Annual Report and Financial
Statements 2024
purpose
Investing with
growth
Unlocking
Investing with purpose
Alternative performance measures
This Annual Report and Financial Statements
provides alternative performance measures
(APMs) which are not defined or specified
under the requirements of International Financial
Reporting Standards. We believe these APMs
provide readers with important additional
information on our business. To support this,
we have included an accounting policy note on
APMs on page 165, a reconciliation of the APMs
we use where relevant and a glossary on pages
203 to 204 indicating the APMs that we use,
an explanation of how they are calculated
and why we use them.
Percentage change figures for all performance
measures, other than profit or loss before taxation
and earnings per share, unless otherwise stated,
are quoted after restating prior year figures at a
constant exchange rate (CER) for 2024 in order
to present the underlying performance variance.
International Personal Finance plc (IPF).
Company number: 6018973.
Strategic Report
2024 highlights 2
At a glance 4
Our financial model 6
Our investment case 8
Chair’s statement 10
CEO’s review 11
Our customers and financial inclusion 14
Our products and services 16
Our business model 18
Market review 20
Our strategy 22
Key performance indicators 24
Operational review 26
Financial review 33
Principal risks and uncertainties 38
Viability statement 43
Responsible business 44
Stakeholder engagement 46
Section 172 and Board decision making 48
Stakeholders in focus 50
IPF in society 60
Task Force on Climate-related
FinancialDisclosures 68
Non-financial and Sustainability
InformationStatement 77
Directors’ Report
Introduction to governance 78
Our Board and Committees 80
Governance at a glance 82
Role of the Board and its Committees 84
Nominations and Governance Committee Report 89
Audit and Risk Committee Report 94
Directors’ Remuneration Report 100
Statutory information 117
Directors’ responsibilities 122
Sustainability Statement
Corporate Sustainability Reporting Directive
(CSRD) Statement 123
Independent Limited Assurance Report 151
Financial Statements
Independent Auditor’s Report 153
Consolidated income statement 160
Statements of comprehensive income 160
Balance sheets 161
Statements of changes in equity 162
Cash flow statements 164
Notes to the Financial Statements 165
Alternative performance measures 203
Supplementary Information
Shareholder information 208
Contents
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Find out more at www.ipfin.co.uk
15m
Over the past 26 years
we have helped
customers gain access to
essential financial services.
See page 50 for more information
Annual Report and Financial Statements 2024 1
Strategic Report
Pre-exceptional profit
before tax (£m)
Customer
lending (£m)*
* at constant exchange rates
£1,215m
+9.2%
£85.2m
+1.5%
A strong performance in 2024
Growing
our credit offering
We are introducing new products
and channels to meet our customers’
preferences and credit profiles.
Investing
in digitalisation
Technology is improving customer
experience, giving quicker access
to finance and simplifying processes.
Expanding
our reach
We expanded our geographic
footprint in Mexico, opening a
new branch in Mexicali.
Strengthening
our funding position
Successfully refinancing our €341m
Eurobond strengthened our funding
position to support future growth.
Driving
growth
Strong demand for credit and an
excellent operational performance
drove good lending growth.
Delivering
returns
A strong financial performance in
2024 enabled increased returns
to shareholders.
20 21 22 23 24
772.2
982.1
1,126.4
1,150.6
1,214.5
Pre-exceptional
earnings per share (p)
24.9p
+ 7.3%
20 21
22 23 24
18.8
20.8
23.2
24.9
(24.0)
20 21
22 23 24
(28.8)
67.7
77.4
83.9
85.2
2024 highlights
Customers
1.7m
Pre-exceptional return on required equity
15.7%
International Personal Finance plc2
Dividend per
share (p)
11.4p
+ 10.7%
20 21 22 23 24
0.0
8.0
9.2
10.3
11.4
Awards
We were recognised for multiple awards in 2024
Annual Report and Financial Statements 2024 3
Strategic Report
IPF Plc
head
office
Lithuania
Latvia
Estonia
Romania
Hungary
Poland
Czech
Republic
1
1 8
2 3 4
1
6 7 8
6 7 8
4 6 7 8
8
6 8
1 2 4 5 8
– Well-established, cash
generative business.
– Increasingly digitalised and
expanding product offering.
– Delivering target returns of c.20%.
– Significant growth prospects and
expanding geographic coverage.
– Digitalising to improve
customer experience.
– Delivering target returns of
c.20% while investing in growth.
– Strong brands, great growth potential
and rebuilding scale.
– Single hub serving multiple countries.
– Focusing on growth and continuing
to improve returns.
£159m
£460m
£251m
+3%*
2024: closing net receivables
+18%*
2024: closing net receivables
* at constant exchange rates
Mexico
1 5 6 7 8
Growing across our three divisions
At a glance
We play a crucial role in the lives of millions of customers who can’t always access
credit through banks. By offering unsecured, affordable credit and value-added
services in a responsible way, we help people when and where they need it most.
Our business is highly regulated, and our success over the years has been driven
by meeting the changing needs of our customers and adapting to the evolving
market and regulatory landscape.
Mexico home creditEuropean home credit IPF Digital
European home credit and IPF Digital Mexico home credit and IPF Digital
+3%*
2024: closing net receivables
International Personal Finance plc4
Lithuania
Latvia
Estonia
Existing offering
Progress
Products
Home credit
1
Australia
4 6
2
Hybrid loans
3
Credit card
4
Digital instalment loans
5
Retail partnerships
6
Revolving credit line
7
Mobile wallet
8
Value-added services
New product opportunity
We will launch new products in this market
that have proven to be successful in another.
Annual Report and Financial Statements 2024 5
Strategic Report
Fair, affordable and
transparent customer pricing
Full compliance with all legal
and regulatory requirements
Care for our colleagues
and communities
Sustainable returns
for our shareholders
The central part of our financial model is that we
must deliver a return on required equity (RoRE) of
between 15% and 20% which we consider to be
sustainable and balances the needs of all our
stakeholders. It enables:
Growth at IPF
As we pursue significant growth opportunities,
our financial framework is designed to deliver
sustainable earnings while maintaining a robust
balance sheet. We are committed to a minimum
dividend payout of 40% of post-tax earnings,
supporting annual growth and sustaining an equity
to receivables ratio at 40%. This approach ensures
that capital allocation delivers appropriate
shareholder returns while balancing the needs
of all our stakeholders. We believe that returns
materially in excess of 20% would result in us
not sufficiently balancing their needs.
See page 33 for more information
Return on
required equity
Maintains equity to
receivables ratio at
Supports minimum
dividend payout ratio of
Funds annual net receivables
growth of up to
15-20%
40%
40%
10%
Balancing stakeholder needs
Driven by our purpose to build a better world through financial inclusion
and supported by our values, we operate responsibly with strong financial
discipline to ensure our loans are affordable while delivering an appropriate
financial return, balancing the needs of all our stakeholders.
Financial model
Our financial model
International Personal Finance plc6
Growing our business
responsibly creates more
for all our
stakeholders
value
Balancing stakeholder needs
Annual Report and Financial Statements 2024 7
Strategic Report
1 2 3
4 5 6
Market-leading and
financially inclusive
As a specialist financial services business
we responsibly provide a range of credit
products and value-added services to
underserved consumers.
Our focus on transparency and ethical
lending practices ensures that we meet
the diverse needs of our customers,
empowering them to achieve financial
stability and growth in their lives.
Exciting sustainable
growth opportunities
With increasing consumer demand,
a diverse product family and
multiple distribution channels,
there is substantial potential for
sustainable, long-term growth.
Our continuous innovation and
commitment to customer-centric
solutions ensure we are well-positioned
to capture future opportunities and
drive growth.
Effective risk
management
We have a proven track record
of managing key risks, including
credit, regulation, competition
and liquidity, with a well-developed
risk management framework.
By continuously monitoring and
adapting to emerging risks, we ensure
that we mitigate potential challenges
while maintaining a strong focus on
delivering value to our stakeholders.
Strong financial
foundation
The business is profitable, resilient
and generates strong cash flows.
With a robust balance sheet and
strong funding position, we are
investing to drive growth.
This strong foundation allows us to
pursue new opportunities, innovate and
respond to market changes, ensuring
we remain competitive in the evolving
financial landscape.
Attractive,
sustainable returns
We focus on sustainable growth,
targeting a return on required equity
(RoRE) of 15% to 20% to support
a progressive dividend payout
ratio of at least 40% of earnings.
Prioritising long-term value creation
and maintaining disciplined capital
allocation enhances returns while
ensuring that our growth strategy
remains aligned with our sustainability
and social responsibility commitments.
Significant
future value
With three profitable divisions, each
offering attractive long-term growth
potential, we are well positioned to
deliver sustainable returns and unlock
higher valuation potential for investors.
Focusing on financial inclusion,
customer satisfaction and innovation
enhances our competitive edge,
allowing us to capitalise on market
opportunities and create value for
all stakeholders.
The IPF
advant age
Our investment case
Our Next Gen strategy combined with market-leading brands, personal
customer relationships and digital innovation, position us uniquely to
serve more customers and deliver good returns to investors.
International Personal Finance plc8
235m
population in our markets
70m+
underserved people in our markets
2.5m
customer ambition
1.7m
customers served today
advant age
Our investment case
Our total addressable market
Annual Report and Financial Statements 2024 9
Strategic Report
Responsible business
We entered into the second year of our responsible
business strategy and I am very pleased with the progress
we are making on our sustainability journey, an area we
are deeply committed to. Early in 2024, the Board approved
the Group’s updated Code of Ethics which was subsequently
communicated to all colleagues throughout the business.
You can find further details of our responsible business
strategy and stakeholder engagement from page 44.
Culture
A key part of delivering on our strategy is fostering a culture
that reflects our values: being respectful, responsible and
straightforward. One of the highlights of my year has been
getting out into the business and spending time with our
colleagues in the markets we serve. During my visits this year,
it was inspiring to see our teams’ passion and enthusiasm for
our customers first hand, and it is clear that their commitment
to supporting customers who are often ignored by mainstream
finance companies and banks is at the heart of what they do.
Looking ahead
As we move into 2025, we remain focused on our strategic
priorities. The financial services world is constantly evolving
and so are we. We are committed to adapting and innovating
to meet our customers’ needs. We will also continue to invest
in new technologies and expand our product range, making
sure we stay relevant, competitive, and – most importantly –
there for our customers when they need us.
Finally, I would like to take this opportunity to thank our
shareholders, customers and colleagues for their continued
support and trust in our Company. Together, we are making
a real difference in the lives of millions and helping shape
more financially inclusive communities.
Stuart Sinclair
Chair
26 February 2025
Committed to
financial inclusion
Chair’s statement
Welcome to our 2024 Annual Report
In 2024, we proudly served our 15 millionth customer, marking
a significant milestone in our commitment to financial inclusion.
This achievement underscores our dedication to providing
vital financial services to underserved consumers globally.
By providing individuals with access to credit, we enhance
their financial wellbeing and contribute to the broader
development of the communities we serve.
A strong performance
I am pleased to report that 2024 was another strong year for
us thanks to the successful execution of our Next Gen strategy.
This strategy continues to transform the business, driving us
towards our goal of being the leading provider of financial
services to underserved communities. Wesaw good growth
momentum this year, supported by an excellent customer
repayment performance, and delivered pre-exceptional
profit before tax of £85.2m.
We have continued to improve our service to our 1.7m
customers by offering more products and channels, for
example, introducing our mobile app in Mexico and expanding
retail credit through strategic partnerships in both Romania and
Mexico. For our shareholders, we delivered another strong
dividend performance and a successful share buyback
programme was completed in Q3. For our colleagues,
we provided more training and development and for our
communities we helped thousands of people through
our ‘Invisibles’ programme. The Board is engaged closely
with management to ensure we continue delivering our
strategic goals.
Dividend and returns
Reflecting on the Group’s strong performance and our
confidence in the business’s long-term growth potential,
the Board is recommending an 11.1% increase in the final
dividend to 8.0 pence per share. Subject to shareholder
approval at our AGM in May, this will bring the full-year
dividend to 11.4 pence per share, an increase of 10.7% on
2023. This represents a pre-exceptional payout ratio of 46% of
post-tax earnings, in line with our progressive dividend policy.
I am also pleased to report our intention to commence a further
share buyback programme of up to £15m, enhancing capital
efficiency whilst maintaining a robust balance sheet to support
the Group’s growth strategy and progressive dividend policy.
“We are making a real difference in
the lives of millions and helping to shape
more financially inclusive communities.”
Stuart Sinclair
Chair
International Personal Finance plc10
CEO’s review
“In 2024, we delivered a very strong
performance, and are now focused
on accelerating the rate of growth
and the pace of change to better
serve our customers.”
Gerard Ryan
Chief Executive Officer
Q. How would you sum up performance in 2024?
A. We had a great year, with a very strong operational
performance delivering very good financial results.
Considering the difficult and inauspicious start to the year, with
the Polish regulator’s announcement on applying the country’s
rate cap to credit cards, I have to say that I’m delighted with
how our colleagues around the Group responded to deliver
such a positive result for our customers and other stakeholders.
We also provided well over £1bn of credit facilities to customers
who do not find it easy to get finance from high-street banks.
That’s £1bn worth of financial inclusion that otherwise might
not have happened. I like to think of it as tens of thousands of
needs met and aspirations supported, all through a fair and
transparent process.
We delivered growth across our Group, from the Baltics to
Australia, and Romania to Mexico. There’s clearly strong
demand for credit among our customer demographic,
and by executing our Next Gen strategy, we are meeting
that demand with a broader array of products and distribution
channels. And it is worth noting that in meeting our customers’
needs more effectively, we are also delivering better returns to
our shareholders, showing that financial inclusion and strong
business performance go hand in hand.
Q. What were the most significant achievements?
A. A personal highlight for me was serving our 15 millionth
customer in September. Sharing this milestone with colleagues
across the Group was incredibly special – fifteen million lives
impacted in a positive way. It’s a reminder that financial
inclusion means giving people the opportunity to improve
their circumstances, no matter their starting point.
Other highlights include the broadening of our product and
channel set in our markets and these developments are
helping us reach more customers in meaningful ways.
Another major achievement was the successful refinancing
of our Eurobond. We attracted an array of new investors who,
after understanding our story and purpose, were happy to
partake in the new issue, resulting in the bond being
several times oversubscribed.
Finally, our share buyback programme in Q3 was very
successful. Beyond its immediate benefits, it led to increased
liquidity in our daily traded stock volumes, strengthening our
position in the market.
Q. How did you advance the Group’s
strategic priorities?
A. As a leadership team, I think we have done a great job of
explaining the three pillars of our Next Gen strategy, namely,
Next Gen financial inclusion, Next Gen organisation and
Next Gen tech and data.
On Next Gen financial inclusion, we made excellent progress
in taking products or channels that have proven successful in
one or more of our markets and transporting them to serve new
customers in another. In Mexico, we continued our geographic
expansion with the opening of another new branch and signed
up new retailers for our retail partnership model. Our mobile
wallet “health check” feature proved to be very popular,
helping to double the number of mobile wallet users in 2024.
For Next Gen organisation, we implemented a new field
structure for European home credit. The leadership team’s
primary task is standardising processes across these four
markets, laying the foundation for unified systems that will
simplify our technology estate and make us far more efficient.
We also significantly strengthened Group leadership with
key appointments in information security, data operations
and change management.
Undoubtedly, one of the most exciting areas has been the
progress made on pillar three, Next Gen tech and data.
Our customer experience is so much better thanks to new call
centre technology and enhanced customer apps. Although
we had a temporary issue with our technology in Mexico and
had to revert to manual processes for a while, we now have
a more modern and resilient infrastructure and are boosting
efficiency for both our customer representatives and our
customers. We also strengthened our operational risk
management framework to meet the new Digital
Operational Resilience Act (DORA).
And finally, it is impossible not to mention AI. It is certainly too
early to claim major success, but its potential is transformative
and we are beginning some very interesting developments
in lead management, call centre efficiency, automated
affordability checks and processes to integrate data
across our different platforms.
Excellent strategic execution
drives strong performance
Annual Report and Financial Statements 2024 11
Strategic Report
CEO’s review continued
Q. How significant is the large payment institution
licence in Poland?
A. The new licence offers significant growth potential for our
new credit card offering, both in Poland and beyond. While
our credit card created a completely new market and was
proving extremely popular with customers with 130,000 cards
issued by the end of 2023, we were forced to limit the amount
of lending in 2024 under the rules of the old licence. The
granting of the new licence in November means these
restrictions have been taken away and my colleagues in
Poland are really looking forward to accelerating growth.
We are focusing our initial efforts on offering existing customers
increased credit lines if they require them, and we began to
market credit cards to new customers early in 2025. The new
licence is passportable to other European countries and we
are exploring the potential to introduce our credit card into
our other markets.
Q. What were the key challenges and how did
you address them?
A. As I mentioned earlier, the major challenge was the letter
that we and others received from the Polish regulator, stating
its view that the existing rate cap should apply to credit cards.
This news came just days before our 2023 results announcement,
forcing us to delay for the first time ever – a situation I do
not want to repeat. I must express my appreciation to
our shareholders for their patience and confidence as we
worked through the issue. Once we announced our results
and detailed our response to the regulatory challenge, the
market adjusted, and we moved forward with execution. This
involved significant changes to our Polish business, including
streamlining and an organisational restructure, which are now
being successfully embedded.
Staying with regulation, in Romania we adapted to a new
ratecap, a change we had anticipated for years. Our local
leadership team worked hard to make sure the changes required
were fully compliant by the deadline and as we have reported
previously, the financial impact on the Group is not material.
In Mexico, our home credit business faced slower growth
particularly in the second half due to two key issues: the
impact of two underperforming regions, Sureste and Norte,
and, as I mentioned earlier, a temporary reversion to manual
field operations during an upgrade to a more resilient and
flexible IT platform. I’m happy to say that both hurdles are
largely behind us and we are looking forward to accelerating
growth in 2025.
These challenges tested us, but our teams responded with
resilience and focus, positioning us for stronger performance
in the year ahead.
Q. How are you improving customer experience?
A. Improving customer experience continues to be a key focus
for us, and we have made great strides over the past year.
We are leveraging technology to improve lead management,
application processes and credit decisions, enabling a faster
and more efficient service. Our digital platforms, such as
mobile apps, support customers throughout their credit
journey, offering convenience and accessibility.
We are also expanding our range of products and channels,
giving customers more options that are tailored to their needs.
Feedback plays a critical role in shaping our offerings,
and we actively engage with customers to understand
their experiences and implement meaningful improvements.
Q. What trends are shaping financial services
and how are you adapting?
A. In thinking about our area of expertise, namely providing
small-sum credit to the underbanked and underserved,
affordability is always top of mind. Our customers have
maintained their repayment performance which is clear
evidence that they are conscientious borrowers and want to
build a stronger credit profile. While we are well positioned to
accelerate growth, we are also very aware that our customers
lives have been made more difficult by high inflation and will
continue to lend responsibly, including tightening credit
settings quickly if this were needed.
Even though their credit choices may be limited, our customers
are not shy about stating their expectations. They want faster
service with fewer steps, starting an application on their
phone, speaking to the call centre and then to their customer
representative for fulfilment. They also want to be able to
review their account or make payments online or in person.
To meet these needs, we are investing in technology to deliver
an omnichannel service and enhance our customer apps with
richer functionality for a seamless experience. While this is an
ongoing journey, I’m proud of the significant progress we
have made.
Q. How is the competitive landscape evolving?
A. In a word, rapidly. There is plenty of competition to
fulfil customers’ financial needs, but we remain uniquely
positioned in our segment, offering both digital and in-person
credit solutions.
In Europe, the peak of the ‘buy now pay later’ (BNPL) trend
seems to have passed, with the industry likely entering a phase
of consolidation and greater focus on returns. Regulation for
BNPL providers also seems imminent – a welcome step in my
view. Meanwhile, much of the enthusiasm around fintech
seems to have quietened, with sustainable returns now a
regular topic of conversation. In Mexico, we have seen new
financial players investing heavily in their brands, targeting
prime customers in the main. Their heavy promotion of credit
cards and digital wallets is raising the bar for customer
expectations. While these trends challenge us to evolve,
I am confident our strategy aligns with these demands.
We are committed to enhancing our offering in ways
that truly resonate with and suit our customers.
Q. What progress has been made on your
sustainability goals?
A. We made good progress on our sustainability goals
this year, with a focus on ethics, colleague development
and governance. We implemented our refreshed Code
of Ethics which is endorsed by the Board, and marked
the tenth anniversary of our Ethics Week with interactive
discussions on ethical practices. Colleagues also completed
our annual ethics training, ensuring these values remain
embedded in everything we do. We hosted our fourth Group-
wide Learning Festival, blending face-to-face and virtual
sessions to support colleague development, and enhanced
our mental health support programmes. We also dedicated
significant effort to governance and upgraded our non-
financial reporting disclosures which supported improvements
International Personal Finance plc12
in our external ESG ratings with MSCI upgrading our rating to
AA and we maintained our inclusion in the FTSE4Good Index.
Q. What are the key priorities for 2025
and your vision for the future?
A. In 2025, our focus is on accelerating the pace of growth
and change within the business to enhance our capabilities
and better serve our customers. In Poland, our new payment
licence means we can accelerate growth of our credit card
offering while in Mexico home credit, we are ready to meet the
expected strong demand and expand into new areas. We are
also prioritising the extension of successful products into new
markets where they are not yet available, supported by
advancements in technology to further streamline the
customer journey and improve operational efficiency.
Looking to the future, our vision is ambitious: to become a
modern, tech-enabled business serving 2.5 million customers.
This aligns with our commitment to delivering innovative,
inclusive financial solutions that empower communities
and drive sustainable growth.
We will remain focused on our strategic priorities, adapting to
the evolving financial services landscape. By investing in new
technologies and expanding our product range, we aim to stay
relevant, competitive and available to our customers when
they need us most. I would like to thank our shareholders,
customers and colleagues for their continued support and trust.
Gerard Ryan
Chief Executive Officer
Accelerating the pace of growth Accelerating the pace of change
Credit cards
Our new full payment institution licence will
support faster credit card growth in Poland and
allow us to passport this popular offering to other
European markets.
Omnichannel
touchpoints
We are expanding our customer experience
programme to ensure faster responses and
enhanced service during customer engagements.
Expanding
retail
partnerships
Our retail credit partnerships in Romania and Mexico
are gaining significant momentum, positioning us for
further growth in 2025.
Customer
apps
We will make our customer app available across
all our home credit markets, strengthening customer
engagement and providing real-time data insights
to better meet customer needs.
Digital
offerings
Our proven track record of growing our digital
products will support expansion of our new digital
offering in Romania.
Transformation
office
We are establishing a Transformation Office to oversee
and coordinate strategic initiatives, ensuring efficient
execution of change projects across the Group.
Poland
recovery
Our home credit and digital businesses in Poland
have returned to growth, and we will focus on
serving more customers and rebuilding scale
in this important market.
Credit card
platform
We are developing our credit card platform to enable
expansion of this exciting offering into new markets.
Mexico
expansion and
product
diversification
We will expand our geographic footprint with two
new branches in 2025 and introduce new products
to deliver sustainable, quality growth and consistent,
attractive returns.
AI/Robotics
We are exploring AI applications to improve lead
generation, automate affordability checks, and
support colleague training to enhance
business performance.
IPF Digital
opportunities
in Mexico and
Australia
Our standout digital operations in Mexico and
Australia represent significant long-term growth
opportunities, and we will leverage our digital
capabilities to expand in these markets.
Our growth vision
2025: Accelerating our growth vision
Building upon the operational and financial progress achieved in 2024, we are well-positioned to accelerate growth and drive
transformation across the business. By steadfastly executing our Next Gen strategy, we aim to enhance our capabilities,
betterserve our customers and deliver increased value to our stakeholders.
Annual Report and Financial Statements 2024 13
Strategic Report
Today’s customers: The next generation:
of our customers are female of customers are
are 30-50 years old,
and many have children
years old
c.60% c.20%
18-30c. 45%
Low to medium income
Full-time workers
Often single
Underserved by other lenders
Often rent their homes
No or limited credit history
Mostly located in larger cities
Our customers and
financial inclusion
International Personal Finance plc14
Many customers face limited
access to financial services
– They have low or medium incomes
with little or no savings.
– Most work but their income often
varies from month to month.
– Many don’t have a formal
credit history.
– They may live in a rural area or can
not easily reach a bank.
– Some have had past credit issues
resulting in a poor credit history.
– They are charged for bank services.
How our customers use
their loans
– Education and
return-to-school expenses.
– Healthcare and medical expenses.
– Smoothing their budgets and
managing unexpected expenses.
– Home improvements
and household goods.
– Supporting their micro business.
– Family celebrations and Christmas.
Our customers
Our customers budget very carefully,
preferring to borrow small amounts with
clear costs and affordable repayments.
Typically, they are not heavily indebted
and have incomes from various sources,
including government support. Many are
new to credit, relying on us as their first
step to building a credit profile. They
also value a sympathetic service and
forbearance during challenging times.
£900 £360 £1,250
88 weeks 47 weeks £650
Typical loan Typical loan Average credit line
principal outstanding
Average term Average term Average instalment loan
European home credit Mexico home credit IPF Digital
See page 50 for more information
Typical loans
Delivering financial inclusion
Around 1.7 billion people worldwide are excluded from regulated financial services making it difficult to save, access fair-priced
credit or start a business. We specialise in providing responsible, accessible and flexible financial services, enabling customers to
plan for important events, manage unexpected challenges and gain peace of mind with health and life cover. Our commitment
to outstanding customer experience gives people more reasons to choose our products and remain loyal. In turn, we expand
financial inclusion and grow the business.
Responsible approach
Our Customer Promise sets out the standards for how we engage with our customers and is based on what we understand
matters most to them. It aligns to the broader lending cycle and governs our actions at every stage of the process. By making
and keeping promises, we uphold responsible lending practices and enhance customer satisfaction.
How we create financial inclusion
Responsibly
serving more
customers
Providing
appropriate
products and
services
Offering
solutions to
underserved
people
Expanding
our geographic
reach
Supporting
customers who
have financial
difficulties
Annual Report and Financial Statements 2024 15
Strategic Report
Our products and services
Our brands
Our products and services are tailored to meet our customers’ needs and different credit
profiles and preferences. Through digital transformation, we have streamlined services to
enhance the customer experience while preserving the personal interactions our customers
value. This balanced approach ensures we deliver flexible, accessible financial solutions
while staying true to the personal service our customers trust.
“I used the money to make
improvements in our home,
and when our family recently
needed urgent help, our
customer representative
responded immediately
and we received the money
without any complications.”
Hajnalka, Hungary
Customer
Home credit
instalment loans
Small-sum loans with
weekly personal
service and an
increasingly digital
touch, provided in
customers’ homes
byour customer
representatives.
Retail credit
Partnering with
retailers to provide
instalment loans
to customers,
both in store
and online.
Hybrid loans
A unique blend of
customer representative
and digital channels for
those who do not have
a strong enough credit
profile to get a fully
digital offer.
Credit card
A convenient way for
customers to make
in-store purchases,
shop online, or
access cash through
their customer
representative
or ATMs.
We offer a range of terms to our customers, from one month to three years
There is strong awareness of our Provident
home credit and Credit24 digital brands while
our newer digital brand, Creditea, is rapidly
gaining prominence. Together, these brands
reflect our commitment to delivering trusted
financial solutions tailored to the customers
we serve.
International Personal Finance plc16
Our customer apps
Our mobile apps enable customers
to manage their account, access
credit and see when a payment is
due. We aim to have a mobile app
available in all our markets by the
first quarter of 2026.
“Provident’s credit card has
been a great help to me.
I have been able to
renovate my room and buy
gifts for my family. I really
like having the flexibility to
use it whenever I need it.”
“I recently purchased a
medical package for
myself and my child from
my customer representative.
My little one has acute
allergies; he had shortness
of breath one night, but the
quick medical assistance
helped him.”
“Creditea has helped me
out of many tight spots and
family emergencies. I like
the flexibility to make extra
payments to save interest
or pay off the loan. It’s an
excellent option and the
company truly cares
about customers.”
Expanding our reach
through proven products
One of the ways we are reaching
more customers and delivering
growth is by replicating successful
products or channels from one
market to serve new customers in
another. Today, all our markets,
excluding Hungary, now offer digital
credit and we are exploring new
opportunities for our credit card
offering beyond Poland.
Revolving credit line
Flexible access to money
up to a preset limit, and
when customers pay
down, more credit
becomes available.
Mobile wallet
Online payment
transactions and
value-added services
in the pocket of
our customers.
Digital instalment
loans
Affordable,
end-to-end digital
service with terms
from one month to
three years and
monthly repayments.
Value-added
services
A range of
value-added
products beyond
credit including
health and
life insurance.
Patrycja, Poland
Customer
Piotr, Poland
Customer
Josh, Mexico
Customer
Annual Report and Financial Statements 2024 17
Strategic Report
Our business model
Responsible business model
Our unique proposition helps underserved consumers access financial
services and creates long-term value for the communities we serve.
What we do
We play a vital role in society by helping
underserved consumers in nine markets
gain access to affordable financial
products and value-added services.
We have built a suite of products
ranging from home credit and digital
instalment loans through to a credit
card, retail credit, digital credit lines and
a mobile wallet. We also offer a range
of insurances and other value-added
services which are underwritten by
leading, reputable third-party partners.
All of our products are tailored to our
customers’ financial circumstances
and needs, and we deliver them
in a responsible way. In doing so we
are increasing financial inclusion for
millions of people.
Responsible Respectful Straightforward
Underpinned by our values
Specialist lender
We are experts with deep market
knowledge gained over 26 years
of serving customers who are
underbanked and underserved.
Unique product offering
We are the only financial services
business to provide both home credit
and digital offerings, plus a range of
value-added services. We meet our
customers’ different credit profiles
and create a flexible path for them
to access our products as their
credit history improves.
Building a better
world through
financial inclusion
1.
Attract
target
customers
2.
Requests
for credit
3.
Assess
affordability and
creditworthiness
4.
Lend
responsibly
5.
Collect repayments
and manage customers
facing difficulties
6.
Generate
revenue
7.
Reinvest and
deliver returns
Close customer relationships
Knowing our customers enables us
to make more accurate affordability
assessments, approve more loans
and support financial inclusion. Many
of our customer representatives meet
customers at their homes every week
and it is this close contact that helps
customers stay in control of repayments.
We also maintain regular engagement
with our digital customers across
various channels.
Competitive advantage
The home credit model, with its large
customer representative infrastructure, is
extremely difficult to replicate and takes
years of experience to manage effectively.
Profitable and highly
scalable business
We are a profitable, cash generative
business. Our home credit divisions
deliver our target returns and we are
scaling up our digital business to meet
rising demand for affordable credit
online, drive profit growth and
deliver our target returns.
Data insight
Using AI and machine learning allows
us to integrate high-quality data into
our analytics, enhancing risk models
and enabling smarter lending decisions.
This ensures customers receive affordable
credit that’s right for them. It also optimises
marketing returns and provides deeper
insights into our target audience so we
can refine customer journeys and
improve engagement.
What makes us different
Taking due care in all our
actions and decisions.
Treating others as they
would like to be treated.
Being open and transparent
in everything we do.
International Personal Finance plc18
Our key relationships and value creation
Colleagues
Suppliers
Strategic pillars
Strategic pillars
Strategic pillars
Strategic pillars Strategic pillars
Customers
Communities
Trusted, personal relationships help
us understand our customers, adapt
our business model and design new
products that meet their needs in a
responsible and sustainable way.
How we create value
Giving access to affordable, regulated
credit helps customers buy the things
they want and build a credit history.
Regulators, politicians
and non-governmental
organisations
Our community investment activities
focus on financial inclusion. In addition,
our customer representatives live and
work in the communities they serve,
building positive relationships with
customers and providing unique insights
into the needs of our communities.
Engaging our employees and customer
representatives is critical to delivering
our increasingly digitalised business
model while retaining the human
touch through our unique personal
customer relationships.
How we create value
Fostering an inclusive culture motivates
colleagues to serve customers well,
achieve exciting careers and
deliver growth.
How we create value
Generating good returns, delivering
growth responsibly and capturing
market opportunities.
How we create value
Enabling financial inclusion, supporting
community initiatives and providing
career opportunities.
How we create value
Supporting thousands of businesses
and forming strong, professional and
sustainable partnerships with them.
How we create value
Providing consumers with access
to regulated, affordable credit and
complying with all market regulations.
Collaboration with our business
partners is essential if we are to continue
to meet customers’ needs. Our suppliers
embrace our values and help our
business grow, improve efficiency
and enhance performance.
Regular, open dialogue with
regulators and legislators builds
their understanding of our customers’
needs and our essential role in society.
Strategic pillars key
Next Gen
financial inclusion
Next Gen
organisation
Next Gen
technology and data
Strategic pillars
Strong relationships with shareholders
and funding partners help maintain a
strong financial profile. By generating
capital for growth, we enhance financial
inclusion and deliver attractive,
sustainable returns to investors.
>£240m
dividends paid to shareholders
since listing in 2007
1.7m
customers included in the
financial mainstream
£920,270
invested in our communities in 2024
20,500
colleagues
3,000
suppliers globally
c.25
sector associations
Read our investment proposition on page 8
Investors and
ratings agencies
Annual Report and Financial Statements 2024 19
Strategic Report
Economic outlook
1 3 5
– Stable or improving economic
indicators in most markets supporting
good customer repayment behaviour.
– Interest rates are forecast to decline,
reducing borrowing costs for consumers
and lowering our blended cost of funding.
– Sterling has strengthened against some
of our operational currencies particularly
in Mexico and Hungary, impacting
sterling-denominated returns.
– Governments are seeking to balance
their budgets through tax rises.
Market review
Our marketplace and key trends
Our business is well-
positioned to capture
substantial long-term
growth opportunities in
the large and growing
markets where we
serve customers.
We focus on a target consumer
segment that remains significantly
underserved, with an estimated
70 million adults across our
nine markets facing financial
constraints and limited access
to traditional banking services.
Operating within the highly
regulated non-bank financial
institution sector, we navigate a
landscape shaped by price caps,
affordability requirements and
other regulatory measures that
vary across regions. Closely
monitoring key consumer and
market trends informs our Next
Gen strategy so we can address
challenges and capitalise on
growth opportunities.
Our response
–
We benefit from a diversified
business model in nine geographies.
– With a more positive outlook, we will
accelerate growth but can tighten
credit settings quickly if this changes.
– We always focus on cost efficiency and
process optimisation to help mitigate
inflation and the cost of funding.
Changing customer expectations
4 6 7 8
10
– Customers are demanding more personal,
convenient and joined-up experiences.
– Trusted brand status is increasingly important.
– Consumers expect credit solutions to be
available when they make purchases.
– Credit options for underserved customers
are reducing in most markets except for
credit cards in Mexico.
Our response
–
We are introducing new products and
channel choices across our markets.
– We are enhancing customer experience
through our Think Customer programme.
– We refreshed the Provident brand in
Europe to appeal to more people.
– We are implementing omnichannel
technologies to provide faster responses
during customer interactions.
– We are expanding retail partnerships to
provide credit at the point of purchase.
Market trendsOur response
Proven track record
of managing through
economic cycles
Expanding credit
access and enhancing
customer experience
International Personal Finance plc20
Technology
7 8
10
– Consumers expect multi-channel
interactions alongside digital solutions.
– Mobile and digital devices, and online
customer service are increasingly important.
– AI and ‘big data’ offer productivity
and growth opportunities.
– High demand for fast service and
seamless experiences.
– Increased digital transactions heighten
cyber security risks.
Our response
–
We are using data to improve lending
decisions, optimise marketing investment
and improve the customer journey.
– We are exploring new ways to develop
innovative, user-friendly digital credit
solutions, improve marketing effectiveness
and deliver cost efficiencies.
Competition
7
– All our markets remain very competitive.
– No major new entrants serving our
consumer segment.
– Some competition is being impacted by
increased regulation.
– Increasing brand investment from new
financial players in Mexico targeting
prime customers.
– Whilst not direct competition, BNPL
business models have scaled back.
Our response
–
We are increasing product and channel
choices to attract more customers.
– Our home credit model continues to
offer competitive barriers to entry.
– Our strong financial performance, robust
balance sheet and market-leading brands
mean we are well-placed to capitalise on
market share opportunities.
Regulation
2 4 7 8
– Focus on affordability, fair pricing
and consumer protection continues.
– Bank-like regulations for non-banking
financial institutions are increasing.
– New rate cap in Romania.
– Government subsidies and minimum
wage increases may impact demand
and collections.
Our response
–
We engage with regulators and
legislators to highlight our role in
extending financial inclusion.
– We are operating successfully under
pricing and affordability regulations
in most of our markets.
– We will accelerate credit card growth
in Poland under the new full payment
institution licence.
– We are making changes necessary
under the EU Consumer Credit Directive II.
Principal risks
1
Credit
2
Future legal and regulatory development
3
Funding, liquidity, market and counterparty
4
Reputation
5
Taxation
6
Change management
7
Brand and proposition
8
Technology
9
People
10
Information security and cyber risk
See pages 38-43 for more information
Developing innovative
digital credit solutions
Increasing products
and channelchoices
Advocating for
financial inclusion
Annual Report and Financial Statements 2024 21
Strategic Report
Consistent execution of
our Next Gen strategy
Our strategy
Our Next Gen strategy fuels our commitment to unlocking sustainable long-term growth.
Our vision
We aim to be the leading provider of financial services for underserved
communities around the world; data driven, technology-enabled and always
with a human touch.
1. Next Gen
financial inclusion
Next Gen’s strategic pillars
2. Next Gen
organisation
3. Next Gen
technology and data
Responsible
Supported by our values
Respectful Straightforward
Guided by our financial model
We are guided by our financial model in balancing the needs of our stakeholders.
Our purpose
Building a better world through financial inclusion.
International Personal Finance plc22
Strong progress in 2024
– Grew credit card offering in Poland
to 150,000 active customers.
– Granted a full payment institution
licence in Poland.
– Launched a new branch in
Mexicali, northern Mexico.
– Expanded point of purchase
finance in Romania.
– Launched a retail distribution
channel in Mexico.
– Grew mobile wallet users to
over 115,000.
– New field force structure in European
home credit to improve efficiency
through process standardisation.
– Delivered more than 400 different
training programmes to colleagues.
– MSCI ESG rating upgraded to AA
and retained in FTSE4Good Index.
– Invested £920,270 in our
global community programme.
– 4,000+ days volunteered by
colleagues to support good causes.
– Multiple award wins including
Outstanding Customer Service, Top
Employer and Fair to Women 2024.
– Consolidated and modernised the
Group’s IT architecture.
– Upgraded customer contact centres
in Poland and the Czech Republic.
– Launched a new mobile app
in Mexico home credit.
– Generated value from AI and data
to enhance customer experience.
– Integrated AI into WhatsApp
for faster communication and
lead generation.
– Added a credit health monitor
to our mobile wallet.
Priorities in 2025
– Accelerate credit card growth
in Poland and conclude on the
launch of our next market.
– Open two new branches in
Mexico home credit.
– Accelerate growth in IPF Digital
Mexico and Australia.
– Increase retail partnerships model.
– Grow our digital channel
in Romania.
– Create strategic leadership hubs
to accelerate multi-market delivery.
– Continue investment in our
colleagues to ensure we
remain a great place to work.
– Support more communities
through our Invisibles programme.
– Enhance IT security across
the Group.
– Generate further value from data
and AI.
– Complete cloud migration of data
in European home credit.
– Continue call centre modernisation
to unlock customer experience
and productivity enhancements.
– Complete paperless
transformation programme.
1. Next Gen financial inclusion 2. Next Gen organisation 3. Next Gen technology and data
Strategic progress at a glance
We made strong progress against our strategic objectives in 2024, advancing key
initiatives that position us to deliver more for our customers and sustainable growth.
Building the products,
channels and territories
to ensure our propositions
are attractive to the next
generation of customers.
Becoming a more efficient
organisation that makes a
positive impact on society.
Becoming a data driven and
technology-enabled partner
for our customers.
See pages 24 and 25 for our key performance indicators.
Annual Report and Financial Statements 2024 23
Strategic Report
Key performance indicators
We track progress towards achieving our purpose and strategic priorities
through a balanced set of financial and non-financial key performance indicators.
Financial
Closing net receivables
£870.0m
Revenue yield
54.7%
Impairment rate
9.6%
What we measure: The closing amounts
receivable from customers translated at
constant exchange rates.
Why it’s important: This enables changes in
customer receivables to be compared on a
consistent basis, which is important because
it is a key driver of revenue growth.
How we performed: Closing receivables
increased by 6.8% (at CER) due mainly to
strong growth of 18% delivered by IPF Digital,
with low single-digit growth in both European
and Mexico home credit. We expect to
accelerate growth in 2025.
What we measure: Revenue divided
by average gross receivables before
impairment provision.
Why it’s important: It reflects revenue earned
from receivables and customer charges,
ensuring our pricing is fair and appropriate
to deliver our target returns. Our 56% to 58%
target range reflects our product structure
and current regulatory landscape, primarily
characterised by rate caps in most of
our markets.
How we performed: Revenue yield
decreased marginally reflecting the impact
of the rate cap on credit cards introduced in
Poland in the first quarter. Excluding Poland,
the revenue yield strengthened to 57.3%,
in line with our target range.
What we measure: Impairment as a
percentage of average gross receivables
before impairment provision.
Why it’s important: Profitability is maximised
by optimising the balance between growth
and credit quality. Impairment rate helps us
assess the amount of principal we are unable
to collect. Our target range is 14% to 16%.
How we performed: Customer repayments
remained strong despite cost-of-living
pressures and global economic uncertainty.
Our disciplined lending approach supported
good portfolio quality and robust repayments,
improving the impairment rate in 2024. We are
well positioned to accelerate growth in 2025,
and expect the impairment rate to gradually
return to our target range.
51.9
48.1
49.8
55.3
54.7
20 21 22 23 24
Target range
58%
56%
973.6
20
21 22 23 24
868.8
716.8
669.1
892.9
870.0
20 21 22 23 24
Target range
18%
16%
8.6
4.9
18.6
12.2
9.6
Cost-income ratio
61.0%
Pre-exceptional return on
required equity (RoRE)
15.7%
Pre-exceptional return
on equity (RoE)
11.5%
What we measure: The direct expenses
of running the business including customer
representatives’ commission as a percentage
of revenue.
Why it’s important: To ensure we run our
business in the most efficient manner as
this ratio is a key driver of profitability. Our
medium-term target range is 49% to 51%.
How we performed: The ratio increase was
due wholly to reduced revenue in Poland.
Excluding Poland, the ratio at 55.4% was in
line with 2023 as we invested in growth and
transformation capability. We are committed
to our target as we deliver growth, build scale
and execute our cost-efficiency programme.
What we measure: RoRE is pre-exceptional profit after tax divided by average required equity of
40% of receivables. RoE is pre-exceptional profit after tax divided by average equity.
Why it’s important: RoRE and RoE are good measures of overall shareholder returns. We target
15% to 20%, as this is a return which we consider to be sustainable and balances the needs of
all our stakeholders.
How we performed: RoE is lower than RoRE due to the additional capital held above our target
level of 40%. The pre-exceptional RoRE improved by 0.9ppts to 15.7% as a result of improved
profitability and a reduced tax rate of 35%. We expect returns to moderate in 2025 due to strong
receivables growth which results in extra IFRS 9 impairment charges up front and a modest
increase in the tax rate. We expect returns to improve in 2026 before reaching target returns
again in 2027.
See our Financial review on pages 33 to 37 for more information.
20
21 22 23 24
Target range
51%
49%
60.9
67.6
58.6
57.0
61.0
15.1
14.6
(
16.2
)
14.8
15.7
20
21 22 23 24
11.4
11.5
(
13.0
)
20 21 22 23
24
11.1
11.5
International Personal Finance plc24
Non-financial
Customers
1.7m
Employee and customer representative turnover and stability
Employees Customer representatives
What we measure: Total number of
customers across the Group.
Why it’s important: Customer numbers
demonstrate the level of financial inclusion
and scale in our markets. Our longer-term
ambition is to serve 2.5m customers.
How we performed: Customer numbers
grew by 1% to 1.7m, excluding the impact
of Poland where they declined by 18%. With
Poland’s return to growth and continued
strong momentum from new products and
channels across the Group, we anticipate
an acceleration in customer growth in 2025.
See page 50 for more information.
What we measure: Moving annual turnover
(MAT) is the total leavers in the last 12 months
divided by the average headcount in the
same period. Stability is the number of
employees with more than 12 months’
service compared to the corresponding
number 12 months ago.
Why it’s important: Low and stable MAT
correlates with providing high levels of
customer service and strong employee
and customer representative engagement.
High levels of stability indicate that skills
and experience are being retained, and
support the maintenance of strong working
relationships, which in turn supports high
levels of customer service.
Community
investment
£920,270
Customer recommendations
(Net Promoter Score)
+77
What we measure: Total value of our
contribution to supporting communities.
Why it’s important: This investment
demonstrates our contribution to the
communities where we live and work.
How we performed: In 2024, our investment
in local communities focused on our flagship
programme, Invisibles, and financial
education. We also created more than
4,000 days of volunteering opportunities for
colleagues to support our local community
initiatives. In 2025, we will focus on extending
our reach to helping more ‘invisible‘ groups
living in our communities, and understanding
the impact of our support.
See page 58 for more information.
What we measure: The proportion of
customers recommending our products
to others minus those who would not.
Why it’s important: Net Promoter Score
is a measurement of customer loyalty and
satisfaction which are important drivers of
future growth. We target a minimum score of
+55 as part of our commitment to delivering
on our purpose.
How we performed: Our Group Net
Promoter Score at December 2024 was +77,
an improvement on 2023 and well above
our target of +55. Our focus in 2025 will be on
maintaining this strong score with continued
emphasis on improving customer experience
through our Think Customer programme.
See page 51 for more information.
What we measure: As part of our commitment
to delivering on our purpose, we target
minimum stability scores of 75% for employees
and 70% for customer representatives.
How we performed: Customer representative
and employee MAT increased slightly in 2024,
driven by several reorganisations aimed at
improving efficiency. As anticipated, customer
representative and employee stability
contracted modestly as levels returned closer
to normalised, pre-pandemic rates. However,
they continue to reflect strong colleague
engagement, supported by the results of
our people pulse surveys conducted in 2024.
See page 53 for more information.
1,733
1,727
1,682
1,700
1,652
20 21 22 23
24
22
27
22
22
38
84
78
80
81
67
20
21 22 23 24
40
45
49
41
45
72
69
68
73
67
MAT%
Stability %
20
21 22 23 24
Annual Report and Financial Statements 2024 25
Strategic Report
Group performance review
Operational review
We delivered a strong operational and financial performance in 2024, with all divisions
contributing positively to these results.
An analysis of our 2024 divisional results (2023 restated*) is set out below:
2024
£m
2023
£m
Change
£m
Change
%
European home credit* 57.4 67.7 (10.3) (15.2)
Mexico home credit 26.0 23.1 2.9 12.6
IPF Digital* 17.0 8.1 8.9 109.9
Central costs (15.2) (15.0) (0.2) (1.3)
Pre-exceptional profit before taxation 85.2 83.9 1.3 1.5
Exceptional items (11.9) – (11.9) (100.0)
Profit before taxation 73.3 83.9 (10.6) (12.6)
* As part of a change in management responsibility from the end of 2023 and as reported with the interim results, the nascent digital lending business in the
Czech Republic, which was previously reported as part of European home credit, is now included in the results of IPF Digital. All comparatives have been
amended accordingly and are presented on a like-for-like basis. The Czech Republic digital business contributed a loss of £2.6m for 2023.
The detailed income statement of the Group, together with associated KPIs is set out below:
2024
£m
2023
£m
Change
£m
Change
%
Change
at CER
%
Customer numbers (000s) 1,652 1,700 (48) (2.8)
Customer lending 1,214.5 1,150.6 63.9 5.6 9.2
Average gross receivables 1,327.5 1,388.9 (61.4) (4.4) (1.6)
Closing net receivables 870.0 892.9 (22.9) (2.6) 6.8
Revenue 726.3 767.8 (41.5) (5.4) (2.1)
Impairment (127.5) (169.4) 41.9 24.7 21.1
Revenue less impairment 598.8 598.4 0.4 0.1 3.2
Costs (443.2) (437.6) (5.6) (1.3) (4.0)
Interest expense (70.4) (76.9) 6.5 8.5 6.0
Pre-exceptional profit before taxation 85.2 83.9 1.3 1.5
Exceptional items (11.9) – (11.9) (100.0)
Profit before taxation 73.3 83.9 (10.6) (12.6)
Revenue yield 54.7% 55.3% (0.6) ppts
Impairment rate 9.6% 12.2% 2.6 ppts
Cost-income ratio 61.0% 57.0% (4.0) ppts
Pre-exceptional EPS
1
24.9p 23.2p 7.3%
Pre-exceptional RoE
1
11.5% 11.1% 0.4 ppts
Pre-exceptional RoRE
1,2
15.7% 14.8% 0.9 ppts
1. Prior to a pre-tax exceptional charge of £11.9m, and an exceptional tax credit of £17.4m in 2024 and an exceptional tax charge of £4.0m in 2023 (see note 10
for more details).
2. Based on required equity to receivables of 40%.
International Personal Finance plc26
The annualised revenue yield decreased marginally
from 55.3% to 54.7% in 2024. This reflects the impact of the
introduction of the rate cap on credit cards in Poland in the
first quarter. Excluding Poland, the revenue yield strengthened
to 57.3%, in line with the Group’s target range of 56% to 58%.
Customer repayments continued to be excellent in 2024
despite cost-of-living pressures on consumers and general
global macro-economic instability. Our strong operational
execution, together with a further reduction of £6m (2023: £5m)
in the Group’s cost of living provision, supported a 2.6ppt
improvement in the annualised impairment rate to 9.6%
(2023: 12.2%). The improved credit quality has resulted in a
reduction in the impairment coverage provision from 36.3%
at December 2023 to 32.9% at December 2024. With excellent
credit quality across all our divisions, we are well positioned
to accelerate growth in 2025.
We continue to maintain a strict focus on efficiency and cost
control. The Group’s cost-income ratio increased by 4.0 ppts to
61.0% (2023: 57.0%) wholly due to reduced revenue in Poland.
Excluding Poland, the ratio of 55.4% was in line with 2023 as we
invested in growth in the second half of the year as well as the
resources and capability to accelerate change across the
Group. Despite this investment, we remain committed to our
medium-term target of 49% to 51% as we deliver increased
growth, build scale and continue to execute on our cost
efficiency programme.
The pre-exceptional RoRE improved by 0.9ppts to 15.7%
(2023: 14.8%) as a result of improved profitability and a
reduced tax rate of 35% (2023: 38%). We expect returns to
moderate in 2025 due to strong receivables growth which
results in extra IFRS 9 impairment charges up front and
a modest increase in the tax rate. We expect returns to
improve in 2026 before reaching target returns again in 2027.
The Group’s pre-exceptional RoE, based on actual equity,
increased to 11.5% (2023: 11.1%).
Pre-exceptional earnings per share (EPS) grew 7.3% to 24.9p
per share (2023: 23.2p), reflecting higher profits, a lower
tax rate and a reduced number of shares in issue following
successful completion of the £15m share buyback programme
in the second half of the year. Reported EPS of 27.3p per share
(2023: 21.5p) showed a larger increase of 27.0%, due to the
impact of pre-tax exceptional charges of £11.9m being more
than offset by an exceptional tax credit of £17.4m (see note 10
for more details).
Group performance
The strong momentum in performance built over the past
threeyears, and now underpinned by the execution of our
Next Gen strategy, resulted in good growth and exceptional
customer repayment behaviour in the year. Pre-exceptional
profit before tax of £85.2m was ahead of the guidance
ofbetween £78m and £82m we provided with the interim
results and 1.5% upon last year (2023: £83.9m), despite
anadverse year-on-year impact of £5m due to weaker
foreignexchangerates in our geographies.
The full-year result includes exceptional one-off costs totalling
£11.9m, comprising £6.1m of restructuring costs in European
home credit and £5.8m of costs associated with refinancing
the Group’s Eurobond in June. Statutory profit before tax was
therefore £73.3m (2023: £83.9m).
Group customer lending grew by 9% (at CER) driven
bystrong growth in IPF Digital and European home credit.
Mexico delivered relatively modest growth due to disruption
from an IT upgrade in the final quarter but has returned
toexpected levels of growth in early 2025.
Group net receivables closed the year up 7% (at CER) to
£870.0m (2023: £892.9m), due particularly to strong growth of
18% in IPF Digital with European home credit and Mexico home
credit delivering low single digits growth. Whilst receivables in
Poland showed a year-on-year reduction of 10%, both the home
credit and digital businesses have now returned to growth and
delivered 6% receivables growth in the final quarter.
Customer numbers grew by 1% to 1.7m, excluding the impact
of Poland, where customer numbers declined by 18%. As noted
above, Poland is now returning to growth and with continued
strong momentum from the Group’s new products and
channels we anticipate an acceleration in customer
growth in 2025.
Delivery of our financial model is underpinned by the revenue
yield, impairment rate and the cost-income ratio, and we
continue to maintain a sharp focus on these key financial levers.
For more information see the Financial review
on pages 33 to 37.
Annual Report and Financial Statements 2024 27
Strategic Report
Operational review continued
2.Next Gen organisation
We are becoming a smarter, more efficient organisation that
makes a positive impact on society:
– Field transformation: We implemented a new structure for
our European home credit division to standardise processes
across the four markets, laying the foundation for unified
systems that will simplify our technology estate and
enhance efficiency.
– Supporting our communities: We invested £920,270 in
community support and assisted thousands of people
through our global community investment programme
‘Invisibles’ which helps people from those segments of
society who struggle to have their needs recognised
gain access to financial services and become visible to
influential stakeholders who can provide practical help.
– Being a great place to work: We received recognition
through a variety of awards demonstrating our commitment
to our colleagues, gaining Top Employer in Poland and
Wellbeing Employer of the Year in Romania, in addition
to awards for great customer care and innovation.
3.Next Gen technology and data
We are investing in the capabilities required to become a
data-driven and technology-enabled partner for our customers:
– Customer app rollout: Building on the success of our mobile
app in Poland, we launched an app in Mexico, providing
customers with a convenient and accessible way to manage
their finances. By the end of the first quarter of 2026, the app
will be available across all our home credit markets.
– Offering omnichannel touchpoints: In 2024, we expanded
our Xenia customer experience programme into Poland
and the Czech Republic, building on its success in Romania.
This is transforming our European home credit operations,
integrating multiple customer touchpoints to provide a
unified, 360-degree view of customers.
– Integration of AI: The potential of AI is transformative,
and we are at an early stage in developing its use in
lead management and call centre efficiency, automated
affordability checks and AI-driven processes to integrate
data across our different platforms.
In 2025, we will continue with the above activities as well as
accelerate the pace of change as we continue to upgrade
and simplify our IT estate to make us more productive, cost
efficient, secure and agile.
Purpose and strategy
Our purpose is to build a better world through financial
inclusion. With 1.7 million customers across nine countries,
we aim to grow this to 2.5 million, extending access to
affordable financial products to support significantly
more underserved consumers.
We have made a strong start to our Next Gen strategy which
we launched early in 2024, with the business aligned on
delivering its three core strategic priorities:
1.Next Gen financial inclusion
We aim to increase our reach to appeal to more consumers by
expanding our geographic footprint, increasing our product
range and growing the number of channels through which
customers can access our offers:
– Accelerating credit cards: The granting of a full payment
institution license in Poland in November will enable us to
accelerate growth of our credit card offering in the year
ahead. We have now issued over 200,000 credit cards,
up from 130,000 at the end of 2023, with 150,000 active
customers who are using their cards increasingly in stores
and on-line. Based on our experience to date, we are
developing plans to expand the proposition into other
European markets which we plan to announce with
our 2025 half year results.
– Expanding in Mexico: We continued to expand our
geographic footprint in this growth market with a new
branch opening in Mexicali, northern Mexico in June.
We also plan to open two new branches in 2025, and
all our branches launched in the past two years are
performing well.
– Building distribution channels through strategic partnerships:
We expanded our retail credit partnership significantly in
2024, an offering which provides finance for consumers at
the point of purchase. In Romania, we now offer in-store
credit at nearly 700 retail outlets, up from 160 at the end of
2023. Our test of this distribution channel in Mexico is also
gaining traction and we now offer credit in more than 50
online retailers.
– Growing our mobile wallet in IPF Digital: We enhanced
our mobile wallet with the addition of a digital credit health
monitor, which leverages internal and external data to help
customers manage their credit profiles and behaviours more
effectively, and keep their credit score in good standing.
The number of mobile wallet users has more than doubled
to over 115,000 in the past 12 months, and they now
represent around half of IPF Digital’s customer base.
International Personal Finance plc28
Regulatory update
As previously reported, the new total cost of credit cap
in Romania came into force on 11 November 2024. Our
Romanian business has adapted its product offering to
customers in accordance with the new cap and we do
not expect the impact to be material to the Group’s results.
Following a two-year process, in November 2024, our Polish
home credit business was granted a full payment institution
licence from the Polish financial supervision authority, the
Komisja Nadzoru Finansowego. This represented a significant
step forward as the previous licence restricted the amount of
credit our Polish business could issue and now, with the new
licence, we can accelerate growth in Poland.
Our business in the Czech Republic, which is our smallest
operation, has remained our only European market without a
rate cap. Earlier this month, a public consultation document
for the adoption of the EU Consumer Credit Directive 2 (CCD2)
contained a proposal for the introduction of a rate cap. We
are working with industry groups to ensure that any rate cap is
appropriate and assists the provision of responsibly provided
credit to those in need. The Group has demonstrated a strong
track record in adapting to regulatory changes, including new
rate caps.
The Digital Operations Resilience Act (DORA) took effect
from 17 January 2025. The requirements cover, amongst
other things, the management of IT and security risk, disaster
recovery plans and third-party supplier risk. We introduced the
necessary enhancements to our risk and governance process
to meet the requirements of DORA in advance of the deadline.
Outlook
Our strong operational and financial performance in 2024,
together with our strong balance sheet, lays the foundation
for accelerating the rate of growth and the pace of change in
2025 as we continue to execute against our Next Gen strategy.
In Poland, the receipt of the full payment institution licence
enables us to accelerate its return to growth whilst in Mexico
home credit, where we have upgraded our IT systems
infrastructure, we anticipate strong demand to fuel growth and
geographic expansion. Following an excellent performance
in 2024, we expect IPF Digital will continue to build scale and
deliver further strong growth in 2025, particularly in the very
attractive Mexico and Australia markets. Additionally, further
growth in our divisions will be driven by broadening our
product set, further roll-out of mobile wallet in our digital
markets and increasing our retail credit partnerships.
We will also drive change at a faster pace to enhance our
ability to serve customers and improve operational efficiency.
We are investing in technology to streamline customer
journeys through apps and omnichannel touchpoints,
understand how AI will support the business and develop
platforms and processes to deliver efficiencies, enable
innovation and support compliance with all local
regulatory requirements.
Building upon our performance in recent years, we are
focused on delivering our ambitious long-term vision to be
the leading provider of financial services to underserved
communities around the world, data-driven, technology
enabled and always with the human touch. We are dedicated
to turning this vision into reality, ensuring inclusive financial
growth for all.
Annual Report and Financial Statements 2024 29
Strategic Report
Operational review continued
2024
£m
2023
£m
Change
£m
Change
%
Change
at CER
%
Customer numbers
(000s) 725 754 (29) (3.8)
Customer lending 662.1 601.7 60.4 10.0 12.6
Average gross
receivables 706.0 791.1 (85.1) (10.8) (8.9)
Closing net receivables 459.6 475.4 (15.8) (3.3) 3.0
Revenue 328.2 375.9 (47.7) (12.7) (11.0)
Impairment (8.1) (35.6) 27.5 77.2 77.1
Revenue less
impairment 320.1 340.3 (20.2) (5.9) (4.0)
Costs (225.1) (225.2) 0.1 – (1.6)
Interest expense (37.6) (47.4) 9.8 20.7 19.1
Pre-exceptional profit
before taxation
1
57.4 67.7 (10.3) (15.2)
Revenue yield 46.5% 47.5% (1.0) ppts
Impairment rate 1.1% 4.5% 3.4 ppts
Cost-income ratio 68.6% 59.9% (8.7) ppts
Pre-exceptional RoRE
1
19.9% 21.6% (1.7) ppts
1. Prior to a pre-tax exceptional charge of £6.1m and, in respect of RoRE,
anexceptional tax credit of £1.1m in 2024, and an exceptional tax charge
of £4.0m in 2023 (see note 10).
The division reported pre-exceptional profit before tax of
£57.4m (2023: £67.7m), down £10.3m, of which £2m was
due to weaker foreign exchange rates in our European
geographies. Excluding the adverse impact of foreign
exchange rates, the result was ahead of the guidance
provided with the 2023 full-year results where we expected
a £10m profit impact due to the introduction of the rate
cap on credit cards in Poland.
Consumer demand remained robust and supported the
acceleration of customer lending growth through the year.
Hungary, which delivered record lending, Romania and the
Czech Republic collectively delivered lending growth of 12%
(at CER), with momentum increasing from 8% growth in the
first half to 17% in the second half. In Poland, lending trends
improved significantly as the year progressed, recovering from
a 5% year-on-year contraction in the first half to 36% growth
in the second half (+13% for the year as a whole) and the
business has now fully adapted to the combined impact of the
lower rate caps and enhanced affordability assessments now
required. The granting of the full payment institution licence in
November will allow Poland to increase credit card lending
volumes going forward.
Closing net receivables improved by 3% (at CER) to £459.6m
(2023: £475.4m). This reflects strong growth of 13% (at CER)
delivered by Hungary, Romania and the Czech Republic
combined, partly offset by Poland’s receivables which reduced
by 13% (at CER) year on year. However, after stabilising in the
third quarter, the increased lending volumes in Poland led to
a 6% increase in receivables in the fourth quarter to just over
£150m. Overall, with the strong momentum we are seeing
in lending volumes we anticipate European home credit
receivables growth in excess of 15% in 2025.
Customer numbers ended the year at 725,000, representing
a year-on-year reduction of 3.8%. Hungary, Romania and
the Czech Republic showed combined growth of 6% which
was more than offset by a 18% reduction in Poland. Now that
Poland has recommenced growth, we expect mid-single digit
growth in customer numbers for European home credit in 2025.
The annualised revenue yield reduced modestly year-on-year
by 1.0ppt to 46.5% (2023: 47.5%), wholly due to the re-pricing
ofcredit cards in Poland. The yield is expected to remain
stable in the year ahead.
The strong financial performance of European home credit
was buoyed by excellent customer repayments across all four
markets and a continued strong debt sale market. As a result
of the excellent credit quality, the cost-of-living provision was
reduced by £3.9m in the year and the impairment rate showed
an improvement of 3.4ppts to 1.1% (2023: 4.5%). As the Polish
business regrows in 2025, we expect the impairment rate to
increase and then to normalise into the target range for
European home credit of between 8% and 10% in the
medium term.
Cost management continues to remain a priority. Due to the
reduction in revenue yield in Poland together with investment
in growth, the cost-income ratio increased from 59.9% in
2023 to 68.6% in 2024. As we maintain our cost efficiency
programme and Poland regains scale, we remain focused
on reducing the cost-income ratio to our target range of
between 49% to 51% in the medium term.
As part of the ongoing transition of the Polish business, a
restructuring of our field and head office organisation resulted
in a reduction of 250 roles. As a result, the 2024 results reflect
a one-off exceptional cost of £6.1m relating to redundancy
payments and other associated costs.
As expected, the annualised pre-exceptional RoRE for
the division decreased to 19.9% (2023: 21.6%), due to the
reduction in profits. We anticipate that returns will further
moderate in 2025 as we accelerate receivables growth
leading to an increase in up front IFRS 9 impairment charges.
We then expect returns to regrow in 2026.
European home credit remains the cornerstone of the Group’s
profitability and offers good opportunities for future growth, as
demonstrated by the strong growth momentum in the second
half of 2024. The full payment institution licence in Poland will
underpin the acceleration of growth in this market as we
rebuild scale and expand our credit card offering to both
existing and new customers. We will also continue to expand
our digital and retail partnership credit offering in Romania,
and focus on customer acquisition and improving the
customer journey across all markets. We are also committed
to enhancing efficiency and unlocking synergies through
technology deployment and the sharing of resources and
best practices across the division.
European home credit
European home credit performed very well in 2024, despite adapting to the new rate cap on credit cards in Poland which came
into force in the first half of the year. Strong operational execution against our Next Gen strategy delivered good lending growth
whilst maintaining excellent credit quality.
International Personal Finance plc30
2024
£m
2023
£m
Change
£m
Change
%
Change
at CER
%
Customer numbers
(000s) 680 716 (36) (5.0)
Customer lending 289.2 302.8 (13.6) (4.5) 1.4
Average gross
receivables 306.9 299.4 7.5 2.5 8.5
Closing net receivables 159.4 187.1 (27.7) (14.8) 3.0
Revenue 263.8 261.6 2.2 0.8 7.1
Impairment (92.4) (96.7) 4.3 4.4 (2.0)
Revenue less
impairment 171.4 164.9 6.5 3.9 10.0
Costs (131.0) (129.7) (1.3) (1.0) (6.3)
Interest expense (14.4) (12.1) (2.3) (19.0) (26.3)
Reported profit
before taxation 26.0 23.1 2.9 12.6
Revenue yield 85.9% 87.4% (1.5) ppts
Impairment rate 30.1% 32.3% 2.2 ppts
Cost-income ratio 49.6% 49.6% – ppts
RoRE 24.4% 20.7% 3.7 ppts
While consumer demand for credit remains robust, year-on-
year customer lending growth of 1% (at CER) and a 5%
contraction in customer numbers to 680,000 were lower than
our original expectations. This was wholly due to a 6% year-on-
year contraction in lending during the fourth quarter. Due to
ongoing instability in our Provi Digital (the front-end lending
technology used by our customer representatives) and
customer app, we took the decision to upgrade to a more
modern and resilient infrastructure to provide a more stable
and secure base to accelerate growth in the future. This
change disrupted our field activities for a period, but we are
pleased to report that the upgraded technology was deployed
in mid-January 2025 and the business has now returned to
weekly year-on-year sales growth. With the added traction
from the management actions implemented in the previously
underperforming regions of Mexico City and Sureste, and the
weak fourth quarter comparative, we expect to deliver lending
growth in excess of 10% in 2025.
Our geographic expansion strategy continues to progress
successfully. Our new branch opening in June in Mexicali and
two branches in Tijuana and Tampico, which we opened at
the end of 2022 and early 2023 respectively, are performing
well and in line with our plan. Together they have attracted
more than 17,000 customers to date. We plan to open
another two branches in 2025.
Closing net receivables grew by 3% (at CER) to £159.4m,
driving a 7% (at CER) increase in revenue. We expect much
faster receivables growth of approximately 15% in 2025. While
the revenue yield saw a moderate decline from 87.4% to 85.9%,
this reflects the increase in the proportion of lending to existing
good-quality customers compared with new customers as
the receivables book grows. Existing customers tend to be
served with higher value, longer duration loans which have
a lower yield, but this is compensated for by better
impairment outcomes.
Improving the impairment rate in Mexico was a key priority in
2024, and our team successfully achieved a rate in line with
the target level of 30%. Focused actions to enhance the quality
of receivables and promote positive repayment behaviour led
to a 2.2ppt year-on-year improvement in the impairment rate
to 30.1% (2023: 32.3%). The improvement in quality also led
to a £1.2m reduction in the cost-of-living provision.
Despite the continued investment in geographic expansion
and the investment to upgrade the IT infrastructure, the
cost-income ratio remained in line with last year at 49.6% and
is consistent with our 49% to 51% target range. Costs remain
tightly controlled and we expect to maintain this ratio as we
continue to grow the business.
Interest costs increased by 26.3% (at CER), reflecting both
an 8.5% (at CER) increase in average gross receivables
and higher funding costs of the Mexican business. Despite
this increase, and the impact of the disruption in the fourth
quarter, the strong financial fundamentals of Mexico home
credit led to a 3.7ppt improvement in the RoRE to 24.4%
(2023: 20.7%).
Mexico home credit represents a significant growth market
for the Group and forms a key part of our Next Gen strategy.
Our immediate focus in 2025 is to accelerate the rate of growth,
supported by a more resilient and flexible IT infrastructure.
We are committed to expanding our geographic footprint to
attract more new customers and plan to open a further two
new branches during the year and continue to grow those
launched in recent years. We will also continue to prioritise
sustainable, quality growth to deliver consistent and attractive
returns, which has been an underpinning feature of the
business over the last three years.
Mexico home credit
Mexico home credit delivered record profit before tax of £26.0m (2023: £23.1m), underpinned by a return to target impairment
levels and strong cost control. The year-on-year growth in profits of 12.6% was adversely impact by the weaker Mexican peso
which impacted profits by £2m.
