International Personal Finance faces FTSE 250 demotion as it reports decline in full year profit

The consumer credit company’s full year pre-tax profits were dragged lower by tougher regulation in Poland and restructuring costs in its Mexico business


International Personal Finance reports drop in full year earnings

International Personal Finance PLC (LON:IPF) shares have plummeted more than 11% today after the company reported a decline in full year profits amid expectations it will be booted off the FTSE 250.

The British consumer credit company posted profit before tax of £92.6mln in 2016, compared to £116.1mln the prior year, blaming lower home credit profit and an increase in investment of its digital offering.

Profits were also hit by tougher legislation in Poland and an increase in impairments resulting from a restructuring of its Mexico business.

The group lost 2% of its customers, reflecting competitive pressures in Poland and the Czech Republic.

On the upside, the emerging markets lender was supported by a weaker pound against foreign currencies, which contributed £15.6mln to pre-tax profit.

The company also issued 8.1% more credit, helping to lift total revenue 1.2% to £755.9mln from £698.9mln.

A final dividend of 7.8p was recommended, bringing the full year dividend to 12.4p, flat on the previous year.

IPF is expected to be demoted from the FTSE 250 to the FTSE Small Cap Index in the London Stock Exchange’s (LSE) quarterly review, which will be announced after the markets close today. The FTSE reshuffle will be based on Tuesday’s closing prices.

NBFC cash loan against gold restricted to Rs 25,000: RBI

RBI reduced the amount to Rs 25,000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act.

Non-Banking Finance Companies (NBFCs) cannot lend more than Rs 25,000 in cash against gold, the Reserve Bank said today. The earlier provision for NBFC was that high value loans against gold of Rs 1 lakh and above must only be disbursed by cheque. RBI reduced the amount to Rs 25,000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act. “…the relevant threshold under the Income Tax Act, 1961 is Rupees Twenty thousand,” the central bank said, while amending the provisions for disbursal of loan amount in cash by NBFCs. This assumes significance in the backdrop of government’s focus on less cash economy and 

The government has demonetised old Rs 500/1000 notes on November 9 last year aiming to check black money, counterfeit currency and terror financing.

The decision created severe cash crunch in the country in the last two months of 2016 as 86 per cent of the currency was declared invalid.

RBI had placed several restrictions on cash withdrawals from the bank branches and ATMs.

However, with increasing pace of remonetisation, all the restrictions, except on savings bank account, have been lifted. The cash withdrawal limit on savings bank account too will be removed from March 13.

Numărul persoanelor fizice cu restanţe la bănci şi IFN-uri a crescut la 648.873, în ianuarie

Numărul persoanelor fizice înregistrate la Biroul de Credit cu restanţe mai mari de 30 de zile la bănci şi instituţii financiare nebancare a crescut cu 13.029, la 648.873 în ianuarie, faţă de nivelul din decembrie, fiind a treia lună consecutivă de creştere, se arată în datele Băncii Naţionale a României.



În ceea ce priveşte valoarea restanţelor, acestea se ridicau, în ianuarie, la 8,08 miliarde lei, în creştere cu 1% comparativ cu luna anterioară, din care peste 3 miliarde lei erau în moneda naţională, 3,45 miliarde lei echivalent în euro, 1,58 miliarde lei echivalent în alte valute şi 45,5 milioane lei echivalent în dolari.

În funcţie de categoria de întârziere, restanţele mai mari de 90 de zile reprezentau peste 4,5 miliarde lei. De asemenea, statistica BNR relevă faptul că existau restanţe de 62,9 milioane lei, cu o întârziere de 61 – 90 de zile, respectiv de 38,7 milioane lei, între 31- 60 de zile.

Valoarea totală a creditelor scoase în afara bilanţului depăşea 1,5 miliarde lei, iar 1,97 miliarde lei – la colectare.