift revenue yield over time.
- Credit discipline: Repayments are strong, but impairment will rise with growth and mix – watch that 14% to 16% glide path.
- Operating leverage potential: With a 61.4% cost-income ratio and a 49% to 51% target, there is scope for efficiency gains as scale increases.
- Funding firepower: £83 million headroom, new facilities secured, and plans to access debt markets suggest capacity to keep lending.
- Regulatory watch: No change in the Czech rate cap discussion or CCD II timing; compliance work is underway.
What to watch next quarter
- Further acceleration in receivables growth against easy Q4 comparatives, especially in Mexico.
- Trajectory of the impairment rate as newer products season and lending scales.
- Any movement in Group yield towards the 56% to 58% target.
- Cost-income ratio progress as volumes run through the platform.
- Funding update on the planned return to debt capital markets.
Conference call details
IPF is hosting a call for investors and analysts at 09:00 (BST) on Wednesday 22 October 2025.
- Dial-in: +44 20 3936 2999 (Access code: 060310)
- Online registration: Register here
- Replay: The audio will be available in the investors section of IPF’s website: www.ipfin.co.uk
Bottom line
This is a positive update from IPF: accelerated lending growth, receivables past £1 billion, customers back to growth, and the product mix improving. The impairment ratio is rising by design as newer books expand, but yield and efficiency targets suggest scope to absorb it. If execution holds and regulation remains stable, the setup into Q4 and 2026 looks constructive.