Annual Report and Financial Statements 2024 31
Strategic Report
Operational review continued
2024
£m
2023
£m
Change
£m
Change
%
Change
at CER
%
Customer numbers
(000s) 247 230 17 7.4
Customer lending 263.2 246.1 17.1 6.9 9.9
Average gross
receivables 314.6 298.4 16.2 5.4 8.1
Closing net receivables 251.0 230.4 20.6 8.9 17.6
Revenue 134.3 130.3 4.0 3.1 6.1
Impairment (27.0) (37.1) 10.1 27.2 24.2
Revenue less
impairment 107.3 93.2 14.1 15.1 17.9
Costs (72.0) (67.8) (4.2) (6.2) (8.1)
Interest expense (18.3) (17.3) (1.0) (5.8) (8.3)
Reported profit
before taxation 17.0 8.1 8.9 109.9
Revenue yield 42.7% 43.7% (1.0) ppts
Impairment rate 8.6% 12.4% 3.8 ppts
Cost-income ratio 53.6% 52.0% (1.6) ppts
RoRE 11.4% 5.6% 5.8 ppts
All our markets contributed improved performances, with
Mexico and Australia delivering strong growth and record
profit contributions while Poland successfully transitioned to
operating under a tighter rate cap introduced late in 2023
and returned to growth during the second half of the year.
Customer demand for fully remote credit offerings continued
to increase, driving year-on-year growth in customer numbers
and customer lending of 7% and 10% respectively (both at
CER), with strong performances in particular delivered by
Mexico and Australia with 22% and 21% year-on-year growth
in lending respectively. The Czech Republic delivered 15%
growth in lending whilst the more mature markets in the Baltics
delivered 3% growth. Poland saw a return to growth of 20%
inthe second half of the year following a reduction of 18%
inthe first half (-2% for the year as a whole).
Our growth strategy to build receivables and achieve target
returns is delivering good results. Closing net receivables
increased by 18% (at CER) to £251.0m (2023: £230.4m).
Mexico, Australia and our emerging digital business in the
Czech Republic were standout performers each delivering
growth of more than 26%, while our more mature markets in
the Baltics delivered 13% growth. In Poland, we are pleased
to report that we saw a return to growth of 3% for the year as
a whole, with growth of 6% to £38m being delivered in the last
quarter. In 2025, we expect IPF Digital’s overall receivables
growth to be similar to 2024.
The revenue yield reduced modestly by 1ppt to 42.7%
(2023: 43.7%), primarily due to lower rate caps introduced
in Latvia and Poland at the end of 2022, as well as in Estonia
which is recalculated biannually. These impacts were partially
offset by the increasing proportion of receivables with a higher
revenue yield in Mexico.
Customers continue to repay very well in all our digital
operations and portfolio quality is very good. Together with
a reduction in the cost-of-living provision of £1.4m, this has
resulted in the impairment rate improving significantly by 3.8
ppts to 8.6% (2023: 12.4%). We anticipate that the medium-
term impairment rate for IPF Digital will settle into the Group’s
target range of 14%-16% as Mexico becomes a bigger
proportion of the receivables book.
Operating costs rose by 8.1% (at CER) as we invested
inmarketing and technology to drive customer acquisition
and build scale. This investment together with the reduction
inthe revenue yield resulted in the cost-income ratio softening
by 1.6ppts year on year to 53.6% (2023: 52.0%). We expect
thecost-income ratio to improve toward our long-term target
of approximately 45% for our digital division as we scale
andleverage operational efficiencies.
IPF Digital’s excellent performance in 2024 resulted in its RoRE
strengthening year on year by 5.8 ppts to 11.4% (2023: 5.6%),
reflecting our progress in building scale and maintaining
strong credit quality. IPF Digital represents a significant
long-term growth opportunity for the Group, particularly in
Mexico and Australia. There are very attractive organic growth
opportunities as well as good returns from our broad product
set of digital instalment loans, revolving credit lines, mobile
wallet and retail finance products. We will also consider
inorganic opportunities to enhance scale and returns should
a suitable opportunity arise. Based on our growth trajectory,
our goal is to achieve returns at the lower end of our 15% to
20% Group target in 2027.
IPF Digital
IPF Digital delivered very strong growth and a significantly improved financial performance, reporting a £8.9m (110%) increase
inprofit before tax to £17.0m (2023: £8.1m), despite a £1m year-on-year impact from weaker foreign exchange rates, particularly
in Mexico.
International Personal Finance plc32
Financial review
“We delivered an excellent financial
performance in 2024 which provides a
strong foundation for accelerating the
pace of growth and delivering increased
returns to shareholders.”
Gary Thompson
Chief Financial Officer
I am pleased to report that the Group delivered a strong
financial performance in 2024. We continued to make good
progress on executing our strategy, diversifying our funding
position and maintaining a very conservatively capitalised
balance sheet to mitigate any further potential deterioration
inthe volatile macroeconomic environment.
Financial model
Our business is well managed and operates with strong ethical
and financial disciplines. As we navigate our future growth
opportunities and business choices, we have a formal
financial model which underpins our Next Gen strategy
andbalances the needs of our various stakeholders including
customers, colleagues, regulators, shareholders and debt
providers. It sets out the target returns we need to deliver
sustainable earnings, support our progressive dividend
policy, invest in the future growth of the business and
ensure we maintain a strong balance sheet.
Our financial model, details of which can also be found
on page 6, focuses on the following:
1. Return on required equity (RoRE)
The first, most integral part of our model is to deliver a target
RoRE of between 15% and 20%. In practice, 15% is a short-term
target with sustainable returns of nearer 20% being the
medium to longer-term target. We believe that returns
materially above this range would not balance the needs
of all of our stakeholders in delivering our purpose of building
a better world through financial inclusion. We calculate RoRE
as profit after tax divided by the average required equity of
40% of receivables. This allows us to ensure comparability
between divisions and is more consistent with the financial
model which assumes a 40% equity to receivables ratio.
Wewillalso continue to disclose our return on equity (RoE)
ona Group basis. We target each of our divisions to deliver
areturn of at least 20% to ensure that we can deliver the
Group RoRE, after taking account of central costs.
The Group’s pre-exceptional RoRE improved by 0.9 ppts
to15.7% compared with 14.8% at the end of 2023, as a
result ofimproved profitability and a reduced tax rate of
35% (2023: 38%). We expect returns to moderate in 2025 due
tothestrong receivables growth which results in extra IFRS 9
impairment charges up front together with a modest increase
in the tax rate. We expect returns to improve in 2026
beforereaching target returns again in 2027. The Group’s
pre-exceptional RoE, based on actual equity, increased
to11.5% (2023: 11.1%).
We firmly believe each of our businesses is capable
ofdelivering a 20% RoRE and the RoRE by division
issetoutbelow:
2024 2023
European home credit 19.9% 21.6%
Mexico home credit 24.4% 20.7%
IPF Digital 11.4% 5.6%
European and Mexico home credit are already delivering
aRoRE in line with the 20% threshold we set for each division.
IPF Digital’s RoRE improved by 5.8 ppts year on year to 11.4%
(2023: 5.6%) reflecting our progress in building scale and
maintaining strong credit quality. Although IPF Digital currently
has lower scale than necessary to reach our target returns,
itisgrowing rapidly and there are strong organic growth
opportunities in our existing markets as we rebuild the
business, particularly in Mexico, Australia and Poland.
Wewillalso continue to consider inorganic opportunities
todeliver scale and increase returns.
Delivery of RoRE is supported by a strict focus on revenue yield,
impairment rate and cost-income ratio, see page 24, key
performance indicators for further information.
Annual Report and Financial Statements 2024 33
Strategic Report
Financial review continued
2. Distribution of earnings
The delivery of a RoRE of 15% supports the distribution
ofaminimum of 40% of our post-tax earnings. A RoRE
ofnearer20% would allow us to either distribute more than
40%of our earnings to shareholders and/or deliver additional
receivables growth.
“Our total dividend of 11.4 pence
pershare in 2024 represents
a pre-exceptional payout ratio of 46%.
Weanticipate our payout ratio to be
inexcess of 40% of earnings in 2025
aswe deploy capital to accelerate
thepace of receivables growth.”
3. Receivables growth
Returning capital of 40% of post-tax earnings allows us to fund
receivables growth in the following year by up to 10%. If we
grow in excess of 10% we will utilise any additional capital
resources over our target capital base. If we grow at less than
10% we will either retain capital or increase the capital return
to shareholders above our 40% minimum threshold.
In 2024, receivables increased by 6.8% compared with
2023. As a result of this growth being less than 10%, we
generated additional capital over and above our financial
model during 2024.
4. Equity to receivables ratio
A target equity to receivables ratio of 40% is our current view
of an appropriate balance sheet, offering plenty of security
in both good and more difficult times. At the end of 2024,
the Group’s equity to receivables ratio was 54% (2023: 56%),
higher than our target of 40%.
Our strong capital position supports our ambitious growth
plans and progressive dividend policy through to the point at
which we are delivering our target returns and operating in line
with our financial model, we estimate that this will be in 2027.
“We believe that each of our businesses
iscapable of delivering a target RoRE
of20%.”
Taxation
The pre-exceptional taxation charge on the profit for 2024
is£29.8m, which represents an effective rate for the year
ofapproximately 35% (2023: 38%).
“The lower tax rate in 2024 reflects
anumber of elements, including
areduction in the disallowable
impairment in Poland, partly as a result
of being a payments institution as well
asthe availability of additional tax
allowances on utilisation of brought
forward tax losses in Mexico.”
We now expect the effective tax rate on an ongoing
basistobe approximately 38%, lower than previous
expectations of 40%.
The 2024 results reflect an exceptional tax credit of £17.4m
(2023: exceptional tax charge of £4.0m), which comprises
two items:
– In 2022, the Group recorded an exceptional tax charge
of£15.2m following the derecognition of the non-current
asset previously held in respect of the Group’s finance
company arrangements. This stemmed from the decision
bythe General Court of the European Union in June 2022
confirming the European Commission’s earlier decision
thatthe UK’s Group Financing Exemption constituted
partial illegal state aid. Following a favourable judgement
of theEuropean Court of Justice in favour of the UK on
19 September 2024, regulations have been issued (in force
from 31 December 2024) requiring HMRC to put taxpayers
back in the position they would have been in had the
European Commission’s Decision not been issued.
Accordingly, the £15.2m previously derecognised has
been reinstated resulting in an exceptional tax credit of
£15.2m. Repayment of the tax is expected during 2025.
In conjunction with the recognition of the exceptional tax
credit, the Group has also included a contingent liability in
respect of HMRC’s review of the Group’s finance company’s
compliance with certain conditions under the UK domestic
tax rules to confirm whether the company is eligible for
thebenefits of the Group Financing Exemption which
wereclaimed in historic tax returns (see note 32 to the
Financial Statements).
– An exceptional tax credit of £2.2m has been recognised in
2024 with respect to the £11.9m total exceptional costs
relating to the refinancing of the Group’s Eurobond (£5.8m)
and restructuring of the Polish home credit business (£6.1m).
In 2022 and 2023, exceptional tax charges of £5.1m and £4.0m
respectively were reflected in relation to a two-year temporary
“extra profit special tax” in Hungary. We noted in the 2023
annual report that the temporary tax had been extended
foran additional year and, therefore, a further £2m
exceptional tax charge was expected to arise in 2024.
However, the tax has now been extended into 2025
and,consequently, the “extra profit special tax”
nowformspartofour pre-exceptional tax charge.
International Personal Finance plc34
Earnings per share (EPS)
Pre-exceptional earnings per share (EPS) grew 7.3% to 24.9p
per share (2023: 23.2p), reflecting higher profits and a lower
tax rate. Reported EPS of 27.3p per share (2023: 21.5p) showed
a larger increase of 27.0%, due to the net credit impact of
exceptional items as well as a reduced number of shares in
issue following the successful completion of the £15m share
buyback programme in the second half of the year.
24.9p
Pre-exceptional
earnings pershare
11.4p
Dividend
per share
Share buyback
The Group’s financial model is to deliver a target RoRE of
between 15% and 20%, which supports a minimum dividend
payout ratio of 40%, funds receivables growth of up to 10% per
annum, whilst maintaining an equity to receivables ratio at 40%.
This financial framework ensures that capital is only allocated
where it can deliver appropriate returns to shareholders whilst
also balancing the needs of all our stakeholders.
As a result of the Group’s strong capital position and
favourable financial performance, the Board announced a
share buyback programme of £15m with the half year results
in July 2024, which was successfully completed in November.
The Group continues to have a very strong capital position
with an equity to receivables ratio of 54% at December 2024,
compared with our target of 40%. After assessing the Group’s
current trading performance, cash generation and future
growth plans, the Board announces its intention to commence
a further share buyback programme of up to £15m, which
is expected to be completed by the third quarter. This will
promote capital efficiency based on an assessment of any
surplus capital beyond that necessary to deliver future growth
and fund the Group’s progressive dividend.
Dividend
Reflecting the continued strong performance of the Group
and our strategy to realise the long-term growth potential
ofthe business, the Board is pleased to declare an 11.1%
increase in the final dividend to 8.0p per share (2023: 7.2p).
This is in line with our progressive dividend policy and brings
the full-year dividend to 11.4p per share (2023: 10.3p), an
increase of 10.7% on 2023 and represents a pre-exceptional
payout rate of 46% (2023: 44%). Subject to shareholder
approval, the 2024 final dividend will be paid on 12 May 2025
to shareholders on the register at the close of business
on11 April 2025. The shares will be marked ex-dividend
on10 April 2025.
11.1%
increase in the
final dividend
46%
Pre-exceptional
payout rate
“As a result of the excellent results,
ourstrong balance sheet and positive
growth prospects, we propose an
increase in the final dividend of 11.1%
to 8.0 pence per share, in line with our
progressive dividend policy.”
Balance sheet, treasury risk
management and funding
Balance sheet
We continue to maintain a very conservatively capitalised
balance sheet, a strong funding position and robust financial
risk management.
At the end of December, the Group’s equity to receivables
ratio was 54% (2023: 56%), compared with our target of 40%.
Despite strong capital generation, we have seen a 2 ppt
reduction in the ratio in 2024 due to the successful completion
of the £15m share buyback programme in the second half of
the year as well as foreign exchange losses of £57m taken to
reserves, primarily due to the weakening of the Mexican Peso
(c.20%) and Hungarian forint (c.10%). Our strong capital
position supports: (i) the Group’s ambitious growth plans; (ii)
our intention to commence a further share buyback
programme of up to £15m; and (iii) the Group’s progressive
dividend policy through to the point at which we are delivering
our target returns and operating in line with our financial
model in 2027.
The Group’s gearing ratio was 1.2 times (2023: 1.1 times) at
the end of the year, comfortably within our covenant limit of
3.75 times, and our interest cover covenant was 2.6 times
(2023: 2.5 times), compared with our covenant limit of 2.0 times.
Closing receivables in 2024 were £870m, which is an increase
of 6.8% (at CER) compared with 2023, due in particular to
strong growth of 18% in IPF Digital with European home credit
and Mexico home credit delivering low single digits growth.
The average period of receivables outstanding at the end
of 2024 was 13.5 months (2023: 13.2 months) with 72% of
year-end receivables due within one year (2023: 77%).
Reflecting the continued caution in respect of the volatile
environment, our balance sheet remains very robust with
an impairment coverage ratio of 32.9% at the end of the
year, which is slightly lower than 36.3% in 2023. The Group’s
impairment provision includes £9.6m of post-model
adjustments in respect of the cost-of-living crisis and the
moratorium in Hungary compared with £23.2m held at the
end of 2023 in respect of Covid-19 and the cost-of-living crisis.
The gross contractual cashflows supporting the receivables
valuation amounts to £1.7bn at the end of 2024
(2023: £1.7bn).
The business has a strong track record of cash generation,
even during adverse market and regulatory conditions.
During the outbreak of Covid-19 in 2020, the business restricted
lending to customers and had a strong focus on customer
repayments. Due to the short-term nature of the receivables
book, this action generated cash from operating activities
of £330m, which enabled the Group to reduce borrowings
by £184m and increase cash by £80m. In addition, when
a decision has been taken to withdraw from a territory due
Annual Report and Financial Statements 2024 35
Strategic Report
Debt funding is provided through a diversified debt portfolio
with acceptable terms and conditions. We have wholesale
and retail bonds denominated in euro, sterling and Polish zloty,
with varying maturities, together with facilities from a group of
18 banks that have a good strategic and geographic fit with
our business. The Group’s debt is senior unsecured debt,
withall lenders substantially in the same structural position.
Wemaintain our Euro Medium Term Note programme as the
platform for bond issuance across a range of currencies.
Funding
As reported at the half year, we successfully refinanced the
Group’s €341m Eurobond through a tender offer in June well
ahead of its maturity. The bonds have a coupon of 10.75% and
a maturity of five and a half years. We redeemed €274m of the
old bonds with €67m remaining outstanding and maturing in
November 2025. Tender costs of £4.1m together with a £1.7m
of unamortised fees in respect of the old bonds, resulted in
anexceptional cost of £5.8m. The bonds are trading very
wellin secondary markets with a yield of between 8.5% - 9.0%.
In addition to the Eurobond refinancing, we secured 103m
ofbank facilities during the year of which £37m was new or
increased facilities. We continue to have very strong and
supportive relationships with 18 lending banks across our
businesses and this is further demonstrated by a further
£20m of bank facilities being secured in early 2025.
As reported with our half year results, the Group redeemed the
SEK 450m (c.£35m) of Nordic bonds in July, some three months
in advance of their original maturity date.
The successful refinancing and bank extension process
resulted in the Group having total debt facilities of £657m at
the end of December 2024, consisting of £441m of bonds and
£216m of bank facilities. Total borrowings amounted to £524m
and headroom, consisting of undrawn facilities and non-
operational cash balances, amounted to £138m. The average
maturity profile of the Group’s debt facilities now stands at 3.0
years, up from 2.0 years at December 2023. Approximately
£490m of the Group’s debt funding now matures beyond 2025.
The Group’s current funding and cash generation supports the
Group’s growth plans through to the end of 2025.
A full analysis of the maturity profile of the debt facilities
issetout in note 21 to the Financial Statements
andissummarised below:
Maturity profile of debt facilities
Maturity £m
Eurobond November 2025 55.2
Polish bond November 2026 14.0
Hungarian bond December 2026 9.6
Sterling bond December 2027 80.0
Eurobond December 2029 282.2
Total bonds 441.0
Bank facilities 2025 to 2027 215.9
Total debt facilities 656.9
Total borrowings 523.5
Headroom against debt facilities 133.4
Non-operational cash balances 4.3
Headroom and non-operational
cash balances 137.7
to inadequate returns being available (e.g. Slovakia in
European home credit in 2015 and more recently Finland
in IPF Digital in 2020), we have demonstrated that the
collect-out takes around 2 to 3 years and the cash recoveries
(net of any costs) have typically been close to the value
of the net receivables from the time of the decision to
cease the operations. This represents 1.7 times to 2.0 times
the value of the debt funding supporting those receivables.
The strong cash generation of the Group has again been
highlighted in 2024. With receivables growth at a relatively
modest level of 6.8% in 2024 due to the contraction in Polish
receivables, the Group generated cash from operating
activities of £114m (2023: £193m).
Treasury risk management
The Group has Board-approved policies to address the key
treasury risks that the business faces – funding and liquidity
risk, financial market risk (currency and interest rate risk), and
counterparty risk. The policies are designed to provide robust
risk management, even in more volatile financial markets
andeconomic conditions within our planning horizon.
Compliance with these policies is monitored monthly
by the Treasury Committee chaired by the Chief Financial
Officer and the Board receives a comprehensive funding
and liquidity overview through monthly reporting. Funding
and liquidity of the Group are managed centrally by the
Group Treasurer and experienced treasury personnel.
TheGroup sets cash management controls for operating
markets that are subject to independent annual testing.
Our funding policy requires us to maintain a resilient funding
position for our existing business and for future growth.
We aim to maintain a prudent level of headroom on undrawn
bank facilities. Our currency policy addresses economic
currency exposures and requires us to fund our receivables
portfolios with local currency borrowings (directly or indirectly)
to achieve a high level of balance sheet hedging. We do not
hedge the translational risk of foreign currency movements
on accounting profits and losses. Our interest rate policy
requires us to hedge interest rate risk in each currency
to a relatively high level. Our counterparty policy requires
exposures to financial counterparties to be limited to BBB-rated
entities as a minimum except as approved, or delegated
for approval, by the Board. In addition to these policies,
our operational procedures and controls ensure that funds
are available in the right currency at the right time to serve
our customers throughout the Group.
“The successful refinancing of the Group’s
Eurobond ensures that we have a strong
funding position to support our ambitious
growth plans.”
The currency structure of our debt facilities broadly matches
the asset and cash flow profile of our business. We have
multiple local currency bank facilities, and our main €341m
Eurobond provides direct funding to our markets using the
euro currency and to markets using other currencies via
foreign exchange transactions. For this reason, we do not
expect fluctuations in the value of sterling to have a major
impact on our funding position.
Financial review continued
International Personal Finance plc36
Going concern
In considering whether the Group is a going concern,
theBoard has taken into account the Group’s 2025 business
plan and its principal risks (with particular reference to
macroeconomic and regulatory risks). The forecasts have
been prepared for the two years to 31 December 2026 and
include projected profit and loss, balance sheet, cashflows,
borrowings, headroom against debt facilities and funding
requirements. These forecasts represent the best estimate
ofthe Group’s expected performance, and in particular
theevolution of customer lending and repayments cashflows.
The financial forecasts have been stress tested in a range of
downside scenarios to assess the impact on future profitability,
funding requirements and covenant compliance. The
scenarios reflect the crystallisation of the Group’s principal
risks, with particular reference to macroeconomic and
regulatory risks. Consideration has also been given to multiple
risks crystallising concurrently and the availability of mitigating
actions that could be taken to reduce the impact of the
identified risks. In addition, we examined a reverse stress
teston the financial forecasts to assess the extent to which
amacroeconomic scenario would need to impact our
operational performance in order to breach a covenant.
Thisshowed that net revenue would need to deteriorate
significantly from the financial forecast and the Directors
havea reasonable expectation that it is unlikely to deteriorate
to this extent.
At 31 December 2024, the Group had £138m of non-
operational cash and headroom against its debt facilities
(comprising a range of bonds and bank facilities), which
have a weighted average maturity of 3.0 years. The total
debt facilities as at 31 December 2024 amounted to £657m
of which £170m (including £35m which is uncommitted) is
due for renewal over the following 12 months. A combination
of these debt facilities, the embedded business flexibility in
respect of cash generation and a successful track record
of accessing funding from debt capital markets over a long
period (including periods with challenging macroeconomic
conditions and a changing regulatory environment, tested
in both 2020 and 2022), are expected to meet the Group’s
funding requirements for the foreseeable future (12 months
from the date of approval of this report).Taking these factors
into account, together with regulatory risks set out on
page 40 of the Annual Report, the Board has a reasonable
expectation that the Group has adequate resources to
continue in operation for the foreseeable future. For this
reason, the Board has adopted the going concern basis
in preparing the Annual Report and Financial Statements.
Gary Thompson
Chief Financial Officer
26 February 2025
Our blended cost of funding in 2024 was 13.3%, lower than
14.0% in the prior year. This was due to a reduction in interest
rates across our markets as well as lower costs of hedging as
interest differentials narrowed, offset primarily by the headline
rate of the new Eurobond being 100bps higher than the old
2025 bond. Approximately 30% of our debt facilities are at
variable rates compared with 20% of our revenues, which
aresubject to interest-linked rate caps. We expect the Group’s
funding rate to be broadly stable in 2025 as the higher cost
ofthe Eurobond is offset by the impact of the downward
trendin interest rates.
2024
£m
2023
£m
Bond costs 47.5 44.4
Bank funding cost 6.3 12.7
Hedging costs 11.0 16.8
Other 5.6 3.0
Total interest 70.4 76.9
Average gross borrowings 529.3 548.9
Cost of funding % 13.3% 14.0%
Following the successful refinancing of the Eurobond, Fitch
upgraded the Group’s long-term credit rating from BB- to BB
with the outlook remaining Stable. Our credit rating from
Moody’s Investment Services remained unchanged at Ba3
(Outlook Stable).
As a result of maintaining a strong financial profile, we operate
with adequate headroom on the key financial covenants in
our debt facilities, as set out in the table below:
Covenant 2024 2023
Gearing
1
Max 3.75 x 1.2x 1.1x
Interest cover Min 2x 2.6x 2.5x
1. Borrowings adjusted for lease liabilities, unamortised arrangement
fees and issue discount. Net assets adjusted for pension assets and
derivative financial instruments, in accordance with the debt funding
covenant definitions.
Foreign exchange on reserves
The majority of the Group’s net assets are denominated in
ouroperating currencies and, therefore, the sterling value
fluctuates with changes in currency exchange rates.
In accordance with accounting standards, we have restated
the opening foreign currency net assets at the year-end
exchange rate and this resulted in a £57m (2023: £23m)
foreign exchange movement, which has been debited
(2023: credited) to the foreign exchange reserve.
Annual Report and Financial Statements 2024 37
Strategic Report
Managing our risks
Managing our risks
Our ability to achieve the objectives of our Next Gen
strategyrelies on effective risk management and a proactive
response to current and emerging risks while seizing business
opportunities for sustainable growth and reinforcing our
foundation for long-term success. This approach also
strengthens our capacity to deliver value for all our stakeholders.
Enterprise risk management approach
We strategically manage risk through the enterprise risk
management (ERM) methodology. This is designed to identify,
evaluate, manage, monitor and report on a wide range
of risks, uncertainties and opportunities across the Group
in an integrated way.
Risk appetite plays a fundamental role in our approach,
supporting our understanding and ability to address the
capacity of IPF to sustain risk over time, ensure risks are
considered in decision making across the Group and enable
the Board to perform its supervisory role. Our risk management
approach and activities are aligned to the UK Corporate
Governance Code (2024).
The ERM programme addresses a broad spectrum of risks and
uncertainties that could impact the Group’s strategic goals
and other key stakeholder expectations. The ten most
significant risks – those that we believe have the greatest
potential to threaten our business model, future performance,
solvency or liquidity, and reputation – form our principal risks.
The tables on pages 40 to 43 include a summary of how each
principal risk developed in 2024, how we are addressing them
and links to the key strands of our Next Gen strategy.
Risk appetite
Our risk management strategy involves mitigating, to the
maximum reasonable extent, those risks that are within our
control and, therefore, the internal control system is key in how
we manage risk. Externally-driven risks, which are not within our
control, are monitored to ensure a prompt response should
alternatives become available to further mitigate the risk.
These risks are subject to contingency planning to ensure
business resilience.
Risk appetite is reviewed and approved by the Board at least on
an annual basis and is the central component that prompts the
arrangements we put in place to organise and execute the ERM
programme. We evaluate each risk periodically based on the
likelihood and potential impact at both market and Group level.
We monitor the level of current risk and compare it with the
Board-approved risk appetite to determine if additional actions
are needed to bring risks in line or if there are opportunities
within the existing appetite parameters.
To validate and/or adjust risk appetite levels, we have enhanced
our framework with two key concepts. Firstly, we identify specific
risks that fall outside our appetite and lack short-term mitigation
options. By consolidating and reporting these risks to the Board,
we are able to inform them of the Group’s full, unmitigated
exposure. These risks are monitored periodically, and we seek
the earliest opportunity to address them, if or when appropriate.
Secondly, we scrutinise risks that have materialised with
significant impact on the business to understand why they were
not anticipated. Then we seek to understand if our risk appetite is
adequate in the light of these events or if there were areas that
should have had stronger controls for that particular risk.
Risk ownership, governance,
and oversight structure
We have defined a comprehensive structure of roles
across the Group to ensure risks are managed effectively
at all levels within the business.
This structure was built to align with the principles
of the ERM, including all-encompassing portfolio risk
management, as well as with the principles of the
three lines of defence approach which we also apply
in risk assurance.
Our framework for risk ownership, governance and
oversight together with our three lines of defence
approach is illustrated below:
Risk management roles and responsibilities
Assured by three lines of defence
Board of Directors
Determines the nature and extent of risks the Board is
willing to take to achieve strategic objectives.
1.
Operational
management
2.
Risk
management
3.
Internal
audit
Audit and Risk Committee (ARC)
Reviews processes for the management of risks and internal
control systems on behalf of the Board. Makes recommendations
to the Board on Group risk appetite, Group risk profile, and the
effectiveness of the risk management system.
Risk Advisory Group (RAG)
Supports the ARC in reviewing risk exposure levels against risk
appetite and provides the ARC and the Board with an overall
view of the Group’s risk position.
Local risk committees
Support the RAG in reviewing the risk profiles of the markets.
Responsible for
executing
business
processes,
delivering
products or
services, and
managing
day-to-day risks by
executing risk
control measures.
ERM function,
compliance and
other control
functions provide
oversight,
guidance, and
monitoring of risks
and controls.
Provides an
objective and
independent
assessment of the
adequacy and
effectiveness of
risk management
and internal
control systems.
Principal risks and uncertainties
International Personal Finance plc38
Risk assessments
We perform a quarterly risk assessment across the Group
to update the level of risks facing the business, identify any
weaknesses in the internal control environment and take
additional actions to address risks which are outside appetite.
The Chair of the Risk Advisory Group challenges the
assessments performed by the Risk Owners based
on a wide range of assurance data from first-line control
testing, risk management performance indicated by the
key risk indicators or independent assurance provided
by our internal audit function.
In addition to this process, risks are considered and addressed
as part of any new project, initiative or strategic plan across
the Group.
Our approach to addressing
climate-related risks
Climate change and sustainability-related risks have created
significant impacts and uncertainties globally. Recognising
that climate-related risk is a business risk, it is integrated into
our ERM programme.
We have reported on climate-related risks and opportunities
since 2022 as recommended by the Task Force on Climate-
related Financial Disclosures (TCFD). Our 2024 TCFD disclosures
are included on pages 68 to 76.
At the end of 2023, we reviewed our climate change taxonomy
and throughout 2024, we monitored the following climate-
related risks:
– Physical risks: weather events
– Physical risks: second-order impacts
– Transition: policy and legal
– Transition: reputation
– Transition: market
In assessing physical risks, we utilise a model that considers
three scenarios, details of which are included on page 72.
Our climate strategy aims to align our portfolio with a
maximum global warming scenario of 1.5°C and the
transition to a net zero economy by 2050.
Emerging risks
In our view, an emerging risk is a new or altered
circumstance that could significantly impact the Group,
where the likelihood, timescale and/or materiality may
be difficult to accurately assess.
Emerging risks are monitored to determine if they have
become key risks and if any mitigating actions should be
taken. When we consider our response to emerging risks,
we classify them into two categories, based on the type
of response required.
i. Those with a high velocity will be addressed
ascrisisevents and crisis management protocols
willbe triggered.
ii. Those with a moderate and low velocity will be
monitored and reported until impacts are understood,
and specific response actions and contingency plans
are developed.
Emerging risks in 2024
Economic conditions, tax developments and the use
of AI were previously categorised as emerging risks.
However, changes in the risk environment resulted in
re-categorising them as standard key risks during 2024,
and they are now monitored and addressed as part of
our ERM programme. Even though information security
is a Group key risk, we have monitored cyber risk as
though it is an emerging risk.
Cyber risk – Cyber attacks are a common occurrence
and the risk is considered a business-as-usual threat in
today’s digital environment. However, the rapid and
continuous developments in this domain are notable,
with cyber criminals adopting increasingly professional,
sophisticated and automated attack methods.
Ransomware attacks, in particular, present particular
challenges with the potential to cause significant
operational and reputational damage. For further details
of our mitigating actions, please refer to the Information
security and cyber risk disclosure on page 43.
Internal control focus in the UK
Corporate Governance Code (2024)
In January 2024, the Financial Reporting Council issued
an update to the UK Corporate Governance Code,
mandating a more detailed process for monitoring
and reporting on the effectiveness of internal controls.
We aim to comply with the Code and are taking proactive
measures before its provisions on internal control come
into force in 2026. This year, we have focused on three
key areas:
– defining material controls;
– establishing effectiveness thresholds to determine
reportable controls; and
– developing definitions for compliance, operational,
financial, and reporting controls.
Annual Report and Financial Statements 2024 39
Strategic Report
Credit risk
The risk of the Group suffering
financial loss if our customers
fail to meet their contracted
repayment obligations; or
the Group fails to optimise
profitable business
opportunities because of
our credit, collection or fraud
strategies and processes.
Consumer appetite for borrowing remained robust despite the uncertain economic landscape. Inflation and
cost-of-living impacts on affordability improved over the course of 2024 supporting strong customer repayment
behaviour. The transformation of our business in Poland to offer credit cards has been well executed and the credit
performance remained in line with our expectations. The granting of a full payment institution licence in Poland
will enable accelerated growth in 2025.Overall, Group credit losses were in line with our plan for the year. The
impairment rate at the end of 2024 was 9.6%, within our risk appetite and below our target range of 14% to 16%.
How it is managed
–
Detailed, regular monitoring of customer repayments to identify specific issues.
– Detailed analysis and enhancement of our credit scorecards and Credit Policy to ensure they remain optimal.
– Tightening of lending rules as necessary, to protect customers and the quality of the portfolio.
– Regular assessment of the external macroeconomic environment, regulatory landscape and competitor activities.
– Ensuring repayments and arrears management activities remain a key part of customer representative and
field management incentive schemes.
Future legal and regulatory development risk
The risk that the Group suffers
loss as a result of new, or a
change in, existing legislation
or regulation.
The second Consumer Credit Directive (CCD II), entered into force in November 2023 and EU member states
are required to transpose CCD II into their national laws by 20 November 2025, with the Directive becoming
fully applicable from 20 November 2026. From January 2024, the Komisja Nadzoru Finansowego (KNF)
assumed supervision of all non-bank financial institutions in Poland, including our home credit and digital
businesses in this market. In response to KNF requirements on credit card pricing, we introduced a new
pricing structure for all new credit cards in March 2024. We also secured a full payment institution licence
in Poland. In November 2024, a total cost of credit cap came into force in Romania, the impact of which is
not expected to be material on the Group. We strengthened our operational risk management framework
to meet the Digital Operational Resilience Act (DORA) and enhanced sustainability reporting to meet the
requirements of the Corporate Sustainability Reporting Directive (CSRD). For further information on regulation
see page 29. The CSRD Statement begins on page 123.
How it is managed
–
Horizon–scanning, monitoring political, legislative and regulatory developments and risks.
– Engagement with regulators, legislators, politicians and other stakeholders.
– Active participation in relevant sector associations.
– Contingency plans in place for significant regulatory changes.
Funding, liquidity, market and counterparty risk
The risk of insufficient
availability of funding,
unfavourable pricing, or
that performance is impacted
significantly by interest rate or
currency movements, or
failure of a banking
counterparty.
Despite an uncertain macroeconomic backdrop, we refinanced the Group’s €341m Eurobond in June 2024,
ahead of its maturity in November 2025. This strengthened the Group’s funding position and led to Fitch Ratings
upgrading IPF’s credit rating to BB from BB- Outlook Stable. We also have a long-term rating of Ba3 (Outlook
Stable) from Moody’s Investor Services. The blended cost of funding reduced in 2024 as interest rates in our
markets fell and hedging costs decreased as interest differentials narrowed. We expect the funding rate in 2025
to remain at a similar level. Weaker foreign exchange rates, particularly the Mexican peso and Hungarian forint,
impacted sterling-denominated returns. For further information see pages 36 and 37.
How it is managed
–
Board-approved policies require us to maintain a resilient funding position with a good level of headroom
on undrawn bank facilities, appropriate hedging of market risk, and appropriate limits to counterparty risk.
– Compliance with these policies is monitored on a monthly basis by the Group’s Treasury Committee which
is chaired by the Chief Financial Officer.
– The Board receives a comprehensive funding and liquidity overview as part of the Chief Financial Officer’s report.
– The Group’s funding and liquidity is managed centrally by the Group Treasurer and qualified treasury personnel.
– The Group sets cash management controls for operating markets that are subject to independent annual testing.
Principal risks and uncertainties
International Personal Finance plc40
Reputation risk
Risk of reputational damage
due to our methods of
operation, ill-informed
comment, malpractice, fines
or activities of some of our
competition.
The financial sector remained under scrutiny and faced challenges in the run-up to elections in several of
our markets. We maintain strong relationships with key stakeholders to enhance their understanding of our
business model, purpose and societal role, as well as how we deliver services to our customers. We also
engage with customers to ensure continued access to credit and offer repayment support when appropriate.
Additionally, we contribute to best practices in lending by participating in various associations to support fair
treatment of customers across the industry. Our working practices are subject to tight control and oversight
to ensure our products and services are in line with legislation and customer expectations. This helps protect
the business from unforeseen events that could damage our reputation. In 2024, we received awards
recognising our business as a top employer, our high standards of customer experience and for being
a socially responsible business.
How it is managed
–
Clearly defined corporate values and ethical standards are communicated throughout the organisation.
– Employees and customer representatives undertake annual ethics e-learning training.
– Regular monitoring of key reputation drivers both internally and externally.
– Strong oversight by the senior leadership team on reputation challenges.
Taxation risk
The risk of failure to comply
with tax legislation or
adoption of an interpretation
of the law which cannot be
sustained together with the
risk of a higher future tax
burden.
We continue to monitor EU and OECD developments which might be of application to the Group on an ongoing
basis. 2024 was the first year in which the Group fell within the OECD’s Pillar 2 rules. An assessment has been
carried out and it is expected that the Group will fall within the safe harbour provisions with respect to all of the
territories in which it operates and accordingly no top-up tax is expected to arise. Further information is set out in
note 5.
For some years the Group had an Irish finance company which benefited from the Group Financing Exemption
contained in the UK’s Controlled Foreign Companies legislation. This legislation was the subject of a State Aid
challenge by the European Commission in April 2019. In September 2024 the European Commission’s Decision
was annulled by a judgement of the Court of Justice of the European Union, and amounts paid under the
original State Aid challenge are now repayable. Accordingly the Group has recognised a repayable amount
of £15.2m in its balance sheet. Further details can be found on page 34. Further risks associated with the
Group’s Irish finance company are set out in note 32.
During 2024, a number of tax audits were open across the Group, and closed with negligible findings. This
includes the long-running Mexican tax audit relating to 2017. As at the end of 2024, the only open tax audit
relates to the Group’s digital business in Mexico, for 2019.
How it is managed
–
Tax strategy and policy in place.
– Qualified and experienced tax teams at Group level and in market.
– External advice taken on material tax issues in line with Tax Policy.
– Binding rulings or clearances are obtained from authorities where appropriate.
– Appropriate oversight at Board level over taxation matters.
Change management risk
The risk that the Group suffers
losses or fails to optimise
profitable growth resulting
from change initiatives failing
to deliver to agreed scope,
time, cost and quality
measures, or failing to realise
desired benefits.
Effectively managing change and transformation risk is crucial for minimising negative financial impacts,
maintaining high levels of employee engagement, and ensuring successful adaptation to evolving business
needs. We continue to manage a large and complex change agenda driven by three key factors:
– regulatory-driven change which can have a significant impact if not addressed and prioritised;
– migration to ‘Next Gen’ platforms which mitigates technology debt and end-of-life risk; and
– business-driven changes reflecting strategic priorities to improve business performance.
In 2024, we enhanced our benefits realisation framework and further embedded the Group’s change
management framework.
How it is managed
–
Change management framework and monitoring process in place.
– Appropriate methods and resources used in the delivery of change programmes.
– Continuous review of change programmes, with strong governance of all major delivery activity including:
– alignment with Investment Appraisal Policy, owned by the finance function; and
– a Group change capability being established in 2024, focused on synergy and consistency across the
Group, and agreeing a Group-wide approach for oversight of change and transformation.
Risk environment and link to strategic pillars key
Risk environment improving
Financial inclusion
Risk environment remains stable
Organisation
Risk environment worsening
Technology and data
Annual Report and Financial Statements 2024 41
Strategic Report
Brand and proposition risk
The risk of brand perception
deteriorating and failing to
respond to market trends can
limit profitable growth.
There was increased competitive activity in our markets in 2024, however there were no major new entrants
serving our segment of consumers. Banks were more willing to lend to customers with a positive repayment
history and Mexico remains an active fintech market with many new brands. While there is an inherent risk of
disruptive new business models targeting our consumer segment, increased regulation creates barriers to entry.
In response to the competitive landscape, and consumers’ expectations for quick contact and online
communication channels, we invested in technological, and customer experience tools and processes,
including mobile apps. We also expanded our retail credit offering in Romania and Mexico, refreshed the
Provident brand and continued investment in our Creditea digital brand.
How it is managed
–
Product development committees and processes in place to review the product development roadmap,
manage product risks and develop new products.
– Product and promotions incorporate adequate risk criteria and risk assessment protocols.
– Regular monitoring of competitors and their offerings, advertising and share of voice in our markets.
– Strategic planning and tactical responses on competition threats.
– Customer engagement and brand tracking surveys.
Technology risk
The risk of failure to develop
and maintain effective
technology solutions.
A proactive approach to technology risk management is essential for maintaining the currency and capabilities
of the Group in an increasingly digital landscape. In 2024, we focused on removing software components
nearing technological obsolescence to reduce the Group’s potential exposure to a cyber attack. We
completed the replacement of telephony systems in our customer service centres in European home credit
with a modern omnichannel solution. We also progressed the transition from physically-hosted data centres
to a centralised cloud environment, reducing our digital footprint and, as a consequence, reducing the risk
of potential cyber attack. In Mexico, we upgraded to a more modern and resilient IT infrastructure to provide
a more stable and secure base to accelerate growth in the future.
How it is managed
–
Ongoing reviews of partner services and relationships to ensure effective operations.
– Enterprise architecture tooling to link apps to underlying software components.
– Utilisation of vulnerability tools to identify gaps in our IT estate for both retrospective remediation and proactive
testing for new developments.
– Annual review to prioritise technology investment and ensure appropriateness of the technology estate.
– Appointment of a Chief Information Security Officer.
– Engaging experienced third parties to handle security penetration testing and security network operations.
People risk
The risk that the achievement
of the long-term Group
strategy and operational
results may be compromised
due to insufficient capacity
(number) or capability
(quality) in the workforce, or
an inability to recruit external
talent, retain key employees,
or engage our people
effectively.
The actions taken to align with our Next Gen strategy resulted in some fluctuations in colleague turnover, but
also led to improvements in our organisational structures and operating processes. Additionally, our employee
value proposition and reward strategy continues to demonstrate our effectiveness in attracting external talent.
In 2024, we deepened our investment in professional development and remain committed to retaining,
developing, and engaging colleagues to minimise any impact on the customer experience and the Group’s
overall performance. Robust processes are in place to ensure effective succession planning, the identification
of key leaders and personnel, and the planning of their retention and development. For more information on
our colleagues see pages 53 to 56.
How it is managed
Our HR control environment identifies key people risks and implements controls to mitigate them, focusing on:
– Monitoring and action: Regularly assessing key people risks and addressing issues proactively.
– Strategic alignment: Ensuring objectives are aligned with the Group’s strategy.
Our people processes are designed to develop significant strength and depth of talent across the Group.
We also maintain the flexibility to move talent between countries, reducing our exposure to critical roles being
under-resourced and ensuring continuity in key areas.
Risk environment and link to strategic pillars key
Risk environment improving
Financial inclusion
Risk environment remains stable
Organisation
Risk environment worsening
Technology and data
Principal risks an uncertainties continued
International Personal Finance plc42
Information security and cyber risk
The risk that the Group suffers
loss, theft or corruption of
information leading to
breaches of relevant
regulation, loss of reputation,
loss of commercial
advantage or other
impacts on customers and
colleagues. The risk that
Group infrastructure,
platforms and applications
are compromised or
damaged such that
customers and colleagues
cannot use or access our
products and services.
We are updating our information security strategy to strengthen key controls and further enable timely detection
and response to security breaches, as well as having appropriate recovery arrangements in place. The risk is
also highly dependent on the behaviour of people, technology advancements and our ability to upgrade
end-of-service life IT systems. Globally, the emerging threat of AI-driven cyber attacks and the increasing
sophistication of cyber criminals pose significant risks. We are strengthening web, cloud and device security,
implementing stricter network access controls, and enhancing colleague awareness through training. The
number of cyber attacks remains substantial but we continue to defend these and strengthen our controls
by implementing technical upgrades that will help create a more modern and resilient IT platform.
For more information on data protection and cybersecurity see page 62 and 63.
How it is managed
–
Group-wide information security strategy, policy and priorities in place.
– Board and senior management team oversight and ownership of cyber security risk.
– Group and local security teams with core security competencies.
– Information security awareness and training conducted regularly.
– Regulatory compliance programmes to comply with emerging EU and other regulations.
Viability statement
The Directors have assessed the long-term prospects of the business and taken into account:
– structural changes impacting business growth and profitability;
– the beneficial portfolio effect of operating across a number of different jurisdictions which mitigates concentration risk;
– the Group’s multi-channel strategy and strategic priorities;
– risk appetite, principal risks and risk management processes;
– that the Group provides access to regulated credit in a responsible, transparent and ethical manner, for people who might
otherwise be excluded from mainstream credit operators, acknowledging that it is possible to regulate away the supply of credit
but not the demand; and
– the historical resilience of the Group’s business model over many years, including times of adverse macroeconomic conditions
and a changing competitive and regulatory environment.
Assessment of continuing operations
The Group has a clear strategy to deliver its purpose and
long-term profitable growth. The Group has a robust capital
structure supported by significant equity and a balanced
portfolio of debt funding, the largest element of which matures
in November 2029, all of which together form the strong capital
foundations required to support business growth. Based on this
analysis, the Directors confirm that they have a reasonable
expectation that the Group will continue to operate and meet
its liabilities as they fall due for the period of three years from
the date of this report and that the Group has adequate
long-term prospects. This assessment has been made
with reference to the Group’s current financial position,
its prospects, its strategy and its principal risks, as set out
in the Strategic Report.
Business planning and stress testing
The Group undertakes an annual business planning and
budgeting process that includes updated strategic plans
together with an assessment of expected performance,
cash flows, funding requirements and covenant compliance.
The financial forecasts in the business plan have been stress
tested over a range of downside scenarios to assess the
impact on future profitability, funding requirements and
covenant compliance. The scenarios reflect the crystallisation
of the Group’s principal risks (with particular reference to
market and regulatory risks) as outlined on pages 40 to 43.
Consideration has also been given to multiple risks crystallising
concurrently and the availability of mitigating actions that
could be taken to reduce the impact of the identified risks.
In addition, the Group undertook a reverse stress test on the
financial forecasts to assess the extent to which a recession
would need to impact our operational performance in order
to breach a covenant.
Viability assessment
The Directors have determined that three years is an
appropriate period over which to provide the viability
statement because it aligns to the key period of the planning
process, and reflects the relatively short term nature of our
business and our ability to change products, adjust credit risk
in the receivables book and flex our business model. The
delivery of the business plan is expected to require the Group
to access wholesale funding markets in 2025 and beyond
and the Directors have assumed that those markets remain
accessible so as to allow the Group’s existing arrangements
to be refinanced and further funding put in place if necessary,
and that the legal, taxation, and regulatory framework allows
for the provision of short term credit to the markets in which the
Group operates.
For further information on funding see pages 36 and 37.
Annual Report and Financial Statements 2024 43
Strategic Report
Responsible
business
Responsible business
Stakeholder engagement 46
Section 172 and Board decision making 48
Stakeholders in focus 50
IPF in society 60
Task Force on Climate-related
FinancialDisclosures 68
Non-financial and Sustainability
InformationStatement 77
International Personal Finance plc44
2024 highlights
4,000+
days volunteered by colleagues to support good causes
£920,270
total community investment in 2024
400+
training programmes delivered
Global workforce
* Includes customer representatives in Hungary and Romania
where they are employed to meet local legislation
Our Responsible
Business Vision
As a global lending business we
have a responsibility to positively
impact our customers’ financial
futures while contributing to a fairer
and more ethical society.
Our Responsible Business
Framework, which is approved by
our Board, is an important part of
how we deliver our purpose to build
a better world through financial
inclusion. It sets out how we are
committed to a sustainable future
and to improving the social,
economic and environmental
wellbeing of the communities
ofwhich we are a part. It reflects
thefact we conduct our business
inasocially responsible and ethical
manner, and that we respect the
law, support universal human rights,
protect the environment and benefit
the communities where we operate.
In this section, we explore how the
actions we undertake within the
Responsible Business Framework
contribute to a sustainable planet,
aligned with the objectives of the
United Nations Global Compact.
New disclosures
This year, for the first time, we are
also providing disclosures in line
with the Corporate Sustainability
Reporting Directive (CSRD). These
disclosures will further enhance
transparency and accountability,
supporting more consistent and
balanced sustainability reporting.
Our CSRD Statement accompanies
our 2024 financial statements
and can be found on pages
123 to 150.
Building a better
world
■
Female
65%
■
Male
35%
Annual Report and Financial Statements 2024 45
Strategic Report
Our customers
Colleagues
Investors and rating agencies
Responsible business continued
Stakeholder engagement
Our stakeholder engagement strategy ensures we listen, understand and act on the views, concerns, and expectations of
those we impact. These insights shape our Next Gen strategy to drive growth through financial inclusion and align sustainability
initiatives with what matters most to our stakeholders. Regular updates to our Responsible Business Steering Group and Group
Board ensure alignment. Below, we outline our 2024 stakeholder engagement efforts and their connection to our broader
strategic goals.
Strategic pillars
Strategic pillars
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Regular engagement and face-to-face
contact with our customers build trust
and long-term relationships, which
inturn encourages loyalty when
theywant credit to buy the things
theyneed.
– Access to financial services
– Affordability and price
– Data protection and privacy
– Flexible repayments when things go
wrong
– Convenience
– Range of products to choose from
– Simple, personal and seamless
experience
– Trusted brands
– Customer surveys and focus groups
– Product proposition
and usability testing
– Digital analytics
– Complaints analysis
– Double materiality assessment
– External reputation survey
– Board Stakeholder Update
– Customer metrics form part of the
Chief Executive Officer’s Report
discussed at every Board meeting
– Customer visits and meetings with
customer representatives in all markets
– “Deep dive” sessions with Chief
Marketing Officer twice annually
– Review of double materiality
assessment results
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Our colleagues are one of our most
important strengths and are key to
delivering our purpose and Next Gen
strategy. Attracting, retaining and
developing talent is therefore integral
to our future successful performance.
– Development opportunities
– Recognition and reward
– Wellbeing
– An ethical and customer-focused
culture
– A safe working environment
– Global People Survey
– Wellbeing surveys
– Annual engagement conferences
– Internal reputation survey
– Double materiality assessment
– Board Stakeholder Update
– Engage with colleagues outside
formal meetings including
“skip-level” dinners
– Reviews by the Remuneration
Committee of workforce policies
andpractices
– Workforce Engagement Director
programme
– Twice annual HR strategy sessions
atBoard meetings including review
ofpeople survey results
– Non-executive director participation
inour Annual Learning Festival
– Review of double materiality
assessment results
Strategic pillars
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Our investors provide capital,
including for growth. We rely on their
confidence, support and investment
to deliver our strategy and long-term
sustainable success.
– Performance and growth potential
– Risk management
– Cash generation
– ESG risks and reporting
– Executive remuneration
– Easily available information
ontheGroup
– Share price growth
– Results presentations and webinars
– Corporate website
– Investor meetings
– Market visits
– Double materiality assessment
– Board Stakeholder Update
– Shareholder events
– Debt investor roadshows
– Chief Executive Officer and Chief
Financial Officer updates to the Board
– Investor feedback reports
– Annual general meeting
– Review of double materiality
assessment results
International Personal Finance plc46
Communities
Suppliers
Regulators, politicians and non-governmental organisations (NGOs)
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Having positive relationships with
regulators, politicians and NGOs
helps their understanding of our value
in society and ensures our business
practices reflect their expectations.
– Regulatory compliance
– Control and supervision
– Responsible lending
– Social inclusion
– Tax contribution
– Community engagement
– Ethical business policies and
practices
– Membership of trade associations
– Contributing to public consultations
– Engagement on draft regulations
with decision makers
– Partnerships with NGOs
– Double materiality assessment
– Board Stakeholder Update
– Regulatory updates via the Chief
Executive Officer Report and to
the Audit and Risk Committee
– Review of double materiality
assessment results
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Making a positive contribution to
our communities by supporting local
causes and addressing issues that
colleagues and customers care about,
empowers communities and helps
attract people to work with us.
– Community investment
– Financial literacy
– Social wellbeing
– Environmental impacts
– Volunteering
– Our Invisibles programme
– Other community programmes
– Colleague volunteering
– Double materiality assessment
– Board Stakeholder Update
– Visits to community investment
projects
– Updates in Chief Executive
Officer Report
– Review of double materiality
assessment results
Strategic pillars key
Next Gen
financial inclusion
Next Gen
organisation
Next Gen
technology and data
Why they matter What matters to them? Ways we engage Board considerations
of stakeholder interest
Building strong relationships with
our suppliers enables us to obtain
the very best value and high-quality
service. We look to partner with
leading organisations who understand
our business and work to the highest
ethical standards.
– Business performance
– Payment practices
– Ethical business policies
andpractices
– Supplier feedback
– Supplier surveys
– Double materiality assessment
– Board Stakeholder Update
– Approval of key supplier contracts
– Chief Financial Officer Report
highlights any material
non-performance by suppliers
– Review of modern slavery strategy
andhow these risks are managed
in our supply chain
– Review of double materiality
assessment results
Strategic pillars
Strategic pillars
Strategic pillars
Annual Report and Financial Statements 2024 47
Strategic Report
Section 172 and Board decision making
Members of the Board as a whole and individually
arebound by their duties under S172. This statement,
and the information covering our key stakeholder
groupson pages 46 and 47, summarise how the
Boardpromotes the Group’s success for the benefit
ofitsstakeholders having regard to:
– the likely long term consequences of decisions;
– the interests of the Group’s employees;
– the quality of the Group’s relationships with customers,
suppliers and other stakeholders;
– the impact of the Group’s operations on communities
and the environment;
– the importance of the Group maintaining a reputation
for high standards of business conduct; and
– the need to act fairly between the Group’s
shareholders.
Board engagement with stakeholders
Section 172(1) statement
In this statement, we describe how our directors have had
regard to the matters set out in Section 172(1) (a) to (f) of the
Companies Act 2006 (Section 172) when performing their duty
to promote the success of the Company.
This engagement, both directly and through regular reports
from individual business areas and various Group functions,
ensures the Board is made aware of key issues to enable the
Directors to comply with their legal duty under Section 172.
Our cultural values of being responsible, respectful and
straightforward are at the heart of how we operate and
engage with stakeholders. The Board seeks to ensure these
values guide decision making and shape how we interact
witheach other in the workplace and with other stakeholders.
Responsible business continued
We maintain an ongoing dialogue with our stakeholders
andintegrate their feedback into our decision-making
processes. This approach ensures we remain responsive
andaccountable, adapting to evolving needs while
upholding thehighest standards of transparency
andresponsibility.
The key areas and methods of engagement are:
– Product and service improvements: Customer insights
fromsurveys and direct interactions inform refinements
toour offering, for example improving digital experiences.
– Responsible practices: Customer feedback guides the
development and updating of policies to promote
responsible lending and financial wellbeing.
– Workplace culture and wellbeing: Colleague surveys
provide insights into workplace satisfaction, shaping
policieson benefits, professional development and
diversityinitiatives.
– Operational efficiency: Colleague suggestions drive
processimprovements and innovation.
– Compliance and risk management: Engagement
withregulatory bodies ensures compliance and informs
ourrisk management framework.
– Policy advocacy: Regulatory insights guide our involvement
in policy discussions, helping align regulations with sector
and societal needs.
– Investor feedback: Investor feedback shapes long-term
growth strategies, capital allocation decisions, financial
transparency and ESG goals and reporting.
– Community engagement: Interactions identify local needs,
guiding financial literacy initiatives, community projects
andvolunteering opportunities.
– Sustainability practices: Stakeholders inform the
development of policies and practices to minimise
environmental impact and enhance societal contributions.
– Ethical sourcing and collaboration: Supplier and partner
feedback ensures responsible supply chain operations
strengthening codes of conduct and sustainability practices.
By leading the way in fostering a positive culture, the Board
seeks to create positive and lasting benefits for the Group and
our stakeholders. Read more about the Board’s role in shaping
culture on page 87. As we position ourselves to deliver further
growth through our Next Gen strategy, described in more
detail on pages 22 and 23, stakeholder engagement remains
central to our journey. The Board values stakeholders’
perspectives and recognises their integral role in supporting
our long-term sustainable success.
For the purposes of Section 172, the Board reviews and
confirms its key stakeholder groups annually. The importance
of these key stakeholders to the Group, their concerns
andhow the Group and the Board engage with them
aresetout on pages 46 and 47.
The Board recognises that stakeholder engagement is
essential to understand what matters most to our stakeholders
and the likely impact of our key decisions. Stakeholder
considerations received greater focus in 2024, particularly
through the completion of our first double materiality
assessment, undertaken as a key step in preparing for
disclosures under the Corporate Sustainability Reporting
Directive (CSRD). Read more about this on pages 123 to 150.
The Board remains committed to our purpose and during the
year approved its inclusion into our Articles of Association,
embedding stakeholder considerations at the centre of the
Group’s governance framework and value-creation approach
for all stakeholders. Our Matters Reserved to our Board and our
Committee Terms of Reference also reinforce the importance
of considering stakeholder views in decision making. At each
Board meeting, the Chief Executive Officer reports on how
theGroup has delivered value for our key stakeholders.
Additionally, detailed stakeholder updates are presented
tothe Board twice a year, to ensure that it has comprehensive
insight on stakeholders’ views. Our Board and Committee
papers also include a dedicated section articulating
anassessment of the relevant stakeholder impacts.
Thesevarious stakeholder touchpoints informed Board
discussions and shaped Board decisions to balance
stakeholders’ interests, where possible,
International Personal Finance plc48
Stakeholders and Board decisions
Here we highlight some of the key decisions made by the Board in 2024 and how stakeholders were considered during the
decision-making process, including Section 172 considerations. The directors confirm that the deliberations of the Board
incorporated appropriate consideration of the matters detailed in Section 172. As stewards oftheCompany, the Board
recognises that having regard to the needs and expectations of stakeholders is crucial, asitensuresthat theGroup is
well positioned to deliver long-term sustainable growth for the benefit of all its stakeholders.
Considering customer strategy
The Board prioritises fostering a customer-centric culture
andenhancing the customer experience, exemplified by
our customer representatives' personal interactions and the
expanding range of digital products and services. In 2024,
theBoard reviewed and discussed the Group’s customer
strategy, informed by progress updates, proposals for
the2024strategic priorities and presentations on customer
research, leading to the Board’s endorsement of the Group’s
customer strategy.
Stakeholder considerations
Insights from case studies and market research demonstrated
the direct link between customer experience and sales
performance. With this understanding, the Board was able
toconsider the Group’s customers and evaluate critical
factors that affect customer experience, both positive and
negative. Consequently, these discussions enabled the Board
to endorse the 2024 customer strategy priorities to extend
thesuccessful Think Customer programme, focus on tailored
training for colleagues and to deliver process standardisation.
Approval of £15m share buyback programme
In July, the Board approved the commencement
of a £15m share buyback to return excess capital
to shareholders.
Stakeholder considerations
To support these discussions ahead of approval, the
Board was provided with the views of a number of the
Group’s largest shareholders on capital return options.
Information provided by the Group’s joint brokers was
alsoconsidered in order to understand the perceptions
ofinvestors to a proposed share buyback and guide the
subsequent announcement at the time of the 2024 interim
results. The Board also considered debt holders and credit
rating agencies in relation to the decision.
Reviewing the double materiality assessment
In 2024, as part of the Group’s strategy discussions,
theBoard reviewed and approved the Group’s double
materiality assessment to identify and assess sustainability-
related impacts, risks and opportunities (IROs) and
toensure compliance with the CSRD, a framework
established to improve corporate transparency and
accountability in sustainability reporting.
Stakeholder considerations
As part of the double materiality assessment process,
theBoard considered various IROs affecting the Group
aswell as the Company’s impact on the environment
andwider communities. The process deepened
understanding of key stakeholder perspectives who
alsotook part in the assessment. The outcomes informed
strategic decision making including a review of our 2025
strategic plan, and helped prioritise themes in our external
reporting and broader stakeholder communication.
Annual Report and Financial Statements 2024 49
Strategic Report
Financial inclusion
We are proud that so many of our customers are from groups
that have historically been excluded from access to financial
services. Helping so many people who often struggle to access
credit reflects the dedication of our business to increase
financial inclusion and make a positive impact on the people
and communities we serve.
We provide credit to consumers who are often underserved
bymainstream lenders, including:
– female customers: around 60% of our customers are women;
– those living in rural areas or locations with limited banking
access;
– microbusiness owners, particularly in Mexico;
– older consumers who prefer face-to-face solutions
overdigital-only options; and
– individuals with past credit difficulties.
As a responsible lender, we invest in financial education
initiatives to empower our communities. While many customers
expertly manage tight budgets, a lack of formal financial
education can sometimes limit their engagement with
financial services companies. Through face-to-face
andonlinefinancial literacy programmes, we aim to help
individuals make more informed financial decisions.
Improving customer experience:
Think Customer successes in 2024
In 2024, we extended our Think Customer programme to
IPF Digital’s six markets, building on the success of this initiative
in our home credit operations. It is now embedded across the
Company, driving our vision to deepen customer relationships,
deliver high-quality experiences and keep customers at the
heart of everything we do.
The programme comes to life through initiatives including:
– communicating our Customer Promises and Customer
Charter externally in the European home credit markets,
reinforcing our commitments;
– using customer journey insights to enhance experiences,
leading to increased satisfaction and significant
improvements across our home credit businesses
overthepast two years;
– appointing customer programme leaders in each market
toshare best practices and support customer-focused
behaviours. Regular colleague rewards based
on customer KPIs further reinforce this culture; and
– launching an interactive customer experience dashboard
totrack satisfaction, Net Promoter Scores and unmet
expectations, supported by our Voice-of-the-Customer
programme which helps us understand and improve
howwe operate.
In 2024, we also mapped digital lending customer journeys
through focus groups, surveys and detailed analysis.
Thisresearch led to the creation of targeted action plans.
Stakeholders in focus
In this section, we provide insight into how we worked with four of our key
stakeholder groups in 2024; our customers, colleagues, suppliers and communities.
Our customers
91%
Customer satisfaction
+77
Net Promoter Score
International Personal Finance plc50
Advancing financial inclusion through
digital transformation
Technology plays a vital role in improving access to financial
services for our customers. A new generation of customers
expects instant solutions, seamless digital and physical
interactions, and uses social media to voice their opinions.
Most customers now engage with us digitally at some point
intheir journey with us, often via mobile phones or our
websites. This shift drives our focus on digital transformation,
investing in technology to streamline onboarding, reduce
decision times and deliver credit faster.
In 2024, we focused on establishing our new digital lending
offering in Romania and the number of mobile wallet users
more than doubled to over 115,000, accounting for around
half of our digital division's customer base. We also launched
anew customer app in Mexico, which attracted 362,000
downloads by the end of the year. This app enhances
ourcredit service by enabling balance checks and
communication while supporting financial inclusion.
Itcomplements our established app in Poland, and we
haveplans to introduce similar apps in Hungary, Romania
andthe Czech Republic. All markets in which we operate
nowhave adigital lending option for customers, with the
exception of Hungary where regulation does not facilitate
digital lending for our segment.
Keeping a pulse on customer feedback
We actively seek customer insights to refine our products,
improve service quality and remain competitive in a fast-
changing market. Customer satisfaction is crucial – it drives
loyalty, enhances our reputation and supports our long-term
growth ambitions by encouraging repeat business
andrecommendations.
Our Think Customer dashboard tracks key customer
experience metrics across all markets and is reviewed
monthlyby senior management to guide actions.
Wemeasuresatisfaction with products, customer
representative and call centre interactions, as well as
processes like loan issuance and website engagement.
Thisongoing effort has yielded strong results, reflected
inourcustomer satisfaction andNetPromoter Score (NPS)
which, atDecember 2024, were91% and+77 respectively.
To enhance service standards, we set new objectives for 2025
to improve customer satisfaction outcomes. Progress against
these goals, set out below, will be reported in future years.
2025 objectives
– Undertake customer service standards training for field
colleagues in European home credit.
– Extend mobile customer apps across all markets.
– Refresh our ‘HeartBeat’ analysis of customer pain points.
– Complete a review of how service quality impacts
commercial performance and build action plans.
– Enhance the Think Customer programme for our
digitalchannels.
Acting ethically
Our overall approach to customers, products and services
is owned at a Group level by our Chief Marketing Officer,
who works closely with Directors of Marketing and customer
experience leaders. Consideration of new products and
assessment of the performance of existing products from
acustomer satisfaction perspective are reviewed regularly
byLocal Product Development Committees, which are
established in each of our markets. More significant product,
promotion and pricing changes are reviewed by the Global
Product Development Committee, which is chaired by the
Chief Marketing Officer. The brand and product proposition
risk is one of the key risks in our enterprise risk management
methodology which enables this risk category to be monitored,
and appropriate mitigation measures undertaken
whererequired.
Incorporating risk management into our product development
process is essential to creating sustainable, customer-focused
solutions. From the initial concept phase through to launch,
we conduct thorough risk assessments to identify potential
challenges, including market, regulatory, and operational
risks. By integrating these insights early, we can tailor products
to meet customer needs while adhering to strict standards for
security, compliance, and affordability. Our cross-functional
teams collaborate closely to ensure that each product aligns
with our risk tolerance and company values, helping us deliver
offerings that are both innovative and responsibly managed
for long-term resilience while delivering our target returns.
Ultimately, the Board oversees the management of customers
and receives regular market intelligence tracking the Group’s
performance on a range of customer-related metrics.
In every market, all our marketing communications are
prepared with the objective of meeting relevant legal and
regulatory standards, and to ensure our customers understand
the credit commitment they are choosing. Our advertisements,
promotions and product information are created in a way that
is easily understood, accurate, does not mislead and complies
with applicable regulation. We are always very clear when
itcomes to the price of our products with all cost information
explained clearly in our contracts with consumers. Our Global
Pricing and Promotions Policy sets out how we ensure fair
advertising policies and procedures globally, which are
complemented by market guidelines on this topic.
As part of our commitment to responsible lending,
weprioritiseprudent credit underwriting to mitigate
potentialdebt challenges. Our approach includes
thoroughassessments of internal and external data,
aswellascustomers’ income and expenses, to ensure
loanaffordability. In our home credit businesses, direct
relationships with customer representatives provide early
insights into repayment issues, enabling proactive support
should customers experience difficulties.
For customers facing difficulties, we offer flexibility such as
agreeing missed or reduced repayments, ensuring this option
is not overused to prevent financial strain. Should a customer
go into arrears, we collaborate to create short-term
arrangements tailored to their circumstances.
Annual Report and Financial Statements 2024 51
Strategic Report
Stakeholders in focus continued
Resolving customer concerns and complaints
An effective complaints-handling process is critical for
buildingtransparency, trust, and continuous improvement.
Wemanage complaints in line with established policies and
legal requirements, ensuring accessibility and responsiveness
for allcustomers. We clearly outline how customers can raise
concerns through our consumer-facing websites, which
explain the complaints process, expected timeframes
andresolution steps.
Customer contracts also provide relevant contact information.
Complaints can be submitted online, by phone or in person
with a customer representative, and are logged, categorised
by severity and managed accordingly. Simple issues are
resolved quickly, while complex cases are escalated to our
dedicated complaints team for investigation and resolution.
Empowering financial inclusion
with credit health checks
In 2024, we launched a digital credit health monitor
inour mobile wallet to help customers better manage
their credit profile and improve their financial wellbeing.
With a digital content strategy focused on financial
education, customers can access tips on managing
their household budget and saving. The app also
provides customers with their internal credit score
andapicture of their financial journey, including simple,
educational guides to improve their credit score over
time. This is particularly helpful for consumers in Mexico
where credit score knowledge is lower.
Streamlining customer
engagement with AI
Building on the success of our chat-bot initiatives to
transform lead management and improve customer
engagement, we enhanced our digital processes by
introducing AI-driven customer support. Our home credit
operations integrated AI into WhatsApp, seamlessly
transitioning potential customers from Facebook
enquiries to an interactive chat-bot for application
processing before involving our field team.
Thisinitiativehas significantly reduced application
timesforcustomers to just five minutes. It has also
decreased customer service adviser involvement by 30%
in AI-implemented campaigns, time which can now
beused to assist morecustomers and enhance
theoverall customer experience.
Walk in our
Customers’ Shoes
As part of the Think Customer programme in our
homecredit businesses we launched the ‘Walk in our
Customers’ Shoes’ programme. By means of customer
visits, global workshops and videos, our colleagues were
able to see things through the eyes of our customers.
Having a clear picture of every step our customers
gothrough when interacting with us gives a valuable
perspective of their needs, struggles and perceptions,
from application and onboarding to repaying their loan.
It also shows what we are doing well and, importantly,
where we need to improve in our interactions.
Our customers continued
Root-cause analysis also helps identify systemic issues and
improve our overall service. As is the case with all financial
institutions, we do receive complaints from customers, but the
level of complaints received by the Group in 2024 was low.
In2024, complaints totalled approximately 60,200
(2023: 60,000), representing 4% of active customers
andtheaverage resolution time was 8 days (2023: 7 days),
bothofwhich werebroadly in line with the prior year. In 2025,
we will continue monitoring complaints trends and addressing
rootcauses toenhance the customer experience.
Looking ahead
In 2025, we will build on the progress made in 2024 by
enhancing our customer-centric culture, evaluating service
effectiveness, and delivering customer service standards
and training. Plans include further developing our Think
Customer programme in IPF Digital, introducing customer
appreciation awards and testing AI in service centres
tohelpfurther improve customer satisfaction.
International Personal Finance plc52
Our 20,500 dedicated colleagues power our success,
bringingpassion and purpose to their work every day.
Theircommitment enables us to deliver affordable,
accessibleand responsible financial services to underserved
communities. Inreturn, we foster an inclusive environment
where everyone feels valued, supported and empowered
toexcel. Our people strategy focuses on recruiting,
developing, rewarding, and retaining a diverse
and high-performing workforce aligned to our purpose.
In 2024, we made significant strides in inclusion,
empowerment, and championing diversity, equity,
and inclusion. Programmes, including The Pink Initiative,
advanced gender diversity, while our neurodiversity awareness
campaign enhanced workplace inclusivity. Employee
engagement remained a key priority, with townhalls, forums,
and informal gatherings ensuring colleagues’ voices were
heard. Insights from our Global People Survey and pulse
surveys drove improvements, with the majority of employees
expressing confidence in leaders’ care for their wellbeing.
We also deepened our investment in professional
development, delivering over 400 training sessions and
expanding digital learning pathways through platforms like
LinkedIn Learning. Ethics remains at the heart of our culture,
with the tenth anniversary of Ethics Week reinforcing integrity
in every aspect of our work.
To align with European Sustainability Reporting Standards
(ESRS), we conducted a double materiality assessment,
identifying working conditions and workers’ rights as our most
material sustainability-related matters. In compliance with ESRS
S-1, we disclosed key workforce data on gender diversity,
training, and employee impacts. Details are included
inourCSRD Statement from page 123.
Our colleagues
As our colleagues continue to drive our purpose, we remain
committed to building an inclusive, innovative organisation
that meets customers’ needs while contributing to a better
world through financial inclusion.
Empowering local talent by embracing diversity
We are committed to fostering, cultivating and preserving
a culture of diversity, equity and inclusion (DE&I).
With operations spanning Europe, Mexico and Australia,
ourcommitment to recruiting and developing local talent
remains a core element of our people strategy. Having local
teams with in-depth knowledge of their markets allows
ustobetter understand the needs of our customers
andbuildtrusted relationships within each community.
Thisyear, westrengthened our local recruitment efforts
andwelcomed more than 6,000 new colleagues to our
business. Our workforce represents a broad spectrum
ofbackgrounds andcultures, mirroring the diversity
ofthecommunities we serve and enhancing our ability
todeliver impactful, customer-centred solutions.
We undertake a wide range of activities to promote and
celebrate diversity across the organisation. From our Power
ofInclusion celebrations to tailored development pathways
forwomen, we strive to create a culture where everyone can
thrive. In 2024, we undertook a number of impactful initiatives
to increase awareness and understanding of the many
aspects of DE&I principles.
Annual Report and Financial Statements 2024 53
Strategic Report
Power of Inclusion
In April 2024, we hosted our third Power of Inclusion
conference, a global online event attended by 600
colleagues, celebrating diversity and inclusivity. The
conference showcased programmes like The Pink
Initiative and the Becoming Development Managers
programme in Mexico, to increase female representation
in our Sales and Service teams. The event highlighted the
importance of diversity, equity and inclusion in driving
innovation, enhancing workplace culture and boosting
organisational performance. Attendees received
practical advice on fostering inclusivity and as part of
our 5,000 Story Challenge, colleagues shared inspiring
examples of their contributions to financial inclusion.
Stakeholders in focus continued
Gender split of employees
at 31 December2024
*
5,3732,883
2959
34
Male
Senior management
All other employees*
Board
Female
All other employees include customer representatives in Hungary and
Romania where they are employed to meet local legislation.
Our colleagues continued
Building neurodiversity awareness
In 2024, IPF Digital launched its first neurodiversity
campaign, “Welcome to the IPF Digital World,” to foster
inclusivity and highlight the unique strengths of
neurodiverse individuals. The three-month initiative
included 12 educational newsletters and a dedicated
intranet care page with resources and practical tools to
enhance understanding. A key highlight was a webinar
exploring the workplace experiences of neurodiverse
women, addressing the intersection of gender and
neurodiversity. This campaign marked a significant step
in creating a more inclusive culture, advancing diversity,
equity and inclusion while empowering neurodiverse
talent and celebrating their contributions.
Celebrating a decade of Ethics Week
2024 marked the tenth anniversary of our global Ethics
Week, reinforcing our commitment to making ethical
decisions every day. The week began with a video
message from our CEO affirming our dedication to doing
the right thing, followed by engaging activities promoting
our Code of Ethics and ethical awareness.
A live global broadcast, hosted by our Hungarian
business, featured senior leaders sharing personal
ethical challenges and was viewed by over 500
colleagues. Across all markets, local events included film
screenings, quizzes and discussions on ethical dilemmas,
fostering debate and engagement.
Our ethics e-learning course and quiz, completed
by97%of colleagues globally, provided practical
guidance on navigating ethical dilemmas and
emphasised thebusiness impact of ethical decision
making. Thismilestone event underscored our
unwavering commitment to integrity and high
standardsin all we do.
97%
of colleagues completed
ethics training in 2024
International Personal Finance plc54
Building trust with customers
Our customer representatives are the face of our business,
working directly in the communities we serve. They play a
crucial role in supporting our customers, providing financial
services that we have designed and tailored to meet their
unique needs and upholding our commitment to responsible
lending. With around 15,200 customer representatives across
the Group they are a fantastic example of our strategy of
empowering local talent.
More often than not, our customer representatives are
longstanding members of the communities they serve,
whichenables them to understand and respond to our
customers’ evolving needs. By regularly visiting customers
inperson, theybuild meaningful relationships that go beyond
financial transactions. Every year we conduct millions offace-
to-face customer visits across our markets, creating asense
ofconnection and trust. These face-to-face interactions are
particularly valuable in emerging markets, where customers
may not have access to traditional banking services and
appreciate the reassurance of an in-person relationship.
With a deep understanding of local cultures and communities,
our customer representatives are instrumental in building
trust and fostering strong relationships with customers
acrossall our regions.
Personal development and careergrowth
Our success is built on the growth and development of
ourpeople. By investing in their personal and professional
development journey, we equip colleagues with the skills,
knowledge and confidence to deliver the high standards
our customers expect.
In 2024, we provided over 400 training interventions
to our colleagues across ten countries covering a range
oftopics, including technical upskilling, storytelling and
leadership development, all designed to meet industry
demands and deliver responsible, ethical customer service.
Wealso expanded our career development programmes
for customer-facing colleagues with our established learning
academies supporting structured pathways for over 15,200
customer representatives. Topics included sales and territory
management, personal development and customer-centric
service, ensuring colleagues are equipped for ongoing success.
Digital learning remains a cornerstone of our people
development strategy. Through our global learning
management system and platforms like LinkedIn Learning
andPluralsight, we offered tailored online resources, enabling
self-paced learning aligned with roles and career aspirations.
In 2024, over 300 colleagues completed nearly 1,300 courses,
enhancing their expertise and adapting to evolving
professional demands. Our ‘Let’s Talk Me’ performance
appraisal process reinforces this approach by encouraging
colleagues to set personal development goals and
collaboratively design tailored training plans, reinforcing
ourcommitment to nurturing talent and supporting individual
success. Internal mobility also highlights our commitment
tocareer progression. In 2024, over 500 colleagues
transitioned into new roles within European home credit,
demonstrating our dedication to nurturing talent and
providing meaningful opportunities for growth across
theorganisation.
Supporting colleague wellbeing
The safety and wellbeing of our people are central to our
success. Through the Global Care Programme, a key part
of our Next Gen organisation pillar, we create a supportive
environment where colleagues can thrive personally
andprofessionally.
In 2024, our care plan focused on four key pillars:
– Engaging with colleagues to identify their wellbeing priorities.
– Promoting mental health through psychological safety
training and enhanced support systems.
– Encouraging physical health with initiatives like health
screenings and step challenges.
– Strengthening team connections through social events.
Wellbeing highlights:
– In Romania, psychological safety training boosted trust and
collaboration as part of our Culture of Compassion
programme.
– In Mexico, our Diversity, Equality, Inclusion and Belonging
initiative engaged employees across 17 branches, fostering
understanding and inclusion.
– In Poland, a new employee assistance programme, Mental
Benefits, provided over 1,000 psychological consultations.
– IPF Digital launched its Neurodiversity in the Workplace
campaign, raising awareness and supporting
neurodivergent employees.
Looking ahead to 2025, we will focus on fostering innovation,
strengthening connections and enhancing psychological
safety to address evolving needs. By caring for our people,
wecontinue to build a workplace where everyone can excel.
Engaging with our colleagues
In 2024, we prioritised meaningful engagement with our
workforce, ensuring colleagues’ perspectives were actively
heard and addressed. Through a range of communication
channels, we encouraged open dialogue and inclusivity.
Townhall events allowed employees to connect directly
withleadership fostering transparency and discussions
oncritical topics, while informal gatherings created a relaxed
environment for colleagues to share their views and open
discussions. Formal employee and customer representative
forums were also established across our home credit markets
and reflected workforce diversity by considering factors
like location, division, tenure, and seniority to ensure
thatthevoices of all colleagues were heard on a range
of important issues.
Building on insights from the 2023 Global People Survey,
conducted biannually across the business, we refined
programmes to address employee feedback. In 2024,
Group-wide pulse surveys delivered overwhelmingly positive
results, with over 80% of responses reflecting positive scores.
Notably, a significant proportion of colleagues (97%) felt their
leaders genuinely care about their wellbeing.
These positive results reaffirm our commitment to fostering
a culture of empathy, inclusion, and trust. By actively listening
to and addressing the needs of our workforce, we continue
to strengthen collaboration and ensure employees feel valued
and motivated. This commitment to engagement reinforces
our goal of making IPF a great place to work.
Annual Report and Financial Statements 2024 55
Strategic Report
Rewarding impact and innovation
Recognising our people’s contributions is key to driving
performance and innovation. Our total reward approach
combines monetary and non-monetary rewards to attract,
retain and engage colleagues, ensuring a competitive
andequitable experience. In 2024, we proudly achieved
accreditation as a UK Living Wage employer, reflecting
ourcommitment to fair and sustainable wages
andsupportingworkforce wellbeing.
A vital part of our approach is regular performance appraisals
and feedback through our ‘Let’s Talk Me’ performance
management process, in place for over a decade.
Thisframework focuses on employee performance and
development, driving opportunities across our businesses
andfostering growth aligned with organisational goals.
Looking ahead
Our focus for the future is advancing initiatives that support
colleague growth and wellbeing while aligning with
organisational goals. Our strategic priorities include expanding
access to tailored digital learning programmes and
strengthening local leadership development to equip teams
for a rapidly changing environment.
We will enhance engagement efforts, fostering a resilient,
inclusive, and customer-focused culture. By prioritising
inclusivity, development and wellbeing, we empower
colleagues to thrive and deliver on our purpose.
Our goal is to co-operate with informed and engaged
suppliers who understand how their products and services
contribute to the delivery of our purpose and business goals,
and who also act according to our values and culture.
Our supply chain
In 2024, we spent around £200m on a broad range of
products and services with almost 3,000 suppliers globally.
We categorise our suppliers into four tiers – strategic, critical,
leverage and routine, depending on an assessment of defined
business risk factors, sustainability risk assessment, regulatory
requirements and spend. Of our global suppliers, 142 are
deemed strategic or critical. The major areas of expenditure
within our supply chain are marketing, property services,
professional services and IT.
Doing business responsibly with suppliers
Our procurement and supplier management activities are
provided by an internal procurement function, which is part
of the Group’s broader finance function. The procurement
function is responsible for sourcing, supplier selection,
negotiations and contracting, and continuous supplier
relationship management for assessing, managing and
mitigating risks relating to supplier relationships including
potential breaches to approved sourcing processes.
Theiractions are overseen in each of our markets by a Local
Procurement Committee, which comprises members of the
local board and procurement function, and which meets every
quarter. Important matters, including any suppliers evaluated
ashigh risk, are reported subsequently to the Global
Procurement Committee which meets on a quarterly basis and
comprises members of the Group’s procurement, finance, legal,
and internal audit functions. The Group’s Global Responsible
Procurement Policy and Group Procurement Standards
document the minimum standards for our engagement with
suppliers, including sourcing, supplier selection, negotiations,
contracting, supplier risk management, contract requirements,
and supplier management and evaluation processes.
GroupProcurement Standards ensure that all procurement
activity isundertaken according to the following principles:
– Social responsibility, in particular that suppliers and
outsourcing partners comply with international labour
standards including fair wages, safe working conditions,
non-discrimination, and prohibition of child or forced labour;
respect human rights throughout the supply chain aligned
with the United Nations Guiding Principles on Business and
Human Rights; and support community development, fair
trade practices, and inclusion of diverse and
underrepresented groups;
– Ethical governance, ensuring that procurement and
outsourcing decisions are made with transparency,
accountability, and ethical considerations. Suppliers
andservice providers must demonstrate anti-corruption
andanti-bribery measures, ensure compliance with GDPR
inmanaging personal data across outsourced operations
and maintain robust governance structures to promote
business ethics and accountability; and
– Environmental responsibility, ensuring that suppliers and
outsourced service providers demonstrate environmental
responsibility. The Group’s Global Responsible Procurement
Policy is approved by the Chief Financial Officer.
Stakeholders in focus continued
Our suppliers
International Personal Finance plc56
Creating a sustainable supply chain
Our Global Responsible Procurement Policy and Group
Procurement Standards detail our approach to managing
oursupply chain sustainably. Our supplier evaluation process
involves identifying, assessing and monitoring supplier
practices in the areas of human and labour rights, the
environment, health and safety, anti-corruption, data
protection, ICT resilience, supplier reputation and others.
Thisisachieved through the undertaking of a supplier
evaluation process against relevant standards in each of these
areas, and supplier re-evaluation in the case of introduction
ofimprovement plans or any risk mitigation activities. This effort
isdesigned to ensure that relevant principles and standards
are upheld throughout our supply chain and is in line with our
commitment to the UN Global Compact. As defined by the
Supplier Operational Management Standard, our Code of
Ethics is shared with all suppliers who are required to adhere
toequivalent behaviours and standards. Suppliers can raise
any matters of concern through our whistleblowing channels.
We pay suppliers promptly and within contracted periods.
We believe that given the markets we operate in,
modernslavery and human rights remain the most significant
potential sustainability risks within our supply chain. In 2023,
weundertook a comprehensive human rights and modern
slavery assessment process which identified suppliers of
cleaning, maintenance and facilities services to be the
greatest potential risks areas in our supply chain. Following
thisassessment, we amended our supplier segmentation
procedure to include these risks in our evaluation criteria and
extended our definition of critical suppliers to include relevant
suppliers. In 2024, we expanded on these earlier efforts with
our supplier segmentation programme which identified 44
suppliers globally as critical from a human rights and modern
slavery perspective. These suppliers were subsequently
reclassified and are now fully integrated into our supplier
riskassessment process. We also introduced a Supplier
Sustainability Questionnaire which is a key component of
ourSupplier Risk Management Group Procurement Standard.
Thisnew questionnaire plays a crucial role in evaluating
human rights and modern slavery risks in our supply chain.
Asof 2024, all 142 strategic and critical suppliers are subject
tothis sustainability assessment, further strengthening our
commitment to responsible sourcing.
Engaging with suppliers
The procurement function engages with suppliers to better
understand their perspectives on the Group. Those suppliers
which are assessed as strategic or critical are the focus
of our engagement activity. Engagement takes place through
multiple channels, from discussing with specific suppliers
when at the point of contract renewal or termination, tender
processes with existing and potential suppliers and dedicated
supplier relationship management activities. The discussions
with existing suppliers address their performance, including
on sustainability matters.
Recognising our suppliers as key stakeholders of our business,
we engaged a number of key suppliers in the double
materiality assessment, undertaken to support compliance
with the new Corporate Sustainability Reporting Directive
andwhich helps us prioritise sustainability and ESG issues
based on their impact on our business and our potential
forpositive influence. To ensure comprehensive insights,
weinvited 50 suppliers across our European markets to
participate in a survey, a key step in identifying the most
important sustainability-related topics for our business.
Wereceived a strong response reflecting their commitment
and high engagement in our shared sustainability goals.
We are actively expanding our focus on ESG risks and
opportunities as well as on operational resilience, and
broadening the scope of risk assessments in our supply chain.
To support this, we are updating all our supplier management
policies and Group Procurement Standards to enhance our
understanding of how companies are addressing their ESG
responsibilities, reinforce IT security resilience and refine the
criteria for defining strategic and critical suppliers.
To meet these goals for 2025 we are in the process of
amending our existing Group Procurement Standards:
– Supplier Segmentation Group Procurement Standard:
widening the critical supplier definition increasing this key
supplier group which is covered by extended risk
management and risk monitoring procedures;
– Sourcing Group Procurement Standard: including our due
diligence procedure as an additional mandatory step in the
selection process for all suppliers supporting critical and
important functions and processes. All sourcing processes
will also be executed in accordance with an amended list
ofinternal Group policies including Anti-bribery and
Corruption Policy, Conflict of Interest Policy, Data Protection
Policy, Gifts and Hospitality Policy, Human Rights Policy,
ICTThird-Party Risk Management Policy, Information Security
Policy, Modern Slavery Policy, and the Whistleblowing Policy;
– Supplier Relationship Management Standard: additional
obligations of continuous performance monitoring for all
critical and strategic suppliers; and
– Supplier Risk Management Group Procurement Standard:
including additional risks assessment criteria to our Supplier
Evaluation Process including conflict of interests,
concentration risk, strength of exit strategy, ICT resilience
riskand business continuity.
In addition, a new ICT third-party risk management policy
andICT third-party risk assessment procedure will be
introduced to increase our operational resilience and ICT
security, increasing the level of supplier risk assessment,
riskmonitoring and ensuring operational continuity.
Annual Report and Financial Statements 2024 57
Strategic Report
Our communities
We are committed to contributing to the social and economic
development of the communities in which we operate.
Our primary focus is on supporting groups facing challenges
with financial inclusion by ensuring their stories are heard
and advancing financial education initiatives directly through
our own programmes and in partnership with NGOs. Through
our focus on financial inclusivity and social equity, we strive
to build more sustainable and resilient communities.
Our community strategy is built around three core pillars:
– our Invisibles programme;
– financial education initiatives; and
– volunteer opportunities for our colleagues.
In 2024, we continued our investment in a wide range
of community initiatives which are important to both our
colleagues and communities. We support our communities
through a variety of means, including financial contributions,
in-kind support, and active employee involvement. In 2024,
ourtotal community investment amounted to £920,270
and4,011 days of volunteering.
Our Invisibles programme
We recognise that financial vulnerability, stemming primarily
from economic disparities, poses a significant challenge and
that we have an important role to play in addressing this issue.
Building on the foundations laid in 2022 and 2023 in our home
credit markets, we expanded this flagship community initiative
in 2024 into Estonia, Lithuania and Latvia where IPF Digital
operates. During the first phase, we identified the most
excluded groups in these countries and hosted events
toraiseawareness of their challenges. This included the
“People in the Shadow of Social Exclusion” conference
inRiga,attended by NGOs, politicians, academics and
businesses who came together to discuss and debate
theissues of exclusion. InEstonia and Lithuania, we also
launched a podcast series toshed light on the difficulties
faced by these marginalised groups, amplifying their voices
and fostering greater understanding.
In our home credit markets, where the Invisibles programme
iswell established, we partnered with new NGOs to broaden
our reach and support more groups facing barriers to financial
visibility. In the Czech Republic, we collaborated to assist
young adults leaving the state childcare system, and
developed a programme to support social workers. We also
launched a financial education initiative for senior citizens.
In Romania, we partnered with six NGOs, each focusing
on a specific invisible group, with particular emphasis
onemployability workshops and senior citizens. In Mexico,
we began collaborating with UN Women to support women
in isolated areas facing extreme poverty, and worked with
Save the Children to assist migrant families by providing
education and tools to navigate life changes.
In Hungary, we renewed our strategic partnership with
Hungarian Interchurch Aid, committing to support its anti-
poverty efforts for the next three years. In Poland, our focus
shifted from aiding Ukrainian refugees to supporting children
transitioning out of state childcare.
In 2025, we plan to extend our efforts to reach new invisible
groups and make a lasting, positive impact on financially
vulnerable people.
Building empowerment through
financialeducation
Alongside our Invisibles programme we invested in delivering
financial education initiatives to empower individuals.
Financial literacy plays an essential role in the lives of excluded
consumers because it equips them with the knowledge and
skills to manage money with confidence, access financial
services, make informed financial decisions and improve their
resilience and wellbeing. Our research into financial wellbeing
suggests many people in our markets do not receive a formal
financial education and would value the opportunity to learn
more about financial management.
We have implemented comprehensive financial literacy
programmes targeting financially vulnerable individuals.
Theseinitiatives include workshops, webinars and educational
materials aimed at improving financial knowledge, developing
budgeting skills and supporting long-term financial planning.
They also provide volunteering opportunities for our colleagues
to impart their knowledge and expertise on these topics
forthebenefit of financially vulnerable individuals.
Stakeholders in focus continued
Our Invisibles programme was created to ensure those
segments of society that currently struggle to access
financial services become visible to stakeholders
andarealso provided with practical help.
Theprogramme has four elements:
1. Identify: Studies commissioned by independent third
parties to identify the underbanked groups in each of
our markets provided meaningful insights concerning
the specific challenges they face.
2. Highlight: Publish the results of the study to highlight
the insights we have gathered and what it means
forthat market.
3. Engage: Initiate dialogue with relevant stakeholders
on what practical steps would improve the situation
ofthe identified invisible groups.
4. Help: Identify a relevant NGO partner to enable
jointworking to offer help to one or more selected
invisible groups.
International Personal Finance plc58
Supporting communities through volunteering
Thousands of our colleagues make a difference in their
communities through volunteering in both company
timeandtheir own.
In 2024, they supported a range of community projects
fromfinancial education to environmental causes.
Ourvolunteering programme also helps improve
teamwork,engagement and motivation.
Our focus for volunteering is brought together with our annual
Volunteer and Financial Inclusion Month, which we organise
each May. Colleagues got involved in a range of activities
including painting community hubs that host Invisibles-
supported projects, visiting people in assisted-living homes
and tree planting. In this one month alone, our team of nearly
2,500 volunteers supported 85 projects benefiting 250,000
people and raised more than €100,000.
In September 2024, some of the worst floods in a decade
hit our Central European markets, sadly claiming many lives
and destroying thousands of homes. Faced with this serious
challenge, our teams set about helping the communities
most badly affected by fundraising and volunteering to help
build flood barriers and clean homes.
Empowering seniors through
financialeducation
In 2024, we launched the Senior Academy in Hungary
to provide financial education for retirees in small towns.
The three-session programme covers managing
finances, avoiding financial fraud and understanding
credit. Partnering with Semmelweis Medical University,
wehosted three events attended by around 60 seniors
each, offering financial tips from colleague volunteers
and healthy living advice from university experts.
Following its success, we plan to expand the Academy
in2025, helping more elderly people navigate their
finances with confidence.
Supporting young adults transitioning
from state care
In 2024, we extended our Invisibles programme in the
Czech Republic to support young adults leaving state
childcare by offering financial support to an NGO
responsible for supporting them. We also selected
threetalented individuals who had recently left the state
childcare system and gave them direct financial support
to help them live independently.
4,011
days of volunteering undertaken by colleagues
£920,270
invested in our communities
Annual Report and Financial Statements 2024 59
Strategic Report
Other disclosures
IPF in Society
Here we provide additional sustainability disclosures beyond the
requirements of the Corporate Sustainability Reporting Directive (CSRD),
offering a more comprehensive view of our ESG initiatives.
Our Code of Ethics
Our Code of Ethics is designed to ensure everyone working
forthe Group understands how we deliver on our purpose
andhow to act ethically and with integrity at all times.
TheCode can be viewed on the policies section of our website
at www.ipfin.co.uk. The Chief Legal Officer has responsibility
forthe implementation and effectiveness of the Code of Ethics
and reports annually to the Board on this. The Group Ethics
Committee, membership of which comprises the Chief
Executive Officer, Chief Financial Officer, Chief Legal Officer
and Chief HR Officer, has oversight of all ethical issues and
meets quarterly to review progress and discuss any concerns.
The Code communicates the minimum standards which we
expect from all colleagues. We take breaches of our Code of
Ethics very seriously and they could result in disciplinary action.
If our colleagues have any concerns about the provisions of
the Code not being followed, we encourage them to report
this at the earliest opportunity. Whistleblowing processes are
available if for any reason reporting to line management
isnotappropriate or preferred.
In early 2024, the Board approved our updated Code of Ethics
which was then translated into local languages and
cascaded throughout the business globally. To ensure
high awareness and understanding of the updated Code,
a communication campaign targeting all employees and
customer representatives in all our markets was launched.
During the course of the year colleagues received a range
ofcommunications including emails, posters, screen savers,
videos and presentations on the three pillars of the Code:
Doing the Right Thing as a responsible business, as a
responsible employer and as individuals. In September 2024,
we held our tenth annual global Ethics Week which is a series
of events, training and communications for all full and
part-time employees and customer representatives on topics
relating to ethics. The week focused on our revised Code,
howit sets our standards and how it should be used to guide
behaviour. 97% of all employees and customer representatives
globally completed our online annual ethicstraining in 2024.
Human rights
The Group is a member of the UN Global Compact.
Ourcommitment to this initiative, together with the standards
of the United Nations Universal Declaration of Human Rights
and the United Nations Guiding Principles on Business and
Human Rights, is set out in our Corporate Sustainability Policy,
and our specific approach to human rights is set out in our
Human Rights Policy. Both policies can be accessed on the
policies section of our website and are approved by our Board.
Our Human Rights Policy sets out our commitment to
respecting internationally recognised human rights standards
and our responsibility to take appropriate steps to identify,
prevent and mitigate human rights risks across the Group,
andto take action to remedy any adverse impacts we identify.
This Policy sets out our risk assessment procedures and controls
to detect and mitigate human rights risks in our business
andsupply chain together with our approach to raise
awareness of these absolute and fundamental rights.
In 2024 we undertook additional targeted due diligence on
suppliers we assessed to be as high risk for potential modern
slavery and human rights violations. In 2025, we will perform
a risk assessment and stakeholder engagement exercise
to identify issues and review effectiveness of our Human
Rights policy and report on this to the Board.
Combatting financial crime
We are committed to protecting our customers and the
business by combating fraud, bribery, extortion, collusion,
money laundering, tax evasion, terrorist financing and all forms
of financial crime and corruption, and have a zero-tolerance
approach to these matters.
The Group Fraud and Anti-Money Laundering (AML)
frameworks define minimum standards and controls for all
markets on fraud, AML, counter-terrorism financing (CTF)
andfinancial crime. The Group Fraud Risk and AML Manager
has overall responsibility for the definition and development
of the controls and standards defined within the frameworks.
Each market has a Loss Prevention function which
is responsible for ensuring the implementation of the
required standards and assuring the operation of controls.
Management information is monitored to track trends and
patterns of behaviour relating to fraud, AML and CTF risks.
Suspected frauds and instances of money laundering and
terrorism financing are investigated by the Loss Prevention
function and, where identified, remediating actions are taken.
To ensure that the Group is not used to launder the proceeds
of criminal activity and/or facilitate the financing of terrorist
organisations, a variety of methods utilising external data
sources are used to ensure compliance with legislative
requirements. We apply a risk-based approach to our
customers and transactions, with systematic assessments
made at the point of a credit application and regularly during
the lifetime of the customer relationship. Additionally, checks
are conducted to identify Politically Exposed Persons (PEPs)
and, where identified, processes compliant with local
legislation, are in place to conduct enhanced customer due
diligence and obtain sign off by managers with appropriate
levels of authority before commencing any business
relationship. Independent assessments and audits by national
regulators and/or external auditors assure our compliance
with AML regulations.
Compliance with the fraud, AML and CTF frameworks is
overseen onamarket basis by local Loss Prevention
Committees, comprising senior management in each market,
which review management information to track trends and
patterns of fraud and monitor the local risk landscape.
Theoutput of this activity is then monitored at Group level by
the Group Credit Committee. The Group Fraud Risk and AML
Manager carries out independent reviews of each market’s
systems and controls to ensure compliance with the minimum
standards detailed in the Group Fraud and AML Frameworks
as well as reporting quarterly to the Group Risk Advisory Group
as risk owner of the fraud and AML risk category. The Group’s
Audit and Risk Committee has oversight of these systems and
controls and receives bi-annual updates on this topic.
Technological developments have been leveraged to better
identify potential instances of fraud and improve AML/CTF
controls including improvements in the speed of delivering
fraud alerts, expanded use of biometric identity checking
andgeolocation ringfencing.
GLOBAL CODE OF ETHICS
INTERNATIONAL PERSONAL FINANCE PLC (IPF)
DOING THE
RIGHT THING
International Personal Finance plc60
In 2024, incidents of fraud remained low and within risk
appetite. There were no confirmed cases of money laundering,
terrorism financing or insider trading. A small number of
suspicious activity reports were submitted to AML regulators
across the markets.
Bribery and corruption
Our commitment to countering bribery and corruption is
detailed in our Anti-Bribery and Corruption Policy, which is
approved by our Board and available on the policies section
of our website. This Policy seeks to ensure the Group complies
with anti-bribery and corruption laws in all markets where we
do business as well as complying with the requirements of the
UK Bribery Act. To ensure compliance with the policy, we
conduct market-level anti-bribery risk assessments annually.
Corruption risks are managed by an established framework
including first-line functional controls, second-line oversight
and specialised risk management with control assurance
andinvestigations conducted by subject matter experts
andthird-line independent assurance provided by the Group’s
internal audit function.
Our Anti-Bribery and Corruption Policy sets out the Group’s
zero-tolerance approach to corruption together with details
ofour mechanisms and controls to combat bribery and
corruption including anti-bribery risk assessments and annual
compliance checks, along with our processes for recording
and assessing conflicts of interest and gifts and hospitality.
Training on this topic was provided to all employees and
customer representatives in 2024 as part of our annual ethics
e-learning and relevant functions received additional targeted
training. There were no substantiated material incidents of
bribery or corruption in 2024 across the Group. In 2025, we
intend to review risk assessment options and mechanisms
andcomplete a holistic risk assessment procedure
proportionate and appropriate to the Group’s corruption risk.
Whistleblowing
The Group has mechanisms to enable individuals to raise
concerns about wrongdoing or breaches of the law in the
Group’s operations or business relationships. These internal
and external mechanisms for seeking advice and reporting
concerns about unethical or unlawful behaviour
andorganisational integrity are formalised in the Group
Whistleblowing Policy which is approved annually by the
Boardand available on the policies section of our website.
ThisPolicy,which is implemented in local language in all the
markets in which we operate, states that there should be
noretaliation against whistleblowers, sets out how to raise
aconcern and details processes for ensuring reports
arehandled properly.
Anyone, including all employees, customer representatives,
customers and suppliers, can raise concerns through the
whistleblowing processes which the Group has in place. Reports
can be made to independent services which are available at
any time and enable concerns to be raised in a variety of
languages, and anonymously if preferred. All whistleblowing
matters, however reported, come under the governance
processes set out in the Group’s Whistleblowing Policy.
The Whistleblowing Policy and related processes are owned
by the Chief Legal Officer and maintained by the Group legal
function. These whistleblowing systems and investigation
processes are overseen by the Group Ethics Committee,
which comprises the Chief Executive Officer, Chief Financial
Officer, Chief HR Officer and Chief Legal Officer.
TheCommittee meets quarterly and receives updates
ontheoperation of the whistleblowing systems together
withstatistical data reports and detail on outstanding
whistleblowing cases. All significant cases are escalated
immediately to the Committee which oversees their
investigation and meets as required to review and agree
actions and outcomes in relation to these cases. The Group’s
Audit and Risk Committee receives bi-annual reports from the
Chief Legal Officer covering statistical data on whistleblowing
reports, a summary of notable cases and key follow-up activity
from the previous reporting period.
Our whistleblowing processes comply with all requirements
of the EU Whistleblowing Directive and local implementing
legislation. The Group legal function performs compliance
checks to ensure that whistleblowing policies and processes
are embedded in all our markets and that governance is in
place for escalation, investigation and reporting of cases.
OurLegal Directors champion the importance of speaking up
and the value that this transparency brings to local businesses
and ensure that local boards are engaged in the importance
of whistleblowing.
In 2024, we documented our investigation processes in
aGroup-wide Investigations and Reporting Protocol which
ensures that cases are properly responded to and escalated,
thoroughly investigated and that outcomes are appropriately
decided on and actioned. The Protocol includes steps
toensure that confidentiality, discretion and independence
aremaintained at all stages of an investigation.
Allinvestigators received interactive training
ontheProtocolandhow to apply it in practice.
In 2024, 471 whistleblowing reports were received.
Alloftheseconcerns were, or are being, investigated
andresolved. 112 of the reports made (24%) were found to
beunsubstantiated. We continue to embed processes and
raise awareness through regular internal communications to
our employees and customer representatives and our annual
ethicsweek which highlights the importance of this issue.
Ourwhistleblowing services are publicly communicated and
available to suppliers, customers and other third parties and all
reports and insights into our business are of great value to us.
Managing conflicts of interest
Our Conflicts of Interest Policy provides colleagues in every
market with the guidance necessary to know how to identify
and declare potential conflicts as well as setting out
requirements to manage any such conflicts ethically
andinline with best practice. Our Responsible Procurement
Policyand Group Procurement Standards include
processestoensure conflicts in our supplier relationships
aremanaged appropriately.
In 2024 we focused on ensuring the Group’s policies
and processes for managing conflicts of interest were effective
and reflected best practice. We implemented processes for
recording and managing potential conflicts across the Group,
reporting material conflicts and gifts and hospitality registers
tothe Group Ethics Committee and escalating any material
perceived or potential issues to the Chief Legal Officer for
appropriate consideration and management. Our Legal
Directors emphasised the importance of effective management
of conflicts of interest with local boards. In 2025, we will provide
training on managing conflicts of interest to those areas of our
business where this is a particularly relevant issue.
Annual Report and Financial Statements 2024 61
Strategic Report
Modern slavery
We take appropriate steps to ensure that no forms of modern
slavery including forced labour, child labour, human trafficking
or any practices detrimental to employment rights, are taking
place in our business or supply chain.
The Group’s position on modern slavery is set out in our
Modern Slavery Policy, which is approved by our Board and
available on the policies section of our website. It includes
specific prohibitions against the use of forced, compulsory
ortrafficked labour, or anyone held in slavery or servitude,
whether adults or children, and states that the Group expects
the same high standards from all of its contractors, suppliers
and business partners. The Group publishes an annual
Modern Slavery Statement which is registered with the UK
Government’s modern slavery registry and available
onourwebsite. Oversight of compliance with the policy
ismanaged by the legal function, which works closely with
thehuman resources function and procurement function.
TheBoard approves the Policy and the Group’s Modern
Slavery Statement annually, and receives an update
onperformance of processes to combat this risk.
To address the risk of modern slavery in our own workforce,
theGroup’s Human Resources Control Framework and
relevant human resources policies are designed to ensure
asafe, fair and inclusive workplace for all our employees
andcustomer representatives. All employees are provided
witha written contract of employment and steps taken to
ensure that anyone employed has a right to work. The Group
does not employ children and has processes in place to
ensure that there are no incidents of withholding wages,
confiscating documents or similar.
Our Group Procurement Standards include requirements
for an annual risk assessment process across all our suppliers
to identify those in a location and/or industry with a high
prevalence of modern slavery risk and do further due diligence
on any potential coercive or exploitative practices.
Our annual ethics training includes modern slavery to ensure
our colleagues are aware of the issues involved, understand
how to identify signs of modern slavery and what to do in
response. There were no suspected cases of modern slavery
reported in 2024. The Group is committed to continuous
improvement in our approach to combatting modern slavery.
Anti-competition
We are committed to the principles and spirit of competition
law and similar laws in all markets in which we operate.
Our Competition Law Policy sets out our processes to ensure
employees understand these principles and do not engage
inanti-competitive behaviour. A copy of our policy is available
to view on the policies section of the website.
The Group was not subject to any regulatory findings or legal
action relating to anti-competitive behaviour or breach of
anti-trust or monopoly legislation in 2024.
Compliance with law and regulation
We comply with all relevant laws and regulations in all markets
in which we operate. We support regulation which protects
consumers and ensures that only responsible businesses
arepermitted to provide financial products. The Group’s
Consumer Protection Regulatory Compliance Management
Framework sets out the policies, procedures, structures
and responsibilities required to be implemented in all markets
to identify and manage compliance obligations across the
Group. The focus of the framework is to provide assurance
that the Group’s consumer credit products and services are
transparent and ethical as well as compliant with applicable
regulatory standards and legislation. The Group oversees the
effectiveness of management of the risk of non-compliance
and provides guidance on necessary mitigation measures
including adjustment to monitoring and controls appropriate
for increased regulation. The assurance activities performed
in 2024 did not identify any significant instances
of non-compliance.
We maintain good relationships with regulators,
legislatorsandgovernments who play a key role in shaping
the consumer finance sector. We respond constructively
toallregulatory audits and investigations to address any
findings, and continuously improve our business practices
inline with changing regulation. There have been no material
adverse regulatory findings, sanctions or fines against the
Group in2024.
Data privacy
The security and privacy of our customers, colleagues
and partners are top priorities for us. We process large
amounts of personal information every day and uphold
rigorous data protection standards to safeguard privacy
and protection of data. We are committed to protecting
the privacy of our stakeholders.
Our data protection approach is anchored in the following
principles:
– We only collect data that is relevant, use it solely
foritsintended purpose, and apply further data
minimisationpractices.
– We maintain transparency regarding our use
ofpersonaldata.
– We process data lawfully, including by obtaining consent
from individuals and in alignment with applicable local laws.
– We ensure accuracy of personal data upon request
and uphold individual rights under data protection
and privacy laws.
– We keep personal data confidential and secure.
Compliance with data protection and privacy legislation
isachieved through our Group Data Protection and Privacy
Policy which is reviewed annually to address emerging risks,
enforce control standards, ensure all personal information
isprotected, and individuals’ data protection rights are
observed. Breaches of this policy can result in disciplinary
action, including contract termination. This policy aligns not
only to our purpose, but also with applicable data protection
legislation, reflecting its significance within our Code of Ethics
and reinforcing employee responsibility in this area.
Other disclosures continued
International Personal Finance plc62
Our Group Data Protection Standards supplement the policy
with further operational guidance. Oversight is led by the
Group Data Protection Officer (GDPO) and the Chief Legal
Officer, who maintain accountability to the Board. The GDPO
is supported by a team of Data Protection Officers in each
market, responsible for advising and ensuring compliance
across the business. They also liaise with data protection
authorities and respond to individuals’ requests for information
on data processing activities.
A compliance monitoring programme ensures that our
controls are effective, with corrective actions taken when
necessary. Each year, under the GDPO’s leadership, we
develop a Group-wide data privacy plan. Data Protection
Officers provide regular updates to both the GDPO and local
market boards on progress, while the Group Audit and Risk
Committee oversees the plan’s global implementation.
All employees and customer representatives complete annual
data protection training, with tailored sessions provided for
specific roles where necessary. We also require our suppliers
to follow data protection principles, implemented through
our due diligence and contracting processes.
Management of data breaches is governed through
aDataBreach Policy which outlines the plan to action
together with roles and responsibilities. Data breaches can
occur in the form of a malicious attack or accidental error
andcan be widespread or impact one individual. We operate
a robust process to ensure data breaches are identified,
reported and resolved appropriately.
Errors occur from time to time, caused mostly by human error
or process flaws for which we undertake appropriate follow-up
actions to resolve. In 2024, we did not experience any
significant personal data breach cases requiring notification
tothe competent data protection authority and the impacted
data subjects.
In 2025, we will work to further enhance our privacy
compliance monitoring. We will also focus on training and
awareness relating to data protection and privacy, particularly
in areas involving the interplay with advanced technologies.
Our work will expand to cover emerging domains such
asAIand cloud computing, ensuring that we are well
prepared to manage evolving regulatory expectations
andprotect stakeholder data in this dynamic landscape.
Cybersecurity
Our Cybersecurity Governance Framework is designed to
ensure accountability, oversight and protection of the Group
against cyber risks. This framework is embedded in our Group
Information Security Framework and Cybersecurity Standards
and outlines the mandatory requirements across all our
markets. The Group Chief Information Officer (CIO) is
responsible for oversight of the framework. Recognising
the growing complexity of the cybersecurity landscape,
we appointed a Group Chief Information Security Officer
(CISO) in 2024 to strengthen our security position in response
to evolving technologies and innovations. The CISO reports
tothe CIO and is responsible for overseeing the Group’s
cybersecurity programme and providing regular updates
tothe Board on cybersecurity initiatives, risks, and progress.
The Group Audit and Risk Committee further oversees
the cybersecurity strategy’s global implementation,
ensuring alignment with strategic security objectives.
This governance structure reinforces accountability and
supports continuous improvement in our cybersecurity position
across the organisation. Our commitment to cybersecurity is
reinforced by this expanded leadership structure, as we adapt
to the demands of emerging technologies and the need for
continual innovation in safeguarding our information assets.
Each market has a dedicated cybersecurity team responsible
for implementing and enforcing our Group Standards,
conducting regular risk assessments, and ensuring
compliance with both Group policies and local regulatory
requirements. Our security monitoring systems are further
supported by a 24/7 Security Operations Centre (SOC),
which plays a crucial role in early breach detection
and incident management.
Employee awareness remains essential to our cybersecurity
strategy. Mandatory training programmes and regular
awareness campaigns are conducted to ensure that
employees are familiar with cybersecurity principles.
Eachemployee receives mandatory training before accessing
the Group’s information and later undergoes refresher training
onan annual basis. Targeted phishing campaigns are also
conducted to assess and enhance awareness levels across
the organisation.
Our commitment to cybersecurity includes policies and
standards designed to ensure all employees understand and
adhere to best practices in information security. We have
established Group Information Security End User Standards,
which are accessible to all employees and outline
fundamental cybersecurity responsibilities. For our IT function,
we maintain specialised Group IT Security Standards that
provide detailed requirements specific to technical roles.
Both sets of standards are cascaded and implemented across
our business, ensuring alignment and consistent adherence
to security protocols at both the Group and market levels.
This structured approach enhances our ability to safeguard
information across the organisation and reinforces
our cybersecurity resilience.
To mitigate risks, we perform vulnerability assessments and
penetration testing, and strive to implement security controls
aligned with best practices in managing information security,
for example, ISO 27001 specifications and the National Institute
of Standards and Technology (NIST) framework.
Particular areas of focus in 2024 included improving security
monitoring capabilities and strengthening security controls
in relation to cloud processing. We also aligned our ICT risk
management and resilience practices with the Digital
Operational Resilience Act (DORA). In 2025, we will continue
to enhance our breach detection and protection controls,
aswell as our incident management protocols.
Annual Report and Financial Statements 2024 63
Strategic Report
Health and safety
We are fully committed to the health, safety, and wellbeing
of our colleagues. The Board maintains overall responsibility
for health and safety, reviewing and approving the Health
and Safety Policy at least annually, while receiving an annual
report on safety performance. The Group Credit and Risk
Director is the executive responsible for health and safety with
the Group Safety Manager providing oversight and leading
a global team of health and safety professionals across each
of our markets. This team is responsible for implementing
our Global Health and Safety Framework, ensuring consistent
adherence to our standards. Oversight, governance and
assurance are upheld through Quarterly Safety Management
Review Committees at market board level in each home
credit business. Additionally, the Group Safety Manager
performs annual safety reviews of each market to ensure
theSafety Management System operates effectively in line
withthe Group’s standard framework. Annual self-assessments
of compliance with safety management system protocols
arealso conducted by the second-line control function,
themembers of which are trained specifically to undertake
these reviews. Further assurance is provided through periodic
reviews conducted by the Group’s internal audit function.
Our approach to safety includes a comprehensive training
programme, supplemented with regular communication
andsafety campaigns to keep colleagues informed and
reminded of essential safety practices. In 2024, all our home
credit businesses successfully retained ISO 45001 accreditation
following an independent surveillance audit. This ongoing
accreditation underscores our commitment to best practice
in occupational health and safety management, promoting
continual improvement across our global operations.
While our IPF Digital operations are not required to pursue ISO
45001 accreditation due to their ‘low-risk’ office environment,
they continue to follow the standard principles of ISO 45001
for best practice safety management.
The importance of reporting all health and safety-related
events is crucial and colleagues are reminded continually
of this requirement within their training and safety
communications. All events are recorded and investigated
systematically by trained personnel to determine root causes,
lessons to be learned, and corrective and preventative actions
to minimise the risk of reoccurrence. The table below captures
the total number of workers who experienced a work-related
safety event during 2024 and the harm caused by this event.
Work-related safety events and harm caused 2024
% of
colleagues
Total work-related safety events 774 3.5%
Worker Injury Type
No injury 482 2.2%
Minor injury 158 0.7%
Moderate injury 99 0.4%
Serious injury (requiring hospital treatment) 35 0.2%
Life-threatening injury 0 0.0%
Fatalities 0 0.0%
The majority of work-related safety events (62%) resulted in
“NoInjury,” including 20% car accidents, 30% verbal threats
and 40% theft from street crime. This performance highlights
robust reporting processes and the effectiveness of safety
training in preventing escalation and physical harm.
Enhancing lone worker safety
To ensure the safety of Customer Representatives
working independently in customers’ homes, we
launched a field risk assessment survey across our home
credit businesses. The survey evaluated understanding of
risks, including physical assault, road safety and
psychosocial challenges, while ensuring compliance
with safety protocols. With an 89% response rate, the
survey highlighted strong adherence to safety protocols
and the effectiveness of our training. It also identified
opportunities to enhance support for managing
psychological risks, aligning with ISO 45003 standards for
psychological safety and colleague feedback offered
valuable insights into hazards and controls, helping us
refine safety practices. This initiative reinforced ISO 45001
compliance and strengthened our Global Care
Programme, furthering our commitment to team
wellbeing.
89%
response rate to our field
risk assessment survey in 2024
Other disclosures continued
International Personal Finance plc64
In 2024, we made significant strides in advancing the Group’s
Global Framework for the Management of Psychological
Health, Safety, and Wellbeing, developed in alignment with ISO
45003—the world’s first global standard for workplace mental
health. We have fully defined all necessary processes and
procedures, created comprehensive training materials to build
awareness and drive application across the organisation,
and engaged external experts to guide the psychological
risk assessment phase. This phase will deliver valuable insights
and enable us to prioritise key psychological risk management
issues effectively.
Implementation of the framework is progressing on schedule,
with each business unit achieving milestones as planned.
We are firmly on track to secure ISO 45003 accreditation
across all markets by 2025, reinforcing our unwavering
commitment to best practices in psychological health
and creating a supportive, mentally healthy environment
for all employees and customer representatives.
Engagement with government,
trade bodies and regulators
We actively contribute to policy developments relevant
to the provision of lending products for underserved
communities, in particular to drive policy change that enables
our purpose of building a better world through financial
inclusion. We advocate for change on the issues that matter
most to our customers with governments, non-governmental
organisations and regulatory bodies. We are a member
of the following trade associations:
– Poland: Foundation for Financial Development;
Confederation Lewiatan, Employers of Poland; Association
of Employers and Entrepreneurs; Federation of Polish
Employers; British-Polish Chamber of Commerce in Poland.
– Hungary: Association of Non-Banking Financial Institutions;
Hungarian Business Leaders Forum; Association of
Hungarian Manufacturers; Association of Hungarian
Executives.
– Romania: Association of Financial Enterprises; American
Chamber of Commerce in Romania; British-Romanian
Chamber of Commerce; Foreign Investors Council;
Association of Credit and Leasing Employers; Aspen
InstituteRomania; National Association of Treasurers.
– Czech Republic: Association of Non-Banking
FinancialInstitutions.
– Mexico: Employers Confederation of the Mexican Republic;
Prodesarrollo; Fintech Mexico.
– Estonia: Estonian Credit Providers’ Association;
Finance Estonia; Estonian Chamber of Commerce.
– Lithuania: FINCO.
– Australia: Fintech Australia.
All of our public policy engagements and lobbying are aligned
with the Paris Agreement for direct activities, and none of the
trade associations of which we are a member, as far as we
areaware, has taken a position not aligned to the Paris
Agreement on climate. In 2024, we did not undertake any
public policy advocacy activity concerning climate change.
The Group is a politically neutral organisation. This approach
is formalised in our Political Lobbying Policy, which is overseen
by the Group Nominations and Governance Committee.
We comply with legal requirements on disclosing political
donations and we do not provide financial support to political
parties. In 2024 and consistent with this policy, the Group
made no political contributions directly or indirectly,
includingin-kind contributions. No governmental body
hasanyownership stake in the Group.
In 2024, our key areas of focus with governmental and
regulatory bodies comprised responsible lending, financial
inclusion, our Invisibles programme and the regulation
ofconsumer loans to consumers. A particular focus for our
advocacy efforts is our annual Financial Wellbeing Report
which surveys around 4,500 consumers in nine markets.
This exercise provides extensive insights on the views of
consumers on a range of important financial and economic
issues including savings and borrowing habits, and knowledge
about personal finances. We use this research to advocate
forthe needs of consumers to key groups of decision makers.
Beyond this, we operate our Group-wide Invisibles programme,
the objective of which is to work with professional organisations
to map groups in society which do not have access
totheregulated financial market. See page 58 for
moreinformation.
In 2025, our focus will be on continuing to collaborate with
key stakeholders to ensure legislation and regulation takes
account of the need for responsible lending for all groups
ofcustomers, with a special focus on regulation emerging
from the European Union. We will also engage with NGOs
and our communities to deliver our Invisibles and financial
education programmes.
Provident Polska at the Economic
Forum in Karpacz
In September 2024, Provident Polska participated in the
Economic Forum, Central and Eastern Europe’s largest
business gathering, strengthening relationships with key
stakeholders and showcasing our leadership on financial
sector issues. A key highlight was Botond Szirmak, head
of our European home credit division, joining the
opening debate on Europe’s economic future and the
private sector’s response to geopolitical challenges,
highlighting our proactive role in shaping business
agendas. Polish management board members also
contributed to panels on financial market development
and regulatory frameworks, reinforcing our commitment
to responsible business practices and driving positive
industry change.
Annual Report and Financial Statements 2024 65
Strategic Report
Tax management
We are a responsible taxpayer, committed to ensuring
compliance with tax law and practice in all of the territories
in which we operate, including the UK, and to operating
in a straightforward and transparent manner in our dealings
with tax authorities while recognising our responsibility
to protect shareholder value.
The Group has a publicly available tax strategy which is
available in the policies section of our website. This strategy
is approved by the Board annually and the Chief Financial
Officer has Board responsibility for this area. Our tax strategy
focuses on ensuring that we pay the right amount of tax, in the
right place, at the right time. Transactions between Group
companies are effected for tax purposes in accordance with
the arm’s length principle as enshrined in the OECD’s Transfer
Pricing Guidelines. The Group does not seek to reduce its
effective tax rate through cross-border profit shifting or similar
artificial arrangements and we do not seek to transfer value to,
or otherwise undertake transactions with, tax havens. In the
absence of a globally recognised definition of tax havens,
theGroup has adopted the EU’s list of non-cooperative tax
jurisdictions for this purpose.
Our tax affairs are managed by a global team of experienced,
qualified tax professionals supplemented, where necessary,
byadvice from external specialist tax advisers. Where there are
uncertainties regarding the treatment of the Group’s activities,
transactions or products, we seek to engage in an open,
transparent and constructive dialogue with the relevant tax
authority where this is available and seek to obtain rulings in
advance where appropriate.
In order to give effect to the principles contained in the
tax strategy there is a Group-wide tax policy and control
framework which is implemented in all operating entities.
Tax risk is one of the principal risks in the enterprise risk
management methodology and is therefore reported
andreviewed regularly by the Risk Advisory Group
andtheAudit and Risk Committee.
Our overall approach to tax is included in our Code
of Ethics and reinforced in the global ethics training
whichisundertaken annually by all colleagues.
Specificanti-facilitation of tax evasion training is provided
to colleagues identified as working in roles where there
is a relevant consideration.
Environment
Addressing the environmental challenges of our time is urgent
and complex, but also an opportunity, as we fundamentally
transform our global economy to meet the need for
asustainable future. At IPF, we are determined to play
ourpart,consistent with our purpose and relevant business
and risk considerations.
Our approach to addressing the climate
change challenge
In 2023, the Board agreed an ambition to be net zero by 2050,
across all our operations and supply chain.
Currently, the lending we undertake, consisting of originating
unsecured consumer loans, is not covered by any global
methodology dealing with the measurement of financed
emissions. This reflects the fact that, as a lender, we cannot
know what our customers use the funds we lend to them for.
We will continue to monitor guidance on this topic from
credible international bodies to determine if our approach
to financed emissions should change, and will provide further
updates on this point in future Annual Reports.
In respect of contributing to the financing of the transition
to a low-carbon economy, our assessment is that the Group’s
current products are unlikely to be suitable for helping finance
transition efforts for our customers in a way which would be
aligned to our purpose or customer needs. This is due to the
requirements of the customers we serve, and the amount lent
on average to each customer. We will continue to review this
periodically to understand if this position changes across
ourmarkets.
In 2024, we have focused work on reducing our environmental
footprint by addressing Scope 1 and 2 emissions.
Managing our operations
Our Environment Policy drives our environmental strategy,
andis overseen by the Chief Executive Officer and the Board.
Following this policy, we will continue to reduce our
environmental impacts through:
– replacing diesel and petrol cars with lower emission
fuelvehicles;
– moving our offices to renewable electricity and
energy-efficient technology, such as LED bulbs
andsensorlightingwhere possible;
– ensuring core data infrastructure activities include
deployment of cloud-based services, using less energy
thanconventional data storage;
– recycling materials, collecting used paper, mixed recycling
including plastic bottles and cans, and food waste; and
– reducing paper use and using printed materials
moresparingly.
Other disclosures continued
£168m
Total tax contribution in 2024*,
supporting the wider economy.
* The total tax contribution in 2024 comprised £73m taxes paid representing
a cost to the Group (including profit taxes, employer payroll taxes and
irrecoverable VAT/sales taxes) and £95m taxes collected from employees
and customers on behalf of governments (including taxes collected on
employee salaries and net VAT collected).
International Personal Finance plc66
Greenhouse gas emissions (GHG)
IPF reports Scope 1 and Scope 2 emissions in line with current
regulations detailed below, comprising electricity, district
heating, gas and fuel for cars. Of this, transport by car
is our most material GHG emission.
We report annually on our material carbon emission sources
required under the Companies Act 2006 (Strategic Report
and Directors’ Report) Regulations 2013 – Scope 1 and 2 GHG
emissions and energy consumption data. We have applied
the GHG Protocol Corporate Accounting and Reporting
Standard to calculate our emissions data and have used
emission factors from the UK Government’s latest GHG
conversion factors and the current edition of the IEA
emissionfactors for non-UK electricity.
The emission data covers all our offices across the globe.
These sources fall within our Consolidated Financial
Statements. Where data was incomplete, we have
extrapolated data in line with this methodology.
In 2024, the Group’s GHG emissions for Scope 1 and 2
reduced by 8% year on year. We are also pleased to report
that overall emissions have reduced by 35% since 2019. This
positive trend is due primarily to the gradual replacement of
diesel and petrol cars with lower emission LPG vehicles in the
Company’s fleet, plus a reduction in reliance on carbon
intensive district heating.
In 2024, in accordance with the Large and Medium-sized
Companies and Groups (Accounts and Reports)
Regulations2008:
i. the Group’s Scope 1 and 2 emissions in the UK represent
0.3% of the Group’s total (2023: 0.2%);
ii. the Group used 3.0 MWh of electricity (2023: 3.9 MWh)
withthe UK representing approximately 5.4% of the Group’s
total (2023: 3.1%); and
iii. no actions were taken during the year with the express
purpose of increasing the Company’s energy efficiency.
For Scopes 1 and 2, transport by car will remain our priority
in2025, and we plan to continue replacing our petrol and
diesel car fleet with LPG and hybrid cars, where possible.
Scope 3 (indirect emissions) have not been included in
our2024 reporting. However, we intend to assess how best
tomeasure indirect emissions (Scope 3) in 2025. In line with
best practice, we have restated our Scope 1 and 2 emissions
for 2023 in the table below, where some of the data was based
on estimates.
Our GHG emissions report has been reviewed and verified
by Be Sustainable Limited and the statement of verification
can be found in the sustainability section of our website
at www.ipfin.co.uk.
Tonnes CO
2
e
GHG emission
sources Travel and utilities 2019 2020 2021 2022 2023* 2024
Difference
vs 2023
2024
difference
vs 2019
Scope 1 Gas 927 1,008 476 468 721 617 (14%) (34%)
Business travel by car 24,274 16,304 18,277 19,012 17,826 16,816 (6%) (31%)
Scope 2 Purchased electricity and
district heating
3,236 2,664 2,494 1,944 1,713 1,193 (30%) (63%)
Scope 1 and 2 28,437 19,976 21,247 21,424 20,260 18,626 (8%) (35%)
CO
2
e emissions per customer 0.013 0.011 0.013 0.013 0.013 0.011
* 2023 data restated where based on estimates
We do not believe that as a Group we pose particularly
significant risks to the environment through our business
activities. As detailed above, our greatest source of emissions
relates to the transport by car undertaken by our customer
representatives. Given the nature of our supply chain and the
types of goods and services we purchase, we have not
identified any specific material risks arising from our supply
chain other than the need to work with suppliers to reduce
emissions in order for us to achieve our net zero target by 2050.
Looking ahead
Our focus in 2025 will be to understand how we establish
Scope 3 base year data for our supply chain, and develop
acredible strategy for how we will meet our targets. We will
continue to track progress against our targets, monitor
relevant scientific trends, and regularly review and adjust
ourstrategy and targets as needed. We intend to report
ourprogress against our environmental plans in future
AnnualReports.
We are still at an early stage in our journey. We recognise
there is a huge amount of progress still to be made.
Over the coming years, we aim to increase our momentum
as well as continuing to be transparent about our progress
and developing appropriate metrics to track our progress
to net zero by 2050.
Annual Report and Financial Statements 2024 67
Strategic Report
Management oversight
The CLO oversees the work of analysing the potential
future impact of climate change on the Group and submits
the results of scenario assessments to the Audit and Risk
Committee. The CLO is also responsible for the Responsible
Business Strategy on a day-to-day basis including providing
updates that include any climate-related issues of relevance
to the Executive Oversight Group. Regular meetings of senior
management in 2024 included detailed consideration of
climate issues. The CLO reports directly on all these matters
to the CEO.
A further means of management oversight is the incorporation
of a specific climate-related section in the annual budget
process as well as the creation of a dedicated climate
resilience fund, which is held centrally and available
to each market to help reduce climate impacts and
enhance resilience.
The diagram above provides an overview of the Group’s
management governance bodies with climate-related
oversight responsibilities.
Task Force on Climate-related Financial Disclosures
TCFD Report
Introduction
This Task Force on Climate-related Financial Disclosures (TCFD)
report serves as the Group’s 2024 disclosure of the climate-
related risks and opportunities to our business. It describes
how climate change scenarios may impact the Group, and
outlines our strategy to mitigate these potential impacts to
ensure our resilience as a business.
The report is structured in accordance with the TCFD
recommendations. As such, it covers our governance
structures, strategy, risk management, and targets
and metrics. We recognise that the global financial system
is connected to the health of the planet and that a changing
climate has implications for business and society. Therefore,
our approach concerns not only mitigating the transition and
physical risks of climate change to our business, but also our
actions to tackle climate change at source, to help the
successful transition to a low-carbon economy. While we
recognise that climate change poses risks to our business
model, we believe there may also be opportunities arising
from this trend which also require regular evaluation.
Governance
Sustainability considerations are embedded in the way we
run our business, with the objective of ensuring we align our
business priorities with society’s expectations. Our commitment
is outlined in the Group’s Corporate Sustainability Policy which
is available in the policies section of our website. This sets
out our commitment, in particular, what is expected from
the Group and those it does business with in terms of
responsible business conduct and sustainable development.
This commitment supports our business decision making
at all levels, and provides a frame of reference for how
we want to deal with business opportunities and risks
in the context of direct and indirect sustainability impacts.
Our Board and management-level governance structures
and oversight bodies incorporate climate considerations
as part of their responsibilities. We seek to ensure that oversight
of sustainability and climate-related risks and opportunities
are embedded across the Group.
During 2023, we embedded oversight of sustainability and
climate-related risks and opportunities into management
governance structures at multiple levels of the Group.
In 2024, we continued to evolve our governance structures
to establish effective and resilient governance for climate- and
sustainability-related issues. In 2025, we will continue to embed
climate considerations into the Group’s strategy and decision-
making processes.
Board oversight of climate risks
The Group Board oversees our sustainability-related activity
including oversight of the risks and opportunities associated
with climate change, while the Chief Executive Officer (CEO)
has overall accountability for management of this area.
This activity has been delegated by the CEO to the Chief
Legal Officer (CLO), who has specific responsibility for the
management and implementation of measures detailed in our
Responsible Business Framework, including assessing risks and
opportunities from climate change, and also ensuring these
are identified and managed appropriately. We will continue
to monitor the effectiveness of these arrangements in 2025.
Board of Directors
Audit and Risk Committee
Remuneration Committee
Responsible for: The Group’s
strategy, organisation and
oversight of performance
including climate-related
matters. It sets the strategic
direction for sustainability at
the Group and has ultimate
responsibility for sustainability-
related governance.
2024 activity: The Board
reviewed and approved the
Corporate Sustainability Policy
and the broader Responsible
Business Framework, which
includes climate-related matters.
The Board monitors progress
towards the objectives detailed
in this Framework through review
of management information on
a quarterly basis and periodic
detailed updates on this topic.
Responsible for: Reviewing
financial and non-financial
disclosures and risks related
to climate change.
2024 activity: The Committee
reviewed trends in sustainability
reporting, in particular at EU
level, as well as reviewing
assessments of the risks and
opportunities of climate change
relevant to the Group and
the results of scenario analysis
undertaken to assess exposure
to physical climate risk.
Responsible for: Approving
performance measures,
including those relating to
climate for senior management,
ensuring they reflect
stakeholder views.
2024 activity: The Committee
reviewed proposed ESG
metrics (including climate) for
inclusion in senior management
compensation-related decisions.
How our Board oversees climate
International Personal Finance plc68
Sustainability function
The Group’s sustainability function is led by the CLO, who
is a member of the executive team and attends the Group
Board meetings. The function works in collaboration with other
functions and markets to implement the Group’s Responsible
Business Framework on a day-to-day basis including climate-
related activity. A new Group-level appointment is now in
place to develop and take forward this strategy.
Strategy
It is recommended that organisations disclose the nature and
impact of their material climate-related risks and opportunities,
as well as the resilience of their strategy under each chosen
climate scenario. We recognise that both climate-related risks
and opportunities have the potential to impact our business.
We have therefore identified and assessed the potential
materiality of these risks and the opportunities, so we can
maximise the positive impacts and minimise the negative
impacts on our business. We consider climate change
alongside other factors when developing our overall strategy.
We recognise that assessing and quantifying the level
of impact from climate change is an emerging practice.
A greater level of estimation and assumption is required
to address the long-term and forward-looking nature
of climate-related risks and opportunities, which causes
limitations in assessing how such trends impact our strategy.
In 2025, we will engage wider internal stakeholder groups to
understand and assess climate risks and opportunities through
consultation and workshops, and will enable individual
countries to consider climate risks/opportunities specific
to them in their business planning processes.
IPF strategy time horizons
The time horizons to be used for assessing risks and
opportunities arising from climate change are set out below:
Time period Years Rationale
Short
term
0-3 years Reflects the average term of
our loans and the flexibility in
both our credit strategies and field
operations that allow us to adapt
to rapidly changing scenarios.
Medium
term
3-10 years Reflects the strategic planning
horizon used by the Group.
Long
term
10+ years Based on the useful economic
life of the majority of Group assets.
Governance body Escalation path
Responsible Business
Framework Executive
Oversight Group
Comprises all members of the UK Executive and is chaired by the
Chief Legal Officer (CLO). Responsible for the overall execution
of the Group’s Responsible Business Framework, which covers
climate-related issues, in alignment with the strategic direction set
by the Board. It oversees input to the Group’s strategic processes
to ensure climate is given appropriate consideration in long-term
strategy and planning. It receives regular updates from the
Responsible Business Framework Steering Group to assist
it with these objectives.
Board of Directors
Risk Advisory Group
Meeting frequency: Quarterly
The Group-wide risk oversight body, comprising a mix of senior
leaders from Group and markets, is responsible for monitoring
key risks, including climate risk. The Risk Advisory Group receives
updates at every meeting concerning the status of climate
risk across all markets.
Audit and Risk
Committee
Global Executive (GE)
Meeting frequency:
Three times per year
The Group-wide steering body, comprising the most senior leaders
at Group and market level, provides insight and challenge on key
climate-related risks and opportunities.
Responsible
Business
Framework
Executive
Oversight Group
Responsible Business
Framework Steering Group
Meeting frequency: Monthly
Helps drive key climate initiatives, as part of the broader
Responsible Business Framework. It provides governance,
strategic leadership and execution guidance, making
recommendations to the Executive Oversight Group.
Responsible Business
Framework Champions Group
Meeting frequency: Monthly
Responsible for integrating and implementing the Responsible
Business Framework and, where applicable, sustainability
best practices and climate strategy into the activities of
each of our markets.
Annual Report and Financial Statements 2024 69
Strategic Report
Principal risks
Risk type Potential effects
Physical risk
Physical risks are those
related to the physical
impacts of climate change.
Acute
Increased frequency and severity of extreme weather events affecting customers, customer representatives and
employees could impact the success of our business model.
Chronic
Permanent changes to sea, river or lake levels could impact our ability to conduct our business in some areas.
Transition risk
Transition risks are those
related to the impact arising
from changes in climate
policies, or changes in the
underlying economy due to
decarbonisation. These risks
emerge from policy, legal,
technology, and market
changes as the economy
shifts towards using
less carbon.
Policy and legal
(i) Exposure to litigation due to our inability to comply with new carbon-related requirements; and (ii) Increased
operating costs due to the increased cost of transport or carbon pricing initiatives.
Market
Uncertainty around the costs incurred in moving to a net zero economy.
Reputation
(i) Increased stakeholder concern or negative stakeholder feedback relating to our ability to transition
effectively to a lower-carbon economy; (ii) Increased shareholder concern or negative shareholder feedback
relating to our strategy to address climate-related risks; and (iii) Employee concern or negative feedback
relating to our strategy to address climate-related risks.
Opportunity type Potential effects
Resource efficiency (i) Reduced operating costs through reduced air and other travel; (ii) Reduced operating costs through
reduced paper consumption; and (iii) Potential for reducing costs and environmental impacts through
remote working.
Energy source (i) Use of lower-emission sources of energy; (ii) Use of supportive policy incentives; and (iii) Use of new
technologies, which have the potential to reduce costs.
Products and services Development of new products and services through innovation to address climate challenges.
Markets Increased attractiveness of the Group to customers and employees by effective execution and communication
of the Group’s climate strategy.
Resilience Enhanced access to funding at attractive pricing for organisations which are making good progress on
eliminating and reducing greenhouse gas emissions.
It is envisaged that this process of risk identification will be repeated in 2025.
Assessing materiality
For the purposes of assessing climate-related risks and opportunities, the definition approved by the Board and GE was that for
a climate-related risk or opportunity to be deemed material for strategic planning purposes, it would have a significant impact
on the profitability of the Group (e.g.through delayed customer repayments), expenditures (e.g. increased costs), assets
(e.g. closing branches), or financing (e.g. loss of investors due to legal breaches). “Significant” for these purposes means
a material impact on the Group’s ability to meet the targets detailed in our 2025 budget.
Task Force on Climate-related Financial Disclosures continued
A number of factors informed the selection of these periods,
including changes in climate-related legislation, the volatility
of energy prices and the need to align with the periods
considered in the Group’s scenario analysis of climate-related
risk. These typically consider scenarios that span thirty years or
longer and are discussed in more detail below. The short-term
time horizon aligns to our risk management framework, and
the medium-term horizon is aligned to timeframes used
internally for planning purposes. The long-term time horizon
was chosen to capture the impact expected from countries
in which the Group operates taking steps to meet their
commitments as detailed in the 2015 Paris Agreement.
Defining risks and opportunities
Details of how we define climate risks and opportunities are set
out in the table opposite.
Following stakeholder feedback, it was noted that the
attractiveness to employees of the Group’s approach to this
area should be regarded as a risk as well as an opportunity.
The opportunities arising from enhancing our ability to
manage transition risk well and move to more remote working
(with consequently lower costs and environmental impacts)
was also highlighted. This process resulted in the following
definitions being adopted by the GE and approved by the
Board in terms of risks and opportunities which could be
relevant to the Group.
International Personal Finance plc70
Risk type Risk Short term Medium term Long term
Impacts
Low
impact
Medium
impact
High
impact
Low
impact
Medium
impact
High
impact
Low
impact
Medium
impact
High
impact
Physical Acute-chronic
Transition
Policy and legal
Market
Reputation
Opportunity type Short term Medium term Long term
Impacts
Low
impact
Medium
impact
High
impact
Low
impact
Medium
impact
High
impact
Low
impact
Medium
impact
High
impact
Resource efficiency
Energy sources
Products and services
Markets
Resilience
Over the longer term, there was a consensus that risks and opportunities were likely to be of much higher relevance. This reflected
the assessment we made of physical climate risk through scenario planning, and our assessment of the broader market and
regulatory trends evident in each market.
Next steps:
– identify the strategic impacts of creating a credible transition plan;
– review in more detail the potential impact of transition risks on the Group’s Next Gen strategy; and
– using updated scenario models, analyse the resilience of the Group’s business strategy to increasing climate risks
and opportunities.
Integration with our strategic planning process
The work undertaken confirmed that the actual or potential impacts of climate-related risks and opportunities on the Group over
the short term are unlikely to significantly influence the Group’s approach in its markets or to its customers due to climate change.
The results of the scenario analysis undertaken and discussed in more detail on page 72 provide further confirmation that climate
change is not expected to have a material impact on the Group’s current strategy or financial viability in the short term
under the most likely climate scenarios.
Completed assessments of risks and opportunities are incorporated into the strategic planning process, and conclusions provided
to the Board as part of this process.
Determining climate risks and opportunities over different time periods
Risks and opportunities have been assessed by members of the GE and Audit and Risk Committee as to how likely it is that
they would impact the Group materially over different time periods. Impacts were assessed as follows: (i) High impact indicated
significant risk or opportunity on the Group; (ii) Medium impact indicated moderate influence on the Group; and (iii) Low impact
indicated minimal effect on the Group. The process indicated material impacts from climate risks and opportunities are not
assessed as likely over the short term.
Annual Report and Financial Statements 2024 71
Strategic Report
is representative of a scenario that aims to
keep global warming likely below 2°C above
pre-industrial temperatures. It envisages
emissions peaking and then declining with
global temperatures increasing at below 2°C.
is the highest baseline emissions scenario
inwhich emissions continue to rise throughout
the21
st
century. Therefore, climate change
projected under RCP 8.5 will typically be more
severe than under the other two scenarios
considered by the Group.
The following scenarios have been used:
4°C
3°C
2°C
1°C
0
is described as a moderate scenario in which
emissions peak around 2040 and then decline,
limiting the global temperature increase to 2-3°C.
IPCC
RCP 8.5
Task Force on Climate-related Financial Disclosures continued
IPCC
RCP 2.6
IPCC
RCP 4.5
Risk management
We have fully integrated climate-related risks into broader risk
management practices and gained deeper insights into this
risk category by using climate scenarios. We remain focused
on identifying and measuring climate-related risks relevant to
our business strategy, using our revised risk appetite statement
and key risk indicators.
Risk framework
The Group uses an enterprise risk management (ERM)
methodology to identify, report and manage risks. This is
defined centrally, and implemented in each of our markets.
This approach allows risk management and reporting to
balance the importance of having consistency of approach,
measurement and risk categorisation across the Group,
together with the value of having local expertise and risk
action plans.
Risks are identified collectively across the Group and are
classified against a taxonomy of 21 key risks including climate-
related issues. Each category is assigned to a member of the
Group’s senior leadership team or one of their reports, who
is accountable for managing the identified risk as first-line
risk owner. For each risk, the ERM requires the first-line risk
owner to ensure ongoing measurement/monitoring as well
as improvement plans and training to enhance risk mitigation.
Each first-line risk owner updates the Risk Advisory Group
(RAG) on their respective risks for discussion and oversight.
Each risk is assessed to determine probability and severity,
and assigned a score accordingly. These risk scores allow
the Group to determine the relative significance of each
risk in relation to other risks. The RAG meets quarterly
to consider these topics.
Processes for identifying and assessing
climate-related risks
Our climate-related risk management approach aims
to assess and manage the risks posed by climate change
to our business, and seeks to integrate climate considerations
into risk management practices.
The CLO is the first-line risk owner for climate risk, engaging
with internal stakeholders to understand the level of importance
and potential climate-related impacts on the Group which are
reported as a series of KPIs to the RAG to provide insight on this
topic. These KPIs include assessment of whether there have
been changes to policy and legal issues, market trends and
reputational matters, as well as physical risks.
Scenario analysis
We have conducted scenario analysis, using the three
climate scenarios described opposite to explore and assess
the resilience of our Next Gen strategy to the physical risks
arising from climate change. This helped us understand which
physical risks could potentially have the largest impact on the
Group across different time horizons, and informed our efforts
to better manage and monitor these risks. We used external
datasets on climate trends and internal datasets on the
locations of our premises worldwide to model the
potential impact of such risks.
We used the outputs of the high-level impact analysis for all
material climate-related risks identified under three different
Representative Concentration Pathways (RCP) over different
time horizons to better understand the potential impact
of climate-related risks and opportunities on our business.
These three scenarios were chosen as they represented
a diverse range of pathways to be able to understand the
impact of physical climate risk.
The outcomes of these assessments were considered by
the Audit and Risk Committee. The output of this modelling
showed that in the short term, there were no immediate
material risks and exposures that would impact strategy,
performance or liquidity.
The scenario analysis allowed us to be more targeted
in understanding the current resilience we have against
climate-related risks, and will enable focus on developing
further mitigation strategies across the Group where necessary.
The Group’s overall assessment was that our business model
and strategy are resilient to climate risks and opportunities in
the short term. The Group does not envisage material impacts
on financial performance or financial position in the short term
and will continue to review through the regular strategy
process the potential for this position to change.
International Personal Finance plc72
Scope 1 Scope 2 Scope 3
Achieving our net zero target will require the following actions:
Energy
efficiency
Low/zero
emission
alternatives
Operational
emissions
Reduce our Scope 1 and 2 emissions through energy efficiency, electrification of
our buildings and vehicles, renewable energy sourcing and replacing fossil fuels
with low emission alternatives.
Reduce Scope 3 operational emissions by engaging with our key stakeholders,
including suppliers, to track, manage and reduce their GHG emissions. Plus include
Scope 3 travel emissions for example from air travel.
Metrics and targets
Greenhouse gas emissions (GHG)
We are committed to reducing GHG emissions in line with the
Paris Agreement. We make disclosures on the Group’s direct
Scope 1 and 2 emissions in line with the GHG Protocol
methodology on page 67.
Emissions targets and metrics
Our overall target is to be net zero across our operations and
supply chain by 2050. This commitment means a public
undertaking by the Group to achieve progress in three areas:
1. the carbon emissions of our own operations – our offices,
branches and data centres;
2. the emissions resulting from the energy we purchase to
operate our business; and
3. the emissions of our value chain, such as our suppliers’
emissions and our business travel emissions.
We are working to eliminate and reduce emissions in line with
the net zero standard set by the Science Based Targets initiative.
Other environmental metrics and targets
The Group is committed to wider environmental improvements
as well as reducing its emissions.
The Board has agreed targets for the Group using 2025
as a baseline to:
– divert 90% of waste from landfill by 2034;
– source 100% of paper from sustainable sources; and
– reduce paper use by 50%.
Focus on our supply chain
Our target to be net zero in our operations by 2050 will
be a catalyst, influencing our supply chain to deliver better
services and products. Our initial assessment is that our supply
chain emissions are concentrated in a small number of large
suppliers. We will focus on engaging these key suppliers to
adopt credible reduction targets and develop decarbonisation
pathways to achieve this goal. In the medium term, our goal
is to integrate carbon pricing into sourcing and procurement
decisions, alongside net zero clauses into our tender processes.
Interim targets
Our Board has approved the following interim
targets to be delivered by 2034
Next steps
– measure and report Scope 3 business travel
GHG emissions;
– assess how to measure and report supply chain
GHGemissions;
– measure and report waste to landfill and paper use;
– commit to set science-based targets, and commit
toseek verification of these by the Science Based
Targetsinitiative;
– work to eliminate and reduce emissions in line with
thenet zero standard set by the Science Based
Targetsinitiative; and
– move to external verification of GHG data to the
ISO14064 standard.
100%
renewable energy
in our head office
locations globally
Transition
90%
of our global fleet to EV
or ULEV models where
EVs are not viable
50%
of our vendors by
addressable spend
to set their own 1.5°C
aligned climate targets
Identify
and pursue
opportunities
to reduce the distances
travelled by our customer
representatives, thereby
reducing this source
of emissions
Energy
efficiency
Electrification
of buildings
and vehicles
Renewable
energy and
replacing
fossil fuels
Suppliers
Travel
emissions
Next steps
– include broader ESG risks into risk management, which will
impact the Group’s indirect greenhouse gas emissions;
– engagement with senior management to ensure input
on climate related considerations; and
– explore extending analysis of exposure to physical
climate risks to areas where our customers live and work.
Mitigation and resilience measures
The Group has sought to implement credible mitigation
and resilience measures, including establishing targets
for energy efficiency measures, scenario analysis
and reporting transparency.
Annual Report and Financial Statements 2024 73
Strategic Report
TCFD compliance statement
The Group has complied with the requirements of LR 9.8.6(8)R by including climate-related financial disclosures consistent
with the TCFD recommendations and recommended disclosures.
The climate-related financial disclosures made by the Group also comply with the requirements of the Companies Act 2006
as amended by the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022. Details of how
the Group complies with these requirements are set out in the table on page 76.
Governance
Summary Alignment Action in 2025 Reference
a. Describe the board’s
oversight of climate-related
risks and opportunities.
The Board has responsibility for oversight
of risks and opportunities from climate
change. Responsibility for risk oversight
delegated to the Audit and
Risk Committee.
Aligned Embed climate considerations
into the Group’s strategy and
decision-making processes.
Page 68
b. Describe management’s role
in assessing and managing
climate-related risks
and opportunities.
Our Responsible Business Framework
Steering Group oversees management
of climate risks and opportunities. These
efforts are overseen by our Chief Legal
Officer, who is a member of the
UK Executive.
Aligned Up-skill senior management
regarding climate risks, impacts
and mitigating actions – enabling
strategy and decision-making to
include climate considerations.
Engagement with senior
management to ensure input on
climate related considerations.
Page 68
Strategy
Summary Alignment Action in 2025 Reference
a. Describe the climate-related
risks and opportunities the
organisation has identified
over the short, medium,
and long term.
Through our work with the Global
Executive and other stakeholders, we
identified the risks and opportunities
relevant to the Group and the
relevant timescales.
Aligned Engage wider internal stakeholder
group in understanding/assessing
climate risks/opportunities.
Enable individual countries
to consider climate risks/
opportunities specific to them in
their business planning processes.
Page 70
b. Describe the impact
of climate-related risks
and opportunities on
the organisation’s
business, strategy,
and financial planning.
For the time horizon to 2030, we
consider the financial and operational
impact of our climate-related risks
not to be material.
Aligned Identify the strategic impacts of
creating a credible transition plan.
Review in more detail the potential
impact of transition risks on the
Group’s Next Gen strategy.
Page 71
c. Describe the resilience of
the organisation’s strategy,
taking into consideration
different climate related
scenarios, including a 2°C
or lower scenario.
The results of our scenario analysis and
internal assessments show that climate
change is not expected to have a
material impact on the Group’s current
strategy or financial viability for the
time horizon for the short term.
Aligned Using updated scenario models,
complete analysis of the resilience
of the Group’s business strategy
to increasing climate risks
and opportunities.
Page 72
Task Force on Climate-related Financial Disclosures continued
International Personal Finance plc74
Risk management
Summary Alignment Action in 2025 Reference
a. Describe the organisation’s
processes for identifying
and assessing
climate-related risks.
The Enterprise Risk Management
methodology defines climate risk
as a key risk.
Aligned Include broader ESG risks into risk
management, which impact the
group’s indirect GHG emissions.
Continue to refine our
scenario analysis.
Page 72
b. Describe the organisation’s
processes for managing
climate-related risks.
The Group has an Enterprise Risk
Management methodology of
which climate risk is a part.
Aligned Explore extending analysis of
exposure to physical climate risks
to areas where our customers live
and work.
Page 72
c. Describe how processes for
identifying, assessing and
managing climate-related
risk are integrated into the
organisation’s overall risk
management.
The Enterprise Risk Management
methodology provides structure to
ensure consistency of approach,
alignment to the risk appetite and
monitoring of our risk exposure
across the Group.
Aligned Page 72
Metrics and targets
Summary Alignment Action in 2025 Reference
a. Disclose the metrics used by
the organisation to assess
climate-related risks and
opportunities in line with
its strategy and risk
management process.
Metrics used to assess our
climate-related risks and opportunities
include Scope 1, 2 emissions.
We are committed to measuring and
reducing GHG emissions in line with
the Paris Agreement.
Aligned Measure and report waste
to landfill and paper use.
Move to external verification
of GHG data.
Work to eliminate and reduce
emissions in line with the net zero
standard set by the Science
Based Targets initiative.
Consider committing to
verification to the ISO14064
standard for Greenhouse Gasses.
Page 73
b. Disclose Scope 1, Scope 2
and if appropriate, Scope 3
GHG emissions and the
related risk.
Details of our GHG emissions in
2024 (Scope 1, Scope 2) have
been provided.
Aligned Extend GHG data collection to
include Scope 3 travel emissions
Assess how to measure IPF supply
chain GHG emissions.
Page 67
c. Describe the targets used by
the organisation to manage
climate-related risks and
opportunities and
performance against targets.
Target set to be net zero across
operations and supply chain by 2050.
Targets for climate related risks agreed
– divert 90% of waste from landfill by
2034, source 100% of paper from
sustainable sources; and reduce
paper use by 50%.
Aligned Commit to set science-based
targets, and commit to seek
verification of these by the
Science Based Targets initiative.
Page 73
Annual Report and Financial Statements 2024 75
Strategic Report
Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022
Disclosures to meet mandatory climate-related financial disclosure requirements under the Companies (Strategic Report)
(Climate-related Financial Disclosure) Regulations 2022 are set out below.
Requirement Summary Page
a. A description of the governance arrangements of the company
in relation to assessing and managing climate-related risks
and opportunities.
Governance arrangements for management
of climate-related risks and opportunities are detailed
in the Governance section of the TCFD Report.
Page 68
b. A description of how the company identifies, assesses, and
manages climate related risks and opportunities.
The process for identifying, assessing and managing
climate-related risks is detailed in the Strategy section
of the TCFD Report.
Page 70
c. A description of how processes for identifying, assessing, and
managing climate-related risks are integrated into the overall
risk management process in the company.
A description of how climate-related risks are integrated
into the overall risk management process is set out in
the Risk Management section of the TCFD Report.
Page 72
d. A description of:
i. the principal climate-related risks and opportunities arising
in connection with the operations of the company; and
ii. the time periods by reference to which those risks and
opportunities are assessed.
A description of the principal risks and opportunities
and time periods is set out in the Strategy section
of the TCFD Report.
Page 71
e. A description of the actual and potential impacts of the principal
climate-related risks and opportunities on the business model and
strategy of the company.
A description of these impacts is detailed in the
Strategy section of the TCFD Report.
Page 70
f. An analysis of the resilience of the business model and strategy of
the company or LLP, taking into consideration different climate-
related scenarios.
A description of these impacts is detailed
in the Strategy section of the TCFD Report.
Page 72
g. A description of the targets used by the company or LLP to manage
climate-related risks and to realise climate-related opportunities
and of performance against those targets.
A summary of the approach to targets is set out in
the Metrics and Targets section of the TCFD Report.
Page 73
h. The key performance indicators used to assess progress against
targets used to manage climate-related risks and realise climate-
related opportunities, and a description of the calculations on
which those key performance indicators are based.
There are currently no KPIs used to assess progress
against targets.
N/A
Task Force on Climate-related Financial Disclosures continued
International Personal Finance plc76
Non-financial and Sustainability
Information Statement
In line with the non-financial reporting requirements contained in sections 414CA and
414CB of the Companies Act 2006, the table below contains references to non-financial
and sustainability information intended to help our stakeholders understand the impact
of our policies and activities.
Reporting
requirement Relevant policies Relevant section of our report
Description of the
business model
Corporate Sustainability Policy
Enterprise Risk Management Policy
Our business model – pages 18 to 19
Our Customers and financial inclusion – pages 14 to 15
Key performance indicators – pages 24 to 25
Responsible business – pages 44 to 76
Employees Code of Ethics
Group Health and Safety Policy
Wellbeing Policy
Diversity Policy
Our colleagues – pages 53 to 56
Principal risks and uncertainties: People risk – page 42
CSRD Statement – pages 123 to 150
Human rights Code of Ethics
Human Rights and Modern Slavery Policy
Responsible business – pages 60 to 61
CSRD Sustainability Statement – pages 123 to 150
Social matters Code of Ethics
Tax strategy
Our business model – pages 18 to 19
Our customers – pages 50 to 52
Our communities – pages 58 to 59
Principal risks: Reputation risk – page 41
Responsible business – pages 44 to 76
Anti-corruption and
bribery
Anti-bribery and Corruption Policy
Gifts and Hospitality Policy
Anti-facilitation of Tax Evasion Policy
Know Your Customer and
Anti-money Laundering Policy
Responsible business – pages 44 to 76
Environmental
matters
Corporate Sustainability Policy
Environment Policy
TCFD – pages 68 to 76
Climate-related Financial Disclosure – page 76
Environment – pages 66 to 67
Principal risks Principal risks and uncertainties – pages 38 to 43
Non-financial KPIs Non-financial key performance indicators – page 25
Approval of the Strategic Report
The Strategic Report has been approved by the Board of Directors and signed on its behalf by:
Gerard Ryan
Chief Executive Officer
26 February 2025
Annual Report and Financial Statements 2024 77
Strategic Report
Introduction to governance
“Good governance is fundamental to our
success, sharing our values, culture and
decision making to drive sustainable,
positive outcomes for our stakeholders.”
Stuart Sinclair
Chair
I am pleased to present this Corporate Governance Report
to our shareholders, which sets out the key areas considered
by the Board and its Committees during the year ended
31 December 2024.
As highlighted in my statement on page 10, 2024 saw the
Group deliver a strong operational and financial performance.
We made good progress advancing our Next Gen strategy,
introducing more new products to better serve our customers
and fulfil our purpose to build a better world through financial
inclusion. Our track record of adapting to regulatory change,
a hallmark of our resilience, served us well in a year of notable
regulatory developments, particularly in Poland.
During the year, we focused on positioning the business
to deliver sustainable growth while reinforcing our investment
case. At the core of these efforts is our unwavering belief
that strong governance is the foundation for achieving
our strategic ambitions and delivering long-term value for
stakeholders. Below, I set out some of the key governance
matters and decisions undertaken by the Board and its
Committees during the year.
Board composition and changes
The composition of the Board is reviewed regularly through
various activities undertaken by the Nominations and
Governance Committee. Our Board has a strong balanced
portfolio of relevant skills and experience to lead the Company
effectively and promote sustainable success. You can read
more about the Board’s skills and experience on pages 80 to 82.
During the year, the Board’s composition met the requirements
of the UK Corporate Governance Code 2018 (the “Code”),
with more than half of our directors (excluding myself)
deemed to be independent non-executive directors,
and met the target set out in Listing Rule 9.8.6(9)R for 40%
female representation on the Board. At the end of 2024,
the Board comprised four men and three women.
We welcome all facets of diversity on our Board, recognising
the value it brings to our discussions and decision making,
and how it contributes to strategic success. Read more
about diversity of the Board and executive management
on pages 90 to 92.
The Board approved a number of changes to the membership
of its Committees in 2024. In line with best practice, Katrina
Cliffe, our senior independent director, stepped down from
the Audit and Risk Committee and joined the Remuneration,
and Nominations and Governance Committees effective
from 3 May 2024. Aileen Wallace joined the Audit and Risk
Committee, also effective from 3 May 2024. Under the Code’s
principles, the Board keeps under review the need to refresh
how it and its Committees are composed. To that end, I
announce that Deborah Davis, having served for six and
a half years as a non-executive director and Chair of the
Remuneration Committee, will step down from both roles at
the conclusion of the Annual General Meeting (the AGM)
on 1 May 2025. I would like to thank Deborah for her wealth
of experience and rich contributions to the Board during
her tenure.
Purpose, culture and values
At the 2024 AGM, we recommended to shareholders the
inclusion of our purpose in the Company’s Articles of
Association (the “Articles”), which was approved. From
the Board’s perspective, this change further represents the
dedication to our purpose and its position at the core of the
Group’s governance, management and values. We live our
values of being ‘responsible, respectful and straightforward’.
Everything we do, from how we treat customers and
colleagues, to our broader audience of stakeholders,
demonstrates our culture in action. As a Board, we oversee
culture, ensuring it is fit for our purpose, and values, and
supports our strategic objectives. Read more about our
role in shaping purpose and culture on page 87.
International Personal Finance plc78
Engaging with stakeholders
As a global, responsible lender, we understand that
our business impacts, and is influenced by, a diverse range
of people and organisations. The Group recognises six key
stakeholder groups; customers, colleagues, investors
and ratings agencies, regulators/politicians/NGOs, suppliers
and the communities we serve. Understanding their views
and interests is essential to facilitate informed debate and
considered decision making at Board level. To capture these
insights, we have various touchpoints with our stakeholders,
including detailed management information, market visits,
surveys and feedback from Katrina Cliffe, our designated
Workforce Engagement Director. Collectively, these inputs
ensure stakeholders’ perspectives are brought into the
boardroom, enabling the Board to consider and balance
differing views where possible. You can read more about our
stakeholders and the Board’s decision making in our Section
172 statement on page 48.
We operate in an active regulatory environment and have
been preparing in earnest for the Corporate Sustainability
Reporting Directive (“CSRD”). In 2024, as part of the CSRD
regime, we conducted a double materiality assessment,
evaluating the Group’s impact on the environment and
society and how those factors could affect our financial
performance. This analysis strengthens our commitment
to sustainable operations and informed decision making.
Read more about the double materiality assessment in our
CSRD Statement starting on page 123.
Board and committee performance
A key mechanism of sound governance is the annual review
process. The Board, its committees and each director were
appraised in 2024 to assess whether they continued to
function and perform effectively. The review was conducted
internally, via an anonymous questionnaire. The output was
analysed and fed back, with the overall conclusion that the
Board, its Committees and each director continued to be
effective in their roles. Further details on the performance
review findings are presented on page 93.
Stuart Sinclair
Chair
2024 highlights
Successfully secured a full payment institution licence
in Poland, enabling the Group to expand the credit
card offering and accelerate customer lending in
Poland and to new markets.
Delivered returns to investors through the successful
completion of a £15m share buyback programme.
Successfully refinanced our €341m Eurobond and
improved the Group’s credit rating with an upgrade
from Fitch Ratings.
Delivered an excellent customer repayment
performance and credit quality, driving lower Group
impairment rates.
Compliance with the UK
CorporateGovernance Code 2018
(theCode)
The Company complied with the relevant provisions
setout in the 2018 version of the Code, which applied
throughout the financial year ended 31 December 2024 .
The Code is available on the FRC’s website: www.frc.org.
uk. The table below sets out how the Code principles
have been applied in practice.
Code principle
Page
reference
Board leadership and company purpose
87
Division of responsibilities 85
Composition, succession, and evaluation 78, 83, 90 and 93
Audit, risk and internal control
94
Remuneration
100
Annual Report and Financial Statements 2024 79
Directors’ Report
Our Board
and Committees
Gerard Ryan
Executive director and Chief Executive Officer
Stuart Sinclair
Chair
Richard Holmes
Independent non-executive director
Deborah Davis
Independent non-executive director
Appointed: January 2012
Responsibilities: Group strategy,
operational management, leadership
of the executive and senior leadership
team. Ensuring good relations with
employees, customer representatives,
customers, regulators and investors.
Key skills: Inspirational leadership
and effective, objective implementation
of strategy; over 30 years’ multi-
country experience in consumer
financial services.
Contributions: Acute market insight
which provides a real advantage in
driving the implementation of the
strategy, and identifying and pursuing
growth opportunities.
Appointed: March 2020
Responsibilities: Leading an effective
Board focused on strategic planning,
implementation, and good corporate
governance. Chair of Nominations and
Governance Committee.
Key skills: Highly experienced Chair,
non-executive director and CEO with
abackground in insurance, banking
and consumer financial services.
Contributions: A strong and effective
Board leader with extensive experience
in retail banking, insurance and
consumer finance ensures a balanced
strategic and operational oversight.
Aninsightful and inclusive style fosters
aculture of openness and debate
within the Board, providing appropriate
management challenges.
Current directorships: Chair of Willis Ltd
and Chair of Vida Bank*, member of
the advisory board at the Bradford
Literature Festival.
Appointed: March 2020
Responsibilities: Chair of the Audit
and Risk Committee.
Key skills: A former senior executive with
over 40 years of broad international
financial services experience, including
20 years as CEO and board member in
private banking, wholesale banking,
capital markets, trading operations,
strategy and finance.
Contributions: Risk management and
how this interacts with strategy and
operations with technical expertise
valued in Board discussions.
Current directorships: Chair of Revolut
NewCo UK Ltd, non-executive director of
Itau BBA International plc and a trustee
of the Barry and Peggy High Charitable
Foundation.
Appointed: October 2018
Responsibilities: Chair of the
Remuneration Committee.
Key skills: Experience in fintech,
consumer and technology businesses
undergoing digital transformation,
growth and geographic expansion.
Digital technology expertise, senior
leadership experience in high-growth
companies in international markets.
Contributions: Valuable strategic and
operational insights on growth and
expansion of digital capabilities as well
as customer experience, innovation and
governance throughout the Company.
Current directorships: Non-executive
director of Lloyds Banking Group/
Scottish Widows Insurance Board,
non-executive director of YouGov plc,
non-executive director of Sirius Real
Former roles: CEO for Citigroup’s
consumer finance businesses in Western
Europe, Middle East and Africa region,
a director of Citi International plc,
Egg plc and Morgan Stanley Smith
Barney UK, CFO of Garanti Bank, Turkey
and CEO of GE Money Bank, Prague.
Qualifications: Fellow of the Institute
of Chartered Accountants in Ireland.
International expertise:
EMEAs,Americas.
Former roles: Non-executive director
and chair of the remuneration
committee for Lloyds Banking Group plc
and council member of the Royal
Institute of International Affairs. Chair
ofPlatinum Bank Ukraine and Money
Dashboard, a Fintech startup.
Non-executive director roles at QBE
Insurance (Europe) Ltd, Provident
Financial Group plc, Swinton Group Ltd,
PruHealth/Vitality Ltd, LV Insurance
andTSB. President and COO at Aspen,
President and CEO at GE Capital,
UKand China, Chief Executive of Tesco
Personal Finance and director of UK
Retail Banking at Royal Bank of Scotland
Group plc.
Qualifications: Master’s degree in
Economics and Master in Business
Administration from University of
California (UCLA).
International expertise: EMEAs,
Americas, Africa, Asia Pacific.
Former roles: Non-executive director
and member of the audit, risk and
sustainability committees for Ulster Bank
Ireland DAC Ltd; non-executive director
for Business Growth Fund and British
Bankers Association; Chair of Financial
Services Council at CBI; CEO, Europe at
Standard Chartered plc, Chair and CEO
of American Express Bank at American
Express Company and executive vice
president of private bank at Bank of
America Corporation.
Qualifications: Degree and Master’s
degree in Economics and a fellow of the
Institute of Chartered Accountants.
International expertise:
EMEAs,Americas.
Estate plc and a trustee of Southern
African Conservation Trust in South
Africa.
Former roles: Vice President of Global
Partnerships and Global Risk Operations
at PayPal, and Vice President of
European Operations for eBay
Marketplaces and non-executive
director of Diaceutics plc, IDEX
Biometrics ASA, The Institute of Directors
UK, Which? and ieDigital.
Qualifications: Chartered Director
(CDir), Diploma in Company Direction,
MSc in Management, BAppSc in
Electronics, and a fellow of the Institute
of Directors UK.
International expertise:
EMEA,Americas, Asia Pacific.
* subject to regulatory approval at the time of publication.
International Personal Finance plc80
Gary Thompson
Executive director and Chief Financial Officer
Aileen Wallace
Independent non-executive director
Katrina Cliffe
Senior independent non-executive director
Appointed: April 2022
Responsibilities: Financial performance
and reporting; group funding and debt
investor relations, equity investor
relations; Board accountability for
internal audit and taxation; the
executive relationship with the external
auditor; leadership of the Group finance
team and other corporate functions;
and Chair of the Disclosure Committee.
Key skills: Strong financial leadership
with over 20 years’ financial experience
spent in both the accounting and
corporate sectors.
Contributions: Establishment and owner
of the Group’s financial model;
effectively supporting the Board, the
CEO and executive management in
driving optimum financial performance;
diversifying the funding base; and
developing a more proactive investor
Appointed: December 2022
Key skills: Experienced non-executive
with a wealth of transformational
experience including business build-out
and digitally enabled growth.
Contributions: Enhancing Board
discussions focused on technology,
innovation and change.
Current directorships: Chair of the
Remuneration Committee, Workforce
NED and Chair of Innovation at Hodge
Group and Hodge Bank. Senior
Independent Director and Chair of the
Board Risk Committee of Tandem Bank,
and Chair of the Board Risk Committee
at Target Tech Mahindra.
Appointed: August 2022
Responsibilities: Senior
independent director and
Workforce Engagement Director.
Key skills: Extensive experience
of financial services with a breadth
of executive experience in retail
financial services, credit cards,
customer service and marketing.
Contributions: Expertise in retail
financial services, credit cards,
customer service and marketing.
Current directorships: Non Executive
Director and Chair of the Remuneration
Committees of DCC plc and
Vue International.
relations programme to increase
confidence and shareholder value.
Former roles: Finance Director of
Vanquis Bank Limited, the major
subsidiary of Vanquis Banking Group,
following a number of finance roles,
including Director of Group Finance
and Investor Relations, at Vanquis
Banking Group. Qualified
as a Chartered Accountant
at PricewaterhouseCoopers
and spent 10 years working
in professional practice.
Qualifications: Fellow of the Institute
of Chartered Accountants in England
and Wales.
International expertise: EMEAs.
Former roles: Executive director of
Co-operative Bank and Chair of ESG
Committee; executive director of
Yorkshire Bank Home Loans Board;
executive director of National Australia
Bank; and head of and director roles
at CYBG plc.
Qualifications: Chartered Banker
(MCBI), and various qualifications
from the Institute of Risk Management,
the Institute of Directors and the British
Computer Society.
International expertise:
EMEAs,Asia Pacific.
Former roles: Senior independent
non-executive director of Homeserve plc
until January 2023. Previously a
non-executive director of London and
County Mortgages Limited, Shop Direct
Finance Company Limited, Cembra
Money Bank AG and Naked Wines plc.
Senior roles at American Express, Lloyds
TSB Group plc, Goldfish Bank Ltd and
MBNA International Bank.
Qualifications: BA in Archaeology
and Anthropology from the University
of Cambridge and MA (Cantab).
International expertise: EMEAs.
Audit and Risk Committee
Disclosure Committee
Nominations and Governance Committee
Remuneration Committee
Committee Chair
Annual Report and Financial Statements 2024 81
Directors’ Report
Governance at a glance
Board skills matrix
Our Board skills matrix outlines the topics which we believe every director must be familiar with to be effective in their role
and the specific areas of expertise each director contributes to the Board.
Gerard
Ryan
Gary
Thompson
Stuart
Sinclair
Richard
Holmes
Deborah
Davis
Katrina
Cliffe
Aileen
Wallace
Strategy
Financial services
Corporate finance and treasury
Audit and financial reporting
Risk management
Technology, data and cyber security
Customer operations and engagement
Regulatory
Sustainability
International
Remuneration
To build products, channels and territories to ensure our
offers are attractive to the next generation of customers.
To become a smarter and more efficient organisation that
makes a positive impact on society.
To invest in the capabilities required to become a data
driven and technology-enabled partner for our customers.
Key strategic priorities
For more information see page 22.
Our Next Gen strategy
Three
strategic pillars
Strategic pillars key
Next Gen financial inclusion Next Gen organisation Next Gen technology and data
extensive experience
1. Next Gen financial inclusion
2. Next Gen organisation
3. Next Gen technology and data
Our Board comprises individuals with diverse expertise in finance, operations,
risk management and sustainability, ensuring effective oversight and strategic
alignment with our Next Gen strategy and corporate objectives.
International Personal Finance plc82
■
Chair 14%
■
Non-executive directors 57%
■
Executive directors 29%
Board attendance in 2024
There were seven scheduled, and two adhoc Board meetings during the year, with details of attendance set out in the table
below. There were two board strategy sessions.
Director Meetings
1
No. of
meetings
attended
% of
meetings
attended
Stuart Sinclair 9 9 100%
Gerard Ryan 9 9 100%
Katrina Cliffe* 9 8 89%
Deborah Davis* 9 8 89%
Richard Holmes 9 9 100%
Gary Thompson 9 9 100%
Aileen Wallace 9 9 100%
1. The meetings that each individual was entitled to and had the opportunity to attend.
* Both Katrina Cliffe and Deborah Davis were unable to attend one of the adhoc Board meetings during the year, due to pre-existing commitments.
Composition
Nominations and
Governance Committee
Tenure
Audit and Risk Committee
Gender diversity
Remuneration Committee
Board
Committee compositions
■
Chair 20%
■
Non-executive directors 80%
■
Executive directors 0%
■
Chair 33%
■
Non-executive directors 67%
■
Executive directors 0%
■
Chair 25%
■
Non-executive directors 75%
■
Executive directors 0%
■
Under 3 years 43%
■
3-6 years 29%
■
6-9 years 14%
■
Over 9 years 14%
■
Female 43%
■
Male 57%
Annual Report and Financial Statements 2024 83
Directors’ Report
The Board
The role of the Board is to represent shareholders and promote and protect the interests of the Group in the short and long term. The Board considers
the interests of the Group’s shareholders as a whole and the interests of other relevant stakeholders. It is responsible for approving Group strategy consistent with
the purpose of the business and for overseeing its implementation. The Chief Executive Officer (“CEO”) is responsible for preparing and recommending the
strategy and for the day-to-day management of the Group. The Group’s senior management team implements the Group’s strategy and provides
the CEO and the Board as a whole with the information needed to make decisions that will determine the long-term success of the Group.
In carrying out their duties as a Board, the directors are fully aware of, and comply with, their responsibilities and duties under Section 172(1)
of the Companies Act 2006 (see page 48 for our Section172(1) statement).
The Board controls the business but delegates day-to-day responsibility to the CEO. There are, however, a number of matters which are required to be,
or, in the best interests of the Group should be, decided by the Board of Directors. These are known as the matters reserved for decision by the Board.
The formal schedule can be found on our website at www.ipfin.co.uk and includes: approval of strategy and determining the nature and extent of significant risks
the Group is willing to take; Board and Committee composition and Committee Terms of Reference; annual budgets, significant project expenditure
and funding strategy; and approval of the Annual Report and Financial Statements and regulatory announcements.
Any matters which are not set out in this schedule, nor in the Terms of Reference of a relevant Committee of the Board, are deemed to have been delegated
to the CEO. The CEO may delegate powers relating to these matters to such persons or Committees, by such means and on such terms and conditions
as he or she thinks fit.
The Board has established certain principal Committees to assist it in fulfilling its oversight responsibilities, providing dedicated focus on particular areas,
as set out below. Each Committee chair reports to the Board on the Committee’s activities after each meeting.
More information on the work of the Committees throughout the year can be found on pages 89 to 116.
Board Committees and their reserved matters
The Board delegates authority to the Board Committees which are responsible for maintaining effective governance. The specific responsibilities
of the Board’s Committees are set out in their terms of reference available on our website at www.ipfin.co.uk.
Audit and Risk Committee
Oversee and provide assurance to the Board on the integrity
of the Company’s financial reporting and statements.
Oversee and provide assurance to the Board on the effectiveness
of the Group’s internal controls and risk management systems.
Oversee and provide assurance to the Board on the internal
and external audit processes.
Provide oversight of risk management across the Group including
overseeing and advising the Board in relation to current and future
risk exposures.
Read more on page 94.
Nominations and Governance
Committee
Review the composition of the Board and lead the process on proposed
appointments to the Board and senior management.
Ensure that the Board, its Committees and the senior leadership team
consist of individuals with the appropriate balance of skills, experience,
diversity, independence and knowledge to enable them to discharge
their duties and responsibilities effectively.
Keep the Board’s governance arrangements under review and make
appropriate recommendations to the Board to ensure that its
arrangements are consistent with relevant corporate governance
standards and best practice.
Read more on page 89.
Remuneration Committee
Establish formal and transparent remuneration policy and practices
on executive remuneration.
Design and determine remuneration and benefits for the Chair,
Executive Directors and other senior management as required
in line with regulations and best practice.
Review workforce remuneration and related policies to ensure alignment
of incentives and rewards with culture, and oversee the design and terms
of executive and all-employee share-based incentive plans.
Review the performance evaluations undertaken of the Executive.
Read more on page 100.
Disclosure Committee
Assist in the design and evaluation of disclosure controls
and procedures.
Monitor compliance with disclosure controls and procedures.
Review requirements for, and content of, regulatory announcements.
Role of the Board
and its Committees
International Personal Finance plc84
Division of responsibilities
The roles of the Chair and Chief Executive Officer are defined clearly and the division of responsibilities is established and set out in
writing in the Board role profiles which can be found at www.ipfin.co.uk. The principal responsibilities of each role can be found below.
As well as these responsibilities, it is the responsibility of every director to lead the business in accordance with the Company’s
purpose of building a better world through financial inclusion.
Chief Executive Officer Gerard Ryan Chief Financial Officer Gary Thompson
– Create and update, with approval of the Board, the Group purpose,
values and strategy ensuring that responsibilities to shareholders,
employees, and other stakeholders are met.
– Lead and develop the senior management team to develop and
implement the overall Group strategy and plans that deliver strong
performance and sustainable growth in shareholder value.
– Implement and uphold the Group’s purpose and values, whilst
ensuring appropriate plans are in place to identify, anticipate,
manage and mitigate risks to the business.
– Partner with the Chief Executive Officer in setting the future direction
of the Company, enhancing business performance and delivering
increased shareholder value.
– Ensure that the Group’s ambition for strong sustainable growth and
excellence in customer service is achieved through partnering with
senior management and providing constructive challenge to our
operational management teams.
– Ensure that business decisions are grounded in financial criteria
and market insight.
– Understand and manage risk through a commercial, as well
as a financial lens; enabling the business to execute on its strategy
and manage business complexity whilst minimising risk.
– Maintain a strong internal control environment and robust financial
reporting processes, and provide assurance to the Board through
management of the internal audit function.
Chair Stuart Sinclair Senior independent director Katrina Cliffe
Non-executive directors Deborah Davis,
Richard Holmes, Aileen Wallace
– Manage and provide leadership
to the Board.
– Cultivate a culture of transparency
and open discussion.
– Safeguard and promote the long-term
success and sustainability of the Company
to the benefit of its shareholders and the
Company’s other stakeholders.
– Serve as a sounding board for the Chair, to
act as an intermediary for the other
directors.
– Lead the process to evaluate the Chair
and for the Chair’s succession as required.
– Safeguard and promote the long-term
success and sustainability of the Company
for the benefit of its shareholders and the
Company’s other stakeholders.
– Safeguard and promote the long-term
success and sustainability of the Company
for the benefit of its shareholders and the
Company’s other stakeholders.
– Provide constructive challenge, hold
management to account, offer strategic
guidance and provide specialist advice.
Board activities during 2024
The Board has ultimate responsibility for the overall leadership of the
Group, overseeing the development and delivery of a clear Group
strategy and ensuring the long-term sustainable success of the
Company for all stakeholders. It monitors operational and financial
performance against agreed goals and objectives, and challenges the
executive directors on proposals relating to the management of the
business. The Board ensures that appropriate controls and systems exist
to manage risk and that there are the financial resources and people
with the required skills to achieve the strategic goals the Board has set.
The information in this section summarises the Board’s activities during
2024 and the discussions that took place in the discharge of its duties
tothe Company. Our Section 172(1) statement is on page 48.
The Chair sets the annual Board programme and agenda, with support
from the Chief Executive Officer and the Company Secretary. The Chair
also determines the number of meetings to be held during the year,
with this kept under review, and ensures that enough time is devoted,
during meetings and throughout the year, to discuss all material
matters including strategic, financial, operational, business, risk, ESG
and human resources. The Board agendas are structured to ensure
there is an appropriate balance of time allocated to strategic matters,
management reporting and governance-related items.
At each scheduled Board meeting, the Chief Executive Officer
andChief Financial Officer present separate reports, detailing
businessperformance and progress against strategy. These are
supplemented by performance updates from each of the divisional
heads of the Group.
Other presentations and reports are given by the relevant business or
functional head on matters which are scheduled to be presented in
accordance with the annual board planner, which is aligned to the
Matters Reserved to the Board. This provides the opportunity for a range
of senior and manager-level colleagues to engage with and present
tothe Board.
In addition to the routine Board meetings, the Board participated in an
annual and mid-year strategy review. During these sessions, the Board
considered re-articulation of the strategy, changes to the external
environment, strategic progress, and a vision statement which aligned
with the Group’s strategy. Additionally, the Board discussed key topics
affecting the Group including technology, expanding our customer
offering and growing our customer base, climate risks, regulatory
developments and commercial opportunities.
The majority of Board meetings were held in the Group’s head office in
Leeds, with a market-based meeting held in Warsaw in October 2024.
During this visit, the Board attended in-depth presentations with our IPF
Digital and Provident Polska teams. The Board learnt about the
changing demographic of the customer base and how the Group is
responding to ensure it continues to meet customers’ needs. The Board
also had the opportunity to tour the customer contact centre and
observe call-handling and our new CRM platform, Xenia, in action. Our
designated Workforce Engagement Director, Katrina Cliffe, hosted a
separate employee forum attended by a diverse range of employees,
to understand their concerns and perspectives. Their feedback was
subsequently provided to the rest of the Board. In addition to the
structured activities, the Board also enjoyed informal lunches and
dinners with several members of the IPF Digital and Provident Polska
teams, to provide varied modes of engagement, and encourage open
conversation and exchange between the Board and teams.
An overview of the range of matters that the Board considered,
discussed or approved where appropriate and the stakeholders
considered at its meetings during the year are outlined on page 85.
Annual Report and Financial Statements 2024 85
Directors’ Report
Matters
considered Outcome
Our
stakeholders
Links to
strategic
pillars
Strategy and
management
– Reviewed and approved the Group’s Next Gen strategy, including the double materiality assessment at the annual and
mid-year review meetings and received updates at intervals during the year.
– Reviewed the Group’s operational and financial performance with regular presentations from the CEO and Chief Financial
Officer enabling oversight of business performance against targets, budget and strategy.
– Supported the continuation of the strategic retail partnership initiative with the long-term aim of strengthening our
market position.
– Reviewed and approved updates to the Responsible Business Framework (ESG Strategy).
– Reviewed and approved the Group’s environmental and climate targets.
– Approved a revised version of the Group’s Code of Ethics.
– Received an update from the Chief Human Resources Officer on the human resources strategy.
– Received an update from the Chief Information Officer on the technology strategy.
– Considered the culture of the Group and how the Board sets, embeds and maintains the culture.
– Considered the key themes of the 2024 Annual Report and Financial Statements.
– Approved the Group’s purpose, values and vision statement.
Board
composition
and
effectiveness
– Reviewed Board composition regularly to ensure the right mix of skills, knowledge, experience and diversity for the Board
to continue to be effective.
– Reviewed and considered conflicts of interest, independence and time commitments of the directors.
– Participated in a Board performance review process and agreed key priorities following a review of findings.
– Received training including an annual session on the product roadmap and mobile wallet.
Financial
reporting
– Approved the 2023 Annual Report and Financial Statements including the long-term viability and going concern
statements.
– Reviewed and approved the half- and full-year results announcements, quarterly trading updates and presentations to
investors and analysts.
– Approved the progressive dividend policy for 2023 and future years.
– Monitored the Group’s funding position and compliance with the Group’s financial covenants.
– Reviewed and approved Group treasury policies.
– Approved a £15m share buyback programme.
– Approved in principle, the refinancing of the 2025 Eurobond.
– Approved the 2025 Group budget and business plan for 2025 to 2029, reviewing key assumptions, inputs and risks, and
monitored performance and variances against the 2024 budget and business plan.
Risk
management
and internal
controls
– Reviewed and approved risk appetite proposals and the updated Enterprise Risk Management Policy.
– Reviewed and approved the assessment of principal risks, including climate risk and emerging risks.
– Received reports from the Audit and Risk Committee of the Group’s systems of risk management and internal controls,
and confirmed their effectiveness.
– Received regular updates through the Audit and Risk Committee in respect of internal and external audit reviews, and
agreed the internal audit programme for the year.
– Received and considered updates on the tender process for the Group’s auditor.
– Proposed to shareholders to rotate the Group’s audit firm from Deloitte LLP to PKF Littlejohn LLP on the recommendation
of the Audit and Risk Committee.
– Considered and endorsed the strategic risk factors identified by executive management.
Governance – Approved the resolutions to be put to shareholders at the 2024 AGM.
– Approved updated Matters Reserved to the Board and the Board Committees’ Terms of Reference.
– Reviewed and approved on a bi-annual basis, the Group’s Signing Policy and Delegation of Authorities schedule.
– Received and considered updates on the Digital Operational Resilience Act (DORA).
– Received and considered updates on the Corporate Sustainability Reporting Directive.
– Reviewed and approved the Group’s tax strategy.
– Reviewed and approved the Modern Slavery Statement and Policy.
– Reviewed and approved the Group Capital Management Policy.
– Reviewed and approved the Human Rights Policy.
– Reviewed and approved the Corporate Sustainability Policy.
Stakeholder
engagement
– Received bi-annual updates on engagement activities with all stakeholders undertaken throughout the year.
– Received updates on the general wellbeing and health and safety of colleagues, as part of routine reports from the
executive directors and management.
– Received an annual health and safety update from the Health and Safety Manager.
– Received updates on equity and debt investor sentiment in response to financial results and from bondholders and
potential bondholders as part of the Chief Executive Officer and Chief Financial Officer reports.
Our stakeholders key
Customers Regulators and legislators Communities
Employees and customer representatives Suppliers Investors and ratings agencies
Strategic pillars key
Next Gen financial inclusion Next Gen organisation Next Gen technology and data
Role of the Board and its Committees continued
International Personal Finance plc86
Company purpose
The Board has overall responsibility for the Company’s
purpose, values and strategy to deliver long-term sustainable
success and generate value for its shareholders and other
stakeholders. It places great importance on ensuring that
these continue to be appropriate for the business and the
markets in which we operate, while continuing to be aligned
with our culture.
Having a clear purpose guides the Board and the executive
directors in managing the business and provides a common
goal. The Board reviews and approves the purpose, values
and vision statement annually to ensure that these remain
appropriate for the Group. By delivering on our purpose,
we serve and create value for our stakeholders. This supports
a strong culture which drives performance across the business
both in terms of financial and non-financial value. The Board
sets the strategy for the Group and throughout the year it
receives regular updates to ensure it is delivered in line with
our purpose.
Our purpose of building a better world through financial
inclusion explains why we exist and reminds us of who we
serve and why. We help consumers, who have lower to
medium incomes and often a limited credit history, access the
financial system. We are a responsible lender, well positioned
to provide an entry point to mainstream consumer finance,
serving customers with regulated credit products.
We continue to deliver on our purpose by removing barriers
that exclude the underserved from the financial sector by:
– responsibly serving more customers;
– providing appropriate products and services;
– offering solutions to underserved people;
– expanding our geographic reach; and
– supporting our customers in financial difficulties.
During 2024, the Board continued to ensure that purpose was
embedded in strategic planning and that it remained a core
focus for the Group. At the 2024 AGM, the Board proposed to
incorporate the Group’s purpose within its Articles of
Association, a motion which was approved by shareholders.
Additionally, as part of the workforce engagement
programme, the Board conducted specific purpose ‘check-
ins’ with the European and Mexico home credit businesses to
reinforce alignment and engagement throughout the Group.
Culture and values
The Board understands that the cultural tone of our business
comes from the top. The benefits of a strong culture are seen
in the success of delivering the strategy and in the
engagement, retention and productivity of our employees
and customer representatives. The Board monitors and
assesses the Group’s culture along with its purpose and values
through receiving regular updates from members of the senior
leadership team. The Board also assesses cultural indicators
such as management’s attitude to risk, behaviours and
compliance with the Group’s policies and procedures
as well as reviewing the results of employee surveys. The Board
specifically discusses its oversight of culture annually as a
checkpoint to ensure that sufficient measures are in place
for the Board to oversee culture effectively.
In addition to the annual culture review, the Board also
reviewed the results of the 2024 Group-wide pulse surveys,
which provided real insight into the culture of the Group. The
Chief HR Officer presented the findings to the Board and
identified actions to ensure that any areas of improvement
were followed up. Further information on the Group-wide pulse
surveys can be found on page 55.
The Board also recognises that it is accountable to
stakeholders for ensuring that the Group is managed
appropriately and achieves its objectives in a way that is
supported by the right culture and behaviours. Our values,
responsible, respectful and straightforward, are reviewed
regularly, and approved by the Board. They support our
culture and help colleagues understand the importance of
how we work together as a team and how we place customers
at the centre of what we do.
How does the Board oversee culture?
– Board reporting
– Workforce Engagement Director
– Branch/market visits
– Skip-level meetings
– Board dinners with colleagues from various levels of
management
– Business plan approval
– Review and approval of purpose
– Review and approval of values
– Risk appetite
– Internal audit reports
– Whistleblowing updates
– Key recruitment
– Executive director objectives and rewards
Board overview of purpose
Annual Report and Financial Statements 2024 87
Directors’ Report
Workforce engagement
programme 2024
Employee engagement
The Board routinely interacts directly with colleagues through
a programme of Board visits and dinners, and indirectly
through the work of the Workforce Engagement Director,
Katrina Cliffe. These activities are designed to enable the
Board to develop a strong understanding of the Group and
the different matters which are important to colleagues
globally. As part of this activity, the Board is able to gain
assurance that the Group’s policies, practices and behaviour
throughout the business are aligned with the Company’s
purpose, vision and desired culture. The Workforce
Engagement Director champions the workforce voice within
the Boardroom to strengthen the link between the Board and
colleagues. Throughout 2024, Katrina undertook a number of
engagement activities as part of the workforce engagement
programme, as illustrated above. Following this engagement
with employees and customer representatives, Katrina
provided regular feedback to the Board on stakeholder
engagement, including insights gained from her interactions.
The Board also undertakes engagement activities as a whole,
including branch and market visits, presentations, dinners
and other ad hoc interactions. This allows the Board to meet
a broad spectrum of individuals from different areas of the
Group including sales, marketing, IT, legal, compliance,
data protection, corporate affairs, human resources, finance,
health and safety, internal audit and risk.
More information on how the Group engaged with colleagues
can be found on page 46 and pages 53 to 56.
Purpose check-in
– Mexico
Purpose check-in
– Poland
Employee forum
– Poland
Customer contact centre visit
– Poland
Women’s forum
– UK
Annual
learning festival
IPF technology,
culture and
learning evolution
Global
HR strategy
1
2
3
4
5
6
7
8
International Personal Finance plc88
Nominations and Governance
Committee Report
Dear shareholder,
I am pleased to present this report for the year ended
in supporting an effective Board and ensuring robust
governance across the Group.
Key responsibilities of the Committee
Details on the Committee’s key responsibilities can be found
below and in our Terms of Reference at www.ipfin.co.uk.
The Committee:
– reviews the composition of the Board and leads the process
on proposed appointments to the Board;
– ensures that the Board consists of directors with the
appropriate balance of skills, experience, diversity,
independence and knowledge to enable it to discharge
its duties and responsibilities effectively, and reviews
arrangements for succession and development of senior
leaders in the Group;
– oversees the Group’s governance arrangements to ensure
they are consistent with relevant corporate governance
standards and best practice; and
– oversees, on behalf of the Board, a range of topics relating
to good governance.
Committee composition and changes
I chair the Committee and was regarded as independent
on appointment. I will not chair the Committee when
it is dealing with matters of succession to the Chair of the
Board. The Committee comprises four other independent
non-executive directors, Deborah Davis, Richard Holmes,
Aileen Wallace and Katrina Cliffe (who joined the Committee
with effect from 3 May 2024).
“Throughout 2024, the Committee
focused on strengthening governance
practices to support the Group’s
long-term success and sustainability.”
Stuart Sinclair
Chair
Committee members
Stuart Sinclair, Chair, and Chair of the Board
Deborah Davis, Independent non-executive director
Richard Holmes, Independent non-executive director
Aileen Wallace, Independent non-executive director
Katrina Cliffe, Senior independent non-executive director
The table below shows the number of meetings held
and the directors’ attendance during 2024.
Committee member
Scheduled
meetings
1
No. of
meetings
attended
% of
meetings
attended
Stuart Sinclair 4 4 100%
Deborah Davis 4 4 100%
Richard Holmes 4 4 100%
Aileen Wallace 4 4 100%
Katrina Cliffe
2
2 2 100%
Notes
1. The scheduled meetings that each individual was entitled to, and had the
opportunity to, attend.
2. Katrina joined as member of the Committee with effect from 3 May 2024
(previously was an attendee only).
Annual Report and Financial Statements 2024 89
Directors’ Report
Nominations and Governance Committee Report continued
Key areas of focus during the year
During 2024, the Committee continued to broaden its areas of
focus to ensure that the Group remained well governed.
First, the Committee focused on ensuring that succession
arrangements will enable the Board to continue to lead the
Group effectively, especially in light of the Group’s Next Gen
strategy. Overseen by the Chair, the Committee reviewed the
assessment of the Board’s skills, knowledge and tenure in
terms of the Company’s strategy, originally undertaken in 2023.
The skills matrix on page 82 sets out the attributes we consider
to be key for the long-term success of the business, as well as
how these attributes link to our strategy. The Committee also
reviewed in detail the skills and potential of the wider senior
leadership team as part of the broader talent management
process led by the human resources function.
The second area of focus was on ensuring that the Board
continues to operate with a high degree of effectiveness.
This is a broad area of responsibility and, in 2024, meant
the Committee reviewed detailed topics including the 2024
Board training programme and membership of the Board
Committees. The Committee has also had the opportunity
to review external developments in corporate governance
to assess whether such developments required changes
in the Group’s Board governance arrangements. Furthermore,
the Committee reviewed the structure, size and ways of
working of the Board and oversaw the Group’s compliance
with the Corporate Governance Code 2018 (the code),
with a particular focus on making the changes required to
implement the new version of the Corporate Governance
Code 2024 published by the Financial Reporting Council on
22 January 2024. Additionally, the Committee oversaw the
implementation of the recommendations from the internal
Board evaluation review that took place in 2023 and I am
pleased to confirm that all recommendations were
implemented in 2024.
The Committee also continued Its oversight of key policies
dealing with matters relevant to our Responsible Business
Framework such as board diversity, political donations,
access to independent advice and conflicts of interest.
Finally, the Committee continued to review the external
appointments of the current directors. This work considered the
time commitments arising from current roles to ensure directors
are not “overboarded” and that they meet required standards
concerning independence, as well as determining whether
new appointments would affect a director’s ability to
discharge their duties as a director of the Company effectively.
Committee effectiveness review
An internal effectiveness review of the Board and its
Committees was undertaken in 2024. This consisted
of a questionnaire completed by the Committee and its
regular attendees, and an analysis of compliance with the
Committee’s Terms of Reference. Overall, the Committee
concluded that it had operated effectively and complied
with the Committee’s Terms of Reference throughout the year.
Feedback from this process was discussed by the Committee
and it was agreed that the Committee would continue to
focus on succession planning across the senior leadership
cohort. This will be accomplished through building on the
current practice of twice annual performance reviews and
potential discussions which the Committee holds with the
Chief HR Officer and the Chief Executive Officer.
Annual re-election of directors
As in previous years, Board members will stand for re-election
by shareholders at the 2025 AGM on 1 May 2025. All non-
executive directors are considered independent in
accordance with the requirements detailed in the Code, and
they continue to make effective contributions, constructively
challenge management and devote sufficient time to their
role. Accordingly, all directors are proposed for re-election,
with the exception of Deborah Davis who will be retiring with
effect from the conclusion of the AGM. Further details are
contained in the Notice of Meeting circulated to shareholders.
Recruitment and succession planning
The Committee recognises the importance of the Board
anticipating and preparing for the future, and ensuring that
the skills, experience, knowledge and perspectives of the
directors and members of the senior leadership team reflect
the changing demands of the business. When considering
succession plans, the Committee and the Board are cognisant
of the need to ensure inclusion of a diverse range of
individuals, and the Board’s diversity objectives, as set out
in the Board Diversity Policy on page 91, reflect how the Board
ensures that diversity is considered when recruiting new
directors to the Board and in the context of succession
planning. The Committee’s approach to succession includes
anticipating departures and allowing sufficient time for orderly
succession, ensuring appointments are made on merit against
objective criteria and taking into account the Company’s
strategic priorities, and the main trends and factors affecting
the long-term success and future viability of the Company.
Succession plans are in place for the Chief Executive Officer,
Chief Financial Officer, Chair and non-executive directors for
contingency, medium-term and long-term horizons.
On behalf of the Board, the Committee also leads on oversight
of executive talent and succession planning. As part of the
broader talent management process, the Committee receives
an annual and mid-year update from the Chief HR Officer on
talent and succession planning, considering the skills and
potential of those in the central management team.
During 2024, the Board also approved the Board skills matrix,
which sets out the skills of each member and allows the
Committee to identify skill gaps which will be reviewed as part
of the succession planning process. The Board skills matrix can
be found on page 82.
Board diversity and policy
Diversity is built into the Group’s policies as appropriate, and,
as a business operating in different countries, collaboration
between our international operations is a central dynamic
of our culture. Diversity and inclusion is about treating people
fairly, equitably and without bias, creating conditions that
encourage and promote respect, dignity and belonging.
This is embedded in our culture and values.
The Board Diversity Policy formalises its approach to this topic
and can be accessed in the policies section of our website.
The purpose of the policy is to set out the Group’s approach
to diversity of the Board and its Committees. The policy aims
to drive balance and alignment with our purpose, strategy
and values, through measurable objectives which reflect
the actions the Board will take when considering membership
of the Board and its Committees. The Committee reviews the
policy, including objectives and progress, at least annually.
International Personal Finance plc90
In setting the principles and objectives of the policy, the
Committee and Board acknowledge the external expectations
of stakeholders and the opportunities to drive change through
succession planning. The Parker Review, Hampton-Alexander
Review and the requirements of Listing Rule 9.8.6(9)R are
supported fully by the Board.
The percentage of female representation for the senior
leadership team was 14.3%.
Annual statement on Board
diversity targets
On behalf of the Board, the Committee is pleased to confirm
that as at 31 December 2024, all three of the targets set out in
Listing Rule 9.8.6(9)R, and also included in the Board Diversity
Policy objectives, have been met. Further detail on how these
targets have been achieved can be found below.
As required by Listing Rule 9.8.6(10)R, detailed numerical
information on the gender and ethnicity representation
on the Board and our executive management as at
31 December 2024 is set out on page 92. There have
been no changes between 31 December 2024 and
the date of this report.
Data concerning gender and ethnicity representation was
collected in 2023 directly from all the individual Board and
senior leadership team members through a Diversity and
Inclusion Monitoring Form (the “Form”). The Form asked the
individuals to disclose their gender and ethnicity using the
options included on the Form, which aligned with the detail
in the left-hand column of the tables on page 92 and therefore
included the option to not specify an answer. The data was
collected on an anonymous basis by the Company Secretariat
and the information was reviewed and updated in 2024, and
will be annually going forward.
Board Diversity Policy objectives Implementation Progress against objectives
Consider candidates for appointment as
non-executive directors from a wider pool
including those with little or no listed
company board experience.
Ensure non-executive director ‘long lists’
include 50% female candidates.
The Board and the Committee recognise
the importance and benefits of greater
diversity, including gender, age,
nationality, ethnic origin, socio-economic
background, educational and
professional background, sexual
orientation and disability.
On instruction of an executive search firm,
the specification will ensure that
candidates with no listed company board
experience are fully considered.
The Board actively seeks diverse
candidates. Over the past three years,
the Board has appointed two female
Board members, Katrina Cliffe and Aileen
Wallace. The Board will continue to
consider candidates from a wide pool
when completing future recruitment.
Engage only with executive search
firms which have signed up to the
Standard Voluntary Code of Conduct
on both gender and ethnic diversity
and best practice.
The Board will continue to engage
executive search firms that have signed
up to the Standard Voluntary Code
of Conduct.
When recruiting Katrina Cliffe, the Board
engaged with Ridgeway Partners. At the
time of engagement, Ridgeway Partners
was a signatory of the Standard Voluntary
Code of Conduct.
Maintain a continuous level of at least
40% female directors on the Board.
The Board will continue to ensure that
recruitment and succession planning for
the Board takes consideration of these
objectives, while also ensuring that any
succession plans and appointments are
made based on merit and objective criteria.
As set out in the annual statement on
board diversity targets above, 43% of
individuals on the Board are women.
A female director is appointed to at least
one of the senior Board positions (Chair,
Chief Executive Officer, senior independent
director, Chief Financial Officer).
In December 2023, Katrina Cliffe
was appointed senior independent
director for the Board.
At least one director from an ethnic
minority background is appointed
to the Board.
As set out in the annual statement on
board diversity targets above, one
member of the Board is from an ethnic
minority background.
Progress in 2024
– Reviewed Board composition and
succession planning.
– Reviewed the governance framework.
– Reviewed key policies relating
to the Responsible Business Framework.
– Reviewed and updated the Committee’s
Terms of Reference.
– Oversaw the implementation of the recommendations
from the internal Board effectiveness review.
Key priorities for 2025
– Focus on succession planning.
– Keep under review the governance framework
and make recommendations for improvement
where appropriate.
Annual Report and Financial Statements 2024 91
Directors’ Report
Nominations and Governance Committee Report continued
Independence and external commitments
The Committee reviews requests for external appointments
carefully, taking into account the directors’ other commitments
and their role on the Board. An executive director will be
permitted to hold one non-executive directorship (and to
retain the fees from that appointment) provided that the Board
considers this will not affect their executive responsibilities
adversely. The executive directors currently do not hold any
external directorships. A non-executive director should not
hold more than four other material non-executive directorships.
If they hold an executive role in a FTSE 350 company, they
should not hold more than two other material
non-executive directorships.
In line with the Code, non-executive directors are required
to seek Board approval prior to taking on any additional
appointments. In 2024, the Committee recommended
to the Board the approval of Deborah Davis’s appointment as
a non-executive director of YouGov plc and Sirius Real Estate
plc, and noted Aileen Wallace’s appointment as Senior
independent Director of Tandem Bank Limited. The Committee
also approved Aileen’s appointment as Chair of the Risk
Committee of Tandem Bank and Stuart Sinclair’s appointment
as non-executive director and Chair of Vida Bank Limited
(subject to regulatory approval), and Deborah’s subsequent
appointment as Chair of YouGov plc. In making these
decisions, the Committee was assured that Deborah,
Aileen and Stuart would continue to be able to devote the
appropriate time to their roles as non-executive directors and
Chairs (as applicable) of the Company and the new roles
would not give rise to any conflicts of interests. The external
commitments of the other non-executive directors were also
reviewed and the Board is satisfied that these do not conflict
with their required commitment to the Company.
The independent non-executive directors are appointed for
a period of three years initially, subject to annual re-election
by shareholders at the AGM. This period may be extended,
following recommendation by the Nominations and
Governance Committee, for two further three-year periods.
The Board will not normally extend the aggregate period
of service of any independent non-executive director beyond
nine years. Their letters of appointment may be inspected
at our registered office and copies are available from
the Company Secretary.
Each of the non-executive directors has been formally
determined by the Board to be independent for the purposes
of the Code and the Chair was considered to be independent
on appointment. Katrina Cliffe was appointed as the senior
independent director on 1 December 2023. She is available
to shareholders should they have concerns which contact
through the normal channels of Chair and Chief Executive
Officer has failed to address or for which such contact is
inappropriate. The senior independent director reviews the
performance of the Chair on an annual basis and consults
with other Board members as part of the review. They also
consider the relationship between the Chair and the Chief
Executive Officer.
Gender representation as at 31 December 2024
Number of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
1
Percentage
of executive
management
1
Men 4 57.1% 3 12 85.7%
Women 3 42.9% 1 2 14.3%
Not specified/prefer not to say 0 0% 0 0 0%
Ethnic representation as at 31 December 2024
Number of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
1
Percentage
of executive
management
1
White British or other White
(including minority-white
groups)
6 85.7% 4 14 100%
Mixed/Multiple ethnic groups 0 0% 0 0 0%
Asian/Asian British 1 14.3% 0 0 0%
Black/African/Caribbean/
Black British
0 0% 0 0 0%
Other ethnic group,
including Arab
0 0% 0 0 0%
Not specified/prefer not to say 0 0% 0 0 0%
1. Per the definition within the Listing Rules, executive management at IPF is the senior leadership team, which includes the Company Secretary. The Chief
Executive Officer and Chief Financial Officer have not been included in the executive management data as they are included in the data for the Board.
International Personal Finance plc92
Year 1 – External (2022)
Externally facilitated
Board effectiveness review
Year 2 – Internal (2023)
Internal effectiveness review
facilitated bythe Chair and
Company Secretariat
Year 3 – Internal (2024)
Internal effectiveness review
facilitated bythe Chair and
Company Secretariat
Board effectiveness review
The Board undertakes a formal and rigorous evaluation of the performance of the Board, its Committees, the Chair and individual
directors on an annual basis. This process follows a three-year cycle, with the 2022 Board effectiveness review facilitated externally
and the next externally facilitated effectiveness review due to be undertaken in 2025.
Stage 1
September 2024
Proposals for the 2024 Board and Committee effectiveness review processes were reviewed and approved
by the Committee, following consultation with the Chairs of the Board and its Committees.
Stage 2
October 2024
Each director completed a questionnaire for the Board and the Committees of which they were a member.
Regular attendees of each Board Committee were also invited to complete the questionnaire.
Stage 3
October 2024
The Chair and the non-executive directors met without the executive directors being present and provided
feedback on their performance throughout the year for the Chair to feed into their performance reviews.
Stage 4
December 2024
The Committees reviewed the results from the committee effectiveness questionnaire and the Terms of Reference
analysis. All Committees confirmed that they continue to operate effectively.
Stage 5
December 2024
/January 2025
The Chair completed performance reviews for all the non-executive directors. It was confirmed that all
non-executive directors continue to be effective in their roles.
Following discussion and feedback from the other non-executive directors, the senior independent director,
Katrina Cliffe, completed the Chair’s performance review. It was confirmed that the Chair continues to be effective
in his role.
Stage 6
February 2025
The Board reviewed the results from the Board effectiveness review, along with the Matters Reserved analysis,
and the confirmation from the Committees that they continue to operate effectively. They also received
confirmation from the Chair and the senior independent director that all directors continue to be effective
in their roles.
The conclusion of the Board effectiveness review was positive, and confirmed that the Board as a whole continues
to operate effectively. The composition of the Board was considered to be effective and it continued to provide
successful leadership to the Group, comprising the appropriate balance of experience, skills, knowledge and
diversity of background to implement the Group’s strategy. The Board places significant reliance on its Committees
by delegating a broad range of responsibilities and issues to them, and receives verbal updates from the Chairs
of each of the Committees of the Board. Following discussions, it was agreed that the performance of the Board,
its Committees, the Chair and each of the directors continues to be effective.
Stuart Sinclair
Chair of the Committee
26 February 2025
Annual Report and Financial Statements 2024 93
Directors’ Report
Audit and Risk Committee Report
Dear shareholder,
On behalf of the Committee, I am pleased to present
the Audit and Risk Committee’s Report for the year ended
31 December 2024. This report explains the Committee’s work
and how we met our audit, risk management and internal
control responsibilities.
The year in review
This section sets out how the Committee has addressed both
routine and emerging issues during the year. The Committee
monitored the consequent impacts on the Group’s Financial
Statements closely and, despite continuing uncertainty, was
pleased to see the delivery of a strong operational and
financial performance.
The Committee also addressed a range of routine matters,
receiving regular updates from the internal audit function on
internal control matters, including readiness for the Digital
Operational Resilience Act (DORA), information security,
change management, and product management controls.
Where internal audit or the Committee identifies areas
requiring improvement, effective processes exist to ensure that
the necessary action is taken and that progress is monitored.
The Committee also dedicated time to challenging and
approving the 2024 internal audit plan. A final focus for the
Committee in the year was our oversight of the process to
appoint PKF Littlejohn LLP as the Group’s external auditor.
The year ahead
Despite the increased costs of living being experienced
by our customers, we continue to see substantial demand
for our broadening portfolio of credit and insurance services,
and we will respond to the challenges and opportunities that
the execution of our Next Gen strategy brings. The Committee
will continue to oversee the development of the Group’s
systems of risk management and internal control, and notes
in particular, the new requirements of the 2024 UK Corporate
Governance Code. We are well placed to discharge our duties
in the year ahead.
“On behalf of the Committee I am
pleased to present the Audit and Risk
Committee’s Report for the year ended
31 December 2024. The Report outlines
the Committee’s composition and
responsibilities, highlighting how we
have maintained effective oversight of
the Group’s financial reporting, internal
control and risk management systems
throughout the year.”
Richard Holmes
Chair of the Audit and Risk Committee
Committee members
Richard Holmes, Chair and independent non-executive
director
Deborah Davis, Independent non-executive director
Aileen Wallace, Independent non-executive director
The table below shows the number of meetings held and the
directors’ attendance during 2024.
Committee member
4
Scheduled
meetings
1
No. of
meetings
attended
% of
meetings
attended
Richard Holmes 6 6 100 %
Deborah Davis 6 6 100 %
Aileen Wallace
3
4 4 100 %
Katrina Cliffe
2
2 2 100 %
Notes
1. The scheduled meetings that each individual was entitled to,
and had the opportunity to, attend.
2. Katrina Cliffe resigned as a member of the Committee in May 2024.
3. Aileen Wallace was appointed as a member of the Committee in
May 2024.
4. The Committee members’ expertise, qualifications and relevant
experience are set out in each of their biographies on pages 80 to 81.
International Personal Finance plc94
Committee effectiveness
An effectiveness review of the Board and its Committees was
undertaken internally at the end of 2024, which comprised
aquestionnaire completed by the Committee and its regular
attendees, together with an analysis of compliance with the
Committee’s Terms of Reference. Overall, the Committee
concluded that it had operated effectively and that the
Committee’s Terms of Reference had been complied with
throughout the year.
Feedback from this process indicated that the Committee’s
main areas of focus for 2025 should be on:
– ensuring appropriate focus on ICT risk and managing
regulatory change; and
– ensuring appropriate coverage of strategic risk as part
ofriskmanagement oversight.
Composition, role and responsibilities
The Committee consists of independent non-executive
directors and met six times during the year. Members and
their attendance at meetings can be found on page 94.
The external auditor, PKF Littlejohn LLP, the Chief Executive
Officer, Chief Financial Officer, Chief Information Officer, Group
Financial Controller, and the Head of Internal Audit are invited
to attend all meetings. Periodically, senior management from
across the Group are invited to present on specific aspects
of the business. The members of the Committee meet
on a regular basis outside scheduled Committee meetings,
and the Committee also meets from time to time with the
external auditor, without an executive director or another
member of the senior leadership team being present.
Functionally, the Head of Internal Audit reports directly to the
Chair of the Committee. For routine administrative matters,
the Head of Internal Audit’s principal contact is the Chief
Financial Officer. The Head of Internal Audit operates within
a clearly defined remit and has direct access to the Chief
Executive Officer and to the rest of the organisation.
The Committee ensures shareholders’ interests are protected
and long-term value is created. The Committee supports the
Board in fulfilling its responsibilities in relation to financial
reporting, monitoring the integrity of the Financial Statements
and reviewing and challenging any significant financial
reporting issues and judgements in relation to the Financial
Statements. The Committee’s responsibilities are explained fully
in its Terms of Reference which are available on our website
at www.ipfin.co.uk. The Committee works to a structured
programme of activities and meetings to coincide with
key events around our financial calendar. Its main
responsibilities are to:
– monitor the Group’s systems of internal control, including
financial, operational and compliance controls, and risk
management systems, and to perform an annual review
of their effectiveness;
– monitor the integrity of the Financial Statements of the
Company and the formal announcements relating to the
Company’s financial performance, reviewing the significant
financial reporting judgements contained in them;
– provide advice to the Board on whether the Annual Report
and Financial Statements, taken as a whole, are fair,
balanced and understandable, and provide the information
necessary for shareholders to assess the Group’s position
and performance, business model and strategy;
– make recommendations to the Board, for the Board to put
to shareholders at the Annual General Meeting, relating
to the appointment, reappointment and removal of the
external auditor, and to approve its terms of appointment;
– review and monitor the objectivity and independence of the
external auditor and the effectiveness of the external audit
process, taking into consideration relevant UK professional
and regulatory requirements;
– review and approve the internal audit programme for the
year and monitor the effectiveness of the internal audit
function in the delivery of its plan;
– keep under review the work of the Risk Advisory Group, in
particular the Group schedule of key and emerging risks,
and consider the principal and emerging risks stated on
pages 38 to 43 facing the Group and their mitigation;
– advise the Board on the Group’s risk appetite together with
the mechanisms that will be used for monitoring adherence
to them; and
– provide oversight of sustainability-related impacts risks and
opportunities, and reporting.
Progress in 2024
– Continued to focus on the impact of changes resulting
from the Audit Reform debate on assessments by the
Committee of the effectiveness of risk management
and internal control systems.
– Received and challenged reports on the continuing
development of the three lines of defence model.
– Reviewed progress on the development of a control
framework for managing technology, change
management and inherent information security
risks for the Group.
– Oversaw the appointment of a new external auditor.
– Ensured sustainability risks are managed and
reported effectively.
Key priorities for 2025
– Review and challenge as necessary updates on the
Group’s response to the UK Corporate Governance
Code 2024.
– Continue to provide oversight on the progress on the
development of a control framework for managing
technology, change management and information
security risks for the Group.
– Ensure appropriate focus on evolving ways of working
and culture with an emphasis on understanding and
embedding risk management practices that keep
pace with the evolving regulatory landscape.
– Inform and guide the Board on sustainability issues
and non-financial reporting.
Annual Report and Financial Statements 2024 95
Directors’ Report
Financial reporting
The Committee reviewed and considered the following areas
in respect of the preparation of the half-year and
full-year Financial Statements:
– the appropriateness of accounting policies used;
– compliance with external and internal financial reporting
standards and policies;
– significant judgements made by management regarding
areas of uncertainty;
– disclosures and presentations; and
– whether the Annual Report and Financial Statements are
fair, balanced and understandable.
In carrying out this review, the Committee considered the
work and recommendations of management, and received
reports from the external auditor setting out its view on the
accounting treatments and judgements underpinning the
Financial Statements.
The significant accounting judgements
considered by the Committee were:
– Impairment of receivables: the application of IFRS 9 to the
issues arising from the impact of the rising costs of living has
the potential for a significant impact on the impairment
charge and the calculation of provisions. The key areas of
judgement in respect of impairment provisions made
against amounts receivable from customers are the
parameters used in the expected loss models, the expected
timing of future cash flows and post-model overlays. The
expected loss models are driven by historical data in respect
of probability of default and exposure at default, together
with loss given default for each portfolio. At both the
half-year and full-year results, the Committee considered a
paper prepared by management summarising the work
performed to update parameters used in the expected loss
and the cash flow timing models, and the judgements
applied in this process. This paper also addressed the use of
post-model overlays in instances where the most recent
trends in the data were felt to be more relevant than some of
the more historical information. This was still relevant in 2024
due to the use of costs-of-living post-model overlays arising
from a full assessment of expected repayment cash flows in
order to calculate the expected impact of these issues on
the Group’s impairment provisions. Further detail on the
post-model overlays considered is given in the key sources of
estimation uncertainty section of this Annual Report on page
171. The external auditor performed audit procedures on
impairment provisioning, challenging management on its
approach to the Group’s cost-of-living provision and on its
planned accounting treatment for the Group’s new credit
card product. The external auditor reported its findings to
the Committee. The Committee concluded that the
receivables impairment provisioning in the Financial
Statements was appropriate.
– Revenue recognition: the judgement in respect of revenue
recognition is the methodology used to calculate the
effective interest rate. The calculation takes into account all
the contractual terms together with the extent and timing of
customer early settlement behaviour. The external auditor
performed procedures to assess management’s calculations
and assumptions used to calculate the effective interest rate
and reported its findings to the Committee. The Committee
concluded that revenue recognition in the Financial
Statements was appropriate.
– Accounting for credit card receivables: the Company does
not yet have sufficient historical credit card data in order to
calculate an expected loss provision for the credit card
receivables portfolio. At both the half-year and the full-year
results, the Committee considered a paper produced by
management summarising the approach taken to
determine the most appropriate expected loss parameters
for this portfolio, and the judgements applied in this
process. Further detail on the credit card valuation
methodology is given in the key sources of estimation
uncertainty section of this Annual Report and Financial
Statements on page 172. The external auditor performed
audit procedures on the credit card receivables valuation
and reported its findings to the Committee, who concluded
that the credit card receivables valuation in the Financial
Statements was appropriate.
– The Group operates in multiple jurisdictions where the
taxation treatment of transactions is not always certain.
Management is therefore required to make judgements,
based on internal expertise and external advice, on the
methodology to be adopted for accounting for uncertain
tax positions. Key areas of focus in 2024 included justification
of the Group’s uncertain tax risk provision and the
recognition of the tax asset relating to the repayment of
State Aid (see the Financial review on page 34 for further
information). The external auditor performed procedures
to assess management’s judgement and reported its
findings to the Committee. The Committee concluded
that the provision for uncertain tax risks and the tax asset
relating to State Aid included in the Financial Statements
were appropriate.
Activities in 2024
Audit and Risk Committee Report continued
International Personal Finance plc96
Internal control and risk management
While the Board is responsible for overseeing the Group’s
systems of internal control, including risk management,
the review of its effectiveness is delegated to the Committee.
The Group recognises the importance of strong systems of
internal control in the achievement of its strategy and
objectives. It also recognises that any system can provide only
reasonable and not absolute assurance against material
misstatement or loss.
The Committee reviews and approves the Group schedule
of key risks, which describes the principal risks and
uncertainties facing the business. The Board considers the
schedule formally on a six-monthly basis and approves risk
appetite at least annually. The Committee is supported in its
work by the Risk Advisory Group, which in 2024 comprised the
Chief Executive Officer, Chief Financial Officer, Group Credit
Director and Chief Legal Officer, together with other members
of the senior leadership team. The Risk Advisory Group meets
four times a year. It reports to the Audit and Risk Committee
and considers the risk assessments and risk registers produced
in each country and updates the Group schedule of key risks.
It also considers emerging risks, areas of specific risk, and
particular issues. For further details, see pages 38 to 43.
The Committee challenged robustly the identification,
assessment and planned mitigation of the principal risks
facing the business, notably in the light of the evolving
regulatory landscape.
The Committee also continued to pay close attention to
heightened cyber risk. Although now considered a business-
as-usual threat, the rapid and continuous developments of this
risk are notable for all financial services businesses with threat
actors becoming more professional and employing
increasingly sophisticated methods. Consequently, the
potential impact of ransomware attacks is now higher, posing
significant operational and reputational risks. For further details
of our mitigating actions, please refer to the Information
security and cyber risk disclosure on page 43. The implications
of DORA, which came into full force in January 2025, also
remain a key area of focus for the Committee.
Regulatory developments in 2024 were evident in two broad
areas. First, were the market-specific regulatory changes driven
by prevailing political pressures. These include the introduction
of a cap on the total cost of credit in Romania, applicable
to loans issued by non-banking financial institutions (NBFIs),
through specific consumer legislation that took effect in
November 2024. Second, was a continuing programme of new
regulation from the European Union, including the
transposition of the Second Consumer Credit Directive, and a
series of changes in the areas of marketing of financial
products, AI, gender pay, business continuity and information
security, sustainability reporting and open banking.
Additionally, the Committee received regular updates on key
tax issues and ongoing tax audits within the Group, together
with the Organisation for Economic Co-operation and
Development and European Union international tax initiatives
that could potentially impact the Group in the future. Details of
the current status of tax audits are included in our principal
risks and uncertainties on page 41.
The Committee will continue to assess the impact of these
matters on the business and will monitor management’s
response throughout 2025.
The internal control environments in place to manage
the impact of each risk are monitored by the Committee
on a regular basis, as are the principal actions being taken
to mitigate them. The Committee requests additional
presentations on key business areas, as necessary, to
supplement its understanding of control environments
in place. The areas covered by these in 2024 are referred
to in the ‘Training’ section on page 99.
Through the Committee, the internal audit function provides
independent assurance to the Board on the effectiveness
of the systems of internal control. The Committee provides
oversight and direction to the internal audit plan, which
is developed using an inherent risk-based approach.
The audit plan provides independent assurance over
the integrity of internal controls and the operational risk
management framework. In addition, the external auditor
communicates to the Committee any deficiencies
in the internal control environment it observes as part
of its audit procedures.
Internal audit
The internal audit function’s purpose, authority and
responsibilities are defined in its Charter, which is reviewed
and approved annually by the Committee. Internal audit
is an independent assurance function within the Group
providing services to the Committee and all levels of
management. It has no responsibility for operational business
management and its remit is to provide objective assurance
over the design and operating effectiveness of the systems
of internal control, through a risk-based approach. It also
provides insight, delivers value, and helps the organisation
to achieve its priorities. The internal audit function does this
by bringing a systematic, disciplined approach to evaluating
and improving the effectiveness of risk management, control
and governance processes.
The Head of Internal Audit reports to the Chair of the
Committee with administrative oversight from the Chief
Financial Officer.
The internal audit function comprises teams across our
markets and at the Group head office in the UK. The internal
audit function has a high level of qualified personnel with a
wide range of professional skills and experience. Co-sourcing
agreements with the largest professional services firms ensure
access to additional specialist skills and an advanced
knowledge base.
The Committee has a permanent agenda item to cover
internal audit-related topics. Prior to the start of each financial
year, and at the half year, having considered the principal
areas of risk within the business, the Committee reviews
and approves an inherent risk-based internal audit plan,
assesses the adequacy of the available internal audit
resources and considers the team’s operational initiatives
for its continuous improvement.
Annual Report and Financial Statements 2024 97
Directors’ Report
The Committee reviews progress against the approved internal
audit plan and the results of audit activities, with a focus
on unsatisfactory audit results which require timely attention.
During the year, the internal audit function focused on the
Group’s efforts to control its principal risks which included
regulation, reputation, information security and cyber threat,
and the execution of projects and initiatives of strategic
importance. The Committee monitors progress on the
implementation of any action plans arising from significant
audit findings to ensure they are completed satisfactorily.
Internal audit activities are based on a robust methodology
and are subject to an ongoing programme of internal quality
assurance reviews. The function has invested in several
initiatives to continuously improve its effectiveness, including a
third-party quality assessment which last reported in early 2019
and concluded positively on the effectiveness of the function.
Following the appointment of a new Head of Internal Audit in
September 2024, the aim is to undertake a similar exercise in
2025. The team measures its operational effectiveness and
efficiency via a set of key performance indicators which are
reported at each meeting of the Committee, and via individual
post-audit quality assessments by auditees, the results of which
are also reported to the Committee.
The Committee is satisfied that the quality, experience and
expertise of the function are appropriate for the business.
Appointment of external auditor
The Committee is responsible for conducting the process to
select the Group’s external auditor and recommend its
appointment, reappointment or removal to the Board for
approval by shareholders at each AGM.
After completing a robust tender process overseen by the
Committee, the Board recommended that PKF Littlejohn LLP be
appointed as external auditor at the Group’s 2024 AGM. The
recommendation was subsequently approved by
shareholders. The Committee is pleased to note that there has
been a smooth transition in the change of external auditor
from Deloitte LLP and we have quickly developed a
collaborative relationship and constructive engagement with
the new external audit team.
External auditor effectiveness
and independence
The Committee considered the external auditor’s assessment
of the significant risks in the Group’s Financial Statements set
out in its audit plan, and approved the scope of the external
audit that addressed these risks. The Committee considered
these risks and the associated work undertaken by the
external auditor when forming its judgement on the
Financial Statements.
In line with its established practice, the Committee monitored
the effectiveness and conduct of the external auditor
by reviewing:
– the experience and capabilities of the auditor and the
calibre of the audit firm;
– provision of non-audit services;
– robustness and perceptiveness of the external auditor
in its handling of key accounting and audit judgements;
– the interaction between management and the
external auditor;
– the delivery of its audit work in accordance with the agreed
plan; and
– the quality of its report and communications to
the Committee.
The effectiveness of the external audit process is normally
evaluated in June of each year via a questionnaire which
is completed by the Committee members and attendees,
and by business unit finance directors across the Group.
However, as the Group’s new external auditor was appointed
at the 2024 AGM in May, the first effectiveness review of PKF
Littlejohn LLP will be conducted in June 2025.
In order to confirm its independence and objectivity, the
external auditor reports on its independence to the
Committee. In addition, the Committee ensured compliance
with the Group’s policy on the use of the external auditor for
non-audit services. The key requirements of this policy are:
– the external auditor is prohibited from providing certain
services which include the following: tax services; payroll
services; designing and implementing internal controls or risk
management procedures; legal services; internal audit
services; human resource services; valuation services;
or general management consultancy; and
– the Committee Chair must approve any individual
non-audit service over a specific fee level.
Audit and Risk Committee Report continued
International Personal Finance plc98
The policy of the Committee in respect of non-audit services
is that the external auditor is only appointed to perform
a non-audit service when doing so would be consistent
with both the requirements and overarching principles
of the Financial Reporting Council’s Revised Ethical Standard
(2019), and when its skills and experience make it the most
suitable supplier.
The Committee believes that the Group receives a particular
benefit from certain non-audit services where a detailed
knowledge of its operations is important or where the auditor
has very specific skills and experience. Other large
accountancy practices are also used to provide services
where appropriate. Consequently, the Committee is satisfied
that PKF Littlejohn LLP was independent throughout 2024.
Non-audit services carried out by
PKF Littlejohn LLP in 2024 Fee £000
Other assurance services 212
Training
The Committee, with the Board, undertook a significant
amount of training during 2024. This included presentations
on the following key business areas:
– an update on strategic risk assessment;
– an update on regulatory risks;
– an internal control update regarding the Group’s
whistleblowing arrangements;
– explanation of oversight arrangements in place in respect
of bribery, compliance and privacy;
– a recap by the external auditor on Audit and Risk Committee
responsibilities, focus areas and best practice;
– calculation and oversight of revenue and impairment under
IFRS 9 in the evolving economic environment;
– an overview of DORA;
– a cyber security briefing; and
– a refresh on the UK Market Abuse Regulation overview of
purchase finance, lending process automation and digital
marketing in IPF Digital.
This training was complemented by discussions directly with
management teams in connection with specific focus areas
in the Group.
Review of the effectiveness of the internal
control and risk management systems
On behalf of the Board, with the assistance of the internal
audit function, the Committee monitored the Group’s internal
control and risk management systems, and its processes for
managing principal and emerging risks throughout 2024, and
on the basis of the work performed by the management team
throughout the year and reported to the Committee at each
meeting, has assessed that these are effective. In addition,
the Committee, where appropriate, ensures that necessary
actions have been or are being taken to remedy identified
failings or weaknesses in the internal control framework. These
processes were in place throughout 2024 and up to
26 February 2025.
Annual Report and Financial Statements
The Committee has reviewed and considered the Annual
Report and Financial Statements, in line with other information
the Committee has considered throughout the course
of the year. It concluded, and recommended to the Board,
that the Annual Report and Financial Statements 2024,
taken as a whole, are fair, balanced and understandable,
and provide the information necessary for shareholders
to assess the Group’s position and performance,
business model and strategy.
Richard Holmes
Chair of the Committee
26 February 2025
Annual Report and Financial Statements 2024 99
Directors’ Report
Our Remuneration Framework is intended to strike an appropriate balance between fixed
and variable pay components, and to provide a clear link between pay and our key strategic
priorities. Executive director and senior leadership remuneration are structured, so that
individuals are rewarded only for the successful delivery of the strategy over both the short
and long term.
Our Next Gen strategy
Outcomes
Pay for performance
Pre-exceptional profit before tax
£85.2m
+1.5%
Pre-exceptional earnings per share
24.9p
+7.3%
Group net receivables
£870.0m
+6.8%
Chief
Executive
Officer
Chief
Financial
Officer
Base pay award 2.5% 2.5%
Bonus as % maximum 100.0% 100.0%
Restricted Share Plan awards 80.0% 80.0%
Legacy 2022 Performance Share Plan vested at 29.1% 29.1%
1. Financial inclusion 2. Organisation 3. Technology and data
Long-term
profitable growth
RoRE
15% to 20%
Strong capital
generation
– Annual bonus aligned
to in-year objectives,
with 80% weighting on
financial metrics
– Three-year deferral of
up to 50% of bonus
– RSP with underpin
aligned to progressive
dividend policy;
three-year vesting plus
two-year holding
period
Total business return for all our shareholders
Our remuneration outcomes for 2024
Remuneration outcomes
Remuneration at a glance
Our 2023 Remuneration Policy at a glance
Our Remuneration Policy Links to strategy Key features
2024
2025
2026
2027
2028
2029
Salary,
pension
and benefits
To attract and retain talent capable of delivering
the Group’s strategy.
Normally reviewed annually. Increases take into
account salary reviews across the Group and
increases paid to UK employees.
Annual
bonus
Deferral of 50% to 25%
To motivate and reward sustainable Group
profit before tax and the achievement of
specific personal objectives linked to the
Company’s strategy.
On-target performance delivers 50% of maximum.
Maximum opportunity 130% of base. 50% cash and
50% deferred for three years until shareholding
requirement met; thereafter 75% cash and 25%
deferred. Typically, 80% based on financial
measures and 20% on personal objectives, linked
to strategy.
Malus on deferral
Clawback on cash
Long-term
incentive plan
Vest period
To motivate and reward longer-term performance
and support shareholder alignment through
incentivising absolute shareholder value creation.
Award normally equivalent to 80% of base salary at
time of grant (maximum 125%). Three-year
performance period with the extent of any vesting
subject to satisfaction of an underpin as
determined by the Committee. Two-year
post-vesting holding period. Two-year
post-cessation shareholding requirement.
Two-year post-vest holding
Clawback period
For more information see page 22.
International Personal Finance plc100
“Our directors’ remuneration framework
is designed to reward exceptional
leadership and drive sustainable
value creation. By linking rewards to
measurable performance metrics,
we foster a culture of excellence and
continuous improvement that underpins
our future success”
Deborah Davis
Chair of the Remuneration Committee
Committee members
Deborah Davis, Chair and independent non-executive
director
Richard Holmes, Independent non-executive director
Stuart Sinclair, Chair of the Board
Katrina Cliffe, Senior independent non-executive director
The table below shows the number of meetings held and the
directors’ attendance during 2024.
Committee member
Scheduled
meetings
1
No. of
meetings
attended
% of
meetings
attended
Deborah Davis 5 5 100%
Richard Holmes 5 5 100%
Stuart Sinclair 5 5 100%
Katrina Cliffe
2
2 2 100%
Notes
1. The scheduled meetings that each individual was entitled to and had the
opportunity to attend.
2. Katrina Cliffe was appointed to the Committee in May 2024 following the
2024 AGM.
Dear shareholder,
On behalf of the Board and as Chair of the Remuneration
Committee, I am pleased to present the Directors’
Remuneration Report for the year ended 31 December 2024.
The report explains how the Committee carried out its duties
during the year and the rationale behind the decisions that
were taken. The report is divided into three sections:
1. Remuneration at a glance on the left, illustrating how our
Next Gen business strategy aligns with our Remuneration
Policy, and the link between pay and performance;
2. A summary of the Directors’ Remuneration Policy (the 2023
Remuneration Policy), the full detail of which can be found
on pages 100-109 of the 2022 Annual Report and Financial
Statements; and
3. The 2024 Annual Remuneration Report, providing detail of
amounts paid during the reporting year, including incentive
outcomes and the planned implementation of the 2023
Remuneration Policy in 2025.
Directors’ Remuneration Report
Annual Report and Financial Statements 2024 101
Directors’ Report
Overview
Role and composition
The Committee comprises three independent non-executive
directors and the Chair of the Board. Full biographical details
can be found on pages 80 and 81.
The Committee’s responsibilities include:
– formulating and approving the Remuneration Policy for
executive directors and the senior leadership team, and
making recommendations to the Board. The Committee
takes account of the remuneration of the wider workforce
when setting policy for, and making remuneration decisions
in respect of, the executive directors;
– determining appropriate performance targets and incentive
outcomes; and
– engaging with shareholders on matters relating
to remuneration.
The Committee’s responsibilities are explained fully in its
Terms of Reference which are available on our website at
www.ipfin.co.uk.
Our Remuneration Framework is intended to strike
an appropriate balance between fixed and variable
pay components, and to provide a clear link between
pay and our key strategic priorities. For example:
– profitable growth is recognised via the structure and
operation of our annual bonus plan, which carries an 80%
weighting on financial metrics;
– delivery of sustainable organisational performance and
shareholder value is reflected in a progressive dividend
policy, which underpins our Restricted Share Plan (see page
106); and
– our commitment to building a better world through financial
inclusion is demonstrated by the adoption of a number of
appropriate ESG metrics embedded in executive directors’
remuneration, which align clearly to our purpose and reflect
issues of direct importance to our key stakeholders,
including our shareholders.
Business context
The Committee’s remuneration decisions in 2024 were made
within the context of the business delivering a strong
operational and financial performance which included:
– year-on-year customer lending and receivables growth of 9.2%
and 6.8% respectively (at constant exchange rates (CER));
– strong customer repayment performance and excellent
credit quality driving a further 2.6 ppt year-on-year
improvement in the Group’s annualised impairment rate to
9.6%; and
– the successful completion of a £15m share
buyback programme.
Shareholder context
Reflecting the continued strong performance of the Group
and our strategy to realise the long-term growth potential of
the business, a final dividend of 8.0 pence per share
is proposed, representing a year-on-year increase of 11.1%.
This is in line with our progressive dividend policy and brings
the full-year dividend to 11.4 pence per share.
Employee and customer representative context
In making its executive remuneration decisions, the Committee
continued to take into account wider workforce remuneration
and related policies, and the alignment of incentives and
rewards throughout the organisation.
The business continues to work hard to reward and recognise
our 20,500 employees and customer representatives, and to
provide the best possible opportunities for learning and
development. This was reflected in:
– the delivery of over 400 training interventions to colleagues
across 10 countries covering topics such as technical
upskilling, storytelling and leadership development;
– embracing digital learning through our global learning
management system, LinkedIn Learning, and Pluralsight to
provide tailored learning experiences to our employees
across the Group;
– holding our fourth annual Learning Festival, a week-long
global event which attracted over 7,300 participations to
more than 88 sessions and hosted by 92 speakers; and
– results from the 2024 Pulse Survey indicated a strong sense
of wellbeing and engagement with 97% of colleagues
reporting feeling their leader genuinely cares about
their wellbeing.
Directors’ Remuneration Report continued
International Personal Finance plc102
Progress in 2024
In addition to the effective implementation of the 2023
Remuneration Policy, the Committee made good
progress on its principal goals for 2024:
– prioritising the policies and practices as part of the
Group’s broader purpose agenda.
In respect of the 2024 annual bonus, the Committee
refined ESG measures ensuring consistency between the
executive directors’ bonus priorities in this area, and
those of the senior management team below the Board.
Key priorities for 2025
The priorities for the Committee will include:
– undertake a review of the Remuneration Policy,
including consultation with shareholders, ahead of a
vote at the AGM in 2026;
– continue the effective implementation of the
2023 Policy; and
– continue to monitor broader market and governance
trends, and appropriate adaptation in line with
compliance requirements.
Remuneration decisions made in 2024
As noted in the 2023 Directors’ Remuneration Report,
remuneration decisions included:
– a 4.5% increase in base salary awarded to the Chief
Executive Officer and Chief Financial Officer in line with the
typical annual salary increase for the wider UK workforce
and less than the planned wider workforce pay budget
of 5.5%, with salaries increasing to £614,076 and £356,606
respectively.
– Financial year 2023 bonus awards of 100% of maximum for
both the Chief Executive Officer and the Chief Financial
Officer (further details on which can be found on page 122
of the 2023 Annual Report and Financial Statements); and
– 2024 Restricted Share Plan awards of 80% of salary each for
the Chief Executive Officer and Chief Financial Officer. These
awards were in line with the normal level expected under
the 2023 Policy.
Implementation of Remuneration Policy
in 2025
The Committee approved:
– an increase in base salary of 2.5% each for the Chief
Executive Officer and Chief Financial Officer, in line
with the typical annual salary increase for the wider UK
workforce and less than the planned wider workforce pay
budget of 3.0%, with salaries increasing to £629,428 and
£365,521 respectively.
– financial year 2024 bonus awards of 100% of maximum
for the Chief Executive Officer and 100% for the Chief
Financial Officer within the context of the business delivering
a strong operational and financial performance (see
page 102), and each executive director performing
exceptionally well against their personal objectives (see
pages 110 and 111);
– legacy 2022 PSP awards that have vested at 29.1% reflecting
good TSR performance over the life of the scheme and
above threshold performance on EPS, with below threshold
achievement on net revenue growth.
– 2025 Restricted Share Plan awards of 80% of salary for each
of the Chief Executive Officer and Chief Financial Officer.
The Committee considered base salary increases in the
context of the business and external environment, recognising
a positive trend in the macroeconomic climate across most
of the markets in which our colleagues work. Base salary
increases have been tailored in each market to reflect this;
similar to 2024, this has resulted in salary increases in most
markets being above the 2.5% award made to each of the
executive directors. On that basis, the Committee is
comfortable that the 2.5% awards made to our executive
directors are fair and proportionate.
The Remuneration Committee is committed to maintaining an
open dialogue with you, our shareholders, and look forward to
reporting on progress in 2025.
Deborah Davis
Chair of the Committee
26 February 2025
Annual Report and Financial Statements 2024 103
Directors’ Report
The 2023 Remuneration Policy is included on pages 100-109 of the 2022 Annual Report and Financial Statements. A copy of the
Report can be found on our website in the Investors section at www.ipfin.co.uk together with all notes to the Policy. The 2023
Remuneration Policy was approved by shareholders at the 2023 AGM and took effect from 27 April 2023.
The Remuneration Policy table for the executive directors has been reproduced below:
Purpose and link to strategy Operation Maximum opportunity Metrics, weightings and period
Base salary
To attract and retain talent
capable of delivering the
Group’s strategy. Rewards
executives for their
performance in the role.
Base salary is paid in 12 equal
monthly instalments during the
year. Salaries are normally
reviewed annually; generally, any
changes are effective from 1 April.
Salary levels are set considering
role, experience, responsibility
and performance, of both the
individual and the Company,
and also taking into account
market conditions and the
salaries for comparable roles
in other companies.
Salary increases take into
account salary reviews across
the Group and are usually in line
with increases awarded to UK
employees. Additionally, due
regard is given to any specific
external factors or events relevant
to the setting and review of
executive salaries. By exception,
higher awards may be made at
the Committee’s discretion to
reflect individual circumstances.
For example:
– changes to role which increase
scope and/or responsibility;
– development and performance
in the role; and
– responding to competitive
market pressures.
There is no prescribed
maximum increase.
None, although overall
performance of the individual is
considered by the Committee
when setting and reviewing
salaries annually.
Pension
To provide retirement funding.
The Company operates a
stakeholder scheme; at the
discretion of the Committee, this
may be paid as a cash
allowance.
The Company has closed its
defined benefit scheme to new
members and future accrual.
Company contribution is set at
the most common rate for the
wider workforce, currently 12%.
Cash allowance is paid net of
employer’s NIC and other
employment taxes.
None
Benefits
To provide market-competitive
benefits that support the
executive directors to
undertake their role.
The Company pays the cost of
providing the benefits on a
monthly, annual or one-off basis.
All benefits are non-pensionable.
The standard benefits
package includes:
– life assurance of 4x salary;
– car allowance;
– long-term disability cover;
– private medical cover for
executive director and
immediate family;
– annual medical; and
– ability to participate in the IPF
Save As You Earn Plan (SAYE)
and any other all-employee
share plans on the same terms
as other employees.
Additional benefits may also
be provided in certain
circumstances, and may include
relocation expenses, housing
allowance and school fees.
Other benefits may be offered if
considered appropriate and
reasonable by the Committee.
None
Directors’ Remuneration Policy 2023
Directors’ Remuneration Report continued
International Personal Finance plc104
Purpose and link to strategy Operation Maximum opportunity Metrics, weightings and period
Annual bonus
To motivate and reward the
generation of sustainable
Group profit before tax and
the achievement of specific
personal objectives linked to
the Company’s strategy.
Measures and targets are set
annually, and payout levels are
determined by the Committee
after the year end, based on
performance against those
targets. The Committee may,
in exceptional circumstances,
amend the bonus payout should
this not, in the view of the
Committee, reflect overall
business performance or
individual contribution. 50% of the
total amount is deferred for three
years in Company shares through
the Deferred Share Plan (DSP) until
the executive director has
achieved the shareholding
requirement of 200%, at which
point 25% of the total is deferred
on the same basis. The remaining
bonus (50% or 75% depending
on shareholding) is paid in cash.
Payments are made around three
months after the end of the
financial year to which they relate.
There are provisions for clawback
adjustments on the occurrence of
certain events.
Executive directors remain eligible
to participate in, and receive pro
rata payment under, the terms of
the annual bonus during notice,
until their date of leaving.
On-target bonus:
50% of maximum.
Maximum opportunity:
130% of base salary.
Performance is measured over
the financial year and is assessed
using the following criteria:
– typically 80% is based on
achievement of financial
measures; and
– typically 20% is based on
achievement of personal
objectives linked to
achievement of
Company strategy.
Although each of the annual
bonus metrics could pay out
independently, the Committee will
set a minimum threshold profit
target before any other metrics
are assessed.
Deferred Share Plan (DSP)
To strengthen the link between
short- and longer-term
incentives and the creation of
sustainable long-term value.
50% of the total bonus amount
is subject to compulsory deferral
for three years in Company shares
without any matching, until the
executive director has achieved
the shareholding requirement
of 200%, at which point 25%
of the total is deferred on the
same basis.
Following the vesting of awards,
executive directors receive
an amount (in cash or shares)
in respect of the dividends paid
or payable between the date
of grant and the vesting of the
award on the number of shares
that have vested.
The DSP has provision for malus
and clawback adjustments on
the occurrence of certain events.
Awards may also be adjusted in
the event of a variation of capital,
in accordance with the plan rules.
50% of the total bonus amount
received (or 25% once the
shareholding requirement has
been achieved) during the year.
None
Annual Report and Financial Statements 2024 105
Directors’ Report
Purpose and link to strategy Operation Maximum opportunity Metrics, weightings and period
Restricted Share Plan (RSP)
Awards are designed to
incentivise executive directors
to successfully and sustainably
deliver the Company’s
strategy.
Annual grant of awards, made
generally as conditional awards
or options. Awards vest at the
endof the three-year period
subject to:
– the executive directors’
continued employment
atthedate of vesting; and
– the satisfaction of an
underpinas determined
bytheCommittee, whereby
theCommittee can adjust
vesting for Company or
individual performance.
Executive directors will be required
to hold any shares acquired on
vesting (net of any shares that
may need to be sold to cover
taxes) for a two-year period
starting on the date of vesting.
The RSP has provisions for malus
and clawback adjustments on the
occurrence of certain events.
Awards granted under the RSP
may incorporate the right to
receive an amount (in cash or
shares) equal to the dividends
which would have been paid
orpayable on the shares that
vestin the period up to vesting.
In normal circumstances, award
levels for executive directors are
equivalent to 80% of base salary
at the time of grant.
Rules permit annual grants
uptoindividual limit of 125%.
There are no performance
conditions on grant, however the
Committee will consider prior year
business and personal
performance to determine
whether the level of grant
remainsappropriate.
Central, quantifiable financial RSP
underpin will be adherence to the
Group’s dividend policy
throughout the three-year vesting
period of each annual RSP grant.
A further basket of underpin
factors will be considered at the
end of the relevant three-year
vesting period. For 2024 awards,
these will be as follows:
– the extent to which any windfall
gains have arisen as a result of
any marked appreciation in
share price;
– whether there have been any
material sanctions or fines
issued by a regulatory body
(which may give rise to
allocation of individual or
collective responsibility);
– any material damage to the
reputation of individual Group
Companies, or the Group itself
(which may give rise to
allocation of individual or
collective responsibility);
– the level of employee and
customer representative
engagement over the vesting
period; and
– the level of customer
engagement (as measured by
net promoter scores, Rep Track
or such other means as
determined by the Committee).
Shareholding requirement
Aligns executive and
shareholder interests.
Executive directors expected to
acquire a beneficial shareholding
over time.
Shares which have vested
unconditionally under the
Company’s share plans will
betaken into account with
effectfrom the date of vesting
(but not before).
50% of all share awards vesting
under any of the Company’s
share incentive plans (net of
exercise costs, income tax and
social security contributions) must
be retained until the shareholding
requirement is met.
The shareholding requirement
for executive directors is 200%
of base salary.
None
Post-cessation shareholding
Aligns executive and
shareholder interests.
Post-cessation shareholding policy
is set at 1x the shareholding
requirement (200%), or the
number of shares actually held,
at leaving, whichever is lower,
for two years. Requirement applies
to any shares held, including
shares acquired from the
executive director’s own funds,
and any vested shares subject
to a holding period.
The policy applies only to shares
acquired after the date on which
the 2020 Remuneration Policy was
introduced (30 April 2020).
Not applicable. Two-year post-cessation holding
period.
Directors’ Remuneration Report continued
International Personal Finance plc106
Directors’ Remuneration Report 2024
Remuneration principles and alignment with strategy
As explained in the Committee Chair’s opening statement on page 101, our Remuneration Framework is intended to strike an
appropriate balance between fixed and variable pay components, and to provide a clear link between pay and key strategic
priorities. For example:
– profitable growth is recognised via the structure and operation of our annual bonus plan, which carries an 80% weighting
on financial metrics;
– delivery of sustainable organisational performance and shareholder value is reflected in a progressive dividend policy,
which underpins our Restricted Share Plan (see page 106), and has a three-year vesting period coupled with two-year
post-vesting holding requirements; and
– our commitment to building a better world through financial inclusion is demonstrated by the adoption of a number of
appropriate ESG metrics embedded in executive directors’ remuneration, which align clearly to our purpose and reflect issues
of direct importance to our key stakeholders, including our shareholders.
Remuneration governance
The Committee met five times in 2024, with consideration given to a range of issues as illustrated below:
Governance Annual bonus Share plan
Policy
Directors’
Remuneration
Report Design Performance Grant Performance Salary
Wider
Workforce Shareholder
January
February
May
December
The Chief Executive Officer, Chief HR Officer and Group Head of Reward attended meetings by invitation, to provide advice and
respond to questions. Other members of management may attend by invitation. All such attendees are excluded when any
matter concerning their own remuneration and performance is under discussion.
Adviser to the Committee
Willis Towers Watson, appointed in April 2016, provides independent remuneration advice to the Committee. During 2024, total
fees in respect of advice to the Committee (based on time and materials) totalled £34,125 (excluding VAT), (2023: £40,500).
Willis Towers Watson is a founding member of the Remuneration Consultants Group and is a signatory to, and abides by, the
Remuneration Consultants Group Code of Conduct. Further details can be found at www.remunerationconsultantsgroup.com.
The Committee is satisfied that the advice it receives is objective and independent, and that Willis Towers Watson does not have
any connections with the Company or any of the directors that may impair its independence.
Service agreements for executive directors
Copies of the service agreements of the Executive Directors and the Letters of Appointment of the non-executive directors
are available for inspection at the Company’s registered office during normal business hours. All directors, with the exception of
Deborah Davis, will retire at the 2025 AGM and submit themselves for re-election by shareholders at the AGM on 1 May 2025.
Gerard Ryan and Gary Thompson have service agreements which provide for a notice period of 12 months and 6 months
respectively. Non-executive directors do not have service agreements as they have Letters of Appointment instead.
Executive director Date of service agreement Duration of service agreement
Gerard Ryan January 2012 No fixed term
Gary Thompson April 2022 No fixed term
Annual Report and Financial Statements 2024 107
Directors’ Report
Single figure of total remuneration (audited information)
The following table sets out the single figure of total remuneration for directors for the financial years 2023 and 2024.
A.
Salary/Fees
£000
B.
Benefits
£000
C.
Bonus
1
£000
D.
LTIP
£000
E.
Pension
£000
Total £000
(A, B, C, D, E)
Total fixed
remuneration
£000
(A, B, E)
Total variable
remuneration
£000
(C, D)
2024 2023 2024 2023 2024 2023 2024
2
2023
3
2024 2023 2024 2023 2024 2023 2024 2023
Executive directors
Gerard Ryan
4
608 581 40 53 790 755 550 883 64 61 2,052 2,333 712 695 1,340 1,638
Gary Thompson 353 337 23 23 459 438 143 – 38 37 1,016 835 414 397 602 438
Non-executive directors
Stuart Sinclair 200 200 – – – – – – – – 200 200 200 200 – –
Deborah Davis
5
65 65 – – – – – – – – 65 65 65 65 – –
Richard Holmes
6
70 88 – – – – – – – – 70 88 70 88 – –
Katrina Cliffe
7
75 57 – – – – – – – – 75 57 75 57 – –
Aileen Wallace
8
55 57 – – – – – – – – 55 57 55 57 – –
1. Bonus payable in respect of the financial year including any deferral element at face value, at date of award.
2. The value of the awards included in the table for 2024 relates to the PSP award granted in 2022, the performance period for which is the three financial years
ending 31 December 2024. The awards have been valued according to an estimate based on expected vesting and the 1-month average share price to
31 January 2025. This value also includes the anticipated value of dividend equivalents that will be payable in 2025, relating to the 2022 Deferred Share Plan
from grant to date of vesting. These estimated figures will be updated and based on actual values for the relevant dates in next year’s report. Further
information about the vesting is provided in the long-term incentives section on page 112.
3. The value of the awards included in the table for 2023 has been reviewed to reflect the actual value of awards at date of vesting and any dividend
equivalents received in 2024 when the awards became exercisable.
4. In accordance with Company policy, the benefits for Gerard Ryan in 2024 include additional costs of £12,899 related to expenses associated with a period of
business travel for which the Board agreed it was appropriate for his wife to accompany him. All costs associated with her travel were borne by the Company.
5. Deborah Davis was paid a fee of £10,000 in her capacity as Chair of the Remuneration Committee, in addition to her base fee of £55,000.
6. Richard Holmes was paid a fee of £15,000 in his capacity as Chair of the Audit and Risk Committee, in addition to his base fee of £55,000. In 2023 he stood
down from the role of senior independent director.
7. Katrina Cliffe was paid a fee of £20,000 in her capacity as senior independent director, in addition to her base fee of £55,000.
8. Aileen Wallace was paid a base fee of £55,000. In 2023 she received backdated fees from when she was appointed in December 2022.
Directors’ Remuneration Report continued
International Personal Finance plc108
Additional disclosures for the single figure of total remuneration
Base salary
The base salary of the Chief Executive Officer increased by 4.5% in 2024 to £614,076, in line with the typical annual salary increase
of the wider UK workforce.
The base salary of the Chief Financial Officer increased by 4.5% in 2024 to £356,606, in line with the typical annual salary increase
of the wider UK workforce.
Benefits
The benefits provided to the executive directors in 2024 included: private healthcare, life assurance, annual medical cover,
long-term disability cover, and a cash allowance in lieu of a company car. Gerard Ryan’s benefits in 2024 also include additional
costs of £12,899 related to expenses associated with a period of business travel for which the Board agreed it was appropriate
for his wife to accompany him. All costs associated with her travel were borne by the Company.
Determination of 2024 annual bonus
The maximum bonus opportunity for the Chief Executive Officer and Chief Financial Officer was 130% of salary, with 50% of the
maximum for on-target performance. During 2024, a balanced scorecard approach was used to ascertain annual bonus
outcomes whereby:
– 80% of total bonus opportunity was subject to achieving the profit before tax (PBT) element; and
– the remaining 20% of the bonus opportunity was subject to the achievement of personal objectives.
Qualifiers for the 2024 annual bonus
For any bonus to be payable, the Group must first achieve the PBT threshold figure.
Group bonus targets
Group bonus targets were set considering the Company’s operating budget. Targets were designed to be stretching in support
of the Company’s strategic objectives, and to focus on metrics and personal targets that would deliver in line with this strategy,
as well as stretching and motivating participants. Bonus targets for the executive directors for 2024 were as follows:
Metric
Weighting in
Scheme Threshold Target Stretch Achievement
Bonus
payment % of
bonusable
base salary
Financial
1
Group PBT 80% £63.1m £66.4m £69.7m £85.2m 104%
1. Straight line between each point.
The Committee uses the annual bonus to focus on short-term targets that the Board agrees each year consistent with the Group’s
strategy and on individual performance against personal targets. Performance is assessed over each calendar year and at the
start of the following year. The Committee retains the right to exercise its judgement to adjust the formulaic bonus outcomes, to
ensure the final bonus outcome for executive directors reflects the broader performance of the Group and the experience of our
employees and shareholders over the reported year.
In 2024, the Group delivered a strong financial performance, with pre-exceptional profit before tax up 1.5% year on year to £85.2m.
In addition to this improvement in profit before tax, each executive director performed exceptionally well against their personal
objectives as summarised on pages 110 and 111. As a result, the Committee did not apply any discretion to the formulaic
bonus outcomes.
Annual Report and Financial Statements 2024 109
Directors’ Report
Personal objectives
The following tables explain the objectives that were set for each executive director in 2024 and achievement against them.
Gerard Ryan – Chief Executive Officer
Category Objective Weighting Results Achievement
Continue to
embed our
purpose within
the Group
– Ensure the 2024 strategy process
identifies and incorporates ESG
risks and opportunities.
– Embed the Responsible Business
Framework across the Group and
ensure that the deliverables
identified for 2024 are achieved.
25%
– The 2024 strategy process successfully identified and
incorporated ESG risks and opportunities, ensuring
alignment with the Group’s broader sustainability
commitments.
– The Responsible Business Framework was effectively
embedded across the Group, with all 2024
deliverables significantly progressed.
Evolve the
Group
strategy
– Ensure Next Gen strategy is
delivered across the business
and is well received by external
stakeholders.
– Develop stakeholder
communication to align with
Next Gen strategy and regularly
update the Board on progress
against key strategic pillars.
25%
– The Next Gen Strategy is fully embedded across the
business.
– Communication across the Group is aligned fully with
the strategy, and the Board received regular updates
on both strategic progress and financial
performance in line with these objectives.
Develop
better choices
and
experiences
for our
customers
– Explore opportunity to roll out
credit cards to a new market.
25% – Successfully secured a full payment institution licence
which will enable accelerated growth of credit cards
in Poland and allow the Group to extend this offering
into new markets. A team dedicated to researching
and ultimately implementing credit card expansion
opportunities is in place.
Develop our
people and
organisational
capability
– Establish and develop a
structured High Potential Senior
Successors (HPSS) programme to
build a strong pipeline of future
leaders, ensuring succession
readiness across key senior roles
within the Group.
– Establish an AI community across
the Group to explore how AI can
drive growth and efficiency.
25%
– An HPSS programme was launched successfully
during the year and a cohort of high-potential
leaders were identified. Executive sponsorship,
external development assessments, and detailed
personal development plans have also been
embedded and mid-programme evaluation
indicated strong engagement and that the
programme is on track to strengthening the Group’s
future leadership pipeline.
– We successfully established a Group-wide AI
community which has become a key driver of AI-led
initiatives, generating actionable ideas that enhance
both growth and efficiency.
Key
Criteria met
Criteria partially met
Criteria not met
Directors’ Remuneration Report continued
International Personal Finance plc110
Gary Thompson – Chief Financial Officer
Category Objective Weighting Results Achievement
Ensure that
the business
operates with
strong
financial
discipline
– Deliver Next Gen cost challenge
in the 2024 budget.
– Deliver optimised commercial
finance function in European
home credit and show
measurable results from new
capability and organisation.
25%
– The Next Gen cost challenge was delivered in full,
with the Group delivering a strong financial
performance for 2024 exceeding budget.
– A new commercial finance structure in European
home credit was embedded successfully under the
leadership of a newly appointed European
Commercial Finance Director and has contributed to
the robust financial performance delivered in 2024.
Develop a
clear strategy
for
shareholder
value creation
– Deliver the refinancing of the
Eurobond in the most cost-
effective manner.
– Deliver an effective investor
relations (IR) programme to
deliver enhanced shareholder
value.
25%
– An effective IR programme including a £15m share
buyback programme and increased dividend in line
with the Group’s progressive dividend policy
supported increased shareholder value.
– Successfully delivered the refinancing of the Group’s
Eurobond at a lower margin than bonds issued in
2022 and 2023.
Continue to
embed our
purpose within
the Group
– With the Chief Legal Officer,
deliver the Group’s climate
change strategy and complete
all necessary regulatory
obligations and reporting.
– Continue to improve the Group’s
ESG disclosures.
25%
– Advanced the Group’s climate change strategy
while ensuring compliance with regulatory
requirements and reporting obligations.
– Responsible business considerations fully integrated
into the annual business plan and budget.
– Significant progress was made in enhancing
sustainability-related disclosures, leading to an
upgrade by MSCI to AA rating.
Develop our
people and
organisational
capability
– Invest in our people, build a
talented successor pipeline, and
further strengthen finance
function capability.
25%
– Strengthened the finance talent pipeline evidenced
by several internal promotions to finance director
roles.
– Launched three key finance transformation
programmes including the implementation of a new
financial planning tool, the development of a
Group-wide ERP system and established a Group
data warehouse, all of which are expected to drive
significant improvements in efficiency and
operational effectiveness.
Having reviewed the executive directors’ performance against their personal objectives, and in the context of the progress made
by the Group in 2024, the Committee determined that each executive director met all of his objectives. Consequently, the bonus
payout in respect of personal objectives is 100% for the Chief Executive Officer and 100% for the Chief Financial Officer.
Key
Criteria met
Criteria partially met
Criteria not met
Annual Report and Financial Statements 2024 111
Directors’ Report
Bonus outcomes for 2024
For the year ending 31 December 2024, the Committee awarded bonuses to the executive directors as follows.
Name
Financial objectives
– achievement as %
of bonusable base
salary
Personal objectives
– achievement as %
of bonusable base
salary
Cash bonus
£000
DSP – face value of
shares due to vest in
2027
£000
Total value of 2024
annual bonus
£000
Cash and DSP
shares awarded as
a % of maximum
available bonus
Gerard Ryan
1
104% 26% £592.3 £197.4 £789.8 100%
Gary Thompson 104% 26% £229.3 £229.3 £458.6 100%
1. Gerard Ryan has met the executive director shareholding requirement in 2024, therefore 25%, rather than 50%, of bonus is deferred in line with policy.
In accordance with the 2023 Policy, bonus is payable 50% in cash and up to 50% in deferred shares until the executive director
has met the shareholding requirement of 200% of salary at which time 25% of the total bonus is deferred on the same basis. The
deferred element will vest at the end of a three-year period, subject to the executive director not being dismissed for misconduct.
There are also provisions for clawback with respect to the cash element of the bonus, and malus and clawback with respect to
the deferred element of bonus.
Pension
The Company has two pension schemes, the International Personal Finance plc Pension Scheme (the pension scheme),
closed to future accrual, and the International Personal Finance Workplace Pension Scheme (the WPP).
The Company contribution rate for the Chief Executive Officer and the Chief Financial Officer is 12% of base salary (10.5% net).
These contribution rates are in line with the wider workforce. At the discretion of the Committee, this may be paid wholly, or in part,
as a cash allowance, net of employer’s NI contributions.
The Company’s contributions in respect of Gerard Ryan during 2024 amounted to £64,061, all of which was paid as a cash
allowance. The Company’s contributions in respect of Gary Thompson during 2024 amounted to £38,411, of which £28,411
was paid as a cash allowance.
Long-term incentives
Awards estimated to vest during 2025 (included in 2024 single figure)
The LTIP amount included in the 2024 single figure table on page 108 relates to the PSP awards granted in March 2022.
The performance achieved against the performance targets is shown below:
PSP
Performance condition Weighting Threshold Maximum Achieved
Projected
vesting
Absolute TSR performance
1
50% 30% 60% 32.7% 31.6%
Cumulative EPS growth
2
25% 60.3 pence 82.9 pence 68.8 pence 53.0%
Net revenue growth
2
25% 5.7% 11.4% 5.5% 0.0%
Total 29.1%
1. Based on TSR between 1 January 2022 and 31 December 2024.
2. Table reflects actual threshold and maximum targets as approved by the Remuneration Committee at the time of grant. Due to an administration error the
pre-grant draft targets had been included in the 2022 Directors Remuneration Report.
Awards granted in 2024
Executive directors were granted long-term incentive plan awards structured as RSP conditional awards for Gerard Ryan in March
2022 and to Gary Thompson in April 2022, in line with the 2023 Remuneration Policy. The resulting number of RSP conditional
awards and associated performance underpins are set out below.
Name
Number of RSP
conditional
awards
Face value
1
£
Percentageof
base salary
End of
performance
period Performance underpin
Gerard Ryan 417,242 £470,106 80% 31 December
2026
Adherence to the Group’s dividend policy and a
further basket of underpin factors for the relevant
three-year vesting period (see page 106)
Gary
Thompson
242,301 £273,000 80% 31 December
2026
Adherence to the Group’s dividend policy and a
further basket of underpin factors for the relevant
three-year vesting period (see page 106)
1. The face value was calculated using the average mid-market closing price of the three days preceding the date of grant, being 112.67 pence per share.
Directors’ Remuneration Report continued
International Personal Finance plc112
DSP
In 2024, 25% the annual bonus award earned by the Chief Executive Officer and half of the annual bonus award earned by the
Chief Financial Officer in respect of 2023 was deferred into shares. There are no further performance conditions attached to the
vesting of the deferred shares. The following table sets out details of awards of nil-cost options made in the year under the DSP:
Date of award
Face value
1
£
Gerard Ryan 20 March 2024 £188,707
Gary Thompson 20 March 2024 £219,172
1. The face value was calculated using the mid-market closing price for the day preceding the date of grant, being 112.00 pence per share.
Save As You Earn (SAYE)
UK-based executive directors are entitled to participate in the Company’s all-employee SAYE plan. The executive directors did not
participate in the 2024 SAYE plan, therefore no options were granted to them under the plan in 2024.
Loss of office payments
No loss of office payments were made in 2024.
Payments to past directors
There were no payments made to past directors in 2024.
Annual percentage change in the remuneration of directors and employees
The table below shows how the percentage change in each director’s salary, benefits and bonus compared with the average
percentage change in each of those components for employees on a full-time equivalent basis. The table will build over time
to show five years’ data. Leavers during the year are excluded.
2021 vs. 2020 2022 vs. 2021 2023 vs. 2022 2024 vs. 2023
Percentage change in
the relevant period
Base
salary Benefits
1
Bonus
2
Base
salary Benefits
1
Bonus
2
Base
salary Benefits
1
Bonus
2
Base
salary Benefits
1
Bonus
2
Executive directors
Gerard Ryan
3
0% 0% 100% 5% -1% 5% 5% 110% 6% 4% -26% 4%
Gary Thompson N/A N/A N/A N/A N/A N/A N/A N/A N/A 4% 2% 4%
Non-executive directors
Deborah Davis 12% N/A N/A 5% N/A N/A 0% N/A N/A 0% N/A N/A
Richard Holmes
4
N/A N/A N/A 15% N/A N/A -2% N/A N/A N/A N/A N/A
Stuart Sinclair N/A N/A N/A 0% N/A N/A 0% N/A N/A 0% N/A N/A
Katrina Cliffe
5
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Aileen Wallace N/A N/A N/A N/A N/A N/A N/A N/A N/A -3% N/A N/A
Employees -2% -2% 100% 15% 3% 1% 8% 7% -16% 6% 2% -4%
1. Non-executive directors are ineligible for any benefits.
2. Non-executive directors are ineligible for any bonus.
3. Gerard Ryan’s benefits in 2024 include additional costs of £12,899 related to expenses associated with a period of business travel for which the Board agreed
it was appropriate for his wife to accompany him. All costs associated with her travel were borne by the Company.
4. Richard Holmes stood down from the role of senior independent director on 1 December 2023 and received pro rata fees for the year in respect of that role.
As such, the percentage change is not reflective of a normal year-on-year comparison.
5. Katrina Cliffe was appointed to the Board with effect from 1 August 2022, receiving pro rata fees in 2022, and was subsequently appointed senior
independent director from 1 December 2023. As such, the percentage change is not reflective of a normal year-on-year comparison.
Annual Report and Financial Statements 2024 113
Directors’ Report
TSR performance
The graph below compares the TSR of the Company with the companies comprising the FTSE 250 Index for the 10-year period
ended 31 December 2024. This index was chosen for comparison because it is the index in which IPF was listed originally,
and to which it continues to compare itself. TSR data is presented in tandem with Chief Executive Officer single figure total
remuneration for the same period to highlight the relationship between remuneration and shareholder returns.
TSR performance vs Chief Executive Officer single figure of total remuneration
The table below shows the corresponding Chief Executive Officer remuneration, as well as the annual variable element award
rates and long-term vesting rates against maximum over the same period:
Year Chief Executive Officer
Chief Executive
Officer single figure
of remuneration
£000
Annual bonus
payout (as % of
maximum
opportunity)
LTIP vesting (as % of
maximum
opportunity)
2024 Gerard Ryan 2,052 100.0% 29.1%
2023 Gerard Ryan 2,333 100.0% 100.0%
2022 Gerard Ryan 1,409 98.0% –
2021 Gerard Ryan 1,353 98.3% –
2020 Gerard Ryan 677 – –
2019 Gerard Ryan 1,260 72.3% 33.0%
2018 Gerard Ryan 1,158 98.0% –
2017 Gerard Ryan 1,130 96.6% –
2016 Gerard Ryan 838 16.0% 23.3%
2015 Gerard Ryan 1,197 45.0% 58.8%
Relative spend on pay
The table below shows the expenditure and percentage change in overall spend on employee remuneration and dividend:
2024
£m
2023
£m
Percentage
change
Overall expenditure on pay 200.2 198.4 0.9%
1
Dividend paid in the year 23.9 21.5 11.2%
1. The percentage change at a constant exchange rate is 3.2%.
40
80
120
160
200
TSR
£500
£1,000
£1,500
£2,000
£2,500
CEO Single Figure £ 000
31 Dec 2015 31 Dec 2016 31 Dec 2017 31 Dec 2018 31 Dec 2019 31 Dec 2020 31 Dec 2021 31 Dec 2022 31 Dec 2023 31 Dec 2024
CEO single figure (£’000) International Personal Finance FTSE 250
Directors’ Remuneration Report continued
International Personal Finance plc114
Other directorships
Neither executive director currently holds any external directorships or external appointments.
Directors’ shareholdings and share interests (audited information)
The interests of each person who has served as a director of the Company during the year as at 31 December 2024 (together
with interests held by his or her persons closely associated) are shown in the table below. Katrina Cliffe is currently within
the three-year period to build shareholding. Stuart Sinclair, however, has served the Company for more than three years
and his shareholding is therefore currently below the required quantum. This will be rectified as soon as practicable. Executive
directors are required to retain half of any vested Company share plan options until the shareholding requirement is met.
Shares held Executive directors’ interests in Company share plans
Owned
outright
Unvested
and subject
to
performance
conditions
Unvested
and subject
to deferral
only
Unvested
and subject
to continued
employment
Vested but
not yet
exercisable
and subject
to continued
employment
Vested and
exercisable,
but not yet
exercised
Shareholding
required (%
salary/fee)
Shareholding
(% salary/
fee)
1
Requirement
met
Executive directors
2
Gerard Ryan 1,977,907 2,077,444 910,068 – – – 200 431 Y
Gary Thompson 165,700 904,929 353,115 24,000 – – 200 62 N
Non-executive directors
3
Katrina Cliffe 40,000 – – – – – 100 71 N
Deborah Davis 60,000 – – – – – 100 122 Y
Richard Holmes 275,133 – – – – – 100 521 Y
Stuart Sinclair 130,050 – – – – – 100 86 N
Aileen Wallace 47,835 – – – – – 100 115 Y
1. Based on a share price of 132.5 pence, being the closing price on 31 December 2024 and using the non-executive directors’ base fee. Any vested but
unexercised shares are included in the shareholding requirement calculation net of tax and national insurance.
2. Executive directors are expected to acquire a beneficial shareholding over time, with 50% of all share awards vesting to be retained until the requirement is
met. Of the 1.98 million shares held by Gerard Ryan, 0.9 million were purchased outright by him using his own funds. Of the 166 thousand shares held by Gary
Thompson, 16 thousand were purchased by him using his own funds.
3. Non-executive directors are expected to acquire a beneficial shareholding equivalent to 100% of their director fee within three years of appointment.
There were no changes to these interests between 31 December 2024 and 26 February 2025.
No director has notified the Company of an interest in any other shares, transactions or arrangements which requires disclosure.
The current shareholding requirements for executive and non–executive directors are described in the 2023 Remuneration Policy
which can be found on pages 100 to 109 of the 2022 Annual Report and Financial Statements, available in the Investor section of
the Company website at www.ipfin.co.uk.
Executive directors’ interests in Company share plans (audited information)
Date of
award
Awards held at
31 December
2023
Awarded
in 2024
Exercised
in 2024
Lapsed /
Surrendered
in 2024
Awards held at
31 December
2024
Performance
condition
period
Market price
at date of
grant (p)
Exercise
price (p)
Exercise
period
Gerard Ryan
PSP 23 Mar 21 810,185 – (810,185) – –
01 Jan 2021
– 31 Dec 2023 104 –
23 Mar 2024
– 22 Mar 2031
PSP 10 Mar 22 1,178,864 – – – 1,178,864
01 Jan 2022
– 31 Dec 2024 97 –
10 Mar 2025
– 9 May 2032
RSP 10 May 23 481,338 – – – 481,338
01 Jan 2023
– 31 Dec 2025 99 –
10 May 2026
– 09 May 2033
RSP 20 Mar 24 – 417,242 – – 417,242
01 Jan 2024
– 31 Dec 2026 113 –
20 Mar 2027
– 19 Mar 2034
Deferred 10 Mar 22 377,701 – – – 377,701 – 97 – –
Deferred 3 Apr 23 363,878 – – – 363,878 – 103 – –
Deferred 20 Mar 24 – 168,489 – – 168,489 – 112 – –
Total 3,211,966 585,731 (810,185) – 2,987,512
Annual Report and Financial Statements 2024 115
Directors’ Report
Date of
award
Awards held at
31 December
2023
Awarded
in 2024
Exercised
in 2024
Lapsed /
Surrendered
in 2024
Awards held at
31 December
2024
Performance
condition
period
Market price
at date of
grant (p)
Exercise
price (p)
Exercise
period
Gary Thompson
PSP 05 Apr 22 383,105 – – – 383,105
01 Jan 2022
– 31 Dec 2024 106 –
05 Apr 2025
– 04 Apr 2032
RSP 10 May 23 279,523 – – – 279,523
01 Jan 2023
– 31 Dec 2025 99 –
10 May 2026
– 09 May 2033
RSP 20 Mar 24 – 242,301 – – 242,301
01 Jan 2024
– 31 Dec 2026 113 –
20 Mar 2027
– 19 Mar 2034
Deferred 03 Apr 23 157,425 – – – 157,425 – 103 – –
Deferred 20 Mar 24 – 195,690 – – 195,690 – 112 – –
SAYE 26 Aug 22 24,000 – – – 24,000 – – 75
01 Nov 2025
– 31 May 2026
Total 844,053 437,991 – – 1,282,044
Share dilution
During 2024 the Company operated within the standard guidelines of 10% of issued ordinary share capital in respect of the
all-employee share plan and 5% in respect of discretionary plans.
Shareholder voting
The table below summarises the total voting outcomes for and against the Directors’ Remuneration Policy and the Directors’
Remuneration Report at the 2023 and 2024 AGM, including the percentage of total votes cast and number of votes withheld:
AGM Votes for Votes against Withheld
1
2024 Annual Remuneration Report 164,256,528 99.29% 1,179,880 0.71% 9,020
2023 Directors’ Remuneration Policy 185,597,585 99.33% 1,246,936 0.67% 10,493
1. Votes withheld are not counted in the votes for or against a resolution but would be considered by the Committee in the event of a significant number of
votes being withheld.
Statement of Remuneration Policy implementation for 2025
The base salary for the Chief Executive Officer will increase by 2.5% to £629,428.
The base salary for the Chief Financial Officer will increase by 2.5% to £365,521.
Maximum bonus opportunity will be 130% of base salary (on target 50% of maximum), in line with the 2023 Policy,
with performance measures weighted 80% financial and 20% personal and strategic, also in line with the 2023 Policy.
Annual bonus targets are not disclosed on a forward–looking basis because they are considered by the Board
to be commercially sensitive but will continue to be disclosed retrospectively to ensure transparency.
The Committee expects to make 2025 RSP awards prior to the 2025 AGM in accordance with the 2023 Remuneration Policy;
awards will be at 80% of base salary for the Chief Executive Officer and 80% for the Chief Financial Officer, in line with the 2023
Remuneration Policy.
The central, quantifiable financial underpin for 2025 RSP awards will be adherence to IPF’s dividend policy throughout the vesting
period of the RSP grant. To ensure a robust assessment, the Committee will consider a further basket of underpin factors at the end
of the three-year vesting period, as follows:
1. the extent to which any windfall gains have arisen as a result of any marked appreciation in share price;
2. whether there have been any material sanctions or fines issued by a regulatory body (which may give rise to allocation
of individual or collective responsibility);
3. any material damage to the reputation of individual Group Companies, or the Group itself (which may give rise to allocation
of individual or collective responsibility);
4. the level of employee and customer representative engagement over the vesting period; and
5. the level of customer engagement (as measured by Net Promoter Score, our Rep Track survey or other such means
as determined by the Committee).
Approved by the Board
Deborah Davis
Chair of the Committee
26 February 2025
Directors’ Remuneration Report continued
International Personal Finance plc116
The Directors’ Report for the year ended 31 December 2024
comprises pages 78 to 122 of this report, together with the
sections of the Annual Report incorporated by reference.
In addition to the Code, we are required to comply with the
Companies Act 2006 (the Act), the Disclosure Guidance
and Transparency Rules (DTR) and the Listing Rules (LR).
Where not covered elsewhere, these requirements are
included in this section.
In accordance with DTR 4.1.5R, the Strategic Report and the
Directors’ Report together are the management report for the
purposes of DTR 4.1.8R.
The Board has taken advantage of section 414C(11) of the
Companies Act 2006 to include disclosures in the Strategic
Report including:
– An indication of likely future development in the business of
the Company (see page 37).
– The financial position of the Group (see pages 33 to 37).
– Greenhouse gas emissions (see page 67).
– Employee engagement and involvement (see pages
46 and 88).
– Engagement with suppliers, customers and others in a
business relationship with the Company (see pages
46 to 47).
– A summary of the principal risks facing the Company (see
pages 38 to 43).
– The S172(1) statement (see page 48).
– Information on political donations (see page 65).
Disclosures required under Listing Rule 9.8.4R can be found on
the following pages:
Listing Rule Topic Page
Sub-para (1) Interest capitalised Not applicable
Sub-para (2) Publication of unaudited
financial information
Not applicable
Sub-para (4) Details of long-term
incentive schemes
Not applicable
Sub-para (5)
and (6)
Waiver of emoluments
and future emoluments
by a director
Not applicable.
Sub-para (7)
and (8)
Non pre-emptive issues
of equity for cash
Not applicable.
Sub-para (9) Parent participation in a
placing by a listed
subsidiary
Not applicable.
Sub-para
(10)
Contracts of significance Not applicable.
Sub-para
(11)
Provision of services by a
controlling shareholder
Not applicable.
Sub-para
(12)
Shareholder waiver of
dividends and future
dividends
Statutory information,
page 120
Sub-para
(14)
Agreements with
controlling shareholders
Not applicable.
Articles of Association (Articles)
The Articles may only be amended by a special resolution at a
general meeting of the shareholders. The Articles are available
on our website at www.ipfin.co.uk or direct from Companies
House, UK.
Appointment and replacement of directors
The Articles provide that the Company may, by ordinary
resolution at a general meeting, appoint any person to act as
a director, provided that written notice is given of the intention
to propose such person and that the Company receives
written confirmation of that person’s willingness to act as
director if he or she has not been recommended by the Board.
The Articles also empower the Board to appoint as a director
any person who is willing to act as such. The maximum
number of directors under the Articles is fifteen.
The Articles provide that, at every annual general meeting,
thefollowing directors must retire: (i) any director appointed
by the Board since the Company’s previous annual general
meeting; (ii) any director who has held office at the time of the
Company’s two preceding annual general meetings and who
did not retire at either of them; and (iii) any director who has
held office with the Company (other than employment or
executive office) for a continuous period of nine years or more
at the date of the meeting.
The Articles further provide that the Company may, in addition
to any powers of removal conferred by law, by special
resolution remove any director before the expiration of his or
her period of office. The Articles also set out the circumstances
in which a director shall vacate office.
Commitment
The Chair and the non-executive directors should have
sufficient time to fulfil their duties, and directors’ other
commitments are kept under review to ensure that they have
sufficient time to dedicate to the business.
As part of our annual review of responsibilities, the Nominations
and Governance Committee considered the time non-
executive directors are required to give to their roles.
TheCommittee was satisfied that each director continues
tocontribute the time required to fulfil their duties to the
Company and its shareholders. Based upon the evaluation
ofthe Board, its Committees and the continued effective
performance of individual directors, the Nominations and
Governance Committee reported to the Board that, in the
Committee’s view, each of the individuals putting themselves
forward for re-election met the required standard for their
appointment to be recommended at the 2025 AGM.
In line with the Code, non-executive directors are required
toseek Board approval prior to taking on any additional
appointments following recommendation from the
Nominations and Governance Committee. Further details on
additional appointments can be found on page 92. In
reviewing such appointments, the Committee considers the
total time commitment which an additional appointment
would create and whether the proposed appointment would
create a conflict of interest.
Statutory information
Annual Report and Financial Statements 2024 117
Directors’ Report
Development
The Board recognises the importance of ongoing training for
the directors. As well as a dedicated annual Board training
session, all directors are given the opportunity to update their
skills and knowledge on a regular basis and new directors
areprovided with a tailored induction programme. The
non-executive directors also undertake to keep themselves
briefed and informed about current issues and to deepen their
understanding of the business. Any individual development
needs are discussed with the directors on an ad-hoc basis
andat their annual performance evaluation. Board training
received during the year included:
– an overview of DORA;
– a cyber security briefing; and
– a refresh on the UK Market Abuse Regulation.
As part of the annual Board calendar, at least one Board
meeting is held in one of the Group’s operating markets.
TheOctober Board meeting was held at the Provident Polska
offices in Warsaw. During this market visit, the Board received
in-depth presentations on new Group products, new customer
technology platforms and the evolving customer demographic.
All directors are able to consult with the Company Secretary,
who also updates the Board on corporate governance
developments. The appointment and removal of the Company
Secretary is a matter for the Board. The Company Secretary
acts as Secretary to the Board and its Committees. Any
director may take independent professional advice at the
Company’s expense relating to the performance of their duties
in line with the access to independent advice policy overseen
by the Nominations and Governance Committee.
If directors have concerns about the running of the Company,
which cannot be resolved, their concerns are recorded in the
Board minutes. No such concerns were raised during the
period under review.
Effectiveness review
Towards the end of 2024, an effectiveness assessment of the
performance of the Board, its Committees and the directors
was carried out. The Board directors and Committee
attendees completed a questionnaire, the results of which
were anonymised, collated, reviewed and presented for
discussion at the February 2025 Board meeting. An analysis of
compliance with the Matters Reserved to the Board and Terms
of Reference was also completed as part of the effectiveness
review. Further details on the Board effectiveness review
process and the principal outcomes of the review can be
found in the Nominations and Governance Committee report
on page 93.
Election or re-election of directors
All directors are subject to election or re-election at the
AGM, in accordance with the Code. All directors, with the
exception of Deborah Davis, will seek re-election at our AGM
on 1 May 2025. Details of the directors can be found on pages
80 to 81.
Shares in issue
As at 31 December 2024, the issued share capital was
224,610,034 ordinary shares of 10 pence each of which
7,171,274 were held as treasury shares for the purpose of
satisfying options under the Group’s share option plans.
Details of share capital are shown in note 29 to the
Financial Statements.
Share class rights
The share class rights, which are set out in the Company’s
Articles, are summarised as follows. The ordinary shares are
listed on the London Stock Exchange.
Restrictions on shareholders’ rights
Any share may have rights attached to it as the Company may
decide by ordinary resolution or the Board may decide, if no
such resolution has been passed. Such rights and restrictions
shall apply to the relevant shares as if the same were set out
inthe Articles.
Restrictions on transfer of shares and limitations
onholdings
There are no restrictions on the transfer or limitations
ontheholding of ordinary shares other than under the
Articlesorunder restrictions imposed by law or regulation.
TheArticlessetout the directors’ rights of refusal to effect
atransfer ofanyshare.
Authority to purchase own shares
At the 2024 AGM, we received shareholder authority to buy
back up to 22,414,959 of the Company’s shares until the earlier
of the conclusion of the 2025 AGM or 30 June 2025. Shares
purchased can be cancelled or held in treasury. During the
year, the Company bought back a total of 9,634,403 under
this authority. A further authority to purchase our own shares
will be sought at the 2025 AGM.
Statutory information continued
International Personal Finance plc118
Authority to issue shares
At the 2024 AGM, an ordinary resolution was passed
authorising the directors to issue new shares up to an
aggregate nominal amount of £7,471,653, representing
approximately one third of the issued share capital of the
Company (excluding treasury shares) and allot further new
shares in the case of a rights issue only up to an aggregate
nominal amount of £7,417,653 representing approximately
afurther one third of the issued share capital. Further special
resolutions were passed to effect a disapplication of pre-
emption rights in certain circumstances.
Resolutions to renew these authorities will be proposed at the
2025 AGM. Further details can be found in the separate notice
of meeting.
Interest in voting rights
As at 31 December 2024, we had been notified, pursuant to
DTR 5.1.2, of the following interests in voting rights in our issued
share capital. The information provided below was correct at
the date of notification; however, the date of receipt may not
have been within the current financial year. It should be noted
that these holdings are likely to have changed since the
Company was notified. A notification of any change is not
required until the next notifiable threshold is crossed.
Name Date notified
% of issued
share capital
1
Aberforth Partners LLP 21/12/2023 13.61
Aberforth Partners LLP 04/09/2024 12.94
Aberforth Partners LLP 14/10/2024 11.91
Aberforth Partners LLP 23/10/2024 10.71
abrdn plc 17/11/2023 10.00
abrdn plc 30/12/2024 5.20
Marathon Asset Management Limited 23/08/2021 8.41
Marathon Asset Management Limited 25/09/2024 4.88
Schroder Investment Mgt/Schroders plc 08/09/2022 7.36
Pendal Group Limited 27/02/2022 6.20
FMR LLC 10/01/2018 5.28
Janus Henderson Group plc 24/03/2023 5.20
Artemis Investment Management LLP 12/10/2021 5.04
BNP Paribas Investment Partners 08/07/2015 3.02
Mr Hendrik Marius van Heyst 09/11/2020 3.02
Perpetual Limited 20/08/2024 4.97
Perpetual Limited 20/09/2024 5.04
Old Mutual Asset Managers (UK) LTD 12/04/2010 4.88
Blackrock Inc. 16/07/2009 4.54
1. The percentage of issued share capital in the table above is based on the
Company’s issued share capital at the point of notification.
We received one notification since the year end.
Janus Henderson Group plc 20/02/2025 4.95%
Voting rights
There are no restrictions on voting rights except as set out
inthe Articles. Electronic and paper proxy appointments,
andvoting instructions must be received by the Company’s
registrar not less than 48 hours before a general meeting
(orsuch shorter time as the Board may determine) and the
Board may exclude non-working days in its calculation.
TheCompany is not permitted to exercise any right in
respect of treasury shares, including any right to attend
or vote at meetings.
Variation of rights
This covers the rights attached to any class of shares that from
time to time may be varied either with the written consent of
the holders of not less than three-quarters in nominal value of
the issued shares of that class or with the sanction of a special
resolution passed at a separate general meeting of the
holders of those shares.
Directors
Details of all persons who were directors of the Company
atany time during the financial year can be found on
pages80 to 81.
Indemnities
Our Articles permit us to indemnify our directors (or those of
any associated company) in accordance with the Act.
However, no qualifying indemnity provisions were in force in
2024 or at any time up to the date of this report. We have
appropriate directors’ and officers’ liability insurance and this
was in force when the Directors’ Report was approved.
Directors’ conflicts of interest
To take account of the Act, the directors adopted a policy
onconflicts of interest and established a register of conflicts.
The directors consider that these procedures have operated
effectively in 2024 and up to the date of this report.
Powers and proceedings of directors
The directors are responsible for the management of the
Company and may exercise all the powers of the Company,
subject to the provisions of the relevant statutes and the
Articles. The Articles contain specific provisions and restrictions
regarding the following: the Company’s powers to borrow
money; provisions relating to the appointment of directors
(subject to subsequent shareholder approval); and delegation
of powers to a director or Committees. They also provide that,
subject to certain exceptions, a director shall not vote on or be
counted in a quorum in relation to any resolution of the Board
in respect of any contract in which they have an interest which
they know is material.
Annual Report and Financial Statements 2024 119
Directors’ Report
Agreements on change of control
We do not have any agreements with any director or
employee that would provide compensation for loss of office
or employment resulting from a takeover.
We are not party to any significant agreements that would
take effect, alter or terminate upon a change of control
following a takeover bid, apart from:
– our bank facility agreements, which provide for a
negotiation period following a change of control and the
ability of a lender to cancel its commitment and for
outstanding amounts to become due and payable;
– our Euro Medium Term Note
1
programme, which entitles any
holder of a note to require us to redeem such holder’s notes
if there is a change of control
2
and, following such change
of control, the notes are downgraded or a specific rating
cannot be obtained (as applicable); and
– provisions in our equity share incentive plans may cause
awards granted to directors and employees to vest on
atakeover.
Related party transactions
Related party transactions are set out in note 33 to the
Financial Statements.
Financial instruments
Details of the Group’s financial instruments are set out in note
22 to the Financial Statements. The information in note 22 is
incorporated by reference into, and forms part of, this
Directors’ Report.
Dividends
A final dividend of 8.0 pence per share has been proposed
bringing the full-year dividend to 11.4 pence per share. Subject
to approval by shareholders at the 2025 AGM, the final
dividend will be payable on 12 May 2025 to shareholders on
the register of members on 11 April 2025. The shares will be
marked ex-dividend on 10 April 2025 and the deadline to elect
for the Dividend Reinvestment Plan (DRIP) is 17 April 2025.
Branches
The Company has a UK branch (registered number: BR021979)
of its Irish subsidiary, IPF Management Unlimited Company
(registered number: FC036891). Further information on the
Company’s subsidiaries can be found in note 13.
Employee benefit trust
We operate a Jersey-resident employee benefit trust with an
independent trustee, Apex Financial Services (Trust Company)
Limited, to hold shares on behalf of employees pending
entitlement to them under our equity share incentive plans.
All withdrawals from the trust to UK resident employees are
subject to employee income tax and social security on vesting.
As at 31 December 2024, the trustees held 559,701 shares in
International Personal Finance plc. The trust waives its dividend
entitlement and abstains from voting at general meetings.
Any shares to be acquired through our share plans do not
have special rights and rank pari passu with the shares
already in issue.
Employee equity incentive plans
UK eligible employees are able to participate in our equity
share incentive plans, details of which are shown below.
Awards granted to the executive directors in 2024 are set out
in the Directors’ Remuneration Report on pages 115 to 116.
Plan
Abbreviated
name Eligible participants
The IPF Deferred Share Plan DSP Executive directors
and senior
managers
The International Personal
Finance plc Approved
Company Share Option Plan
CSOP Executive directors
and senior
managers
The IPF Performance Share
Plan
PSP Executive directors
and senior
managers
The IPF Save As You Earn Plan SAYE Executive directors
and UK employees
The International Personal
Finance plc Discretionary
Award Plan
DAP Employees other
than executive
directors
The International Personal
Finance plc Restricted Share
Plan
RSP Executive directors
and senior
managers
Details of outstanding awards are included in note 28 to the
Financial Statements.
Statutory information continued
1. The Euro Medium Term Note programme was established in 2010. The following notes (listed on the London or Euronext Dublin stock exchanges) have
beenissued under the programme and are outstanding as at the date of this report: €66.652m with a 2025 maturity and a 9.75% coupon; £80m with
a2027 maturity and a 12.00% coupon; PLN72m with a 2026 maturity and a coupon of six-month WIBOR plus a margin of 8.50%; €11.6m with a
2026 maturityand a 11.50% coupon; and €341m with a 2029 maturity and a 10.75% coupon.
2. This provision is not applicable to the €11.6m notes with a 2026 maturity and a 11.50% coupon.
International Personal Finance plc120
External oversight
The Group’s activities in Mexico are subject to general
trade licences and under the supervision of the Consumer
Protection Agency.
Our other operations in Europe and Australia are subject to
certain licensing provisions or supervision by a financial
authority as detailed below.
European home credit
Czech Republic – operates under the supervision of the Czech
National Bank and subject to an operating licence issued by
the Czech National Bank.
Hungary – operates under the supervision of the National Bank
of Hungary and subject to an operating licence issued by the
Hungarian National Bank.
Poland – (i) as a loan institution: registered in the special
registry of the Komisja Nadzoru Finansowego (KNF), the Polish
Financial Supervision Authority, and operating under the
supervision of this body; and (ii) as a payment institution:
licensed and registered in the Full Payment Institutions Register
of the KNF.
Romania – (i) as a non-banking financial institution: holding a
lending licence and registered in the Special Registry of Credit
Providers maintained and subject to supervision by the
National Bank of Romania; and (ii) as an insurance
intermediary: overseen by the Romanian Financial Supervisory
Authority.
IPF Digital
Australia – holds a credit licence issued by the Australia
Securities and Investment Commission.
Estonia – holds an e-money licence and creditor licence issued
by the Estonian Financial Supervision Authority.
Finland – in a register of credit providers maintained by the
Finnish Financial Supervision Authority.
Latvia – operates under a licence from the Consumer Rights
Protection Centre.
Lithuania – in a register of credit providers maintained by the
Bank of Lithuania.
Poland – registered in the special register of Loan Institutions
maintained by the KNF, and supervised in relation to loans by
the KNF; registered in the Payment Institutions register kept and
supervised by the KNF.
Budgetary process and financial reporting
The Board approves annually a detailed budget for the year
ahead. Actual performance against budget is monitored
regularly and reported monthly for review by the Board. The
Board requires the Group’s subsidiaries to operate in
accordance with corporate policies.
The Financial Statements for the Group are prepared by
aggregating submissions from each statutory entity. Prior to
submission to the Group finance reporting team, each country
submission is reviewed and approved by the finance director
of the relevant business. When the submissions have been
aggregated and consolidation adjustments made to remove
inter-company transactions, the consolidated result is reviewed
by the Group Financial Controller and the Chief Financial
Officer. The results are compared with the budget and prior
year figures, and any significant variances are explained.
Checklists are completed by each statutory entity and by the
Group finance reporting team to confirm that all required
controls, such as key reconciliations, have been performed
and reviewed.
The Financial Statements, which are agreed directly to the
consolidation of the Group results, are prepared by the Group
finance reporting team and reviewed by the Group Financial
Controller and the Chief Financial Officer. The supporting notes
to the Financial Statements are prepared by aggregating
submission templates from each market and combining them
with central information where applicable. The Financial
Statements and all supporting notes are reviewed, approved
and signed by the Chief Financial Officer. For further details on
our risk and internal control processes, see page 97.
Research and development activities
In accordance with The Accounts Regulations (Sch 7, para
7(1)(c)) and DTR 4.1.11 the Company undertakes certain
research and development activities, including the
development of strategic planning, exploring opportunities for
expansion into new geographic markets and M&A activity, as
well as the consideration of product and IT development and
reviewing competitor analysis.
Annual Report and Financial Statements 2024 121
Directors’ Report
Directors’ responsibilities
Annual Report and Financial Statements
International Personal Finance plc presents its Annual Report
and Financial Statements and its consolidated Annual Report
and Financial Statements as a single Annual Report.
Directors’ responsibilities in relation to the
Financial Statements
The directors are responsible for preparing the Annual Report
and Financial Statements in accordance with applicable law
and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law, the
directors are required to prepare the Group Financial
Statements in accordance with United Kingdom adopted
International Accounting Standards (UKIAS) and Article 4 of
the International Accounting Standard (IAS) Regulation and
have also chosen to prepare the Parent Company Financial
Statements under UKIASs. Under company law, the directors
must not approve the Financial Statements unless they are
satisfied that they give a true and fair view of the state of affairs
of the Group and the Company and of the profit or loss of the
Group and the Company for that period. In preparing these
Financial Statements, IAS 1 requires that directors:
– properly select and apply accounting policies;
– present information, including accounting policies,
in a manner that provides relevant, reliable, comparable
and understandable information;
– provide additional disclosures when compliance with the
specific requirements in UKIASs are insufficient to enable
users to understand the impact of particular transactions,
other events and conditions on the entity’s financial position
and financial performance; and
– make an assessment of the Company’s ability to continue
as a going concern.
The directors are responsible for keeping adequate
accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and enable them to ensure that the Financial Statements
comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and
the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website. Legislation in the UK governing the
preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Post-balance sheet events and
futuredevelopments
There are no post-balance sheet events. Information
on indications of future developments is provided
in the Strategic Report.
Responsibility statement under the
Disclosure and Transparency Rules
Each of the persons who is a director at the date of approval
of this report (and whose name and function is set out
onpages 80 and 81) confirms to the best of his/her
knowledgethat:
– the Financial Statements, prepared in accordance with
UKIASs, give a true and fair view of the assets, liabilities,
financial position and profit/loss of the Company and the
undertakings included in the consolidation taken as a whole;
– the Strategic Report and Directors’ Report contained in
thisreport include a fair review of the development and
performance of the business and the position of the Company
and the undertakings included in the consolidation taken as
a whole, together with a description of the principal risks and
uncertainties that they face; and
– the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company’s position and
performance, business model and strategy.
Report review process for the Annual Report
The Board came to this view following a rigorous review
process throughout the production schedule. The statements
are drafted by appropriate members of the reporting and
leadership teams and co-ordinated by the Investor Relations
Manager to ensure consistency. A series of planned reviews
isundertaken by the reporting team, leadership team and
executive directors. In advance of final consideration by the
Board, they are reviewed by the Audit and Risk Committee.
Disclosure of information to the auditor
In the case of each person who is a director at the date of this
report, it is confirmed that, so far as the director is aware, there
isno relevant audit information of which the Company’s auditor
is unaware; and he/she has taken all the steps that ought to
have been taken as a director in order to make himself/herself
aware of any relevant audit information and to establish that
theCompany’s auditor is aware of that information.
Going concern and viability statement
The Board statement on its adoption of the going concern
basis in preparing these Financial Statements and the viability
statement concerning the assessment of the Company’s
long-term prospects are given on pages 37 and 43.
The Board’s review of the system of
internal control
The Board is responsible for the Group’s overall approach to
risk management and internal control and, on the advice of
the Audit and Risk Committee, has reviewed the Group’s risk
management and internal controls systems for the period
1 January 2024 to the date of this Annual Report and Financial
Statements, and is satisfied that they are effective.
By order of the Board
Company Secretary
26 February 2025
International Personal Finance plc122
CSRD Statement for International
Personal Finance plc for the year
ended 31 December 2024
Introduction
The Corporate Sustainability Reporting Directive (CSRD) is an
EU regulatory framework designed to improve the consistency
and transparency of sustainability reporting, which came into
effect for IPF plc from the 2024 financial year. Under the CSRD,
we disclose sustainability information in alignment with defined
standards that cover a broad spectrum of sustainability-related
topics. These standards ensure consistency and comparability
across industries and companies. A fundamental aspect
oftheCSRD is the Double Materiality Assessment (DMA),
whichrequires us to evaluate sustainability matters that are
significant both to our business and across our value chain.
Our CSRD Statement aligns with the CSRD and the
requirements set out in the European Sustainability Reporting
Standards (ESRS).
Looking ahead, the scope of CSRD disclosure requirements
areexpected to change given the EU’s announcements in Q4
2024 that it is reviewing the scope of key sustainability laws
including the CSRD, the EU Taxonomy and the Corporate
Sustainability Due Diligence Directive (CSDDD). We will
continue to work to review and comply with these evolving
reporting requirements.
i. General disclosures
This CSRD Statement for IPF plc has been prepared
onaconsolidated basis with the same scope as the financial
statements. They cover the parent company, IPF plc and
subsidiaries controlled directly or indirectly by IPF plc. The CSRD
Statement covers the main value chain of IPF plc, including the
impacts, risks and opportunities (IROs) in our upstream,
downstream and own operations.
The Group confirms that, during the reporting period, no
information has been omitted from the CSRD Statement due
toconcerns regarding intellectual property, know-how, or the
results of innovation. The Group confirms it has not utilised the
exemption from disclosure of impending developments or
matters in the course of negotiation, as provided for in Article
29a(3) of Directive 2013/34/EU.
We report on disclosures in relation to specific circumstances
alongside the relevant disclosures. None of the metrics and
monetary amounts disclosed in this CSRD Statement are
subject to a high level of estimation uncertainty.
The disclosures in this CSRD Statement have been expanded
significantly to comply with the requirements oftheCSRD.
ii. Governance disclosures
The Group Board – The Board of Directors comprises seven
directors, made up of two executive directors and five non-
executive directors, who are elected annually at the Annual
General Meeting by the Group’s shareholders, in line with
theCompany’s Articles of Association. Four of the five non-
executive directors (57% of the Board in total) are considered
independent, according to the provisions of the UK Corporate
Governance Code. The Chair was assessed as independent
on appointment. The Group Board holds the highest level of
responsibility for overseeing the Group’s sustainability strategy
and our management of material IROs. The Board provides
strategic direction on sustainability matters, including
reviewing and approving the annual plan for this area,
approving various sustainability-related policies and reviewing
public disclosures made by the Group concerning
sustainability. The Group confirms that, during the current
reporting period, there are no employees or other workers
serving as representatives on the Board of Directors. As at
31 December 2024, the Board’s gender diversity calculated
asan average ratio of female to male Board members
equated to 0.75.
Committees of the Board support the Board of Directors by
overseeing specific areas in line with corporate governance
requirements. The responsibilities of each Committee are
formalised in separate Committee Terms of Reference
documents, which are reviewed and, if deemed necessary,
updated and approved by the Board of Directors annually.
The Terms of Reference for each Committee are available
onour website at www.ipfin.co.uk. Members of the Board
Committees, including the Chair, are appointed by the Board
of Directors from its own members. Specific Board Committees
which operated in 2024 were:
– Audit and Risk Committee: Responsible for the oversight of
financial, sustainability, and statutory audit matters, internal
control and risk management, including business conduct
and probity, whistleblowing procedures, and related
matters. Tasks include supervision of the external auditor’s
independence and the procedure for the election of an
external auditor and overseeing sustainability related
disclosures. The Committee ensures that sustainability risks,
including those related to climate change and regulatory
compliance, are managed and effectively reported.
– Remuneration Committee: Responsible for determining
executive remuneration, reviewing the Remuneration Policy
and ensuring compliance with it, overseeing incentive
programmes including alignment with sustainability
commitments when relevant; overseeing pension retirement
schemes for the Executive Management and preparation of
the Directors’ Remuneration Report.
– Nominations and Governance Committee: Responsible for
effective Board governance arrangements, the composition
of the Board of Directors and Executive Management.
Details of the membership of each of these Committees are set
out on pages 80 to 81 of the Annual Report.
The members of the Board possess substantial experience
infinancial services, governance, and risk management.
Formore detailed information on the expertise of Group
Board members, please refer to pages 80 and 81 of the
Corporate Governance Report. Specific sustainability-related
knowledge includes:
Stuart Sinclair, Chair – Previously a member of Lloyd’s Banking
Group’s Responsible Business Committee which oversaw
sustainability and responsible business practices at this UK
bank. As chair of Willis Ltd Stuart participated in its cross-
functional Climate Resilience Hub, which helped clients
assessthen mitigate the risks they face from climate change.
Katrina Cliffe, Senior Independent Director – As a non-
executive director of DCC PLC, Katrina oversees a range of
sustainability related matters relating to this company’s clean
energy activities.
Annual Report and Financial Statements 2024 123
CSRD Statement
Aileen Wallace, Non-Executive Director – Experience of
chairing Board Committees where a wide range of external
environmental, colleague and wellbeing matters are covered.
Extensive experience in executive and non-executive roles on
enabling green financing options.
Gerard Ryan, Chief Executive Officer – Overseen the launch
of programmes aimed at improving employee health, safety
and career development and driving a purpose-led business.
Gary Thompson, Chief Financial Officer – Overseen supplier
sustainability programmes and enhanced the quality and
frequency of ESG-related financial disclosures, aligning
reporting with recognised frameworks and standards.
Deborah Davis, Non-Executive Director – As a non-executive
director of Lloyds Banking Group/Scottish Widows and
member of the Investment Committee her role includes
oversight of the Responsible Investment Strategy of the
insurance activities of the Group.
Richard Holmes, Non-Executive Director – Richard’s role as
chair of the Audit & Risk Committee of the Group means he
oversees the development and reporting of sustainability and
climate related matters on behalf of the Board.
The Nominations and Governance Committee assists the
Board of Directors in determining if appropriate strategic,
sector-specific, sustainability and other necessary skills and
expertise are available within the Board of Directors and the
Executive Management. The Committee must ensure that all
candidates for membership of the Board of Directors fulfil
stakeholder expectations and have the right skills, including
relevant sustainability and business conduct expertise. The
Board of Directors evaluates the competencies, diversity,
knowledge, and experience of the individual members of the
Board of Directors and the Executive Management annually,
which is a key input to recruitment decisions. The Board also
undertakes periodic training, which includes sustainability-
related matters. In 2024 the Board and its Committees
reviewed a number of items relevant to its material IROs
including the HR strategy and a customer update from
theChief Marketing Officer.
While our Board members bring diverse professional
experience, including areas such as finance and risk
management, specific sustainability expertise has not been
anexplicit consideration in recruitment. Our current focus
areas align with our identified material IROs – access to
financial services and our workforce, and the required support
on sustainability-related matters is provided to the Board as
required. We will continue to assess our needs and make
adjustments as appropriate.
The Executive Management is made up of 15 individuals
reporting to the Chief Executive Officer. 86.7% of these
individuals are male and 13.3% are female. Their purpose is to
undertake day-to-day management in a way which aligns with
the overall strategic direction set by the Board of Directors.
Their tasks include ensuring compliance with various Board-
approved policies and applicable regulatory requirements,
decision-making on resource allocation, and ensuring
sustainability and business conduct align with our long-term
plans. Thedivision of responsibility between the Executive
Management and the Board of Directors is set out
intheMatters Reserved to the Board document,
whichisapproved by the Board annually.
Responsibility for the oversight of IROs is embedded
withintheroles of the Board and the Board Committees,
particularlythe Audit and Risk Committee. Business conduct
policies, including our Code of Ethics, are reviewed and
approved annually by the Board of Directors. The following
depicts management’s role in the control and management
of IROs by outlining their reporting lines to the administrative,
management, and supervisory bodies, and their integration
with other internal functions.
Group Sustainability – The primary function within
management responsible for the identification, management,
and communication of our IROs. They ensure compliance
through the establishment of appropriate procedures for
sustainability data collection. They ensure legal compliance
with all sustainability matters from a reporting perspective,
relevant sustainability standards and regulatory requirements.
Disclosures on environmental matters, upstream and
downstream value chain social matters, and overarching
sustainability topics are anchored within this area.
Group Legal – Provides counsel for the legal compliance of
disclosures on sustainability matters from both a reporting
perspective and in terms of relevant sustainability standards
and legal requirements for specific matters. Disclosures of
governance matters are the responsibility of Group Legal,
which provides information on governance structures, policies,
and procedures to Group Sustainability.
Group HR – Disclosures on social matters concerning our
ownworkforce are anchored within Group HR, which reports
data about our employees and social activities to Group
Sustainability for DMA and reporting purposes.
Executive Management
The Chief Legal Officer is the individual within the Executive
Management responsible for the disclosure and reporting of
non-financial matters. Executive Management participates in
discussions and use their knowledge and expertise to guide
the Board of Directors and enable them to make informed
decisions on sustainability matters. Final decisions on IROs
aremade by the Board of Directors.
The Board of Directors uses the results of the DMA to guide
thesetting of targets in relation to our material IROs whenever
relevant. When targets are set, these are to be tracked using
appropriate qualitative and quantitative indicators. Currently,
we have not set Group-level targets other than emissions-
related targets. The setting of emissions-related targets has
been driven by UK regulation (i.e. TCFD), and targets relevant
to material sustainability matters will be developed in time.
Weare considering how and where we will set strategic
targetsto accelerate both business strategy and sustainability
performance further.
iii. Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
The Board of Directors and Board Committees are informed
ofsustainability matters by the Chief Legal Officer as required.
In 2024, this meant the Board of Directors approved the
Company’s Sustainability Plan for 2024/2025 and received
aninterim update on progress. In relation to IROs, the DMA
process was briefed to the Board of Directors in Q2 2024 and
the results reviewed by Executive Management and the Board
of Directors as part of strategic planning activities in Q4 2024.
The Board of Directors considered matters relevant to material
IROs during 2024, namely those in relation to Access to
Financial Services and Working Conditions and Workers Rights.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc124
iv. Integration of sustainability-related performance in incentive schemes
The incentive schemes provided to the Group’s Executive Directors included sustainability-related matters in 2024. Noother
member of any administrative or management bodies at the Group are remunerated on the basis ofincentiveschemes linked to
sustainability matters.
Full details of the Group Executive Directors’ incentive schemes are detailed in the 2023 Remuneration Policy. Part of their
remuneration includes an annual bonus scheme. For the Chief Executive Officer, the objectives in the annual bonus scheme are
agreed by the Chair of the Board of Directors with input from the Remuneration Committee. The Chief Financial Officer’s objectives
are determined by the Chief Executive Officer. Performance is measured over the financial year andisassessed using the
following criteria:
– typically 80% of total bonus opportunity is subject toachievement of financial measures; and
– typically 20% of the bonus opportunity is subject toachievement of personal objectives linked toachievement of Group strategy.
The personal objectives agreed for Group Executive Directorsincluded a sustainability-related objective in 2024. This objective was
not assessed against specific sustainability-related targets and/or impacts and sustainability-related performance metrics were
not considered as performance benchmarks or included in the Group’s Remuneration Policy.All decisions on performance
outcomes for the GroupExecutive Directors are made by the Group Remuneration Committee.
v. Statement on Sustainability Due Diligence
The table below provides a mapping of the paragraphs that contain disclosures about our current sustainability
due diligence performance.
Description Relevant section in CSRD Statement
Due diligence step
Identification of
sustainability risks
and impacts
We assess actual and potential adverse sustainability
impacts across our operations and value chain.
Materiality Assessment and Risk Management
(ESRS 2 GOV-5, SBM-3) pages 133 to 134
Integration into
policies and
procedures
Sustainability risks and due diligence are embedded in
company policies, including human rights, sustainability,
and Code of Conduct policies.
Sustainability Governance and Policies
(ESRS 2 GOV-1, GOV-2, GOV-3) pages 123 to 124
and 141 to 143
Stakeholder
engagement
We engage with stakeholders, including employees,
suppliers, communities, and investors, to identify and
address sustainability concerns.
Stakeholder Engagement
(ESRS 2 SBM-2, SBM-3) pages 129 to 131
Grievance and
remediation
mechanisms
We provide reporting channels for sustainability-related
concerns and have mechanisms to address grievances.
Whistleblowing and Remediation
(ESRS S1-3) pages 144 to 145
Reporting and
transparency
We disclose sustainability-related risks, impacts, and
mitigation strategies in alignment with regulatory
requirements.
Sustainability Reporting and Assurance
(ESRS 2 BP-2, BP-3) pages 131 to 133
vi. Risk management and internal controls over sustainability reporting
The Group’s risk management and internal control system in relation to the sustainability reporting process can be summarised
asfollows:
Board and Committee oversight
– The Group Audit and Risk Committee’s responsibilities include oversight of the Group’s sustainability reporting.
– The Chief Legal Officer, who attends Board meetings and Group Audit and Risk Committee, is accountable for sustainability
reporting.
– The oversight of this process is managed by the Responsible Business Framework Steering Group, which is composed
ofkeyfunctions including Investor Relations, Sustainability, Risk, Legal, Procurement and HR.
Defined responsibilities
– The Sustainability Function oversees the collation ofinformation from different business units.
– Each business unit which is required to provide sustainability-related information must nominate a Sustainability
ReportingOfficerto ensure consistent data collection.
Integration into reporting and decision making
– Sustainability performance is reported quarterly to the Boardof Directors through the provision of a dedicated
ESGmanagementinformation pack.
Annual Report and Financial Statements 2024 125
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
Stakeholder engagement
– Formal stakeholder consultation (customers, colleagues, suppliers, investors, NGOs) to identify sustainability risks
andopportunities.
– Sustainability risks and opportunities are an input to the strategic planning process undertaken by Executive Management
andthe Board of Directors.
There is no specific risk prioritisation methodology used bytheGroup. The following risks have been identified asrelevant
totheGroup’s sustainability reporting following internal discussions:
– Data quality and accuracy: Ensuring that sustainability metrics and disclosures are accurate, reliable, and based
onverifiabledata.
– Regulatory compliance: Monitoring compliance with evolving sustainability regulations and standards,
suchasESRSrequirements, to avoid legal and financial penalties.
The potential for creating specific mitigation plans for these risks will be assessed in 2025 but currently there are no such plans
inplace to address these matters. The Group does not integrate the findings of its risk assessment and internal controls for the
sustainability reporting process into its internal functions and processes, and there are no plans to implement such integration.
Our sustainability reporting and risk management processes remain distinct.
vii. Strategy, business model and value chain
a. Products and services offered
Our products and services are tailored to meet our customers’ needs and different credit profiles and preferences.
In2024weoffered the following products:
Product Estonia Latvia Lithuania Mexico Australia Poland Romania Hungary
Czech
Republic
Home credit instalment loans:
Small-sum loans with weekly personal
service and an increasingly digital touch,
provided in customers’ homes by our
customer representatives.
Hybrid loans: A unique blend of customer
representative and digital channels for those
who do not have a strong enough credit
profile to get a fully digital offer.
Credit card: A convenient way for customers
to make in-store purchases, shop online,
or access cash through their customer
representative or ATMs.
Retail credit: Partnering with retailers
to provide instalment loans to customers,
both in-store and online.
Value-added services: A range of
value-added products beyond credit
including health and life insurance.
Digital instalment loans: Affordable,
end-to-end digital service with terms
from one month to three years and
monthly repayments.
Revolving credit line: Flexible access
to money up to a preset limit and when
customers pay down, more credit
becomes available.
Mobile wallet: Account management
and value-added services in the pocket
of our customers.
Our products are designed for millions of underserved consumers in a responsible way.
There were no significant changes to the Group’s product, service offerings or customer groups served during
thereportingperiod.
International Personal Finance plc126
We have identified the following inputs required by our
business model and describe below how these are gathered,
developed and secured:
1. Financial Capital:
– Description: Funds used to make loans and operate
ourbusiness.
– Sources: Wholesale debt funding, equity investments.
– Approach to gathering: Maintain relationships with banks
and investors, develop compelling investment narratives,
diversify funding sources.
– Approach to developing: N/A (capital is not developed,
but its availability is managed).
– Approach to securing: Maintain strong financial
performance, manage risk effectively, comply with
regulations, build investor confidence.
2. Technology and data Infrastructure:
– Description: Software, hardware, and data platforms
usedfor loan origination, servicing, risk management,
reporting and customer interactions.
– Sources: Third-party vendors, in-house development.
– Approach to gathering: Careful supplier selection,
competitive bidding, staying up to date with
technology trends.
– Approach to developing: Invest in research and
development, partner with technology companies,
buildinternal expertise, prioritise cybersecurity.
– Approach to securing: Implement robust cybersecurity
measures, data encryption, access controls, regular security
audits, compliance with data privacy regulations.
3. Human capital:
– Description: Employees with expertise in lending, finance,
technology, customer service, and risk management.
– Sources: Recruitment, internal training.
– Approach to gathering: Targeted recruitment strategies,
competitive compensation and benefits, employer
branding.
– Approach to developing: Training programmes,
leadershipdevelopment, performance
managementsystems.
– Approach to securing: Positive work environment,
competitive salaries, opportunities for growth, strong
company culture, employee retention programs.
4. Customer data:
– Description: Information about borrowers used for credit
scoring, loan underwriting, and customer relationship
management.
– Sources: Loan applications, credit bureaus, third-party
dataproviders (if applicable).
– Approach to gathering: Transparent data collection
practices, informed consent from borrowers, compliance
with data privacy regulations.
– Approach to developing: Data analytics and modelling
toimprove credit scoring and risk assessment.
– Approach to securing: Strict data security measures,
access controls, encryption, compliance with privacy
regulations (e.g., GDPR).
b. Employee headcount
Employees as at 31 December 2024 by geographic area:
Market Number of Employees
Mexico 2,569
Poland 1,040
Hungary 2,150
Czech Republic 302
Romania 1,960
United Kingdom 126
Estonia 120
Lithuania 30
Latvia 34
Australia 20
c. Sustainability-related goals
The Group confirms that, at present, there are no specific
sustainability-related goals in place for the following areas:
significant groups of products and services, customer
categories, geographical areas, or relationships with
stakeholders. Our current strategy prioritises core business
themes like profitable growth and customer satisfaction,
withsustainability considerations such as our workforce
andresponsible lending integrated into our operations.
Whilesustainability is not a primary driver, we monitor
emerging trends and regulations, exploring training
anddataanalysis to inform future strategic development.
Weregularly review our approach and will adapt as needed.
d. Disclosure of business model and value chain
Our business model is aimed at assisting underserved
consumers access financial services and creating long-term
value for the communities we serve. We have built a suite
ofproducts described above which are tailored to our
customers’ financial circumstances, needs and preferences,
and we deliver them in a responsible way. In doing so
weareincreasing financial inclusion for millions of people.
Ourapproach is built on sustainable funding, multi-channel
distribution, and strong regulatory compliance.
We raise funds through diversified wholesale financing
instruments, including Eurobonds, bilateral financing
arrangements, and other capital market sources. These funds
enable us to provide the range of tailored financial products
we offer to consumers.
Our products are delivered through multiple channels
toensure accessibility and convenience. We are committed
toresponsible lending, ensuring that all credit is extended
based on a customer’s ability to repay. Our affordability
assessments, transparent pricing, and ethical collection
practices are designed to support long-term financial
wellbeing. We operate within the legal and regulatory
frameworks of each market, ensuring adherence
toconsumerprotection laws, fair lending standards,
andfinancial regulations.
Annual Report and Financial Statements 2024 127
CSRD Statement
5. Credit information:
– Description: Credit reports and scores from credit bureaus.
– Sources: Various credit bureaux.
– Approach to gathering: Establish relationships with credit
bureaus, subscribe to their services.
– Approach to developing: N/A (credit information is not
developed by lenders).
– Approach to securing: Secure data transmission and
storage, compliance with credit reporting regulations.
6. Regulatory and legal expertise:
– Description: Knowledge and expertise in lending
regulations, consumer protection laws, and other
legalrequirements.
– Sources: Internal legal team, external legal counsel,
industryassociations.
– Approach to gathering: Stay up to date with regulatory
changes, engage with legal experts, participate in
industry events.
– Approach to developing: Build internal compliance
expertise, develop robust compliance programs.
– Approach to securing: Maintain strong compliance culture,
regular audits, legal reviews of policies and procedures.
7. Brand and reputation:
– Description: The Group’s image and reputation
inthemarket.
– Sources: Customer reviews, media coverage,
industryrecognition.
– Approach to gathering: Monitor customer feedback,
engage with media, participate in industry events.
– Approach to developing: Provide excellent customer
service, build trust and transparency, engage in responsible
lending practices.
– Approach to securing: Maintain ethical business
practices, handle customer complaints effectively,
communicate transparently.
We have identified the following outputs from our business,
which we define asthe direct products and services that
we provided in 2024:
– Loans disbursed: The total value and volume of loans
issued.
– Number of customers served: The number of borrowers
theGroup has provided loans to.
– Loan portfolio size: The total outstanding balance
ofallloans.
1. Customers:
Current benefits:
– Access to credit: Provide access to finance for various
needs, principally to a customer segment which is not
wellserved by other traditional lenders.
– Convenient application and disbursement process:
Ourcustomer representative model and online processes
are designed to meet customer needs for convenience.
– Flexible loan terms: We offer a range of loan amounts,
repayment schedules, and interest rate options to meet
diverse needs.
– Transparent pricing: We clearly disclose all fees and
interest rates upfront, ensuring no hidden costs.
Expected benefits:
– Building credit history: Responsible loan repayments
canhelp customers build or improve their credit scores.
– Achieving financial goals: Our products enable
customers to achieve their aspirations.
2. Investors:
Current benefits:
– Financial returns: The Group’s financial performance,
including dividends.
– Portfolio diversification: We provide investors with
exposure to a range of diverse geographic markets.
– Social impact: Our focus on financial inclusion provides
apositive social impact of any investment in the Group.
Expected Benefits:
– Sustainable growth: Project future growth and
profitability, demonstrating the long-term value of their
investment.
– Strong risk management: Highlight our risk assessment
and mitigation strategies to assure investors of the safety
of their investments.
3. Other Stakeholders
Employees:
– Current benefits: Job creation, competitive salaries and
benefits, opportunities for professional development.
– Expected benefits: Career growth, a positive and
inclusive work environment.
Communities:
– Current benefits: Increased economic activity,
community development.
– Expected benefits: Increased access to financial services
in underserved communities.
Regulators:
– Current benefits: Adherence to all applicable
lawsandregulations, transparent reporting.
– Expected benefits: Contribution to a stable
and well-functioning financial system.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc128
e. Interests and views of stakeholders
Detailed below is information on stakeholder engagement in 2024. More information can be found in the stakeholder
engagement section of this Annual Report and Financial Statements on pages 46 to 47.
Stakeholder Group Colleagues
Who are they? Our colleagues working in full-time roles or as self-employed customer representatives.
How does engagement
occur and how is it
organised?
The HR Function has multiple touchpoints with colleagues throughout the entire employment life cycle, from
recruitment and onboarding, to development, reward and recognition, performance management and exit.
Wealso conduct specific engagement exercises regularly including our Global People Survey and pulse surveys,
as well as more qualitative focus groups. We also conducted a DMA to understand their perspective on key
sustainability topics.
What is the purpose of
engagement?
To foster a motivated and productive workforce, gain insights into operational challenges, enhance
workplace culture and ensure alignment between colleague needs and business objectives, ultimately driving
long-term success.
How are the outcomes
taken into account?
– Outputs from feedback mechanisms are reviewed by the HR Function at Group and market level.
Theresultsofsurveys are reviewed by the Group Board of Directors and individual markets.
– Feedback helps inform the People Strategy as well as decisions on remuneration and organisational design.
What are their views on
the Group’s strategy?
The DMA process involved engagement with employees and customer representatives in every market. The results
of this exercise indicated the following five topics were of most interest (in descending order): Working conditions
and workers’ rights, health and safety, customer privacy, corporate culture and access to financial services.
Our value chain
1. Upstream value chain
Our upstream value chain encompasses the resources and
services we rely on to create and deliver our lending products.
Key actors include:
– Capital markets: We secure funding through a range of
wholesale funding arrangements. These relationships are
crucial for ensuring the availability of capital for lending.
– Technology providers: We rely on third-party IT service
providers, cloud infrastructure partners, and cybersecurity
companies to maintain secure and scalable digital
lendingplatforms.
– Credit bureaus: We subscribe to credit reporting services.
Access to accurate credit information is fundamental to
ourunderwriting process and responsible lending practices.
– Third-party service providers: We engage a range of
suppliers for various services including collection of customer
repayments, legal support, and marketing. These
relationships allow us to scale our operations and access
specialised expertise.
– Insurance providers: We contract with third-party insurers
toprovide value-added services, with the insurer
underwriting the policy, managing claims and assuming risk.
– Physical locations: Our business operations are supported
by a network of owned and leased physical locations,
including corporate offices, branches and call centres,
which are integral to delivering our financial products and
services, with leasing arrangements managed through
agreements with landlords and property management firms.
2. Our Operations
Our core operations involve:
– Loan origination and underwriting: We evaluate loan
applications based on creditworthiness, income, and other
factors, adhering to regulatory requirements and our internal
risk appetite. This process includes automated scoring
models and manual review.
– Servicing: We manage repayments, provide customer
support, and handle enquiries. We strive to offer convenient
payment options and clear communication throughout
theloan lifecycle.
– Risk management and compliance: We continuously
monitor loan performance, assess credit risk, and ensure
compliance with all applicable laws and regulations.
– Technology and data analytics: We invest in technology
tostreamline processes, improve decision making,
andenhance the customer experience. Data analytics
playsavital role in credit scoring, fraud detection,
andportfolio management.
3. Downstream value chain
Our downstream value chain focuses on the delivery of our
lending products to customers and the subsequent
management of those loans. Key actors include:
– Customers: We provide financial products to a broad
consumer base, supporting financial inclusion through
responsible credit access.
– Debt collection agencies (if applicable): We partner with
dedicated debt collection agencies to recover outstanding
balances on delinquent accounts. We adhere to ethical
and compliant collection practices.
– Credit reporting agencies: We report borrowers’
paymenthistory to credit bureaus, contributing
tothecreditecosystem.
– Customer representatives: Our customer representatives
originate and service personal loans directly with customers.
They also provide an in-person service at the customer’s
home, ensuring accessibility and convenience.
– Retail partners: Our products include point-of-sale financing
in both physical locations and online, provided in
conjunction with retail partners, integrating financial
solutions into everyday consumer transactions.
Annual Report and Financial Statements 2024 129
CSRD Statement
Stakeholder Group Customers
Who are they? The individuals we provide finance, insurance and other value-added services to in each of our markets.
How does engagement
occur and how
is it organised?
Review of customer engagement and experience metrics, complaints and feedback from customer
representatives. We also conduct a materiality assessment involving customers to understand their perspective
onkey sustainability topics.
What is the purpose of
engagement?
To understand their needs, preferences, and challenges, ensuring that our products and services remain
relevant, competitive, and aligned with market demands. This engagement also helps to build trust,
enhancecustomer satisfaction, and drive long-term loyalty, ultimately contributing to business growth
andbrandreputation.
How are the outcomes
taken into account?
Customer feedback is analysed to identify trends, improve products and services, and refine customer
experiencestrategies, ensuring alignment with market expectations. These insights are then integrated into
business decisions, product development, and service enhancements, driving customer satisfaction, retention,
andlong-term growth.
What are their views on
the Group’s strategy?
The DMA process involved engagement with customers in every market. The results of this exercise indicated the
following five topics were of most interest (in descending order): Customer privacy, working conditions and
workers’ rights; health and safety; corruption, bribery and whistleblowers; and ethical marketing.
Stakeholder Group Investors
Who are they? The entities that fund IPF (equity and debt).
How does engagement
occur and how
is it organised?
The Head of Investor Relations and Group Treasurer coordinate an extensive programme of engagement
withinvestors. The Chief Executive Officer and Chief Financial Officer have regular discussions, including formal
presentations for the full and half-year results, where feedback from this group is provided. The Group’s joint
brokers and their sales teams together with our equity and debt advisors also engage with investors on behalf
ofIPF and provide insights into investor sentiment.
What is the purpose
of engagement?
To build investor confidence and align business strategy with shareholder and other investor expectations.
Regular engagement helps to secure long-term investment support and communicate financial performance,
aswell as address any concerns. We also conducted a materiality assessment process to understand their
perspective on key sustainability topics.
How are the outcomes
taken into account?
Feedback influences corporate governance, ESG initiatives, and long-term growth strategies, helping to balance
shareholder expectations with sustainable business performance.
What are their views on
the Group’s strategy?
The DMA process involved engagement with a range of debt and equity investors. The results of this exercise
indicated the following five topics were of most interest (in descending order): Access to financial services;
working conditions and workers rights; corporate culture; customer privacy and health and safety.
Stakeholder Group Suppliers
Who are they? The organisations we do business with to help us deliver our products to our customers and support
ourcolleagues.
How does engagement
occur and how
is it organised?
IPF runs regular supplier meetings and surveys, reviews specific supplier complaints when they arise, and works
with key suppliers using supplier relationship management processes. These activities are led by the Procurement
Function. In the event of a major disagreement, legal actions being threatened/commenced would be
apparent. We also conducted a DMA in 2024 inviting suppliers representing all markets we operate in to
contribute so as to understand their perspective on key sustainability topics.
What is the purpose of
engagement?
We engage with our suppliers to ensure the reliability, quality, and sustainability of our supply chain.
Thisengagement also helps to assess and mitigate risks, improve operational efficiency, assure data protection
and increase ICT resilience and align procurement practices with ethical, regulatory, and sustainability standards.
How are the outcomes
taken into account?
We use supplier engagement outcomes to adjust procurement strategies and ensuring compliance with quality,
ethical, and sustainability standards. Insights from suppliers may lead to process improvements, contract
adjustments, or collaborative initiatives that drive efficiency, innovation, and long-term partnership success.
What are their views on
the Group’s strategy?
The DMA process involved engagement with over 50 suppliers across all our markets. The results of this exercise
indicated the following five topics were of most interest (in descending order). Working conditions and workers’
rights; health and safety; customer privacy; managing suppliers effectively; and access to financial services.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc130
Stakeholder Group Community groups
Who are they? The communities we impact through our operations, including the specific activities we undertake to enhance
those communities we are part of.
How does engagement
occur and how is it
organised?
The Director of Corporate Affairs coordinates with market Corporate Affairs Directors to understand the
perspective of community groups. Initiatives like the annual reputation tracker survey and financial wellbeing
research provide a broader insight into this group. Local networks of NGOs and other social partners are a
valuable source of information on issues impacting our customers and we also conduct a materiality assessment
process to understand their perspective on key sustainability topics.
What is the purpose of
engagement?
To understand local needs, foster positive social impact, and ensure our work with such groups is meaningful
andeffective.
How are the outcomes
taken into account?
We use the outcomes of community engagement to assess the impact of community investment initiatives and
adjusting programmes to better align with community needs. This may lead to refinements in funding allocation,
new partnerships, or the expansion of successful initiatives.
What are their views on
the Group’s strategy?
The DMA process involved engagement with over 20 NGOs across all our markets. The results of this exercise
indicated the following five topics were of most interest (in descending order): Access to financial services;
working conditions and workers’ rights; customer privacy; health and safety; and corporate culture.
Stakeholder Group Regulators
Who are they? The regulatory bodies or agencies that oversee and enforce rules and standards within the sector
weoperatetoprotect consumers, maintain market integrity, and ensure fair competition.
How does engagement
occur and how is it
organised?
The Director of Corporate Affairs coordinates with market Corporate Affairs Directors to understand
theperspective of regulatory bodies.
What is the purpose of
engagement?
To ensure compliance, build trust, contribute to informed policymaking, and foster a stable and predictable
operating environment.
How are the outcomes
taken into account?
The outcomes of ethical engagement with regulators is integrated into the Group’s decision-making processes,
including strategy, operations, and compliance programmes, to ensure alignment with regulatory expectations
and promote responsible business practices.
What are their views on
the Group’s strategy?
This stakeholder group provides its views via a range of mechanisms to the Group. Overall, such feedback
indicates that the Group is regarded as a reliable and important participant in is sector, recognising its
adherence to established rules designed to protect consumers and maintain a healthy financial system.
The Board of Directors is updated on stakeholder feedback
through (i) dedicated updates concerning key stakeholder
groups delivered by members of Executive Management; (ii)
receiving a dedicated stakeholder update twice annually
which covers the impact of stakeholders on the Group and the
decisions the Board of Directors has made impacting specific
stakeholder groups; and (iii) each paper considered by the
Board of Directors and Board Committees includes a section
highlighting stakeholder impacts.
f. Material impacts, risks and opportunities and their
interaction with strategy and business model
Material IROs relating to working conditions and workers’ rights
and access to financial services were identified as a result of
the materiality assessment process. These material IROs relate
to the core activities of our business model and primarily
concentrated on our own operations. Due to the proximity
ofour material IROs to our business model, these IROs
arebeing managed as part of our regular activities.
Oneidentified material IROs is covered by ESRS disclosure
requirements, (Working Conditions and Workers Rights)
andone (Access toFinancial Services) is covered
asanadditional entity-specific disclosure.
Current and anticipated effects of its material impacts,
risks and opportunities on its business model, value chain,
strategy and decision-making
Working conditions and workers’ rights
– Material impacts: The protection of workers’ rights and the
maintenance of favourable working conditions contribute
tobroader social well-being by promoting fair employment
practices and economic stability. Ensuring ethical labour
standards supports community development, reduces
inequality, and strengthens industry-wide commitments
toresponsible business conduct.
– Material risks: Poor working conditions or violations
of workers’ rights could result in legal consequences,
labour disputes and reputational damage. This may
alsolead to reduced workforce efficiency and increased
colleague turnover.
– Material opportunities: By offering fair wages, and fostering
a safe and inclusive workplace, the Group can enhance
employee engagement and operational performance.
Upholding high labour standards strengthens the Group’s
reputation as an employer of choice, thereby attracting
andretaining talent.
Annual Report and Financial Statements 2024 131
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
– Concentration assessment: These material impacts are
most concentrated within the Group’s internal operations.
– Current effects: The prioritisation of workers’ rights and
working conditions has confirmed the Group’s existing
understanding of the importance of its approach
tohumanresources.
– Anticipated effects: The Group anticipates that evolving
itsHR strategy will continue to drive talent attraction and
retention, thereby improving productivity.
– Impact on business model and value chain: This topic
impacts the internal operations of the Group directly and
managing this effectively is crucial for the long-term success
of the business.
– Impact on strategy and decision making: The Group has
a Group-wide HR strategy in place which covers topics such
as employee development and operational policies, and
this will continue.
– Response and planned actions: No specific additional
actions are planned as a result of this assessment.
– Changes to strategy and business model: No specific
changes are envisaged.
– Time horizon: This topic impacts the Group in the short,
medium and long term.
– Potential negative impacts on people: These could
include poor working conditions, such as unsafe
environments, unfair wages, or excessive working hours
which can lead to physical and mental harm for colleagues.
Our colleagues also include customer representatives
whovisit customers’ homes to disburse loans and collect
repayments. This activity raises specific health and safety
risks for these colleagues, such as exposure to potentially
unsafe environments or travel-related hazards. These risks
are managed through appropriate safety protocols,
training,and support mechanisms to ensure the wellbeing
ofthose involved.
– Potential positive impacts on people: Ensuring favourable
working conditions and upholding workers’ rights supports
colleague wellbeing, promotes a positive work environment,
and enhances productivity.
– Potential positive impacts on the environment: There
areno material positive impacts identified from this topic.
– Potential negative impacts on the environment:
Thereareno material impacts identified from this topic.
– Basis for involvement: The Group is involved in this topic
through its direct activities.
Access to financial services
– Material impacts: Ensuring access to financial services
iscrucial for promoting financial inclusion, particularly
inunderserved markets. As a provider of financial services,
the Group plays an important role in bridging gaps
infinancial accessibility.
– Material risks: Limited access to financial services for certain
populations can widen economic disparities and affect
theGroup’s social license to operate negatively.
– Material opportunities: Expanding access to financial
services offerssignificant growth opportunities by opening
up new customer segments. This can also position the
Group asaleader in promoting financial inclusion,
improving bothsocial outcomes and business sustainability.
– Concentration assessment: The impacts of financial
inclusion efforts areconcentrated predominantly in
downstream operations, where the Group engages
with customers.
– Current effects: The Group’s purpose and strategy is aimed
at improving access to financial services, particularly
inunderserved markets.
– Anticipated effects: The Group anticipates continuing
todevelop its approach to offering new products and
channels mean greater demand for these services.
– Impact on business model and value chain: Expanding
access to financial services impacts the Group’s
downstream operations, requiring adjustments to distribution
channels. Additionally, upstream impacts will likely occur,
given the Group will likely require greater engagement with
various suppliers, particularly in the technology area.
– Impact on strategy and decision making: The Group’s
purpose has made financial inclusion a strategic priority,
influencing decisions around product development,
partnerships, and market expansion.
– Response and planned actions: No specific additional
actions are planned as a result of this assessment.
– Changes to strategy and business model: No specific
changes are envisaged.
– Time horizon: This topic impacts the Group in the short,
medium and long term.
– Potential negative impacts on people: A lack of access
tofinancial services affects low-income and underserved
consumers disproportionately, limiting their ability to save,
invest, or manage financial risks. This can perpetuate
economic inequality and exclude certain populations from
economic participation.
– Potential positive impacts on people: Expanding access
tofinancial services empowers individuals, particularly in
underserved communities, by providing them with the tools
to manage their finances, and build financial resilience.
– Potential positive impact on the environment: Financial
exclusion has a limited direct impact on the environment.
– Potential negative impact on the environment: Consumer
loans may have indirect environmental impacts by enabling
purchases that contribute to carbon emissions, resource
depletion, and waste generation. However, as the Group
does not track how customers use their loans, it cannot
assess or measure the specific environmental effects of its
lending activities. The process of originating, processing,
and managing loans relies on digital infrastructure, data
centres, and office energy use and customer representatives
use motor vehicles to meet with customers in the Group’s
home credit businesses, which are all activities that
contribute to emissions in the financial sector.
– Basis of involvement: The Group is involved in this topic
through its direct activities.
The current financial effects of the identified material IROs are
limited. The Group does not consider that the current financial
effects of the material IROs identified above would impact its
financial position, performance, or cash flows materially.
Additionally, there are no significant risks that would require a
material adjustment to the carrying amounts of assets and
liabilities within the next annual reporting period.
The anticipated financial effects of the Group’s material risks
and opportunities will continue to be an important
consideration in relation to its financial position, financial
performance, or cash flows in the short, medium, or long term.
These matters will remain a key focus for management and
the Group Board of Directors, and will be assessed regularly
through the strategic planning process to ensure appropriate
risk mitigation and opportunity management. The Group does
International Personal Finance plc132
Relevance to business success of IPF
Materiality to IPF’s stakeholders
Climate Change
Healthy
Communities
Waste
Social Inclusion
Responsible Taxation
Managing Suppliers Effectively
Corporate Culture
Customer Privacy
Access to
Financial
Services
Working
Conditions
and Workers
Rights
Health and Safety
Political Engagement
and Lobbying Activities
Ethical Marketing
Corruption, Bribery
and Whistleblowers
Employee engagement
and development
g. Disclosures on the materiality assessment process
Processes to identify and assess material impacts, risks and opportunities
In 2023, we undertook a materiality assessment process for the
first time and reported on this in our 2023 Annual Report and
Financial Statements. In 2024, we undertook a DMA to map
and gain a deeper understanding of our most material
impacts in alignment with the requirements of ESRS 1 and 2.
ADMA is a strategic and comprehensive approach to
evaluate the IROs related to sustainability. The DMA
determined one topic stemming from the ESRS (Working
Conditions and Workers’ Rights) and one self-identified
topic(Access to Financial Services) to be material.
We sought to use methodologies and assumptions to ensure
acomprehensive understanding of how sustainability issues
affect both the Group and our broader stakeholders. When
preparing our first disclosures under ESRS requirements,
welooked to comprehensively assess all requirements
onadatapoint-by-datapoint basis, considering the identified
IROs, and mapping and preparing all material disclosure
requirements. We also assessed data points that are not
material, considering carefully the intent and contents of the
requirement, the relevance to our business, and potential
usefulness for users of our annual reporting.
The Group utilised a DMA process as the key methodology
toidentify material IROs. This method sought to evaluate both
impact materiality (the effects of our business activities on the
environment, society, and stakeholders) and financial
materiality (the potential financial implications of sustainability
factors on our business performance and value creation).
Weused a scoring system for the DMA process. For the impact
assessment, we used a scoring system to evaluate the scale,
scope, irremediability and likelihood of all sustainability
matters. For financial materiality, the scoring system assessed
the likelihood and potential magnitude of financial effects
caused by a sustainability matter. In our DMA we considered
the topics prescribed in ESRS 1 (Article 16) and other relevant
topics when assessing IROs.
Governance EnvironmentSocial
not anticipate any significant changes to its investment,
disposal plans, or funding sources as a result of these impacts
and will continue to evaluate their development as part of its
ongoing business planning and governance framework.
As our material IROs are related to our core business activities,
our initiatives to improve opportunities and mitigate impacts
and risks are embedded in already established governance
structures. As a result, our resilience is deemed high within the
time horizons applied in the CSRD. The resilience analysis is
based on qualitative input by internal subject-matter experts,
including an overall assessment of the mitigating factors
inplace across all IROs.
The Group has assessed the resilience of its strategy and
business model regarding its capacity to address material
IROs. Based on the current analysis, no material sustainability-
related risks or opportunities have been identified that require
strategic adjustments. The Group continues to monitor
potential sustainability-related developments as part of its risk
management and business planning processes, applying the
different time horizons in accordance with ESRS 1.
For the current reporting period, as this is the first time
theGroup is disclosing in line with ESRS, there are no
priorreporting cycles for comparison. The Group remains
committed to ongoing assessment and will update
itsdisclosures in future reporting periods should
materialIROschange.
Annual Report and Financial Statements 2024 133
CSRD Statement
Thresholds were applied for both the financial and impact
assessments. The financial thresholds were applied in the DMA
process to assess financial risks and opportunities to ensure
alignment with how risks are evaluated generally in relation
tofinancial performance. For the impact assessment,
internally-developed thresholds were applied, based
oninternal discussions. These thresholds helped evaluate
andidentify impacts to satisfy the needs of our stakeholders,
including the readers of our CSRD Statement.
The development of the DMA methodology and the
management of the DMA process was centralised to ensure
consistency in the application of scores and thresholds,
andalso involved the use of external subject-matter experts.
Theprocess was overseen by the Responsible Business
Framework Steering Group with the results reported
totheBoard of Directors.
The process described enabled appropriate focus on specific
activities, business relationships, geographies or other factors
that give rise to heightened risk of adverse impacts on the
environment or people given the choice of topics. Through
consulting with customers, suppliers, NGOs and investors the
process sought to include consideration of the impacts which
the Group is involved with through business relationships.
Through consultation with colleagues the process sought
toidentify impacts arising from its own operations. The process
included consultation with impacted stakeholders but not
withexternal experts. The process sought to prioritise negative
impacts based on severity and likelihood through questions
asked of stakeholders.
Following our sustainability governance process,
theGroupSustainability Function managed the DMA process
in collaboration with internal subject-matter experts. The results
ofthe DMA were discussed with the Responsible Business
Framework Steering Group and the Responsible Business
Framework Executive Steering Group before being reviewed
bythe Board of Directors.
The Group considers sustainability-related risks within its
Enterprise Risk Management (ERM) framework, alongside
otherbusiness risks. These risks are assessed using the
Group’sexisting risk assessment tools and processes,
alongside financial, operational, and regulatory risks,
tosupport overall risk management. For more information on
how the Group manages and assesses risks, including climate
risk and other sustainability-related risks, see the Principal Risks
and Uncertainties section of the Group’s 2024 Annual Report
and Financial Statements on pages 38 to 43.
The Group identifies, assesses, prioritises, and monitors risks
and opportunities that may have financial effects through
separate processes.
Risk identification and assessment:
Sustainability-related risks are considered as part of the
Group’s broader ERM framework, alongside financial,
operational, and regulatory risks. The likelihood, magnitude,
and nature of these risks are assessed using a qualitative
approach, considering potential financial effects and business
implications. The Group does not prioritise sustainability-related
risks over other risk types; instead, it applies a common risk
review process across all categories to ensure consistency in
risk management.
Opportunity identification and assessment:
Opportunities are assessed through the strategic planning
andbudgeting process, which identifies areas for prioritisation
based on business objectives and market conditions.
Thisprocess does not include an explicit assessment
oftheconnections between the Group’s impacts
anddependencies and the opportunities that may arise
fromthem. The assessment of financial effects related
toopportunities follows a qualitative approach, with
decisionsguided by broader strategic considerations.
The Group continues to monitor sustainability-related risks
and opportunities as part of its existing governance and
planning frameworks.
For our DMA, we used inputs provided by our stakeholders
andcovered all markets in which we operate. The assessment
relied on both qualitative and quantitative data, including
stakeholder feedback and internal discussions. No significant
deviations or extraordinary assumptions were made beyond
what is supported by the available data.
As noted above, the Group undertook its first materiality
assessment process in 2023 and in 2024 it was further
refinedto reflect the requirements detailed in the ESRS
formateriality assessments.
Processes to identify and assess material impacts,
risks and opportunities – environmental topics
The Group has assessed its potential environmental IROs
inaccordance with ESRS E1–E5. These were assessed for
materiality in the DMA process in the same way as for other
topics as described above. This meant that a wide variety
ofpotential topics relating to climate and the environment
were on the initial “long list” of topics. Following discussions,
the “Climate Change” and “Waste” topics were included
onthe shortlist of topics which were the subject of stakeholder
consultation. In undertaking this assessment, the consideration
was not only for the Group’s own operations but also those
ofthe Group’s upstream and downstream value chain for
these topics.
Based on this assessment, none of these topics have been
identified as material to the Group’s operations. Below are
specific disclosures against each standard:
ESRS E1: Climate Change
The Group reviewed its potential contributions to and risks
fromclimate change. This process included consideration
ofclimate hazards and physical risks, consideration of
transition risks and use of climate- related scenario analysis.
The Group does not have direct operations with significant
carbon emissions, energy consumption, or climate-related
risks. Asaservice-based financial institution, its environmental
impact is limited, and climate-related risks are not considered
material at this time. The Group will continue to monitor
regulatory developments and industry trends.
ESRS E2: Pollution
The Group does not engage in manufacturing, industrial
processes, or other activities that generate air, water, or soil
pollution. As a financial services provider, pollution-related
risksand opportunities have not been identified as material.
TheGroup’s primary environmental footprint relates to office
operations and digital infrastructure, which are not considered
significant sources of pollution.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc134
ESRS E3: Water and Marine Resources
The Group’s business activities do not involve high water
consumption, discharge of pollutants into water bodies,
ordependency on marine resources. As such, the Group
doesnot consider water and marine resource management
tobe a material issue.
ESRS E4: Biodiversity and Ecosystems
The Group has a limited geographic footprint and is focussed
in urban areas. It does not operate in industries that directly
impact biodiversity, land use, deforestation, or ecosystem
degradation. Given that its primary activities involve financial
services, biodiversity-related risks and opportunities are not
considered material.
ESRS E5: Resource Use and Circular Economy
The Group operations do not involve significant material
resource consumption, waste generation, or circular economy
initiatives. As a financial institution, resource use is primarily
related to digital services, office equipment, and IT
infrastructure, which are not considered material in
thecontextof circular economy principles.
h. Disclosure requirements in ESRS covered by the
undertaking’s CSRD Statement
The Group’s DMA process included assessment of climate
change related IROs. The feedback from all stakeholder
groups involved in the process, both internal and external
regarding climate change, indicated that this area was
notconsidered to be a material IRO for our business.
Thisassessment considered both our direct impacts
andthosearising potentially from our value chain.
Internal assessment of these results concurred with this
conclusion based on the following factors:
– Limited direct emissions: Our operational footprint,
primarilyrelated to vehicle emissions, office premises and
data centres, generates limited greenhouse gas emissions.
Wedonot engage in manufacturing, transportation,
orother activities typically associated with significant
directemissions.
– Limited exposure to financed emissions: Our core business
involves providing consumer loans and credit cards. While
we acknowledge the broader societal impact of consumer
spending, our financing activities do not involve large-scale
projects directly or industries with high carbon footprints
(e.g., fossil fuel extraction, heavy industry). Furthermore,
currently accepted methodologies do not allow for a reliable
and meaningful allocation of Scope 3 financed emissions
tothe type of lending we undertake. We are monitoring the
development of such methodologies and will reassess this
aspect of our DMA as they evolve.
– Physical risk assessment: We commissioned an
independent, specialist modelling company to conduct a
comprehensive assessment of physical climate change risks
to our global premises over different time horizons. This
assessment considered various climate change scenarios
and potential impacts, including extreme weather events.
The results of this assessment indicated that, based on
current projections, we do not face significant physical
climate-related risks to our operations in the short and
medium term.
Forward-looking analysis:
While climate change is not currently considered material,
werecognise that the situation may evolve. We will continue
tomonitor the following factors, which could lead us to
reassess the materiality of climate change in the future:
– Development of Scope 3 methodologies: As
methodologies for measuring financed emissions related to
consumer lending improve, we will re-evaluate the feasibility
and relevance of including such emissions in our
assessment.
– Changes in regulatory landscape: Evolving regulations
related to climate change reporting and financial
disclosures could necessitate a reassessment of materiality.
– Shifts in consumer behaviour: Significant changes in
consumer preferences towards more sustainable products
and services could impact our business and require us to
adapt our lending practices.
– Advances in climate science: Updated climate projections
and risk assessments could reveal greater physical risks to
our operations or the broader economy, thereby impacting
our business environment.
We are committed to reviewing our materiality assessment for
climate change regularly. These reviews will ensure that our
assessments remain aligned with the latest scientific
understanding, regulatory requirements, and best practices
inclimate-related risk management. We will disclose any
changes to our materiality assessment and related disclosures
accordingly. We remain committed to reducing our emissions
and more details on our approach to this topic are set out
inour TCFD Disclosures on pages 68 to 75.
Materiality of information disclosed
In determining the material information to be disclosed in this
CSRD Statement, the Group has applied the guidance set out
in ESRS 1 section 3.2, which defines material information as
that which is necessary for stakeholders tounderstand material
IROs and how they are managed. TheGroup has sought to
take a prudent approach, ensuring that all relevant
information related to its material IROs aredisclosed. This
approach aims to provide transparency and alignment with
ESRS requirements, ensuring stakeholders have a clear and
complete view of the Group’s sustainability-related disclosures.
Annual Report and Financial Statements 2024 135
CSRD Statement
Disclosure Requirement Data Point Legislation Page/relevance
ESRS 2 GOV-1 21 (d) Board’s gender diversity SFDR/BRR Page 123
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent BRR Page 123
ESRS 2 GOV-4 30 Statement on due diligence SFDR Page 125
ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities SFDR/P3/BRR Not relevant
ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical
production
SFDR/BRR Not relevant
ESRS 2 SBM-1 40 (d) iii Involvement in activities related to
controversial weapons
SFDR/BRR Not relevant
ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and
production of tobacco
BRR Not relevant
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 EUCL Not material
ESRS E1-1 16 (g) Undertakings excluded from Paris aligned benchmarks P3/BRR Not relevant
ESRS E1-4 34 GHG emission reduction targets SFDR/P3/BRR Not material
ESRS E1-5 38 Energy consumption from fossil sources disaggregated
by sources
SFDR Not relevant
ESRS E1-5 37 Energy consumption and mix SFDR Not material
ESRS E1-5 40-43 Energy intensity associated with activities in high
climate impact sectors
SFDR Not material
ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions SFDR/P3/BRR Not material
ESRS E1-6 53-55 Gross GHG emissions intensity SFDR/P3/BRR Not material
ESRS E1-7 56 GHG removals and carbon credits EUCL Not relevant
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related
physical risks
BRR Not material
ESRS E1-9 66 (a) Disaggregation of monetary amounts by acute and
chronic physical risk
P3 Not material
ESRS E1-9 66 (c) Location of significant assets at material physical risk P3 Not material
ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate
assets by energy-efficiency classes
P3 Not relevant
ESRS E1-9 69 Degree of exposure of the portfolio to
climate-related opportunities
BBR Not relevant
ESRS E2-4 28 Amount of each pollutant listed in Annex II of the
E-PRTR Regulation emitted to air, water and soil
SFDR Not relevant
ESRS E3-1 9 Water and marine resources SFDR Not relevant
ESRS E3-1 13 Dedicated policy SFDR Not relevant
ESRS E3-1 14 Sustainable oceans and seas SFDR Not relevant
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
EU legislation data points
The table below outlines the data points derived from other EUlegislation as listed in ESRS 2 Appendix B.
It indicates where these data points can be found in our 2024 Annual Report and Financial Statements and identifies which data
points are assessed as ‘Not material’ (the information is not material to our reporting) or “Not relevant” (the information is not
relevant to our operations).
Key
– Sustainable Finance Disclosure Regulation: SFDR
– EBA Pillar 3 disclosure requirements: P3
– Climate Benchmark Standards Regulation: BRR
– EU Climate Law: EUCL
International Personal Finance plc136
Disclosure Requirement Data Point Legislation Page/relevance
ESRS E3-4 28 (c) Total water recycled and reused SFDR Not relevant
ESRS E3-4 29 Total water consumption in m3 per net revenue on
own operations
SFDR Not relevant
ESRS 2 SBM-3 – E4 16 (a) i Biodiversity sensitive areas SFDR Not relevant
ESRS 2 SBM-3 – E4 16 (b) Sustainable land / agriculture practices or policies SFDR Not relevant
ESRS 2 SBM-3 – E4 16 (c) Threatened species SFDR Not relevant
ESRS E4-2 24 (b) Sustainable land/agriculture practices or policies SFDR Not relevant
ESRS E4-2 24 (c) Sustainable oceans/seas practices or policies SFDR Not relevant
ESRS E4-2 24 (d) Policies to address deforestation SFDR Not relevant
ESRS E5-5 37 (d) Non-recycled waste SFDR Not relevant
ESRS E5-5 39 Hazardous waste and radioactive waste SFDR Not relevant
ESRS 2 SBM-3 – S1 14 (f) Risk of incidents of forced labour SFDR Page 140
ESRS 2 SBM-3 – S1 14 (g) Risk of incidents of child labour SFDR Page 140
ESRS S1-1 20 Human rights policy commitments SFDR Page 142
ESRS S1-1 21 Sustainability due diligence policies on issues
addressed by the fundamental International Labour
Organisation Conventions 1 to 8
BRR Not material
ESRS S1-1 22 Processes and measures for preventing trafficking in
human beings
SFDR Not relevant
ESRS S1-1 23 Workplace accident prevention policy or management
system
SFDR Page 144
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms SFDR Page 144 to 145
ESRS S1-14 88 (b), (c) Number of fatalities and number and rate of work-
related accidents
SFDR/BRR Page 149
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities
or illness
SFDR Page 149
ESRS S1-16 97 (a) Unadjusted gender pay gap SFDR /BRR Page 149
ESRS S1-16 97 (b) Excessive CEO pay ratio SFDR Page 149
ESRS S1-17 103 (a) Incidents of discrimination SFDR Page 149
ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights
and OECD Guidelines
SFDR/BRR Not material
ESRS 2 SBM-3 – S2 11 (b) Significant risk of child labour or forced labour in the
value chain
SFDR Not material
ESRS S2-1 17 Human rights policy commitments SFDR Not material
ESRS S2-1 18 Policies related to value chain workers SFDR Not relevant
ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights
principles and OECD guidelines
SFDR/BRR Not material
ESRS S2-1 19 Sustainability due diligence policies on issues
addressed by the fundamental International Labor
Organisation Conventions 1 to 8 paragraph 19
BRR Not material
ESRS S2-4 36 Human rights issues and incidents connected to its
upstream and downstream value chain
SFDR Not Material
ESRS S3-1 16 Human rights policy commitments SFDR Not material
ESRS S3-1 17 Non-respect of UNGPs on Business and Human Rights,
ILO principles or OECD guidelines
SFDR/BRR Not material
Annual Report and Financial Statements 2024 137
CSRD Statement
Disclosure Requirement Data Point Legislation Page/relevance
ESRS S3-4 36 Human rights issues and incidents SFDR Not material
ESRS S4-1 16 Policies related to consumers and end-users SFDR Not material
ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights
and OECD guidelines
SFDR/BRR Not material
ESRS S4-4 35 Human rights issues and incidents SFDR Not material
ESRS G1-1 10 (b) United Nations Convention against Corruption SFDR Not material
ESRS G1-1 10 (d) Protection of whistleblowers SFDR Not material
ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery
laws
SFDR/BRR Not material
ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery SFDR Not material
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc138
Table: ESRS Disclosure Requirements Compliance Overview in accordance with ESRS 2 Paragraph 56
ESRS Disclosure Requirement
Included
in CSRD
Statement Reference / Explanation
ESRS 2 SBM-1 Business Model and Strategy Yes Strategy, Business Model and value chain, pages 126 to 128
ESRS 2 SBM-2 Interests and Views of Stakeholders Yes Interests and Views of Stakeholders, pages 129 to 131
ESRS 2 SBM-3 Material Impacts, Risks and Opportunities Yes Material Impacts, Risks and Opportunities, pages 131 to 133
ESRS 2 GOV-1 Governance of Sustainability Matters Yes Governance disclosures, pages 123 to 125
ESRS 2 GOV-2 Information Provided by Administrative,
Management, and Supervisory Bodies
Yes Governance disclosures, pages 123 to 124
ESRS 2 GOV-3 Integration of Sustainability-related Performance
in Incentive Schemes
Yes Integration of Sustainability-related Performance
in Incentive Schemes, page 125
ESRS 2 GOV-4 Statement on due diligence Yes Statement on Sustainability due diligence, page 125
ESRS 2 GOV-5 Risk management and internal controls over
sustainability reporting
Yes Risk management and internal controls over Sustainability
Reporting, page 125
ESRS 2 IRO-1 Description of Processes to Identify and Assess
Material IROs
Yes Disclosures on the materiality assessment process, pages 133
to 135
ESRS IRO-2 Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
Yes Disclosure requirements in ESRS covered by the undertaking’s
CSRD Statement, page 135
ESRS S1 Own Workforce Yes Own Workforce, pages 140 to 150
S1-1 Policies related to own workforce Yes Policies, pages 140 to 144
S1-2 Processes for engaging with own workforce and workers’
representatives about impacts
Yes Processes for engaging with own workforce and workers’
representatives about impacts, page 144
S1-3 Processes to remediate negative impacts and channels
for own workforce to raise concerns
Yes Processes to remediate negative impacts and channels for
own workforce to raise concerns, pages 144 to 145
S1-4 Taking action on material impacts on own workforce, and
approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of
those actions
Yes Targets related to managing material impacts, advancing
positive impacts and managing material risks and
opportunities, page 146
S1-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities
Yes Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities, page 146
S1-6 Characteristics of the undertaking’s employees Yes Characteristics of the undertaking’s employees,
page 147
S1-7 Characteristics of non-employees in the undertaking’s
own workforce
Yes Characteristics of non-employees in the undertaking’s own
workforce, page 148
S1-8 Collective bargaining coverage and social dialogue Yes Collective bargaining coverage and social dialogue,
page 148
S1-9 Diversity metrics Yes Diversity metrics, page 148
S1-10 Adequate Wages Yes Adequate Wages, page 148
S1-11 Social Protection Yes Social Protection, page 148
S1-12 Persons with disabilities Yes Persons with disabilities, page 148
S1-13 Training and skills development metrics Yes Training and skills development metrics, page 149
S1-14 Health and safety metrics Yes Health and safety metrics, page 149
S1-15 Work-life balance metrics Yes Work-life balance metrics, page 149
S1-16 Remuneration metrics (pay gap and total remuneration) Yes Remuneration metrics (pay gap and total remuneration),
page 149
S1-17 Incidents, complaints and severe human rights impacts Yes Incidents, complaints and severe human rights impacts,
pages 149 to 150
Annual Report and Financial Statements 2024 139
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
ESRS S1 Own Workforce
Our people are the core of our business. We are committed
totheir personal and professional growth and strive to create
an inclusive culture where every individual feels valued and
supported. We look to provide career opportunities for all
colleagues, regardless of their gender, age, or location.
Thissection of the CSRD Statement provides more details
onour workforce in line with ESRS S1 “Own Workforce”.
a. Employees and our strategy
The Group recognises that actual and potential impacts on its
own workforce, as well as risks and opportunities related to its
own workforce, are linked to its strategy and business model,
particularly in areas such as wellbeing, health and safety and
skills development. While these factors are considered as part
of ongoing workforce management, no material risks or
impacts have been identified that necessitate significant
adjustments to the Group’s strategy or business model.
However, the Group continues to monitor workforce-related
developments to ensure alignment with long-term business
objectives and operational needs.
All our permanent employees, customer representatives
andcontractors may be exposed to material impacts due
toour operations and all are covered within this disclosure.
TheGroup, therefore, includes all individuals in its own
workforce within the scope of this disclosure. This covers:
– Full-time and part-time employees: These colleagues
across all operational sites are impacted directly by the
Group’s policies on working conditions, health and safety,
compensation, and career development.
– Customer representatives: Customer representatives,
whovisit customers’ homes to disburse loans and collect
repayments, are included due to their exposure to specific
health and safety risks. The Group seeks to ensure that safety
measures are in place to mitigate these risks.
– Temporary and contract workers: These workers are also
within the scope of this disclosure as they are subject to the
Group’s fair labour practices and safety standards during
their engagement.
Our workforce includes customer-facing roles and back-office
functions. All are subject to our operational impacts.
Ourcustomer-facing roles, specifically those who work
ascustomer representatives and whose role requires them
tointeract directly with borrowers, are exposed to specific
risksrelated to customer interactions, which we mitigate
through extensive training and safety protocols. We have
notidentified any material negative impacts that are either
widespread/systemic or related to individual incidents
concerning our workforce.
The Group has identified positive impacts on its own
workforcethrough initiatives aimed at colleague development,
well-being, and engagement. These include training programs
to support career growth, flexible work arrangements
toenhance work-life balance, and support initiatives that
contribute to job satisfaction and retention. These benefits
areaccessible across the workforce. Ongoing evaluation
ensures that these initiatives continue to align with business
objectives and workforce needs.
We recognise that our workforce is essential to our success
and that our operations can create both risks and
opportunities related to our workforce. While we manage
arange of workforce-related factors, we have not currently
identified any specific risks or opportunities arising from our
impacts on our workforce that we deem to be individually
material in the context of this specific disclosure requirement.
The Group has identified dependencies on its workforce
asmaterial, given its reliance on employees to deliver core
business activities and maintain service quality. The availability,
engagement, and skill levels of the workforce are critical to
operational success. However, these risks and opportunities
are well managed through existing processes, including
workforce planning, employee engagement initiatives,
trainingand development programs, and risk management
frameworks. The Group continues to monitor workforce-related
dependencies to ensure business continuity and adaptability
to changing workforce dynamics. We will reassess this
determination annually.
The Group has not identified any material impacts on its own
workforce related to efforts to reduce environmental impacts
or achieve its sustainability goals. As a financial services
provider with limited direct environmental impact, there
arenosignificant workforce changes, such as restructuring,
joblosses, or reskilling, associated with such initiatives.
The Group has assessed its operations and determined that
there are no significant risks of forced or compulsory labour
orchild labour, either based on the nature of its business
activities or the geographic areas in which it operates.
Asaprovider of consumer financial services, the Group
doesnot engage in high-risk sectors typically associated
withsuch risks.
The Group has identified customer representatives
asbeingaparticular group within its workforce who
maybeatgreater risk of negative impacts due to health
andsafetyconsiderations. A suite of policies and processes,
described inmore detail below, are in place to address
thisrisk. Beyondthis area workforce-related risks are
managedthrough general policies and procedures
applicable to all employees.
b. Polices
The Group has a comprehensive set of policies governing
howissues related to our entire workforce are handled in
astructured manner. Our policies related to our workforce
regulate those actions where our key impacts and potential
risks are present and support us in reaching our social
sustainability targets and ambitions. If publicly available,
policies can be found on our website at www.ipfin.co.uk.
Social information
International Personal Finance plc140
Code of Ethics
Description of the
key contents of the
policy, including its
general objectives
The Code of Ethics sets out the principles and standards for ethical business conduct, ensuring
integrity, transparency, and compliance with legal and regulatory requirements. It covers key areas
such as anti-corruption, fair treatment of employees, data protection, conflicts of interest, and
responsible business practices, reinforcing the Group’s commitment to ethical decision-making
and accountability.
Description of the material
IROs the policy relates to
The Code of Ethics relates to material IROs associated with workforce-related impacts, including
fairtreatment, diversity, and non-discrimination. The Code also supports opportunities to enhance
stakeholder trust, strengthen governance, and uphold responsible business practices across
theGroup’s operations.
Description of the
process for monitoring
The Group monitors compliance with the Code through regular training, senior oversight
andreporting mechanisms, including a whistleblowing channel for confidential concerns.
Oversight isprovided ultimately by the Board of Directors, which approves the Code.
Executiveoversight isprovided by the Group Ethics Committee, which comprises the
ChiefExecutive Officer, ChiefFinancial Officer, Chief HR Officer and Chief Legal Officer.
Daytodayoversight and management of the Code is undertaken by the Group Legal
Function,whichreviewsadherence tothe Code and ensures any breaches are addressed
inlinewithestablished procedures.
Description of the scope
of the policy
The Code of Ethics applies across the Group’s operations, covering all employees, Executive
Management, and Board members, as well as contractors, suppliers, and business partners
whererelevant. It governs ethical conduct in all geographies where the Group operates and
applies toactivities across the value chain, including customer interactions and third-party
relationships. There are no specific exclusions.
Body with accountability
for the implementation of
the Policy
The Board of Directors.
Reference to relevant
third-party standards
The Code is based on the 10 principles of the UN Global Compact, the UN initiative to promote
ethical business practices. Further, the principles set out in the UN Guiding Principles on Business
and Human Rights as well as the OECD Guidelines for Multinational Enterprises are reflected
intheCode.
Stakeholder
considerations
While no formal stakeholder consultation was conducted, the policy reflects established
expectations for ethical conduct, compliance, and responsible business practices across
theGroup’s operations.
How the Policy is
made available
The Code of Ethics is made available to all potentially affected stakeholders through being
published on the Group’s website and its intranet sites. It is translated into every language relevant
to the Group’s markets to ensure accessibility across all operating regions. The Group holds an
annual Ethics Week, where the principles of the Code are explained through various engagement
activities. Additionally, all colleagues are required to complete annual ethics training, reinforcing
awareness and understanding of the Code. Other events and communications are held
throughout the year to publicise its contents and support its effective implementation.
Annual Report and Financial Statements 2024 141
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
Human Rights Policy
Description of the
key contents of the
policy, including its
general objectives
The Policy outlines its commitment to respecting and upholding fundamental human rights
acrossits operations and value chain. Its key objectives are to ensure fair and ethical treatment
ofemployees, prevent discrimination and harassment, promote safe working conditions,
anduphold labour rights in line with international standards. The Policy also reinforces
theGroup’sstance against modern slavery, child labour, and forced labour.
Description of the material
IROs the policy relates to
The Policy relates to material IROs associated with workforce-related considerations, including fair
treatment, non-discrimination, and safe working conditions. It addresses risks such as labour rights
violations, workplace harassment, and inadequate health and safety measures, ensuring
alignment with relevant legal and ethical standards. The Policy also supports opportunities to
enhance employee well-being, improve workplace culture, and strengthen engagement by
fostering an inclusive and responsible working environment across the Group’s operations.
Description of the process
for monitoring
The Group monitors compliance with the Policy through a combination of internal reviews,
employee feedback mechanisms, and risk assessments. Regular training is provided to employees
to ensure awareness and understanding of human rights principles. Concerns can be raised
through established reporting channels, including a confidential whistleblowing mechanism.
ThePolicy is reviewed periodically to assess its effectiveness, and any identified issues
areaddressed through corrective actions as part of the Group’s broader governance
andcompliance framework.
Description of the scope of
the policy
The Policy applies to all aspects of the Group’s operations, covering its employees, workplaces,
and business activities. It sets expectations for how the Group upholds human rights in its
employment practices, working conditions, and interactions with stakeholders. The Policy guides
the Group’s approach to fair treatment, non-discrimination, and workplace safety, ensuring
alignment with applicable laws and international human rights standards.
Body with accountability
for the implementation of
the Policy
The Board of Directors.
Reference to relevant
third-party standards
The Policy aligns to align with UN Guiding Principles on Business and Human Rights and other
relevant frameworks.
Stakeholder
considerations
While no formal stakeholder consultation was conducted, the Policy reflects established
expectations for human rights across the Group’s operations.
How the Policy is
made available
The Code of Ethics incorporates the key elements of the Policy, which ispublicly available on the
Group website, ensuring accessibility to employees, stakeholders, andother interested parties.
International Personal Finance plc142
Diversity Policy
Description of the
key contents of the
policy, including its
general objectives
The Policy outlines the Group’s commitment to fostering an inclusive and equitable workplace
where all employees are valued and treated with respect. It promotes equal opportunities in
recruitment, career development, and workplace culture while preventing discrimination based
ongender, ethnicity, age, disability, sexual orientation, or other protected characteristics.
ThePolicy supports a diverse workforce by ensuring fair treatment and encouraging a culture
ofinclusion and belonging.
Description of the material
IROs the policy relates to
The Policy addresses workforce-related impacts, including representation, workplace inclusion,
andcareer progression. It mitigates risks such as discrimination, bias in decision-making, and
barriers to equal opportunities. The Policy also creates opportunities to enhance employee
engagement, attract diverse talent, and strengthen innovation and collaboration across
theGroup’s operations.
Description of the process
for monitoring
The Group monitors the implementation of the Policy through regular workforce assessments,
employee feedback, and inclusion surveys. Diversity metrics are reviewed periodically to track
progress in representation and career development. Employees receive training on diversity
andinclusion principles, and any concerns can be raised through established reporting channels,
including a confidential whistleblowing mechanism.
Description of the scope
ofthe policy
The Policy applies to all aspects of the Group’s employment practices, including recruitment,
promotions, workplace conduct, and leadership development. It sets out expectations for
maintaining an inclusive workplace and applies to all employees and business units across
theGroup. The Policy focuses on the Group’s internal workforce and does not extend to external
stakeholders or the broader value chain.
Body with accountability
for the implementation
ofthe Policy
Group Ethics Committee.
Reference to relevant
third-party standards
The Policy does not align to any specific third-party standards.
Stakeholder
considerations
The Policy was developed without a formal stakeholder consultation process but reflects
established best practices and legal requirements. It aligns with recognised diversity
andinclusionframeworks and incorporates insights from ongoing employee engagement
andworkforce assessments to ensure its relevance and effectiveness.
How the Policy is
made available
The Policy is publicly accessible on the Group website and is communicated internally through
announcements and training programs. Employees receive regular updates on diversity initiatives,
and the policy is embedded in recruitment, performance management, and leadership
development processes to ensure ongoing awareness and implementation. The Code
ofEthicsincorporates the key elements of the Policy.
Annual Report and Financial Statements 2024 143
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
Health and Safety Policy
Description of the key
contents of the policy,
including its general
objectives
The Policy outlines its commitment to maintaining a safe and healthy working environment for all
employees. It sets out guidelines for risk prevention, workplace safety procedures, and employee
well-being. The policy aims to reduce workplace hazards, promote compliance with safety
regulations and foster a culture where health and safety are prioritised in daily operations.
Description of the material
IROs the policy relates to
The Policy addresses workforce-related risks such as workplace accidents, occupational illnesses,
and non-compliance with safety regulations. It mitigates potential legal and reputational risks
whilecreating opportunities to improve employee well-being, reduce absenteeism, and enhance
productivity through a safe and supportive work environment.
Description of the
process for monitoring
The Group monitors compliance with the Policy through regular workplace inspections,
riskassessments, and reporting mechanisms. Training is provided to employees to ensure
awareness ofhealth and safety procedures, and incidents are recorded and reviewed to identify
areas for improvement. A confidential reporting system allows employees to raise safety concerns,
which areinvestigated and addressed as part of the Group’s risk management framework.
Description of the scope
of the policy
The Policy applies across all the Group’s operations and workplaces, covering employees,
contractors, and other personnel working on-site. It outlines responsibilities for maintaining
workplace safety at all levels of the organisation. While the Policy primarily focuses on internal
operations, it also applies to third-party service providers where relevant.
Body with accountability
for the implementation of
the Policy
The Board of Directors.
Reference to relevant third
party standards
The Policy aligns to ISO 45001 Occupational Health & Safety, the international standard that
specifies requirements for an occupational health and safety management system.
Stakeholder
considerations
The Policy was developed without a formal stakeholder consultation process but aligns with legal
requirements, industry best practices, and internal risk management frameworks. It incorporates
insights from employee feedback and workplace safety assessments to ensure continued
relevance and effectiveness.
How the Policy
is made available
The Policy is communicated internally through training programs, safety briefings, and group-wide
announcements. Employees receive regular updates on safety procedures, and the policy is
integrated into onboarding processes and operational guidelines to ensure consistent application
across the Group.
c. Processes for engaging with own workforce and workers’
representatives about impacts.
The Group considers workforce perspectives through general
people engagement initiatives, such as surveys and feedback
mechanisms, to inform decisions related to workplace policies
and wellbeing. However, no formal process is in place to
integrate these perspectives specifically into the management
of actual and potential workforce impacts. The Group
continues to monitor workforce-related considerations through
its broader HR and operational frameworks.
The Group engages with its workforce both directly and
through formal employee and customer representative forums.
In 2024, both our established employee forums across all
markets and customer representative forums in all home credit
markets helped to ensure an open dialogue on significant
workforce matters. Additionally, we conducted “Pulse Surveys”
across all divisions, which returned very positive responses. The
outputs of these surveys were reviewed by the HR Function,
Executive Management and the Board of Directors, providing
valuable insights that inform our strategy and decision making.
These engagement mechanisms allow us to assess and
respond to workforce perspectives regularly in a structured
and inclusive manner.
The Group has not adopted a specific process to gain insight
into the perspectives of workforce members who may be
particularly vulnerable to impacts or marginalised. There are
currently no plans to implement such a process. However,
theGroup remains committed to applying its broader policies
on diversity, equity, and inclusion to ensure fair treatment
andequal opportunities for all employees.
d. Processes to remediate negative impacts and channels
for own workforce to raise concerns
The Group is committed to identifying, addressing, and
remediating any material negative impacts on its workforce
related to working conditions, including employment security,
wages, working time, social dialogue, freedom of association,
collective bargaining, work-life balance, and health and
safety. Our approach includes established HR mechanisms,
grievance procedures, and an independent whistleblowing
system that allows employees to report concerns confidentially
and without fear of retaliation.
Where the Group identifies that it has caused or contributed
toa material negative impact, we assess the appropriate
remedy through internal investigations, direct engagement
with affected colleagues, and corrective actions such as
policy adjustments, process improvements, or targeted
interventions. The effectiveness of remedies is evaluated
through follow-up engagement, feedback from colleague
International Personal Finance plc144
forums, and monitoring of key workforce indicators, ensuring
that concerns are appropriately addressed and resolved.
The Group is committed to maintaining a transparent and
supportive environment where all colleagues feel empowered
to raise concerns, report issues, or communicate their needs.
We recognise the importance of providing clear, accessible
channels for our workforce to engage directly with the Group
on matters affecting their wellbeing, working conditions, and
rights. We have established robust mechanisms to ensure that
all concerns raised by colleagues are addressed promptly and
fairly. Channels for raising concerns:
– Independent whistleblowing service: The Group provides
an independent, confidential whistleblowing service
available to all colleagues. This service allows colleagues
toreport any concerns related to misconduct, unethical
behaviour, or any issues that may affect their wellbeing,
including potential violations of Group policies or legal
requirements.
– Accessibility and confidentiality: The whistleblowing
service is operated by third-party providers to ensure
confidentiality and impartiality. Colleagues can raise
concerns anonymously, without fear of retaliation,
andareassured that all reports will be thoroughly
investigated and addressed.
– Regular communication: We regularly communicate the
availability of this service to all employees, ensuring that they
are aware of how to access it and understand the types of
concerns they can raise through this channel. Information
on how to use the whistleblowing service is included
inonboarding materials, Group-wide emails, and posted
onthe employee intranet.
– Internal reporting mechanisms: In addition to the
independent whistleblowing service, the Group has
established internal mechanisms for colleagues to raise
concerns directly with management or the HR Function.
These include:
– Human resources: Employees can contact the HR
Function via email, phone or face to face to raise
concerns about working conditions, benefits, career
development, or any other work-related issues.
– Manager engagement: We encourage open
communication between colleagues and their direct
supervisors or managers. Colleagues are invited to raise
concerns during regular check-ins, performance reviews,
oron an ad-hoc basis, ensuring that issues are addressed
promptly. These internal channels are overseen by the
relevant departments, with clear procedures in place
toensure that concerns are addressed in a timely
andeffective manner.
– Employee feedback surveys and forums: The Group
conducts engagement surveys regularly to gather
feedback on various aspects of the work environment,
including wellbeing, job satisfaction, and areas for
improvement. Colleagues can raise concerns or suggest
improvements through these surveys, which are analysed
and acted upon by Executive Management. We also hold
periodic employee forums or town hall meetings, where
colleagues are encouraged to ask questions and share
their concerns directly with Group leadership.
These mechanisms ensure that all colleagues have access to
appropriate channels to raise concerns or complaints related
to their work environment, wellbeing, or any other employment-
related issues. Colleagues can utilise our internal reporting
systems or the independent whistleblowing service,
bothofwhich are designed to handle complaints
confidentially and fairly, without fear of retaliation.
The Group has established a comprehensive system for
tracking and monitoring issues raised through our grievance
and whistleblowing channels. The process is overseen by the
Group Legal Function, ensuring confidentiality and
compliance with our internal policies. To maintain
transparency and accountability, the Group Ethics Committee
reviews all whistleblowing matters, and updates are provided
regularly to the Group Audit and Risk Committee.
– Group Ethics Committee: The Group Ethics Committee
plays a central role in reviewing whistleblowing reports
andother issues raised by colleagues. This Committee is
responsible for assessing the nature of the issues, ensuring
appropriate investigations are conducted, and
recommending actions or remedies where necessary.
– Oversight by Group Legal Function: To ensure the
confidentiality and integrity of the process, the Group Legal
Function oversees the tracking and management of all
reported concerns. This function ensures that each case is
handled in line with legal and regulatory requirements while
protecting the identity of whistleblowers and other parties
involved.
– Regular reporting: Regular updates on the issues raised
and their resolution are provided to the Group Audit and Risk
Committee, ensuring that Executive Management and the
Board of Directors are fully informed of key concerns and
risks. This also ensures that the process is aligned with the
Group’s risk management framework.
The Group is committed to maintaining a safe, transparent,
and ethical work environment where all employees and
customer representatives can raise concerns without fear
ofretaliation. Our Whistleblowing Policy provides clear
guidelines on how colleagues, contractors, and workers’
representatives can raise concerns related to misconduct,
unethical behaviour, legal violations, or other workplace
issues. Thepolicy explicitly prohibits any form of retaliation
againstindividuals who use this channel to report
concernsingood faith.
The Whistleblowing Policy applies to all individuals in our
workforce, including full-time and part-time employees,
contractors and self-employed customer representatives.
TheWhistleblowing Policy reflects a framework in place
tosupport the management of workforce-related risks by
providing employees with a confidential and secure channel
to report concerns about misconduct, unethical behaviour,
orpolicy violations It guarantees that anyone raising
aconcern through the designated channels, including
theindependent whistleblowing service, will be protected
fromany adverse action or retaliation. The Group provides
independent third-party whistleblowing services that allows
colleagues to report concerns confidentially and, if desired,
anonymously. This external service ensures that individuals
feelsecure when raising issues. To further protect those who
report concerns, thewhistleblowing service ensures strict
confidentiality. No identifying details are shared without
theconsent of the individual raising the concern, except
asrequired by law. The Group takes any allegation
ofretaliation seriously. Any report of retaliatory action
isinvestigated immediately, and appropriate disciplinary
measures are taken against individuals found to be engaging
in retaliatory behaviour.
Annual Report and Financial Statements 2024 145
CSRD Statement
e. Taking action on material impacts on own workforce,
and approaches to managing material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions
The Group manages material workforce-related impacts
through established HR policies, colleague engagement
initiatives, and governance frameworks. To prevent or mitigate
material negative impacts, we conduct regular colleague
surveys, maintain formal employee and customer
representative forums, and provide whistleblowing and
grievance mechanisms to identify and address workplace
concerns proactively. Where an actual material negative
impact arises, the Group takes appropriate action through
internal investigations, direct engagement with affected
colleagues, and corrective measures, ensuring fair resolution
and alignment with Group policies. These steps may include
policy updates, training programmes, or adjustments to
workplace conditions where necessary. Additionally, the
Group implements initiatives aimed at delivering positive
impacts, such as career development programmes, wellbeing
support, and flexible work arrangements, to enhance
engagement and retention. The effectiveness of these actions
and initiatives is tracked through colleague feedback, survey
results, retention rates, and workforce wellbeing indicators,
allowing for continuous assessment and improvement in
workforce management practices.
The Group looks to identify necessary actions in response to
actual or potential negative impacts on its workforce through
the mechanisms described above – namely regular colleague
surveys, engagement forums, grievance mechanisms, and
whistleblowing channels. Reported concerns are assessed by
the HR Function and management, with appropriate actions
determined based on internal policies, regulatory requirements
and colleague feedback. The effectiveness of these actions is
monitored through ongoing workforce engagement and
review by the HR Function.
The Group manages its material IROs related to its own
workforce as part of business-as-usual operations including
governance frameworks, colleague engagement and HR
policies, and workforce-related matters, including wellbeing,
fair treatment, and workplace safety, are integrated into
standard management practices and addressed through
existing HR processes, training programmes, and internal
reporting mechanisms. No separate action plans or additional
resources have been allocated beyond these ongoing
business operations.
The Group ensures that its practices do not cause or
contribute to material negative impacts on its workforce
through regular colleague surveys, engagement forums,
andother touchpoints that provide insights into workforce
wellbeing and workplace conditions. Workforce-related
concerns are managed through established HR policies,
grievance mechanisms, and whistleblowing channels
toaddress potential issues proactively.
The management of material workforce-related impacts is
handled as part of the HR Function’s regular responsibilities
and budgeting process, with no separate allocation of
resources beyond standard HR operations. Workforce matters,
including wellbeing, workplace policies, and compliance,
areintegrated into ongoing HR activities and managed
withinexisting frameworks and budgets.
f. Targets related to managing material negative impacts,
advancing positive impacts, and managing material
risks and opportunities
The Group has not set any specific time-bound
or outcome-oriented targets related to reducing negative
impacts, advancing positive impacts, or managing material
risks andopportunities for its workforce other than targets for
workforce turnover which are disclosed on page 25 above,
and there areno current plans to do so. The Group monitors
the effectiveness of its policies and actions through regular
governance and oversight processes. This includes periodic
workforce reviews, employee feedback mechanisms and HR
reporting to assess trends in engagement, well-being, and
compliance with employment policies. While no specific level
of ambition has been formally defined, qualitative assessments
and internal reporting support continuous improvement in
workforce-related matters.
Responsibility for setting workforce-related targets, if required,
sits with the Chief HR Officer, who would determine them in
agreement with the Chief Executive Officer and the Board
ofDirectors. In such cases, the process would include
consideration of workforce data, colleague engagement
insights, and alignment with business priorities. While no
specific targets have been set beyond those mentioned
above, any future targets would be developed in consultation
with relevant stakeholders and monitored through existing
HRgovernance frameworks.
Methodology Statement for Disclosures
S1-6toS1-17
This methodology statement outlines the approach taken
incompiling and reporting workforce-related data for
Disclosures S1-6 to S1-17. It ensures consistency, accuracy,
andcompliance with applicable reporting standards across
all entities within the Group. The methodologies applied
provide a clear framework for classifying employees,
contracttypes, working time, and gender to support
comprehensive workforce analysis.
Scope and coverage:
– The data presented in Disclosures S1-6 to S1-17 covers
allentities within the Group.
– Employee data is compiled as of the end of the reporting
period, with additional reference to average workforce
numbers over the period for comparative analysis.
– Data is reported as headcount rather than full-time
equivalent (FTE).
– Workforce data is sourced from internal HR systems,
payrolldatabases and employment records.
Methodologies applied:
1. Employee headcount classification
– Permanent employees are counted based on their contract
status at the reporting date.
– Temporary employees include fixed-term contracts
andagency workers.
2. Contract type classification
– Permanent contracts refer to indefinite employment
agreements.
– Temporary contracts include fixed-duration agreements
oragency employment.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc146
3. Working time classification
– Employees are categorised as full-time or part-time
basedon:
– Contract terms.
– Actual hours worked.
4. Gender classification
– Based on Group HR records, which may be informed by:
– Self-reported data, where available.
– Local employment classifications, where applicable.
By adhering to these methodologies, the Group seeks
toensure that workforce data is accurately recorded and
consistently applied across all reporting entities. This structured
approach enhances transparency, comparability, and
reliability, providing meaningful insights into the Group’s
workforce composition and employment practices.
g. Disclosure Requirement S1-6 – Characteristics of the
undertaking’s employees
Table 1 – information on employee head count by gender
Gender
Number of
employees
(headcount)
Male 2,946
Female 5,405
Other 0
Not reported 0
Total Employees 8,351
The data in this table covers all entities within the Group and
includes employees on permanent and fixed-term contracts,
as well as those working full-time and part-time. This dataset
also includes customer representatives in Hungary and
Romania, who are employed under the Group’s workforce
structure. There has been no significant changes in total
employee numbers during the reporting period. A notable
feature of the Group’s workforce composition is that around
3,000 employees are customer representatives in Hungary
andRomania. A very high proportion of these roles are held
byfemale employees, contributing to the overall higher
percentage of female employees within the Group. This trend
reflects the local labour market demographics and the nature
of these customer-facing roles in those markets. These figures
are different to those included in note 9 of the financial
statements to this report because the employee data above
isas at 31 December 2024 compared with the average
employee FTE data contained in the financial statements.
Table 2 – employee head count in countries where the
undertaking has at least 50 employees representing at least
10% of its total number of employees
Country
Number of
employees
(headcount)
Czech Republic 302
Estonia 120
Hungary 2,150
Mexico 2,569
Poland 1,040
Romania 1,960
United Kingdom 126
The data in this table covers all entities within the Group in
countries where the undertaking has at least 50 employees,
representing at least 10% of its total number of employees.
Itincludes employees on permanent and fixed-term contracts,
as well as those working full-time and part-time. This dataset
also includes customer representatives in Hungary and
Romania, who are employed under the Group’s workforce
structure. The presence of a large number of customer
representatives in these countries contributes to their relatively
higher employee headcount, providing important context for
workforce distribution across the Group. Mexico has the largest
employee headcount within the Group, reflecting the scale
ofoperations in this market.
Table 3 – information on employees by contract type, broken down by gender*
2024
Female Male Other(*) Not disclosed Total
Number of employees (head count) 5,405 2,946 8,351
Number of permanent employees (head count) 5,287 2,918 8,205
Number of temporary employees (head count) 106 23 129
Number of non-guaranteed hours employees (head count) 12 5 17
* Gender as specified by the employees themselves.
Most of our employees across the Group are employed
onapermanent basis. Temporary employment represents
asmall proportion of our total workforce, as we primarily rely
on long-term employment contracts to ensure stability and
continuity in our operations. For the purposes of reporting in
this CSRD Statement, we have defined "temporary employees"
as individuals who meet at least one of the following criteria:
1) They do not have a permanent contract with the Group;
2) They have a contract with a fixed duration (e.g. fixed-term
employment contracts with a specified end date).
Thisdefinition ensures that our reporting aligns with ESRS S1-6
requirements, while also reflecting the employment structures
used across the jurisdictions in which we operate.
The total number of employees who left the Group in 2024
was2,562 and the rate of employee turnover in the reporting
period was 29.2%.
Annual Report and Financial Statements 2024 147
CSRD Statement
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
h. Disclosure Requirement S1-7 – Characteristics of non-
employees in the undertaking’s own workforce
Total number of non-employees in own workforce
Metric Unit Total
Total number of non-employees in
own workforce Head count 12,139
Classification of non-employees
– Czech Republic: Customer representatives are classified
asself-employed individuals.
– Poland: Customer representatives operate as civil
contractors.
– Mexico: Customer representatives are engaged
ascommission agents.
This classification aligns with local legal and contractual
frameworks, ensuring compliance with regional employment
regulations while reflecting the diverse nature of workforce
engagement across different markets.
i. Disclosure Requirement S1-8 – Collective bargaining
coverage and social dialogue
0% of employees are covered by collective bargaining
agreements globally.
In the European Economic Area (EEA), the Group has no
collective bargaining agreements in place. Outside the EEA,
0% of employees are covered by collective bargaining
agreements.
Country
% of employees covered by workers’
representatives for each EEA country
Czech Republic 0%
Estonia 0%
Hungary 0%
Mexico 0%
Poland 0%
Romania 0%
The Group has no agreements in place for representation
byaEuropean Works Council, a Societas Europaea Works
Council or a Societas Cooperativa Europaea Works Council.
j. Disclosure Requirement S1-9 – Diversity metrics
Gender diversity at top management Level
In preparing the disclosure on gender at top management,
wehave used the definition of top management as one
andtwo levels below the administrative and supervisory level.
Thegender distribution within this group is as follows:
Metric Unit Total
Number and percentage at top
management level by gender Head count (%) 88 (100%)
Female Head count (%) 29 (33%)
Male Head count (%) 59 (67%)
Other gender Head count (%) 0 (0%)
Not reported Head count (%) 0 (0%)
Age distribution of employees
Our workforce is composed of employees across different age
groups. The distribution is as follows:
Metric Unit Total
Distribution of colleagues by age groups Head count (%) 8,351 (100%)
< 30 years Head count (%) 1,038 (12.4%)
30-50 years Head count (%) 5,443 (65.2%)
> 50 years Head count (%) 1,870 (22.4%)
k. Disclosure Requirement S1-10 – Adequate wages
We confirm that no employee within the Group is paid below
an adequate wage. This aligns with our commitment to fair
and responsible employment practices, ensuring financial
security and wellbeing for our workforce.
l. Disclosure Requirement S1-11 – Social protection
In the markets where we operate, Group employees are
entitled to social protection measures mandated by national
laws. These include:
– Sickness benefits: All employees in our markets (Mexico,
UK,Czech Republic, Poland, Hungary, Romania, Australia,
Latvia, Lithuania, and Estonia) are entitled to income
support during periods of illness, provided through national
health insurance schemes or equivalent programmes.
– Unemployment benefits: Employees are covered by
statutory unemployment insurance programmes in all
markets, ensuring income support during periods of job loss.
– Parental leave: All markets offer statutory parental leave
programmes, providing income support during maternity,
paternity, or parental leave periods.
– Employment injury and acquired disability benefits:
Employees are protected through mandatory workers’
compensation schemes or equivalent programmes
thatcover workplace injuries or disabilities.
– Retirement benefits: Employees are enrolled
in government-provided pension schemes in all markets.
m.Disclosure Requirement S1-12 – Persons with disabilities
Metric Unit Total
Percentage of persons with disabilities
amongst employees Head count (%) 124 (1.5%)
We are committed to fostering an inclusive workplace that
supports diversity and equal opportunities for all employees,
including persons with disabilities.
– As part of our reporting under Disclosure Requirement S1-12,
we disclose the percentage of employees with disabilities,
subject to legal restrictions on data collection in different
jurisdictions.
– We ensure compliance with national laws and definitions
ofdisability across the markets in which we operate,
recognising that legal definitions may vary.
– Where possible, we monitor and track disability
representation in our workforce to inform policies and
initiatives aimed at enhancing accessibility, inclusion,
andworkplace support.
International Personal Finance plc148
n. Disclosure Requirement S1-13 – Training and skills
development metrics
The Group does not collate data on the average number
oftraining hours per employee and by gender.
Metric Unit Total
Employees that participated in regular performance
and career development reviews by gender % 52%
Female % 45.5%
Male % 63.9%
Other gender % 0%
Not reported % 0%
o. Disclosure Requirement S1-14 – Health and safety metrics
Metric Unit Total
Percentage of employees in own workforce covered
by a health and safety management system based
on legal requirements and/or recognised standards
or guidelines % 100%
All IPF home credit businesses (Poland, the Czech Republic,
Hungary, Romania, and Mexico) are accredited with the ISO
45001 Occupational Health and Safety Management
Standard. All IPF Digital businesses adhere to local health
andsafety legal requirements. All markets undergo safety
management system assessments to monitor compliance
withthe Group’s health and safety protocols.
Metric Unit Total
Number of fatalities as a result of
work-related injuries and work-related ill
health Fatalities 0
Metric Unit Total
Rate of recordable work-related
accidents
Number of
injuries/hours
worked 1.1
Number of recordable work-related
injuries Number 302
This was calculated using industry standard:
Total recordable incident rate = Number of incidents x 200,000
/ total number of employee/customer representative hours
worked in a year.
Metric Unit Total
Number of cases of recordable
work-related ill health among employees
in own workforce Number 0
Based on the nature of our operations, which involve office-
based work and home visits to provide financial services
without exposure to hazardous substances or conditions,
wehave not recorded any cases of reportable work-related
illhealth in the reporting period.
Metric Unit Total
Number of days lost to work-related
injuries and fatalities among colleagues
in own workforce Days 1,529
Metric
Number of fatalities as a result of work-related injuries
andwork-related ill health of other workers working
onundertaking’s sites is zero.
p. Disclosure Requirement S1-15 – Work-life balance
Below are our family-related leave metrics for 2024:
Metric Unit Total
Number of employees entitled to take
family-related leave % 98%
Metric Unit Total
Percentage of entitled employees that
took family-related leave by gender % 21%
Female % 26%
Male % 14%
Other gender % 0%
Not reported % 0%
These figures demonstrate our commitment to supporting
employees with family-related responsibilities through
accessible and inclusive leave policies.
q. Disclosure Requirement S1-16 – Remuneration metrics
(pay gap and total compensation)
Metric Unit Total
Annual total remuneration for the
undertaking’s highest paid individual GBP 2,349,609
Median annual total remuneration GBP 11,198
Annual total remuneration ratio Ratio 209.82
Gender pay gap percentage % 37.98%
r. Disclosure Requirement S1-17 – Human rights impacts
Discrimination and complaints
Metric Total
Total number of incidents of discrimination and
harassment reported in 2024 3
In 2024, the Group received and addressed three reported
incidents of discrimination. We are committed to fostering
aculture of inclusion, respect and fairness, and ensure that
allreported incidents are thoroughly investigated and
addressed appropriately.
Annual Report and Financial Statements 2024 149
CSRD Statement
Details of reported incidents
1. Gender discrimination complaint:
– A customer representative stated that she felt
discriminated against by a customer who
complainedabout her breastfeeding during
ahomevisit.The customer representative viewed this
asgender discrimination.
– Outcome: Discussions were facilitated between
thecustomer representative and the customer to
acknowledge their respective concerns and mediate the
situation. Management received guidance on handling
feedback related to such situations and were advised
toconsult HR before taking any action in similar cases.
2. Inappropriate remarks by a manager:
– A manager referred to women in a negative manner.
Following an investigation, the manager received a written
disciplinary warning in accordance with Group policy.
3. Sexual harassment allegation:
– A claim of sexual harassment was investigated. However,
due to insufficient evidence, the claim could not proceed,
and no sanctions were imposed.
We take all allegations of discrimination seriously and are
committed to addressing such issues through appropriate
measures, including investigations, disciplinary actions,
andemployee support.
Metric Total
Number of complaints filed through channels for own
workforce to raise concerns 165
Metric Unit Total
Total amount of fines, penalties, and
compensation for damages as result of
reported incidents and complaints GBP 0
Severe human rights incidents
Metric Total
Number of severe human rights incidents connected to
the undertaking’s workforce 0
Metric Unit Total
Total amount of fines, penalties and
compensation for damages severe
human rights incidents connected to the
undertaking’s workforce GBP 0
Entity-specific disclosure:
Access to financial services
Through the DMA process, the Group has identified access
tofinancial services as a material sustainability topic.
Thispertains to our role in providing financial products
tounderserved communities that are often overlooked
bytraditional banking institutions. Our commitment to offering
personalised services and maintaining high ethical standards
aligns with our strategy to promote financial inclusion.
In accordance with ESRS, particularly ESRS 2 on General
Disclosures, we recognise the importance of reporting on
material sustainability matters, including those self-identified
through our DMA. Our approach to addressing access
tofinancial services includes:
– Strategy and business model: Integrating financial
inclusion into our core business strategy to reach
underserved populations.
– Products and channels: Establishing products and policies
that guide our efforts in extending financial services
tomarginalised communities.
– Performance measurement: Monitoring and assessing
theeffectiveness of our initiatives regularly through key
performance indicators related to customer outreach
andsatisfaction among underserved groups.
By focusing on access to financial services, we aim
to create positive social impacts while identifying
opportunities for business growth, thereby fulfilling
oursustainability commitments.
We have taken advantage of the transitional provision
inESRS1 relating to entity-specific disclosures. Accordingly,
we have prepared disclosures that are consistent with
those reported in the prior year. These can be found
inthecustomer section of this report on pages 50 to 52.
Overthe coming years, we will evolve our disclosures
relatingto accessto financial services.
CSRD Statement for International Personal Finance plc
for the year ended 31 December 2024 continued
International Personal Finance plc150
Independent Limited Assurance Report
tothe Directors of International Personal
Finance Plc
We were engaged by International Personal Finance Plc
(the‘Company’) to perform a limited assurance engagement
in respect of the Corporate Sustainability Reporting Directive
(‘CSRD’) Statement for the year ending 31 December 2024
aspresented on pages 123 to 150 of the Annual Report
andFinancial Statements, hereafter referred to as the
“CSRDInformation”.
Directors’ responsibilities
The Directors of Company are responsible for:
– developing, implementing and reporting the double
materiality assessment process to identify the information
reported in the CSRD Statement in accordance with the
European Sustainability Reporting Standards (the ‘ESRS’)
and for disclosing this process in the CSRD Statement;
– preparing, measuring, fairly presenting and reporting
theCSRD information included in the CSRD Statement in
accordance with the applicable criteria of the EU Directive
2022/2464 which includes complying with the ESRS;
– designing, implementing, and maintaining systems,
processes and internal controls necessary for the
preparation and presentation of the CSRD Information
that isfree from material misstatement, whether due
tofraudor error;
– maintaining adequate records for preparing
andtosupportthe CSRD Information;
– the contents and disclosures contained within the
CSRD Information.
Our independence and quality
management
We have complied with the independence and other
ethicalrequirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards
Board for Accountants, which is founded on fundamental
principles of integrity, objectivity, professional competence
and due care, confidentiality and professional behaviour.
We apply the International Standard on Quality Management
(UK) 1 Quality Management for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance and
Related Services Engagements. This requires us to design,
implement and operate a system of quality management
including policies and procedures regarding compliance with
ethical requirements, professional standards and applicable
legal and regulatory requirements.
Our responsibilities
We are responsible for:
– planning and performing the engagement to obtain limited
assurance about whether the CSRD Information is free from
material misstatement, whether due to fraud or error;
– evaluating whether the overall presentation, structure
andcontent of the CSRD Statement achieves fair
presentation inaccordance with ESRS and the double
materiality assessment carried out by the Company
toidentify theinformation reported is in accordance
withthedescription set out in the CSRD Statement; and
– forming and reporting an independent conclusion,
basedonthe procedures we have performed
andtheevidence wehave obtained.
We conducted our limited assurance engagement in
accordance with the International Standard on Assurance
Engagements 3000 (Revised) Assurance Engagements Other
Than Audits or Reviews of Historical Financial Information
(‘ISAE3000’) issued by the International Auditing
andAssurance Standards Board (‘IAASB’).
Summary of work performed
The procedures we performed, and our determination of the
nature, timing and extent of these procedures, was based on
our professional judgement, including the assessment of the
risks of material misstatement of the CSRD Information, whether
due from fraud or error. Our procedures did not extend to any
elements outside of the CSRD Information. The procedures
included, but were not limited to:
– performing risk assessment procedures to understand the
Company and its environment, the relevant internal controls,
the underlying CSRD Information and other engagement
circumstances, including the Company’s reporting
boundary and its value chain;
– obtaining an understanding of the Company’s double
materiality assessment process by performing inquiries to
understand the source of information used by management;
inspecting the Company’s internal documentation of this
process; and evaluating whether the evidence obtained
from our procedures about the Company’s process
isconsistent with the description of the process set out
intheCSRD Statement;
– inquiring of management and others within the Company
tounderstand the CSRD Information and the criteria used
formeasurement and evaluation;
– performing limited substantive testing of the CSRD
Information including agreeing arithmetical accuracy
ofcalculations and agreeing data points and disclosures
tounderlying records to check that the CSRD Information
had been appropriately evaluated or measured,
recorded,collated and reporting; and
– evaluating the overall presentation, structure and content
ofthe CSRD Statement.
Annual Report and Financial Statements 2024 151
CSRD Statement
The procedures we perform in a limited assurance
engagement vary in nature and timing from, and are less
inextent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable
assurance engagement been performed. Accordingly,
wedonot express a reasonable assurance opinion about
whether the CSRD Information has been prepared, in all
material respects, in accordance with the applicable criteria.
Our engagement was planned and performed to obtain
limited assurance, but not absolute assurance, regarding
whether the CSRD Statement is free from material
misstatement, whether due from fraud or error. Therefore,
thereis an unavoidable risk that some material misstatements
may not be detected by this engagement even though
itisproperly planned and performed. Furthermore, such
alimited assurance engagement is not designed to detect
matters thatare immaterial to the CSRD Information.
For the avoidance of doubt, our work did not involve an audit
of the CSRD Information. Consequently, our conclusion is not
expressed as an audit opinion.
Subject matter information
The subject matter information within the scope of this
engagement comprises the CSRD Information. The CSRD
Information does not include comparative information
inrespect of prior periods.
Applicable criteria
The criteria applied in the preparation of the CSRD Information
is the ESRS which are publicly available on the EFRAG website.
The CSRD Information should be read together with the criteria.
Inherent limitations
Non-financial information is subject to more inherent limitations
than financial information given the absence of a significant
body of established practice on which to draw, the
characteristics of the underlying subject matter and the
methods and precision used for measuring or evaluating it.
Other information
We have not performed any assurance work nor express any
conclusion on any other information accompanying the CSRD
Information, or elsewhere disclosed directly or indirectly by the
Company. We have read other information that accompanies
or contains the CSRD Information to identify material
inconsistencies, if any, with the CSRD Information or our limited
assurance report. For the avoidance of doubt, the other
information that accompanies the CSRD Information prepared
by the Company may include comparative information which
is not the subject of this engagement and/or additional
sustainability disclosures not made in accordance with
reporting obligations under the CSRD. We do not express
aconclusion or other form of assurance on other information
presented with the CSRD Information that is not subject
toourlimited assurance engagement.
Limited assurance conclusion
Based on the procedures we have performed and
theevidence we have obtained, nothing has come to our
attention that causes us to believe that the Company’s CSRD
Information for the year ending 31 December 2024 has not
been prepared, in all material respects, in accordance with
the applicable criteria, including:
– the double materiality assessment process to identify
theinformation reported is in accordance with the
description set out in the “disclosures on the materiality
assessment process” section on pages 133 to 135
oftheCSRDStatement; and
– the CSRD Information included in the CSRD Statement
isfairlypresented in compliance with the disclosure
requirements of the ESRS.
Use of our report
This report is made solely to International Personal Finance Plc,
as a body, in accordance with the terms of our engagement
letter dated 19 December 2024. Our limited assurance
engagement has been undertaken so that we might state
toInternational Personal Finance Plc those matters we are
required to state to them in an independent limited assurance
report and for no other purpose. The assurance report has
been issued on the basis that it must not be recited or referred
to or disclosed, in whole or in part, in any other document
ortoany other party without our express written permission.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than International
Personal Finance Plc for our work, for the limited assurance
report, or for the conclusion we have formed.
PKF Littlejohn LLP
Chartered Accountants
London
26 February 2025
Independent Limited Assurance Report
to the Directors of International Personal Finance Plc continued
International Personal Finance plc152
Financial Statements
Independent Auditor’s Report to the Members
of International Personal Finance plc
Annual Report and Financial Statements 2024
153
Opinion
We have audited the Financial Statements of International Personal Finance Plc (the ‘parent company’) and its subsidiaries (the ‘Group’)
for the year ended 31 December 2024 which comprise the consolidated income statement, the consolidated and parent company
statements of comprehensive income, the consolidated and parent company balance sheets, the consolidated and parent
company statements of changes in equity, and the consolidated and parent company cash flow statements and notes to the
Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted international accounting standards and as regards the parent company financial
statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
– the Financial Statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 December
2024 and of the Group’s profit for the year then ended;
– the Group Financial Statements have been properly prepared in accordance with UK-adopted international accounting standards;
– the parent company Financial Statements have been properly prepared in accordance with UK-adopted international accounting
standards and as applied in accordance with the provisions of the Companies Act 2006; and
– the Financial Statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Group and parent company in accordance with the ethical requirements that are relevant to our audit of
the Financial Statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the Financial Statements, we have concluded that the director's use of the going concern basis of accounting in the
preparation of the Financial Statements is appropriate. Our evaluation of the directors’ assessment of the Group’s and parent
company’s ability to continue to adopt the going concern basis of accounting included:
– obtaining an understanding of management’s process and relevant controls for their going concern assessment, including the
forecasting process;
– challenging the assumptions made in the assessment;
– testing the mathematical accuracy of the forecasts provided;
– comparing prior period budgets with actual performance;
– reviewing management’s stress tests and sensitivity analysis in making this assessment and assessing the likelihood that the reverse
stress scenario prepared by management will crystallise during the going concern period;
– assessing the Group’s dependency on its borrowing facilities, ability to repay its debt when it falls due and compliance with banking
covenants and evaluating whether management’s forecasts could result in a breach in the future;
– making inquiries with Group management and those charged with governance;
– assessing the impact that changes/new legislation and regulations have on the Group’s ability to continue as a going concern;
– assessing the impact of subsequent events, if any; and
– evaluating managements disclosure relating to going concern to ensure their consistency with our understanding of the Group’s
forecasted performance and position.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group’s or parent company's ability to continue as a going concern for a period of at
least twelve months from when the Financial Statements are authorised for issue.
In relation to the entities reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the Financial Statements about whether the director’s considered it appropriate
to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
Annual Report and Financial Statements 2024 153
Independent Auditor’s Report to the members of International Personal Finance plc continued
154 International Personal Finance plc
Our application of materiality
Overall materiality
The scope of our audit was determined by our application of materiality. We established quantitative thresholds for materiality and these,
together with qualitative considerations, helped us determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statements line items and disclosures in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Group Financial Statements
Parent Company Financial Statements
Overall Materiality
£7.20
m
£5.99
m
Basis for determining
overall materiality
1.5% of net assets
1.5% of net assets
Rationale for the
benchmark applied
We believe net assets is appropriate as the primary
stakeholders will focus on the balance sheet
strength of the group and its
ability to declare
dividends in the future.
The company is the parent and holding company of IPF Group and is a listed entity
whose main purpose is to obtain external finance,
therefore the main balances
within the
Financial Statements are the investments in subsidiaries and the external
loans. We believe the equity available would be key to the shareholders and
stakeholders of IPF plc, therefore net assets is deemed appropriate.
Performance materiality
We set performance materiality at a level lower than overall materiality to reduce to an appropriately low level the probability that the
aggregate amount of uncorrected and undetected misstatements exceeds overall materiality. This threshold determines the scope of
our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures and also the
determination of our sample sizes.
Group Financial Statements
Parent Company Financial Statements
Performance
materiality
£3.6
0m
£2.99
m
Basis for
determining
performance
materiality
50% of overall materiality
50% of overall materiality
Rationale for the
benchmark applied
In determining performance materiality, we
considered, the scale of the Group's operations, the
complexity of the accounting policies and the impact
of the Group’s external regulatory environment in its
overseas markets. In addition, given this is a first
-year
engagement for the audit team in conjunction with
the factors mentioned above, we believe that a
haircut of 5
0% is appropriate.
In determining performance materiality, we considered a number of factors,
including risk assessment and aggregation risk as well as the external risks
that the Company is exposed to, which could impact its subsidiaries.
Consistent with the haircut applied for
the Group, we believe that a haircut
of 50% is appropriate.
Triviality
We agreed with the Audit and Risk Committee that we would report all audit differences in excess of £360,000 as well as differences
below that threshold that, in our view, warranted reporting on qualitative grounds. Additionally, we also report on disclosure issues
identified when assessing the overall presentation of the Financial Statements.
International Personal Finance plc154
Financial Statements
Annual Report and Financial Statements 2024
155
Our approach to the audit
Identification and scoping of components
In designing our audit, we determined materiality and assessed the risk of material misstatements in the Financial Statements. We
performed this assessment by obtaining an understanding of the Group and its environment. We then tailored the scope of our audit to
ensure that we performed sufficient work to be able to give an opinion on the Financial Statements as a whole. In particular, we looked
at the financial significance of components as well as areas of significant judgement and estimates such as revenue recognition in
respect of EIR accounting and impairment of customer receivables as detailed in our key audit matters section below. As in all of our
audits, we also looked at the risk of management override of controls. Through this assessment, we identified six components which were
subject a full scope audit and five components which involved the testing of specific balances. The components subject to a full scope
audit were those within the “Home credit” division, which included the Home credit businesses in Poland, the Czech Republic, Romania,
Hungary and Mexico, and one further entity managed within the IPF Digital business. Three components in the IPF Digital business and
two components in the UK were subject to specified audit procedures.
We involved component auditors in performing the audit of the full scope components and the audit of the specific balances was
performed by the Group auditor.
These components represent the principal business of the Group and account for 99% of the Group revenue and 100% of the Group
amounts receivable from customers.
Revenue
Amounts receivable
from customers
Full scope audit
89% 88%
Specified audit procedures
10% 12%
Review at
Group level 1% –
Our consideration of the control environment
We worked with our internal IT specialist to perform work over the IT systems and controls which were relevant to the financial reporting
process including revenue recognition, customer lending and modelled impairment processes. The work over IT for the Home Collect
Credit division was performed by the group audit team and the work over IT for the Digital division was performed by component auditors
under the group audit teams direction and supervision.
We also obtained an understanding of and tested controls at the Group-level in relation to our key audit matters described in the section
below. Our testing of controls covered all of the components which were in scope for a full audit as well as those where specified audit
procedures were required.
During the course of our controls testing, we identified a number of significant IT general control deficiencies in relation to the IT
environment of one full scope component which resulted in the audit team not being able to place reliance on these controls
and our audit of that component was therefore more substantive in nature with no reliance placed on IT automated controls.
Management’s own evaluation of the Group control environment is included in the audit and risk committee’s report on page 99.
Working with component auditors
As Group auditors, we determined the level of involvement required with our component auditors to be able to conclude that sufficient
and appropriate audit evidence has been obtained as a basis for our audit opinion on the consolidated Financial Statements. We
performed work directly over the significant risk areas of revenue recognition in respect of EIR accounting and impairment of customer
receivables in relation to the Home credit division. In addition, we exercised oversight over the work performed by the components by
performing procedures which included issuing Group instructions outlining areas requiring audit focus, including the key audit matters
described below, maintaining constant communication with the component auditors throughout the audit, attending meeting and
calls with local management where possible and reviewing the work performed by the component auditors either in person or remotely.
In our role as the Group auditors, we also performed the audit procedures required over the consolidation process and carried out
analytical procedures over the components not in scope in order to obtain sufficient comfort that there are no significant risk of material
misstatements aggregated at the Group level.
Consideration of climate related risks
We have performed enquiries of management, both within and outside of the Group’s finance function in order to understand the
impact of climate related risks on the Group’s Financial Statements. As part of this, we reviewed the Group’s climate reporting framework,
and performed risk assessment procedures in respect of the commitments made by the Group in order to understand how these impact
the Financial Statements and the audit procedures we undertake. For the year ended 31 December 2024, we have concluded that the
main audit risks are consistent with those included in the Annual Report and Financial Statements. Refer to the Group’s assessment of the
potential impacts on pages 68 to 78 of the ‘Environment’ and ‘TCFD report’ sections of the Annual Report.
Annual Report and Financial Statements 2024 155
Independent Auditor’s Report to the members of International Personal Finance plc continued
156 International Personal Finance plc
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified,
including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key
audit matter
How our scope addressed this matter
Risk of fraud in revenue recognition
– EIR accounting (Group)
Under ISA (UK) 240, there is a rebuttable presumption that
revenue recognition is a significant fraud risk.
The
Group recognises revenue on loans using the effective
interest rate (“EIR”) method applicable under IFRS 9. EIR
accounting requires significant judgement including the
treatments on certain fees and costs and whether they are
integral to the loan contract, the c
onsideration of the length of
the product including early settlement behaviour and rebates
and the appropriate
application of net interest on stage 3.
The calculation of the EIR is heavily reliant on the quality of the
underlying data used in the models and the judgements taken
by management.
Revenue recognition is further described in the
Audit and Risk
Committee’s
Report on page 96 and within the key sources of
estimation uncertainty note on page
171. Also refer to note 1 to
the
Financial Statements.
Our audit procedures to address this matter included:
–
Testing the design, implementation and operating
effectiveness of key
controls relevant to the revenue cycle;
–
Reviewing the EIR approach and calculation to ensure it is reasonable
under IFRS 9 Financial Instruments;
–
Challenging the period over which the EIR is modelled considering
the contractual terms of the loan and whether all directly attributable
costs and fees were identified and appropriately included in the
EIR calculation;
–
Recalculating the interest income by applying the effective interest
rate for a sample of loans;
–
Challenging management’s assumptions in respect of cash flow
estimates by comparing underlying data sources and benchmarks;
–
Testing whether interest income was calculated against the net
balance of loans after impairment for accounts in stage 3 and test
this through recalculation; and
–
Reviewing the early redemption assumptions in the EIR calculation
to ascertain if they are supported by the behavioural life of the
underlying products.
Key Observations
Based on our audit procedures performed and evidence obtained, we
consider the methodology used in the EIR accounting to be appropriate.
International Personal Finance plc156
Financial Statements
Annual Report and Financial Statements 2024
157
Key
audit matter
How our scope addressed this matter
Impairment of amounts receivable from customers (Group)
Amounts receivable from customers are measured at
amortised cost under IFRS 9. The impairment model
under IFRS 9 reflects the expected credit losses and it
is not necessary for a credit event to have occurred
before credit losses are recognised, with an impairment
recognised for expected credit losses and changes in
those expected credit losses
(ECLs).
The determination of impairment provisions of receivables
from customers is highly judgemental, requiring estimates
to be made regarding the future losses that are expected
on loan portfolios. Key judgements include the
determination of an individual loan’
s probability of
default, loss given default and exposure at default.
Estimates are based on both observable historical
payment performance and post model adjustments
(“PMAs”) to incorporate emerging risks that are not yet
fully observable in the data ava
ilable to management.
We have determined our significant audit risk in the
current year to be the valuation of management’s
material post
-model adjustments ensuring that they are
appropriate can be supported based on recent customer
repayment performance and there is not any “d
ouble –
counting” for credit risks separately provided for.
Impairment of amount receivable from customers is
further described in the
Audit and Risk Committee’s
Report
on page
96 and within the key sources of estimation
uncertainty note on page
171. Also refer to note 1 to
the
Financial Statements.
Our audit procedures to address
this matter included:
–
Testing the design, implementation and operating effectiveness of key
controls relevant to the impairment cycle;
–
Use of IT specialists to re-perform the loan system’s core impairment
calculations on a sample basis;
–
Re-calculating, from source data, a sample of the cashflow, and key ECL
parameters used to value the Group’s receivables from customers at the
year-end, for both the Home credit and Digital businesses;
–
Performing an analytical review of the movements in the loan book and
loan loss provisions on a customer type, payment performance band,
product type and IFRS 9 staging basis;
–
Review and challenge of the appropriateness or omission of post-model
adjustments, with reference to supporting calculations, industry updates
and our understanding of the Group’s internal and external environments;
–
Holding discussions with component audit teams in order to identify any
factors (e.g. economic or legislative) that might be expected to impact
customer collections in future periods, and assess whether these have
been appropriately considered in the post-model adjustments applied
by management;
–
Evaluating the consistency of management’s impairment methodology
with the requirements of IFRS 9; and
–
Evaluating and testing the disclosure made in the Financial Statements
in relation to impairment of receivables from customers.
Key Observations
Based on our audit procedures performed and evidence obtained, we
consider the valuation of management’s material post
-model adjustments
to be appropriate.
Impairment of investments in subsidiaries (Company)
In the Company’s financial statements, investments
in subsidiaries are stated at cost less impairment. There
is a risk that the carrying amount of the investments in
subsidiaries exceed the recoverable amount which
would require the recognition of an impairment loss.
Impairment of investments in subsidiaries is further
described within the accounting policies on page
168
and key sources of estimation uncertainty note on page
172
. Also refer to note 13 to the Financial Statements.
Our work audit procedures to address this matter:
–
Obtaining management’s assessment of impairment indicators
in investments in subsidiaries and testing relevant inputs;
–
Reviewing and challenging key assumptions made by management
in assessing the indicators and calculation of value in use;
–
Evaluating whether there is an impact on the carrying amount of the
investments based on our understanding of the business and accounting
treatment; and
–
Evaluating and testing the disclosure made in the financial statements
in relation to investments in subsidiaries.
Key Observations
Based on our audit procedures performed and evidence obtained,
we consider the amount of investments in subsidiaries included in the
F
inancial Statements to be appropriate.
Other information
The other information comprises the information included in the Annual Report and Financial Statements, other than the Financial
Statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual Report
and Financial Statements. Our opinion on the Group and parent company Financial Statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our
responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the
Financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material
misstatement in the Financial Statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Annual Report and Financial Statements 2024 157
Independent Auditor’s Report to the members of International Personal Finance plc continued
158 International Personal Finance plc
Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
– the information given in the strategic report and the directors’ report for the financial year for which the Financial Statements are
prepared is consistent with the Financial Statements; and
– the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent company and their environment obtained in the course
of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
– adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
f
rom branches not visited by us; or
– the parent company Financial Statements and the part of the directors’ remuneration report to be audited are not in agreement with
the accounting records and returns; or
– certain disclosures of directors’ remuneration specified by law are not made; or
– we have not received all the information and explanations we require for our audit.
Corporate governance statement
We have reviewed the directors' statement in relation to going concern, longer-term viability and that part of the Corporate Governance
Statement relating to the Group’s and parent company's compliance with the provisions of the UK Corporate Governance Code
specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the Financial Statements or our knowledge obtained during the audit:
– Directors' statement with regards the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 37;
– Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the period is
appropriate set out on page 43;
– Directors’ statement on whether they have a reasonable expectation that the Group will be able to continue in operation and meet
its liabilities set out on page 43;
– Directors' statement that they consider the Annual Report and the Financial Statements, taken as a whole, to be fair, balanced and
understandable set out on page 99;
– Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 38;
– The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set out
on page 99; and
– The section describing the work of the audit committee set out on page 96.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the Group and
parent company Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as the
directors determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether
due to fraud or error.
In preparing the Group and parent company Financial Statements, the directors are responsible for assessing the Group’s and the
parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
International Personal Finance plc158
Financial Statements
Annual Report and Financial Statements 2024
159
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
– We obtained an understanding of the Group and parent company and the sector in which they operate to identify laws and
regulations that could reasonably be expected to have a direct effect on the Financial Statements. We obtained our understanding
in this regard through discussions with management, industry research, and application of cumulative audit knowledge and
experience of the sector.
– We determined the principal laws and regulations relevant to the Group and parent company in this regard to be those arising from
the Companies Act 2006, the UK Listing Rules, the Disclosure and Transparency Rules and local regulations arising in each overseas
market that the Group operates in.
– We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by
the Group and parent company with those laws and regulations. These procedures included, but were not limited to: enquiries of
management and those charged with governance, enquiries with the Group’s legal function, review of minutes of the Board and
Audit and Risk Committee, review of legal and regulatory correspondence.
– We also identified the risks of material misstatement of the Financial Statements due to fraud. We considered, in addition to the non-
rebuttable presumption of a risk of fraud arising from management override of controls, the potential for management bias in relation
to revenue recognition in respect of EIR accounting, the impairment of customer receivables and the valuation of investments in
subsidiaries. Refer to the key audit matters in respect of how we addressed these.
– As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures
which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating
the business rationale of any significant transactions that are unusual or outside the normal course of business.
– For the components in scope, we engaged with our local component audit teams to understand the regulatory environment specific
to each location in order to identify applicable laws and regulations; and to implement necessary procedures aimed at identifying
any potential non-compliance issues. As Group auditors, we also interacted with local management to inquire about their legal
functions where applicable. Additionally, we reviewed the work performed by our local component auditors in this area.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material
misstatement in the Financial Statements or non-compliance with regulation. This risk increases the more that compliance with a law or
regulation is removed from the events and transactions reflected in the Financial Statements, as we will be less likely to become aware
of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website
at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters which we are required to address
We were appointed by the Audit and Risk Committee on 2 May 2024 to audit the Financial Statements for the period ended 31
December 2024 and subsequent financial periods. Our total uninterrupted period of engagement is one year, covering the periods
ending 31 December 2024.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the parent company and we remain
independent of the Group and the parent company in conducting our audit.
Other than the non-audit services disclosed on page 99, we have not provided any non-audit services to the parent company and its
subsidiaries.
Our audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone, other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we
have formed.
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
3rd Floor, One Park Row
Leeds
United Kingdom
Annual Report and Financial Statements 2024 159
for the year ended 31 December
160 International Personal Finance plc
| 2024 | 2023 | ||
Group | Notes | £m | £m |
Revenue | 1 | ||
Impairment | 1 | ( | ( |
Revenue less impairment | |||
Interest expense | 2 | ( | ( |
Other operating costs | ( | ( | |
Administrative expenses | ( | ( | |
Total costs | ( | ( | |
P rofit before taxation and exceptional items | 1 | ||
Exceptional items | 10 | ( | |
Profit before taxation | |||
T ax income – UK | |||
T ax expense – overseas | ( | ( | |
Total tax expense before exceptional items | 5 | ( | ( |
Exceptional tax income /(expense) | 5, 10 | ( | |
Total tax expense | ( | ( | |
Profit after taxation attributable to equity shareholders | |||
| 2024 | 2023 | ||
Group | Notes | pence | pence |
Earnings per share – statutory | |||
Basic | 6 | ||
Diluted | 6 | ||
| 2024 | 2023 | ||
Group | Notes | pence | pence |
Earnings per share – before exceptional items | |||
Basic | 6 | ||
Diluted | 6 |
Statements of comprehensive income
for the year ended 31 December
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| £m | £m | £m | £m | ||
Profit/(loss) after taxation attributable to equity shareholders | ( | ( | |||
Other comprehensive (expense) /income | |||||
Items that may subsequently be reclassified to income statement | |||||
Exchange (losses)/gains on foreign currency translations | ( | – | – | ||
Net fair value (losses)/gains – cash flow hedges | ( | – | 0.1 | ||
Tax credit on items that may be reclassified | 5 | – | – | ||
Items that will not subsequently be reclassified to income statement | |||||
Actuarial (losses)/gains on retirement benefit obligation | 27 | ( | (2.0) | 3.9 | |
Tax credit/(charge) on items that will not be reclassified | 5 | ( | 0.5 | (1.0) | |
Other comprehensive (expense)/income net of taxation | ( | (1.5) | 3.0 | ||
Total comprehensive income/(expense) for the year attributable to equity shareholders | (5.9) | (21.6) |
The accounting policies and notes 1 to 33 are an integral part of these Financial Statements.
International Personal Finance plc160
Financial Statements
Balance sheets
as at 31 December
Annual Report and Financial Statements 2024
161
| Group Company | |||||
| 2024 | 2023 | 2024 | 2023 | ||
| Notes | £m | £m | £m | £m | |
Assets | |||||
Non-current assets | |||||
Goodwill | 11 | – | – | ||
Intangible assets | 12 | – | – | ||
Investment in subsidiaries | 13 | 734.0 | 733.4 | ||
Property, plant and equipment | 14 | 1.0 | 1.1 | ||
Right -of-use assets | 15 | 2.0 | 2.3 | ||
Amounts receivable from customers | 17 | – | – | ||
Deferred tax assets | 16 | – | – | ||
Retirement benefit asset | 27 | 4.4 | 6.1 | ||
741.4 | 742.9 | ||||
Current assets | |||||
Amounts receivable from customers | 17 | – | – | ||
Derivative financial instruments | 23 | – | – | ||
Cash and cash equivalents | 18 | 1.5 | 5.0 | ||
Other receivables | 19 | 553.6 | 523.4 | ||
Current tax assets | – | – | |||
555.1 | 528.4 | ||||
Total assets | 1,296.5 | 1,271.3 | |||
Liabilities | |||||
Current liabilities | |||||
Borrowings | 21 | ( | ( ) | (54.9) | (35.1 ) |
Derivative financial instruments | 23 | ( ) | ( ) | – | – |
Trade and other payables | 20 | ( ) | ( ) | (460.3) | (397.2 ) |
Provision for liabilities and charges | 26 | ( | – | – | |
Lease liabilities | 15 | ( | ( ) | (0.3) | (0.2 ) |
Current tax liabilities | ( ) | ( | – | – | |
( ) | ( ) | (515.5) | (432.5 ) | ||
Non -current liabilities | |||||
Deferred tax liabilities | 16 | ( ) | ( | – | – |
Borrowings | 21 | ( | ( ) | (378.5) | (393.1 ) |
Lease liabilities | 15 | ( | ( ) | (2.1) | (2.4 ) |
( ) | ( ) | (380.6) | (395.5 ) | ||
Total liabilities | ( ) | ( ) | (896.1) | (828.0 ) | |
Net assets | 400.4 | 443.3 | |||
Equity attributable to owners of the Company | |||||
Called-up share capital | 29 | 22.5 | 23.4 | ||
Other reserve | ( | ( ) | 226.3 | 226.3 | |
Foreign exchange reserve | ( ) | – | – | ||
Hedging reserve | ( | – | – | ||
Own shares | ( ) | ( ) | (24.9) | (36.7 ) | |
Capital redemption reserve | 3.2 | 2.3 | |||
Retained earnings | 173.3 | 228.0 | |||
Total equity | 400.4 | 443.3 |
The accounting policies and notes 1 to 33 are an integral part of these Financial Statements.
The loss after taxation of the Parent Company for the period was £4.4m (2023: loss of £24.6m).
Annual Report and Financial Statements 2024 161
Statements of changes in equity
162 International Personal Finance plc
| Called-up | Foreign | Capital | |||||||
| share | Other | exchange | Hedging | Own | redemption | Retained | Total | ||
oup – Attributable to owners | capital | reserve | reserve | reserve | shares | reserve | earnings | equity | |
of the Company | Notes | £m | £m | £m | £m | £m | £m | £m | £m |
At 1 January 2023 | ( ) | ( ) | |||||||
Comprehensive income | |||||||||
Profit after taxation for the year | |||||||||
Other comprehensive income /(expense) | |||||||||
Exchange gains on foreign | |||||||||
currency translation | |||||||||
Net fair value gains – cash flow hedges | |||||||||
Actuarial gain on retirement benefit obligation | 27 | ||||||||
Tax charge on other comprehensive income | 5 | ( ) | ( ) | ||||||
Total other comprehensive income | |||||||||
Total comprehensive income for the year | |||||||||
Transactions with owners | |||||||||
Share -based payment adjustment to reserves | |||||||||
Deferred tax on share -based payment | |||||||||
transactions | |||||||||
Shares acquired by employee | |||||||||
and treasury trusts | ( ) | ( ) | |||||||
Shares granted from employee | |||||||||
and treasury trusts | ( ) | ||||||||
Dividends paid to Company shareholders | 7 | ( ) | ( ) | ||||||
At 31 December 2023 | ( ) | ( ) | |||||||
At 1 January 202 4 | ( | ( | |||||||
Comprehensive income | |||||||||
Profit after taxation for the year | |||||||||
Other comprehensive (expense)/income | |||||||||
Exchange losses on foreign | |||||||||
currency translation | ( | ( | |||||||
Net fair value losses – cash flow hedges | ( | ( | |||||||
Actuarial loss on retirement benefit obligation | 27 | ( | ( | ||||||
Tax c redit on other comprehensive expense | 5 | ||||||||
Total other comprehensive expense | ( | ( | ( | ( | |||||
Total comprehensive (expense)/income for the year | ( | ( | |||||||
Transactions with owners | |||||||||
Share-based payment adjustment to reserves | |||||||||
Acquisition of own shares | ( | ( | ( | ||||||
Shares acquired by employee | |||||||||
and treasury trusts | ( | ( | |||||||
Shares granted from employee | |||||||||
and treasury trusts | ( | ||||||||
Dividends paid to Company shareholders | 7 | ( | ( | ||||||
At 31 December 202 4 | ( | ( | ( | ( |
International Personal Finance plc162
Financial Statements
Annual Report and Financial Statements 2024
163
Company
– Attributable to owners of the Company Notes
Called-up
share
capital
£m
Other
reserve
£m
Hedging
reserve
£m
Own
shares
£m
Capital
redemption
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2023
23.4 226.3 (0.1
)
(43.3
)
2.3 273.5 482.1
Comprehensive expense
Loss after taxation for the year
– – – – – (24.6
)
(24.6
)
Other comprehensive income
/(expense)
Net fair value
gains – cash flow hedges – – 0.1 – – – 0.1
Actuarial
gain on retirement benefit obligation 27 – – – – – 3.9 3.9
Tax c
harge on other comprehensive income 5 – – – – – (1.0
)
(1.0
)
Total other comprehensive
income – – 0.1 – – 2.9 3.0
Total comprehensive
income/(expense) for the year – – 0.1 – – (21.7
)
(21.6
)
Transactions with owners
Share
-based payment adjustment to reserves – – – – – 4.3 4.3
Deferred tax on share
-based payment transactions – – – – – 0.4 0.4
Shares acquired by employee and treasury trusts
– – – (0.4
)
– – (0.4
)
Shares granted from
employee and treasury trusts – – – 7.0 – (7.0
)
–
Dividends paid to Company shareholders
7 – – – – – (21.5
)
(21.5
)
At 31 December 2023
23.4 226.3 – (36.7
)
2.3 228.0 443.3
At 1 January 202
4 23.4 226.3 – (36.7)
2.3 228.0 443.3
Comprehensive expense
Loss after taxation for the year
– – – – – (4.4) (4.4)
Other comprehensive
(expense)/income
Actuarial
gain on retirement benefit obligation 27 – – – – – (2.0)
(2.0)
Tax c
redit on other comprehensive expense 5 – – – – – 0.5 0.5
Total other comprehensive
expense – – – – – (1.5)
(1.5)
Total comprehensive expense for the
year – – – – – (5.9)
(5.9)
Transactions with owners
Share-based payment adjustment to reserves
–
–
–
–
–
2.9
2.9
Deferred tax on share
-based payment transactions – – – – – 0.4 0.4
Acquisition of own shares
(0.9)
– – – 0.9 (15.1)
(15.1)
Shares acquired by employee and treasury trusts
–
–
–
(1.3)
–
–
(1.3)
Shares granted from
employee and treasury trusts – – – 13.1 – (13.1)
–
Dividends paid to Company
shareholders 7 – – – – – (23.9)
(23.9)
At 31 December 202
4 22.5 226.3 – (24.9)
3.2 173.3 400.4
The other reserve represents the difference between the nominal value of the shares issued when the Company became listed on
16 July 2007 and the fair value of the subsidiary companies acquired in exchange for this share capital.
The Company has elected to take the exemption under section 408 of the Companies Act 2006 not to present the Parent Company
income statement.
The accounting policies and notes 1 to 33 are an integral part of these Financial Statements.
Annual Report and Financial Statements 2024 163
Cash flow statements
for the year ended 31 December
164 International Personal Finance plc
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| Notes | £m | £m | £m | £m | |
Cash flows from operating activities | |||||
Cash generated from operating activities | 30 | 60.6 | 37.0 | ||
Finance costs paid | ( | ( ) | (93.5) | (79.4 ) | |
Finance income received | 64.2 | 52.3 | |||
Income tax paid | ( | ( ) | (2.5) | (2.0 ) | |
Net cash generated from operating activities | 28.8 | 7.9 | |||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment | 14 | ( | ( | – | – |
Proceeds from sale of property, plant and equipment | – | – | |||
Purchases of intangible assets | 12 | ( | ( | – | – |
Net cash used in investing activities | ( | ( | – | – | |
Net cash generated from operating and investing activities | 28.8 | 7.9 | |||
Cash flows from financing activities | |||||
Proceeds from borrowings | 291.3 | 44.7 | |||
Repayment of borrowings | ( | ( ) | (283.2 ) | (30.9 ) | |
Principal elements of lease payments | ( | ( ) | (0.3) | (0.2 ) | |
Dividends paid to Company shareholders | 7 | ( | ( ) | (23.9) | (21.5 ) |
Acquisition of own shares | ( | (15.1) | – | ||
Shares acquired by employee and treasury trusts | ( | ( ) | (1.3) | (0.4 ) | |
Cash received on options exercised | 0.2 | 0.4 | |||
Net cash used in financing activities | ( | ( ) | (32.3 ) | (7.9 ) | |
Net decrease in cash and cash equivalents | ( | ( ) | (3.5) | – | |
Cash and cash equivalents at beginning of year | 5.0 | 5.0 | |||
Exchange (losses)/gains on cash and cash equivalents | ( | – | – | ||
Cash and cash equivalents at end of year | 18 | 1.5 | 5.0 | ||
Cash and cash equivalents at end of year comprise: | |||||
Cash at bank and in hand | 18 | 1.5 | 5.0 |
The accounting policies and notes 1 to 33 are an integral part of these Financial Statements.
International Personal Finance plc164
Financial Statements
Notes to the Financial Statements
Annual Report and Financial Statements 2024
165
Annual Report and Financial Statements 2024 165
Notes to the Financial Statements conti nued
166
International Personal Finance plc
International Personal Finance plc166
Financial Statements
Annual Report and Financial Statements 2024
Annual Report and Financial Statements 2024 167
Notes to the Financial Statements conti nued
168
International Personal Finance plc
International Personal Finance plc168
Financial Statements
Annual Report and Financial Statements 2024
169
Category | Depreciation rate | Method |
Fixtures and fittings | 10% | Straight–line |
Equipment | 20% to 33.3% | Straight–line |
Motor vehicles | 25% | Reducing balance |
Annual Report and Financial Statements 2024 169
Notes to the Financial Statements conti nued
170
International Personal Finance plc
Taxation continued
International Personal Finance plc170
Financial Statements
Annual Report and Financial Statements 2024
171
| Hungary | Poland | Total | ||
| Cost-of-living PMO | moratorium PMO | non-interest PMO | PMOs | |
202 4 | £m | £m | £m | £m |
Home credit | 6.7 | 1.1 | – | 7.8 |
IPF Digital | 1.8 | – | – | 1.8 |
Group | 8.5 | 1.1 | – | 9.6 |
| Hungary | Poland | |||
| Cost-of-living PMO | moratorium PMO | non-interest PMO | Total PMOs | |
202 3 | £m | £m | £m | £m |
Home credit | 11.9 | 2.1 | 6.0 | 20.0 |
IPF Digital | 3.2 | – | – | 3.2 |
Group | 15.1 | 2.1 | 6.0 | 23.2 |
Annual Report and Financial Statements 2024 171
Notes to the Financial Statements conti nued
172
International Personal Finance plc
Key sources of estimation uncertainty continued
International Personal Finance plc172
Financial Statements
Annual Report and Financial Statements 2024
173
1. Segment analysis
| Pre-exceptional | ||||||
| Revenue | Impairment | profit before taxation | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Group | £m | £m | £m | £m | £m | £m |
European home credit | 328.2 | 375.9 | 8.1 | 35.6 | 57.4 | 67.7 |
Mexico home credit | 263.8 | 261.6 | 92.4 | 96.7 | 26.0 | 23.1 |
IPF Digital | 134.3 | 130.3 | 27.0 | 37.1 | 17.0 | 8.1 |
UK costs* | – | – | – | – | (15.2) | (15.0 ) |
Total | 726.3 | 767.8 | 127.5 | 169.4 | 85.2 | 83.9 |
| Segment assets | Segment liabilities | |||
| 2024 | 2023 | 2024 | 2023 | |
Group | £m | £m | £m | £m |
European home credit | 530.3 | 558.7 | (285.5) | (289.6 ) |
Mexico home credit | 243.3 | 291.2 | (127.3) | (134.3) |
IPF Digital | 281.3 | 260.3 | (195.1) | (132.2 ) |
UK | 86.8 | 78.8 | (67.5) | (131.0) |
Total | 1,141.7 | 1,189.0 | (675.4) | (687.1) |
| Expenditure on | ||||
| intangible assets | Amortisation | |||
| 2024 | 2023 | 2024 | 2023 | |
Group | £m | £m | £m | £m |
European home credit | – | – | – | – |
Mexico home credit | – | – | – | – |
IPF Digital | 5.2 | 5.4 | 4.3 | 4.5 |
UK | 12.6 | 12.5 | 8.1 | 8.6 |
Total | 17.8 | 17.9 | 12.4 | 13.1 |
| Capital expenditure | Depreciation | |||
| 2024 | 2023 | 2024 | 2023 | |
Group | £m | £m | £m | £m |
European home credit | 1.9 | 1.3 | 3.7 | 3.8 |
Mexico home credit | 4.0 | 3.1 | 2.7 | 2.0 |
IPF Digital | 0.3 | 0.3 | 0.2 | 0.3 |
UK | 0.2 | – | 0.2 | 0.4 |
Total | 6.4 | 4.7 | 6.8 | 6.5 |
Annual Report and Financial Statements 2024 173
Notes to the Financial Statements continued
174
International Personal Finance plc
| 2024 | 2023 | |
Group | £m | £m |
Interest payable on borrowings | 69.3 | 74.8 |
Interest payable on lease liabilities | 2.4 | 2.1 |
Interest income | (1.3) | – |
Total finance costs | 70.4 | 76.9 |
| 2024 | 2023 | |
Group | £m | £m |
Depreciation of property, plant and equipment (note 14) | 6.8 | 6.5 |
Depreciation of right -of-use assets (note 15) | 10.1 | 9.7 |
Loss on disposal of property, plant and equipment | – | 0.1 |
Amortisation of intangible assets (note 12) | 12.4 | 13.1 |
Employee costs (note 9) | 200.3 | 198.4 |
| 2024 | 2023 | |
Group | £m | £m |
Fees payable to the Company auditor for the audit of the Parent Company and Consolidated Financial Statements | 0.6 | 0.1 |
Fees payable to the Company auditor and its associates for other services: | ||
– audit of Company’s subsidiaries pursuant to legislation | 0.4 | 1.6 |
– other assurance services | 0.2 | 0.1 |
Fees payable to auditors | 1.2 | 1.8 |
Fees payable to auditors not associated to the company auditor | 0.2 | – |
Total audit fees | 1.4 | 1.8 |
5. Tax expense
| 2024 | 2023 | ||
Group | £m | £m | |
Current tax expense: | |||
– current year | 22.6 | 14.7 | |
– prior year | (1.0) | 0.6 | |
Total current tax expense | 21.6 | 15.3 | |
Deferred tax expense/(income) (note 16): | |||
– | current year | 6.7 | 11.2 |
– prior year | 1.5 | (3.9 ) | |
– write-down of previously recognised deferred tax assets | – | 9.3 | |
Total deferred tax expense | 8.2 | 16.6 | |
T ax expense before exceptional items | 29.8 | 31.9 | |
Exceptional tax (income)/expense (note 10) | (17.4) | 4.0 | |
Total tax expense | 12.4 | 35.9 |
The pre-exceptional taxation expense on the profit for 2024 is £29.8m representing an effective tax rate for the year of approximately 35%
(2023: an effective tax rate of approximately 38%).
Further information regarding the deferred tax expense is shown in note 16, and primarily relates to timing differences in respect of
revenue and impairment and tax losses.
The Group has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in
IAS 12. Accordingly, the group neither recognises nor discloses information about deferred tax assets and liabilities relating to Pillar Two
income taxes.
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5. Tax expense continued
On 20 June 2023, the United Kingdom government’s legislation applying the Pillar Two income tax rules became substantively enacted,
effective from 1 January 2024. Under the legislation the parent company will be required to pay in the United Kingdom top-up tax on
profits of subsidiaries in territories that are taxed at an effective tax rate of less than 15% (as calculated under the rules). A system of
simplified safe harbours applies for a transitional period of up to three years. Pillar Two legislation has also been implemented in many
of the overseas territories in which the Group operates including the introduction of domestic minimum top-up taxes.
The Group has performed a provisional assessment of compliance against the transitional safe harbours using 2024 data for each
territory in which it operates and concludes that all territories meet one or more of the transitional safe harbours. Furthermore, no
domestic minimum top-up taxes are expected to arise in any of the Group’s overseas territories for 2024. Accordingly, the Group does
not expect to incur any Pillar Two top-up taxes in respect of 2024. The Group will continue to monitor the expected future impact of the
Pillar Two income taxes legislation on its financial performance.
| 2024 | 2023 | |
Group | £m | £m |
Deferred tax income on net fair value losses – cash flow hedges | 0.1 | – |
Deferred tax income on net fair value gains – share based payments | – | 0.5 |
Deferred tax income/(expense) on actuarial (losses)/gains on retirement benefit asset | 0.5 | (1.0 ) |
Deferred tax income on revenue and impairment | – | 1.0 |
Current tax expense on revenue and impairment | – | (1.0 ) |
Total tax income/(expense) on other comprehensive (expense)/income and recognised directly in equity | 0.6 | (0.5 ) |
The rate of tax expense on the profit before taxation for the year ended 31 December 2024 is higher than (2023: higher than) the
standard rate of corporation tax in the UK of 25.0% (2023: 23.5%). The differences are explained as follows:
| 2024 | 2023 | ||
Group | £m | £m | |
Profit before taxation | 85.2 | 83.9 | |
Profit before taxation multiplied by the standard rate of corporation tax in the UK of 25.0% (2023: 23.5%) | 21.3 | 19.7 | |
Effects of: | |||
– | adjustment in respect of prior years | 0.6 | (3.3 ) |
– | adjustment in respect of foreign tax rates | (0.2) | (1.3 ) |
– | non-deductible bad debt income | 1.0 | 7.9 |
– | other expenses not deductible for tax purposes | (3.0) | (1.2 ) |
– | write-down of previously recognised deferred tax assets | – | 9.3 |
– | other change in unrecognised deferred tax assets | 10.1 | 1.6 |
– | impact of rate change on deferred tax asset / liability | – | (0.8 ) |
T ax expense before exceptional items | 29.8 | 31.9 | |
Exceptional tax income/(expense) (note 10) | (17.4) | 4.0 | |
Total tax expense | 12.4 | 35.9 |
As at the end of 2024, the Group had an ongoing tax audit in Mexico (digital entity for 2019).
6. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to shareholders of £60.9m (2023: £48.0m) by the weighted
average number of shares in issue during the period of 222.8m (2023: 223.7m) which has been adjusted to exclude the weighted
average number of shares held in treasury and by the employee trust.
For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential
ordinary share options relating to employees of the Group.
The weighted average number of shares used in the basic and diluted EPS calculations can be reconciled as follows:
| 2024 | 2023 | |
Group | £m | £m |
Used in basic EPS calculation | 222.8 | 223.7 |
Dilutive effect of awards | 12.5 | 13.8 |
Used in diluted EPS calculation | 235.3 | 237.5 |
Annual Report and Financial Statements 2024 175
Notes to the Financial Statements continued
176 Annual Report and Financial Statements 2024
6. Earnings per share continued
Basic and diluted EPS are presented below:
| 2024 | 2023 | |
Group | pence | pence |
Basic EPS | 27.3 | 21.5 |
Dilutive effect of awards | (1.4) | (1.3) |
Diluted EPS | 25.9 | 20.2 |
Basic and diluted pre-exceptional EPS are presented below:
| 2024 | 2023 | |
Group | pence | pence |
Basic EPS | 27.3 | 21.5 |
Exceptional item | (2.4 ) | 1.7 |
Basic pre-exceptional EPS | 24.9 | 23.2 |
Dilutive effect of awards | (1.4 ) | (1.3 ) |
Diluted pre -exceptional EPS | 23.5 | 21.9 |
7. Dividends
| 2024 | 2023 | |
Group and Company | £m | £m |
Interim dividend of 3.4 pence per share (2023: interim dividend of 3.1 pence per share) | 7.7 | 6.9 |
Final 2023 dividend of 7.2 pence per share (2023: final 2022 dividend of 6.5 pence per share) | 16.2 | 14.6 |
23.9 | 21.5 |
Reflecting the continued strong performance of the Group and our strategy to realise the long-term growth potential of the business, the
Board is pleased to declare an 11.1% increase in the final dividend to 8.0 pence per share (2023: 7.2 pence per share). This is in line with
our progressive dividend policy and brings the full-year dividend to 11.4 pence per share (2023: 10.3 pence per share), an increase of
10.7% compared with 2023 and represents a pre-exceptional payout rate of 46% (2023: 44%). Subject to shareholder approval, the 2024
final dividend will be paid on 12 May 2025 to shareholders on the register at the close of business on 11 April 2025. The shares will be
marked ex-dividend on 10 April 2025.
8. Remuneration of key management personnel
The key management personnel (as defined by IAS 24 ‘Related party disclosures’) of the Group are deemed to be the executive and
non-executive directors of IPF and the members of the Senior Leadership Team.
| 2024 | 2023 | |
| £m | £m | |
Short -term employee benefits | 4.8 | 4.5 |
Post -employment benefits | 0.1 | 0.1 |
Share -based payments | 1.3 | 0.5 |
Total | 6.2 | 5.1 |
Short-term employee benefits comprise salary/fees and benefits earned in the year.
Post-employment benefits represent the sum of contributions into the Group’s stakeholder pension scheme and personal
pension arrangements.
Disclosures in respect of the Group’s directors are included in the Directors’ Remuneration Report.
9. Employee information
The average full-time equivalent of people employed by the Group (including executive directors) was as follows:
| 2024 | 2023 | |
Group | Number | Number |
Full -time* | 6,671 | 6,555 |
Part -time** | 1,133 | 1,217 |
7,804 | 7,772 |
* Includes 1,527 customer representatives in Hungary and Romania (2023: includes 1,423 customer representatives in Hungary and Romania).
** Includes 978 customer representatives in Hungary and Romania (2023: includes 1,056 customer representatives in Hungary and Romania).
Agents are self-employed other than in Hungary and Romania where they are required by legislation to be employed.
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9. Employee information continued
The average number of employees by category was as follows:
| 2024 | 2023 | |
Group | Number | Number |
Operations | 4,704 | 4,802 |
Administration | 390 | 377 |
Head office and loss prevention | 2,710 | 2,593 |
7,804 | 7,772 |
Group employment costs for all employees (including executive directors) were as follows:
| 2024 | 2023 | |
Group | £m | £m |
Gross wages and salaries | 172.3 | 170.3 |
Social security costs | 25.5 | 24.5 |
Pension charge – defined contribution schemes (note 27) | 1.1 | 1.0 |
Pension credit – defined benefit schemes (note 27) | (0.3) | (0.1 ) |
Share-based payment charge (note 28) | 1.7 | 2.7 |
Total | 200.3 | 198.4 |
The average monthly number of people directly employed by the Company in 2024 was 54 (2023: 57), all of whom fulfilled administration
and operational responsibilities on behalf of the Group. In 2024, the Company paid wages and salaries totalling £7.9m (2023: £8.3m),
social security costs totalling £1.8m (2023: £1.9m) and pension-related costs of £0.6m (2023: £0.6m).
10. Exceptional items
The 2024 income statement includes an exceptional credit of £5.5m (2023: an exceptional tax charge of £4.0m) which comprises the
following items:
| 2024 | 2023 | |
Group | £m | £m |
Eurobond refinance costs | (5.8) | – |
Poland restructuring costs | (6.1) | – |
Exceptional items pre -tax | (11.9) | – |
Tax credit on Eurobond refinance costs | 1.1 | – |
Tax credit on Poland restructuring costs | 1.1 | – |
Decision of the European Court of Justice on State Aid | 15.2 | – |
Temporary Hungarian extra profit special tax | – | (4.0 ) |
Exceptional tax items | 17.4 | (4.0 ) |
Exceptional items post -tax | 5.5 | (4.0) |
Further information relating to the exceptional items is shown in the Financial review.
| 2024 | 2023 | |
Group | £m | £m |
Net book value | ||
At 1 January | 23.6 | 24.2 |
Exchange adjustments | (1.0) | (0.6 ) |
At 31 December | 22.6 | 23.6 |
Annual Report and Financial Statements 2024 177
Notes to the Financial Statements continued
178 Annual Report and Financial Statements 2024
| 2024 | 2023 | ||
Group | £m | £m | |
Net book value | |||
At 1 January | 32.3 | 27.9 | |
Additions | 17.8 | 17.9 | |
Impairment | – | (0.2 ) | |
Amortisation | (12.4 ) | (13.1) | |
Exchange adjustments | (0.6) | (0.2) | |
At 31 December | 37.1 | 32.3 | |
Analysed as: | |||
– | cost | 167.7 | 151.8 |
– | amortisation | (130.6 ) | (119.5 ) |
At 31 December | 37.1 | 32.3 |
| 2024 | 2023 | |
Company | £m | £m |
Investment in subsidiaries | 712.5 | 712.5 |
Share -based payment adjustment | 21.5 | 20.9 |
Total investment in subsidiaries | 734.0 | 733.4 |
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13. Investment in subsidiaries continued
Subsidiary company | Country of incorporation and operation | Principal activity |
Compañía Estelar Poniente, S.A. de C.V. | Mexico | Provision of agent services |
Digital Insurance OÜ | Estonia | Provision of services |
División Estratégica Central, S.A. de C.V. | Mexico | Holding company |
Estrategias Divisionales Céntricas, S.A. de C.V. | Mexico | Provision of agent services |
Estrategias Sureñas de Avanzada, S.A. de C.V. | Mexico | Provision of agent services |
International Credit Insurance Limited | Guernsey | Provision of insurance services |
International Personal Finance Investments Limited | United Kingdom | Holding company |
IPF Ceská republica s.r.o . | Czech Republic | Dormant |
IPF Development (2003) Limited | United Kingdom | Provision of loan finance |
IPF Digital AS | Estonia | Digital credit/provision of services |
IPF Digital Australia Pty Limited | Australia | Digital credit |
IPF Digital Finland Oy | Finland | In liquidation |
IPF Digital Group Limited * | United Kingdom | Holding company |
IPF Digital Latvia, SIA | Latvia | Digital credit |
IPF Digital Lietuva, UAB | Lithuania | Digital credit |
IPF Digital Mexico S.A de C.V. | Mexico | Digital credit |
IPF Digital sp. z o.o. | Poland | Provision of services |
IPF Financial Services Limited | United Kingdom | Provision of services |
IPF Financing Limited | United Kingdom | Provision of loan finance |
IPF Guernsey (2) Limited | Guernsey | Dormant |
IPF Holdings Limited * | United Kingdom | Holding company |
IPF International Limited | United Kingdom | Provision of services |
IPF Loan Financing Limited | United Kingdom | Provision of loan finance |
IPF Management Unlimited Company | Ireland | Dormant |
IPF Nordic Limited | United Kingdom | Provision of loan finance |
IPF Polska sp. z o.o. | Poland | Digital credit |
La Regional Operaciones Centrales, S.A. de C.V. | Mexico | Holding Company |
La Tapatía Operaciones de Avanzada, S.A. de C.V. | Mexico | Provision of agent services |
Metropolitana Estrella de Operaciones, S.A. de C.V. | Mexico | Provision of agent services |
Operadora Regiomontana de Estrategias Integrales, S.A. de C.V. | Mexico | Provision of agent services |
Provident Financial s.r.o. | Czech Republic | Home credit |
Provident PenzüGvi Zrt | Hungary | Home credit |
Provident Services SRL | Romania | Provision of services |
Provident Mexico S.A. de C.V. | Mexico | Home credit |
Provident Polska S.A. | Poland | Home credit |
Provident Servicios de Agencia S.A. de C.V. | Mexico | Dormant |
Provident Servicios S.A. de C.V. | Mexico | Dormant |
Annual Report and Financial Statements 2024 179
Notes to the Financial Statements continued
180 Annual Report and Financial Statements 2024
| Computer | Fixtures and | Motor | ||
| equipment | fittings | vehicles | Total | |
Group | £m | £m | £m | £m |
Cost | ||||
At 1 January 2023 | 83.1 | 25.6 | 0.1 | 108.8 |
Exchange adjustments | 1.3 | 1.1 | – | 2.4 |
Additions | 4.1 | 0.6 | – | 4.7 |
Disposals | (6.1) | (2.2) | – | (8.3) |
At 31 December 2023 | 82.4 | 25.1 | 0.1 | 107.6 |
Depreciation | ||||
At 1 January 2023 | (72.6 ) | (18.8 ) | (0.1 ) | (91.5 ) |
Exchange adjustments | (1.0 ) | (0.8 ) | – | (1.8 ) |
Charge to the income statement | (4.3 ) | (2.2 ) | – | (6.5 ) |
Disposals | 6.1 | 2.1 | – | 8.2 |
At 31 December 2023 | (71.8 ) | (19.7 ) | (0.1 ) | (91.6 ) |
Net book value at 31 December 2023 | 10.6 | 5.4 | – | 16.0 |
| Computer | Fixtures and | Motor | ||
| equipment | fittings | vehicles | Total | |
Group | £m | £m | £m | £m |
Cost | ||||
At 1 January 202 4 | 82.4 | 25.1 | 0.1 | 107.6 |
Exchange adjustments | (4.5) | (2.3) | – | (6.8) |
Additions | 5.1 | 1.2 | 0.1 | 6.4 |
Disposals | (2.8) | (1.4) | – | (4.2) |
At 31 December 202 4 | 80.2 | 22.6 | 0.2 | 103.0 |
Depreciation | (71.8) | (19.7) | (0.1) | (91.6) |
At 1 January 202 4 | ||||
Exchange adjustments | 3.4 | 1.9 | – | 5.3 |
Charge to the income statement | (4.7) | (2.1) | – | (6.8) |
Disposals | 2.7 | 1.4 | – | 4.1 |
At 31 December 202 4 | (70.4) | (18.5) | (0.1) | (89.0) |
Net book value at 31 December 202 4 | 9.8 | 4.1 | 0.1 | 14.0 |
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| Motor vehicles | Properties | Group | |
| £m | £m | £m | |
Net book value at 1 January 202 3 | 5.7 | 13.6 | 19.3 |
Exchange adjustments | 0.4 | 0.5 | 0.9 |
Additions | 9.1 | 0.7 | 9.8 |
Modifications | 0.1 | 1.3 | 1.4 |
Depreciation | (4.6 ) | (5.1 ) | (9.7 ) |
Net book value at 31 December 2023 | 10.7 | 11.0 | 21.7 |
| Motor vehicles | Properties | Group | |
| £m | £m | £m | |
Net book value at 1 January 202 4 | 10.7 | 11.0 | 21.7 |
Exchange adjustments | (1.4) | (0.8) | (2.2) |
Additions | 4.9 | 3.4 | 8.3 |
Modifications | (0.1) | 0.1 | – |
Depreciation | (5.3) | (4.8) | (10.1) |
Net book value at 31 December 202 4 | 8.8 | 8.9 | 17.7 |
| 2024 | 2023 | |
Group | £m | £m |
Depreciation on right -of-use assets | 10.1 | 9.7 |
Interest expense on lease liabilities | 2.4 | 2.1 |
Expense relating to short term leases | 1.4 | 1.7 |
13.9 | 13.5 |
| 2024 | 2023 | ||
| £m | £m | ||
Lease liability at 1 January | 23.6 | 21.4 | |
Exchange adjustments | (2.2) | 0.9 | |
Additions | 8.3 | 11.2 | |
Interest | 2.4 | 2.1 | |
Lease payments | (12.2) | (12.0 ) | |
Lease liability at 31 December | 19.9 | 23.6 | |
Current liabilities | 8.1 | 8.3 | |
Non -current liabilities: | |||
– | between one and five years | 11.4 | 13.7 |
– | greater than five years | 0.4 | 1.6 |
11.8 | 15.3 | ||
Lease liability at 31 December | 19.9 | 23.6 |
Annual Report and Financial Statements 2024 181
Notes to the Financial Statements continued
182 Annual Report and Financial Statements 2024
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
At 1 January | 124.6 | 132.6 | – | – |
Exchange adjustments | (15.6) | 8.1 | – | – |
Tax (charge)/credit to the income statement | (6.7) | (16.6 ) | (0.8) | 0.6 |
Tax credit/(charge) on other comprehensive (expense)/income | 0.6 | (1.0 ) | 0.5 | (1.0) |
Tax (charge)/credit direct to equity | (0.3) | 1.5 | 0.3 | 0.4 |
At 31 December | 102.6 | 124.6 | – | – |
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Deferred tax assets | 106.7 | 131.7 | 1.1 | 1.5 |
Deferred tax liabilities | (4.1) | (7.1) | (1.1) | (1.5) |
At 31 December | 102.6 | 124.6 | – | – |
| Group | Company | ||||||
| Revenue | |||||||
| and | Other | Retirement | Other | ||||
| impairment | temporary | benefit | temporary | ||||
| Losses | differences | differences | Total | obligations | differences | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
At 1 January 2023 | 32.1 | 98.9 | 1.6 | 132.6 | (0.5 ) | 0.5 | – |
Exchange adjustments | 2.2 | 5.6 | 0.3 | 8.1 | – | – | – |
Tax (charge)/credit to the income statement | (6.5 ) | (10.1 ) | – | (16.6 ) | – | 0.6 | 0.6 |
Tax charge on other comprehensive income | – | – | (1.0 ) | (1.0 ) | (1.0 ) | – | (1.0 ) |
Tax credit on items taken directly to equity | – | 1.0 | 0.5 | 1.5 | – | 0.4 | 0.4 |
At 31 December 2023 | 27.8 | 95.4 | 1.4 | 124.6 | (1.5 ) | 1.5 | – |
At 1 January 202 4 | 27.8 | 95.4 | 1.4 | 124.6 | (1.5) | 1.5 | – |
Exchange adjustments | (3.4) | (11.8) | (0.4) | (15.6) | – | – | – |
Tax (charge)/credit to the income statement | (11.4) | 1.1 | 3.6 | (6.7) | (0.1) | (0.7) | (0.8) |
Tax credit on other comprehensive income | – | – | 0.6 | 0.6 | 0.5 | – | 0.5 |
Tax (charge)/credit on items taken directly to equity | – | – | (0.3 ) | (0.3) | – | 0.3 | 0.3 |
At 31 December 202 4 | 13.0 | 84.7 | 4.9 | 102.6 | (1.1) | 1.1 | – |
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16. Deferred tax continued
17. Amounts receivable from customers
| 2024 | 2023 | ||
Group | £m | £m | |
Amounts receivable from customers comprise: | |||
– | amounts due within one year | 624.4 | 689.6 |
– | amounts due in more than one year | 245.6 | 203.3 |
Total amounts recoverable from customers | 870.0 | 892.9 |
All lending is in the local currency of the country in which the loan is issued. The currency profile of amounts receivable from customers is
as follows:
| 2024 | 2023 | |
Group | £m | £m |
Polish zloty | 191.6 | 219.7 |
Czech crown | 54.1 | 53.3 |
Euro | 105.6 | 98.1 |
Hungarian forint | 149.2 | 141.2 |
Mexican peso | 205.6 | 229.0 |
Romanian leu | 111.8 | 107.0 |
Australian dollar | 52.1 | 44.6 |
Total | 870.0 | 892.9 |
Amounts receivable from customers are stated at amortised cost and calculated in accordance with the Group’s accounting policies.
Depending on the risks associated with each loan, they are categorised into three stages where stage 3 is the highest risk.
Determining an increase in credit risk since initial recognition
IFRS 9 has the following recognition criteria:
– Stage 1: Requires the recognition of 12 month expected credit losses (the expected credit losses from default events that are expected
within 12 months of the reporting date) if credit risk has not significantly increased since initial recognition.
– Stage 2: Lifetime expected credit losses for financial instruments for which the credit risk has increased significantly since initial
recognition.
– Stage 3: Credit impaired.
When determining whether the risk of default has increased significantly since initial recognition the Group considers both quantitative
and qualitative information based on the Group’s historical experience.
The approach to identifying significant increases in credit risk is consistent across the Group’s products. In addition, as a backstop,
the Group considers that a significant increase in credit risk occurs when an asset is more than 30 days past due.
Financial instruments are moved back to stage 1 once they no longer meet the criteria for a significant increase in credit risk.
Definition of default and credit impaired assets
The Group defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it meets one
or more of the following criteria:
– Quantitative criteria: the customer is more than 90 days past due on their contractual payments in home credit and 60 days past
due on their contractual payments in IPF Digital.
– Qualitative criteria: indication that there is a measurable movement in the estimated future cash flows from a group of financial assets.
For example, if prospective legislative changes are considered to impact the repayments performance of customers.
The default definition has been applied consistently to model the PD, and LGD throughout the Group’s expected credit loss calculations.
An instrument is considered to no longer be in default (i.e. to have recovered) when it no longer meets any of the default criteria.
Annual Report and Financial Statements 2024 183
Notes to the Financial Statements continued
184 Annual Report and Financial Statements 2024
17. Amounts receivable from customers continued
Write-offs
A financial instrument is written off (in full or in part) when the Group judges there to be no reasonable expectation that the instrument
can be recovered (in full or in part). This is typically the case when the Group determines that the customer is not able to generate
sufficient cash flows to repay the amounts subject to the write-off. This assessment is performed at the individual instrument level. The
related impairment loss allowance is also written off once all the necessary procedures have been completed and the loss amount
has crystallised. Financial instruments that are written off could still be subject to recovery activities and subsequent recoveries of
amounts previously written off decrease the amount of impairment losses recorded in the income statement.
The table below shows the amount of the net receivables in each stage at 31 December:
2024 | 2023 | |||||||
| Total net | Total net | |||||||
| Stage 1 | Stage 2 | Stage 3 | Receivables | Stage 1 | Stage 2 | Stage 3 | Receivables | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
Home credit | 443.2 | 56.7 | 119.1 | 619.0 | 436.8 | 74.4 | 151.3 | 662.5 |
IPF Digital | 234.7 | 10.9 | 5.4 | 251.0 | 213.6 | 10.3 | 6.5 | 230.4 |
Group | 677.9 | 67.6 | 124.5 | 870.0 | 650.4 | 84.7 | 157.8 | 892.9 |
Gross carrying amount and loss allowance
The amounts receivable from customers includes a provision for the loss allowance, which relates to the expected credit losses on each
agreement. The gross carrying amount is the present value of the portfolio before the loss allowance provision is deducted. The gross
carrying amount less the loss allowance is equal to the net receivables.
| 2024 | 2023 | |||||||
| Total net | Total net | |||||||
| Stage 1 | Stage 2 | Stage 3 | Receivables | Stage 1 | Stage 2 | Stage 3 | Receivables | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
Gross carrying amount | 802.0 | 128.9 | 366.6 | 1,297.5 | 799.7 | 159.5 | 441.9 | 1,401.1 |
Loss allowance | (124.1) | (61.3) | (242.1) | (427.5) | (149.3 ) | (74.8 ) | (284.1 ) | (508.2 ) |
Net receivables | 677.9 | 67.6 | 124.5 | 870.0 | 650.4 | 84.7 | 157.8 | 892.9 |
Gross carrying amount
The changes in gross carrying amount recognised for the period are impacted by a variety of factors:
– Increases due to origination;
– Transfers between the three stages due to changes in the credit risk associated with each loan;
– Decreases due to repayments;
– Amounts written off;
– Increases due to recognition of interest and charges; and
– Foreign exchange retranslations and other movements to gross carrying amount.
Loss allowance
The changes to the loss allowance recognised for the period are impacted by a variety of factors:
– Loss allowance on origination;
– Transfers between the three stages due to changes in the credit risk associated with each loan;
– Changes due to movements within and between stages;
– Changes in credit risk parameters (PDs, and LGDs) in the period arising from the regular refresh of the inputs into the expected loss model;
– Decreases due to repayments and write offs; and
– Foreign exchange retranslations and other movements to the loss allowance.
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185
17. Amounts receivable from customers continued
The following tables explain the changes for home credit in the gross carrying amount, the loss allowance and net receivables between
the beginning of the year and the end of the year:
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Gross carrying amount – Home credit | £m | £m | £m | £m | £m | £m | £m | £m |
Opening gross carrying amount at 1 January | 552.2 | 141.8 | 398.6 | 1,092.6 | 548.4 | 145.5 | 388.6 | 1,082.5 |
Increases due to origination | 951.3 | – | – | 951.3 | 904.5 | – | – | 904.5 |
Transfers due to change in credit risk: | (356.5) | 64.0 | 292.5 | – | (466.2) | 83.5 | 382.7 | – |
| – From stage 1 | (377.1) | 139.9 | 237.2 | – | (486.3) | 183.7 | 302.6 | – |
– From stage 2 | 10.3 | (77.0) | 66.7 | – | 10.3 | (101.6) | 91.3 | – |
– From stage 3 | 10.3 | 1.1 | (11.4) | – | 9.8 | 1.4 | (11.2) | – |
Decreases due to repayments | (865.4) | (153.9) | (383.1) | (1,402.4) | (877.1) | (192.0) | (504.1) | (1,573.2) |
Amounts w ritten off Increases due to recognition of interest and | – | – | (104.2) | (104.2) | – | – | (121.9) | (121.9) |
charges | 365.6 | 72.7 | 161.7 | 600.0 | 415.2 | 98.4 | 237.8 | 751.4 |
FX | (106.1) | (14.0) | (37.7) | (157.8) | 29.1 | 6.0 | 14.3 | 49.4 |
Other Closing gross carrying amount at | (0.1) | 0.2 | (1.9) | (1.8) | (1.7) | 0.4 | 1.2 | (0.1) |
31 December | 541.0 | 110.8 | 325.9 | 977.7 | 552.2 | 141.8 | 398.6 | 1,092.6 |
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Loss allowance – Home credit | £m | £m | £m | £m | £m | £m | £m | £m |
Opening loss allowance at 1 January | (115.4) | (67.4) | (247.3) | (430.1) | (112.9) | (6 6.9) | (24 7.8) | (427.6) |
Increases due to origination | (187.1) | – | – | (187.1) | (200.6) | – | – | (200.6) |
Transfers due to change in credit risk: | 77.4 | 10.0 | (87.4) | – | 96.7 | 12.0 | (108.7) | – |
| – From stage 1 | 87.7 | (27.7) | (60.0) | – | 106.2 | (35.2) | (71.0) | – |
– From stage 2 | (4.2) | 38.2 | (34.0) | – | (4.0) | 47.8 | (43.8) | – |
– From stage 3 | (6.1) | (0.5) | 6.6 | – | (5.5) | (0.6) | 6.1 | – |
Change s due to movements within and between stages | 19.0 | (32.0) | (113.4) | (126.4) | 15.6 | (42.3) | (146.1) | (172.8) |
Change in credit risk parameters | 6.2 | 0.1 | (3.8) | 2.5 | (3.2) | (0.7) | (3.4) | (7.3) |
Decreases due to repayments and write offs | 88.7 | 27.4 | 217.5 | 333.6 | 89.9 | 32.6 | 255.6 | 378.1 |
FX | 12.6 | 6.9 | 23.4 | 42.9 | (4.4) | (2.6) | (8.3) | (15.3) |
Other | 0.8 | 0.9 | 4.2 | 5.9 | 3.5 | 0.5 | 11.4 | 15.4 |
Closing loss allowance at 31 December | (97.8) | (54.1) | (206.8) | (358.7) | (115.4) | (67.4) | (247.3) | (430.1) |
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Net receivables – Home credit | £m | £m | £m | £m | £m | £m | £m | £m |
Opening net receivables at 1 January | 436.8 | 74.4 | 151.3 | 662.5 | 435.5 | 78.6 | 140.8 | 654.9 |
Increases due to origination | 764.2 | – | – | 764.2 | 703.9 | – | – | 703.9 |
Transfers due to change in credit risk: | (279.1) | 74.0 | 205.1 | – | (369.5) | 95.5 | 274.0 | – |
| – From stage 1 | (289.4) | 112.2 | 177.2 | – | (380.1) | 148.5 | 231.6 | – |
– From stage 2 | 6.1 | (38.8) | 32.7 | – | 6.3 | (53.8) | 47.5 | – |
– From stage 3 | 4.2 | 0.6 | (4.8) | – | 4.3 | 0.8 | (5.1) | – |
Changes due to movements within and between stages | 19.0 | (32.0) | (113.4) | (126.4) | 15.6 | (42.3) | (146.1) | (172.8) |
Change in credit risk parameters | 6.2 | 0.1 | (3.8) | 2.5 | (3.2) | (0.7) | (3.4) | (7.3) |
Increases due to recognition of interest and charges | 365.6 | 72.7 | 161.7 | 600.0 | 415.2 | 98.4 | 237.8 | 751.4 |
Decreases due to repayments and write offs | (776.7) | (126.5) | (269.8) | (1,173.0) | (787.2) | (159.4) | (370.4) | (1,317.0) |
FX | (93.5) | (7.1) | (14.3) | (114.9) | 24.7 | 3.4 | 6.0 | 34.1 |
Other | 0.7 | 1.1 | 2.3 | 4.1 | 1.8 | 0.9 | 12.6 | 15.3 |
Closing net receivables at 31 December | 443.2 | 56.7 | 119.1 | 619.0 | 436.8 | 74.4 | 151.3 | 662.5 |
Annual Report and Financial Statements 2024 185
Notes to the Financial Statements continued
186 Annual Report and Financial Statements 2024
17. Amounts receivable from customers continued
The following tables explain the changes for IPF Digital in the gross carrying amount, the loss allowance and net receivables between the
beginning of the year and the end of the year:
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Gross carrying amount – IPF Digital | £m | £m | £m | £m | £m | £m | £m | £m |
Opening gross carrying amount at 1 January | 247.5 | 17.6 | 43.4 | 308.5 | 233.6 | 16.3 | 34.2 | 284.1 |
Increases due to origination | 263.2 | – | – | 263.2 | 246.1 | – | – | 246.1 |
Transfers due to change in credit risk: | (59.1) | 7.0 | 52.1 | – | (68.4) | 8.5 | 59.9 | – |
| – From stage 1 | (64.5) | 22.5 | 42.0 | – | (76.8) | 31.6 | 45.2 | – |
– From stage 2 | 5.0 | (15.8) | 10.8 | – | 7.9 | (23.5) | 15.6 | – |
– From stage 3 | 0.4 | 0.3 | (0.7) | – | 0.5 | 0.4 | (0.9) | – |
Decreases due to repayments | (279.6) | (14.7) | (36.6) | (330.9) | (269.5) | (14.6) | (43.8) | (327.9) |
Amounts w ritten off Increases due to recognition of interest and | – | – | (28.6) | (28.6) | – | – | (26.3) | (26.3) |
charges | 108.6 | 9.4 | 17.3 | 135.3 | 101.6 | 7.5 | 18.3 | 127.4 |
FX | (19.7) | (1.2) | (6.0) | (26.9) | 4.0 | (0.1) | 1.5 | 5.4 |
Other Closing gross carrying amount at 31 | 0.1 | – | (0.9) | (0.8) | 0.1 | – | (0.4) | (0.3) |
December | 261.0 | 18.1 | 40.7 | 319.8 | 247.5 | 17.6 | 43.4 | 308.5 |
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Loss allowance – IPF Digital | £m | £m | £m | £m | £m | £m | £m | £m |
Opening loss allowance at 1 January | (33.9) | (7.3) | (36.9) | (78.1) | (35.7) | (6.6) | (27.9) | (70.2) |
Increases due to origination | (20.8) | – | – | (20.8) | (22.2) | – | – | (22.2) |
Transfers due to change in credit risk: | 5.2 | 4.5 | (9.7) | – | 5.8 | 7.4 | (13.2) | – |
| – From stage 1 | 7.4 | (2.5) | (4.9) | – | 10.1 | (4.8) | (5.3) | – |
– From stage 2 | (1.9) | 7.2 | (5.3) | – | (3.9) | 12.5 | (8.6) | – |
– From stage 3 | (0.3) | (0.2) | 0.5 | – | (0.4) | (0.3) | 0.7 | – |
Change s due to movements within and between stages | (7.3) | (10.3) | (46.1) | (63.7) | (11.0) | (13.4) | (11.1) | (35.5) |
Change in credit risk parameters | 3.4 | 0.4 | 0.1 | 3.9 | 2.7 | 0.7 | 0.1 | 3.5 |
Decreases due to repayments and write offs | 23.4 | 4.9 | 51.8 | 80.1 | 23.3 | 4.6 | 16.6 | 44.5 |
FX | 2.2 | 0.6 | 5.5 | 8.3 | (0.6) | – | (1.2) | (1.8) |
Other | 1.5 | – | – | 1.5 | 3.8 | – | (0.2) | 3.6 |
Closing loss allowance at 31 December | (26.3) | (7.2) | (35.3) | (68.8) | (33.9) | ( 7.3) | (3 6.9) | (78.1) |
2024 | 2023 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
Net receivables – IPF Digital | £m | £m | £m | £m | £m | £m | £m | £m |
Opening net receivables at 1 January | 213.6 | 10.3 | 6.5 | 230.4 | 197.9 | 9.7 | 6.3 | 213.9 |
Increases due to origination | 242.4 | – | – | 242.4 | 223.9 | – | – | 223.9 |
Transfers due to change in credit risk: | (53.9) | 11.5 | 42.4 | – | (62.6) | 15.9 | 46.7 | – |
– From stage 1 | (57.1) | 20.0 | 37.1 | – | (66.7) | 26.8 | 39.9 | – |
– From stage 2 | 3.1 | (8.6) | 5.5 | – | 4.0 | (11.0) | 7.0 | – |
– From stage 3 | 0.1 | 0.1 | (0.2) | – | 0.1 | 0.1 | (0.2) | – |
Change s due to movements within and between stages | (7.3) | (10.3) | (46.1) | (63.7) | (11.0) | (13.4) | (11.1) | (35.5) |
Change in credit risk parameters | 3.4 | 0.4 | 0.1 | 3.9 | 2.7 | 0.7 | 0.1 | 3.5 |
Increases due to recognition of interest and charges | 108.6 | 9.4 | 17.3 | 135.3 | 101.6 | 7.5 | 18.3 | 127.4 |
Decreases due to repayments and write offs | (256.2) | (9.8) | (13.4) | (279.4) | (246.2) | (10.0) | (53.5) | (309.7) |
FX | (17.5) | (0.6) | (0.5) | (18.6) | 3.4 | (0.1) | 0.3 | 3.6 |
Other | 1.6 | – | (0.9) | 0.7 | 3.9 | – | (0.6) | 3.3 |
Closing net receivables at 31 December | 234.7 | 10.9 | 5.4 | 251.0 | 213.6 | 10.3 | 6.5 | 230.4 |
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187
17. Amounts receivable from customers continued
Impairment as a percentage of gross carrying amount for each geographical segment is shown below:
| 2024 | 2023 | |
Group | % | % |
European home credit | 1.1 | 4.5 |
Mexico home credit | 30.1 | 32.3 |
IPF Digital | 8.6 | 12.4 |
The carrying value of amounts receivable from customers that would have been impaired had their terms not been renegotiated is £nil
(2023: £nil).
Amounts receivable from customers are held at amortised cost and are equal to the expected future cash flows receivable discounted
at the average annual EIR of 99% (2023: 101%). All amounts receivable from customers are at fixed interest rates. The average period to
maturity of the amounts receivable from customers is 13.5 months (2023: 13.2 months).
No collateral is held in respect of any customer receivables.
Management monitors credit quality using two key metrics: impairment as a percentage of gross carrying amount and gross cash loss
(GCL) development. Commentary on impairment as a percentage of gross carrying amount is set out in the operational review at both
Group and segment level. GCL represents the expected total value of contractual cash flows that will not be repaid and will ultimately
be written off for any loan or group of loans. Until repayments on any group of receivables are complete, the GCL forecast is a composite
of actual and expected cash flows. This represents a leading-edge measure of credit quality with forecasts based on the actual
performance of previous lending.
As at 31 December 2024, in the Polish business, there are £57.1m (2023: £31.9m) of undrawn granted credit card limits.
The Company has no amounts receivable from customers (2023: £nil).
18. Cash and cash equivalents
| Group | Company | |||
| 2024 | 2023 | 2024 | 2022 | |
| £m | £m | £m | £m | |
Cash at bank and in hand | 27.6 | 42.5 | 1.5 | 5.0 |
The currency profile of cash and cash equivalents is as follows:
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
GBP sterling | 1.0 | 3.0 | 1.0 | 3.0 |
Polish zloty | 2.7 | 11.6 | – | 0.2 |
Czech crown | 0.7 | 0.9 | – | – |
Euro | 5.0 | 10.4 | 0.5 | 1.8 |
Hungarian forint | 1.5 | 1.6 | – | – |
Mexican peso | 9.6 | 10.2 | – | – |
Romanian leu | 6.6 | 4.3 | – | – |
Australian dollar | 0.5 | 0.5 | – | – |
Total | 27.6 | 42.5 | 1.5 | 5.0 |
19. Other receivables
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Other receivables | 13.6 | 6.3 | – | – |
Prepayments | 9.3 | 9.7 | 0.8 | 0.6 |
Amounts due from Group undertakings | – | – | 552.8 | 522.8 |
Total | 22.9 | 16.0 | 553.6 | 523.4 |
Annual Report and Financial Statements 2024 187
Notes to the Financial Statements continued
188 Annual Report and Financial Statements 2024
20. Trade and other payables
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Trade payables | 14.4 | 16.8 | 0.2 | 0.2 |
Other payables including taxation and social security | 60.6 | 58.9 | – | – |
Accruals | 50.1 | 57.2 | 14.6 | 13.0 |
Amounts due to Group undertakings | – | – | 445.5 | 384.0 |
Total | 125.1 | 132.9 | 460.3 | 397.2 |
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Borrowings | ||||
Bank borrowings | 82.5 | 83.6 | – | – |
Bonds | 433.4 | 428.2 | 433.4 | 428.2 |
Total | 515.9 | 511.8 | 433.4 | 428.2 |
| Coupon | Maturity | 2024 | |
Bond | % | date | £m |
Euro bond – €66.7m | 9.75 | 2025 | 55.2 |
Hungarian bond – €11.6m | 11.50 | 2026 | 9.6 |
Polish bond – zloty 72.0m | Six-month WIBOR plus 850 basis points | 2026 | 14.0 |
Retail bond – £80.0m | 12.00 | 2027 | 80.0 |
Euro bond – €341.0m | 10.75 | 2029 | 282.2 |
| 441.0 | |||
Less: unamortised arrangement fees and issue discount | (7.6) | ||
Total | 433.4 |
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| £m | £m | £m | £m | ||
Borrowings | |||||
Repayable: | |||||
– | in less than one year | 92.8 | 52.2 | 54.9 | 35.1 |
– | between one and two years | 47.6 | 330.5 | 23.6 | 292.9 |
– | between two and five years | 375.5 | 129.1 | 354.9 | 100.2 |
Total | 515.9 | 511.8 | 433.4 | 428.2 |
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21. Borrowing facilities and borrowings continued
Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Sterling | 78.7 | 75.7 | 78.7 | 75.7 |
Polish zloty | 20.5 | 16.7 | 14.0 | 14.4 |
Czech crown | 2.3 | 9.3 | – | – |
Euro | 340.7 | 303.0 | 340.7 | 303.0 |
Hungarian forint | 61.4 | 64.6 | – | – |
Romanian leu | 3.3 | 6.1 | – | – |
Mexican peso | 9.0 | 1.3 | – | – |
Swedish krona | – | 35.1 | – | 35.1 |
Total | 515.9 | 511.8 | 433.4 | 428.2 |
| Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| £m | £m | £m | £m | ||
Bond and bank facilities available | |||||
Repayable: | |||||
– | on demand | 35.2 | 32.6 | 8.0 | 9.7 |
– | in less than one year | 135.1 | 65.4 | 71.3 | 35.1 |
– | between one and two years | 78.9 | 364.6 | 23.6 | 306.4 |
– | between two and five years | 407.7 | 166.1 | 387.1 | 101.9 |
Total | 656.9 | 628.7 | 490.0 | 453.1 |
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Expiring within one year | 77.2 | 45.8 | 24.1 | 9.7 |
Expiring between one and two years | 31.3 | 31.1 | 24.9 | 10.5 |
Expiring in more than two years | 24.9 | 35.3 | – | – |
Total | 133.4 | 112.2 | 49.0 | 20.2 |
Annual Report and Financial Statements 2024 189
Notes to the Financial Statements continued
190 Annual Report and Financial Statements 2024
22. Risks arising from financial instruments continued
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Not later than six months | 44.5 | 26.8 | 172.7 | 176.5 |
Later than six months and not later than one year | 101.7 | 78.7 | 78.6 | 56.0 |
Later than one year and not later than two years | 93.3 | 365.1 | 362.2 | 560.2 |
Later than two years and not later than five years | 480.5 | 151.5 | 458.5 | 121.9 |
Total | 720.0 | 622.1 | 1,072.0 | 914.6 |
2024 | 2023 | |||
| Outflow | Inflow | Outflow | Inflow | |
Group | £m | £m | £m | £m |
Not later than one month | 292.4 | 292.6 | 295.2 | 293.2 |
Later than one month and not later than six months | 121.5 | 121.4 | 102.6 | 101.3 |
Later than six months and not later than one year | – | – | 0.6 | 0.6 |
Total | 413.9 | 414.0 | 398.4 | 395.1 |
| 2024 | 2023 | |||
| Outflow | Inflow | Outflow | Inflow | |
Company | £m | £m | £m | £m |
Not later than one month | – | – | 0.1 | 0.1 |
Later than one month and not later than six months | – | – | 0.7 | 0.7 |
Later than six months and not later than one year | – | – | 0.4 | 0.3 |
Total | – | – | 1.2 | 1.1 |
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22. Risks arising from financial instruments continued
| Percentage | Borrowing | Percentage | ||
| Receivables | of total | facilities | of total | |
Group | £m | % | £m | % |
2023 | ||||
Less than one year | 689.6 | 77.2 | 98.0 | 15.6 |
Later than one year | 203.3 | 22.8 | 530.7 | 84.4 |
Total | 892.9 | 100.0 | 628.7 | 100.0 |
Less than one year | 624.4 | 71.8 | 170.3 | 25.9 |
Later than one year | 245.6 | 28.2 | 486.6 | 74.1 |
Total | 870.0 | 100.0 | 656.9 | 100.0 |
| 2024 | 2023 | |
Group | £m | £m |
Reduction in profit before taxation | 1.0 | 1.7 |
Annual Report and Financial Statements 2024 191
Notes to the Financial Statements continued
192 Annual Report and Financial Statements 2024
22. Risks arising from financial instruments continued
| 2024 | 2023 | |
Group | £m | £m |
Change in reserves | 3.7 | 3.7 |
Change in profit before taxation | 5.6 | 5.9 |
| 2024 | 2023 | |
Group | £m | £m |
Cash and cash equivalents | 27.6 | 42.5 |
Derivative financial assets | 2.6 | 2.9 |
Total | 30.2 | 45.4 |
| 2024 | 2023 | |
Group | £m | £m |
Amounts receivable from customers | 870.0 | 892.9 |
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22. Risks arising from financial instruments continued
| 2024 | 2023 | |
Group | £m | £m |
Receivables | 870.0 | 892.9 |
Borrowings | (515.9) | (511.8 ) |
Other net assets | 112.2 | 120.8 |
Equity | 466.3 | 501.9 |
Equity as % of receivables | 53.6% | 56.2% |
Gearing | 1.1 | 1.0 |
| 2024 | 2023 | |
Group | £m | £m |
Assets | ||
Foreign currency contracts | 2.6 | 2.9 |
Total | 2.6 | 2.9 |
| 2024 | 2023 | |
Group | £m | £m |
Liabilities | ||
Foreign currency contracts | 1.6 | 4.4 |
Total | 1.6 | 4.4 |
| The company had no derivative assets or liabilities at 31 December 2024 (2023: no derivative assets or liabilities). |
Annual Report and Financial Statements 2024 193
Notes to the Financial Statements continued
194 Annual Report and Financial Statements 2024
23. Derivative financial instruments continued
| In more than | |||
| Repayable | one year but | ||
| up to | less than | ||
| one year | two years | Total | |
Group | £m | £m | £m |
As at 31 December 2023 | |||
Foreign currency contracts | 398.4 | – | 398.4 |
Cash flow hedges | 398.4 | – | 398.4 |
As at 31 December 202 4 | |||
Foreign currency contracts | 413.9 | – | 413.9 |
Cash flow hedges | 413.9 | – | 413.9 |
| In more than | |||
| Repayable | one year but | ||
| up to | less than | ||
| one year | two years | Total | |
Company | £m | £m | £m |
As at 31 December 2023 | |||
Foreign currency contracts | 1.2 | – | 1.2 |
Cash flow hedges | 1.2 | – | 1.2 |
24. Analysis of financial assets and financial liabilities
| 2024 | 2023 | |||||
| Financial | Financial | |||||
| assets at | Derivatives | assets at | Derivatives | |||
| amortised | used for | amortised | used for | |||
| cost | hedging | Total | cost | hedging | Total | |
Group | £m | £m | £m | £m | £m | £m |
Amounts receivable from customers | 870.0 | – | 870.0 | 892.9 | – | 892.9 |
Derivative financial instruments | – | 2.6 | 2.6 | – | 2.9 | 2.9 |
Cash and cash equivalents | 27.6 | – | 27.6 | 42.5 | – | 42.5 |
Other receivables | 22.9 | – | 22.9 | 16.0 | – | 16.0 |
Total | 920.5 | 2.6 | 923.1 | 951.4 | 2.9 | 954.3 |
| 2024 | 2023 | |||||
| Financial | Financial | |||||
| liabilities at | Derivatives | liabilities at | Derivatives | |||
| amortised | used for | amortised | used for | |||
| cost | hedging | Total | cost | hedging | Total | |
Group | £m | £m | £m | £m | £m | £m |
Bonds | 433.4 | – | 433.4 | 428.2 | – | 428.2 |
Bank borrowings | 82.5 | – | 82.5 | 83.6 | – | 83.6 |
Derivative financial instruments | – | 1.6 | 1.6 | – | 4.4 | 4.4 |
Trade and other payables | 125.1 | – | 125.1 | 132.9 | – | 132.9 |
Provision for liabilities and charges | 2.8 | – | 2.8 | – | – | – |
Total | 643.8 | 1.6 | 645.4 | 644.7 | 4.4 | 649.1 |
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| Fair values | |||||
| Carrying | Total fair | ||||
| value | Level 1 | Level 2 | Level 3 | value | |
At 31 December 2023 | £m | £m | £m | £m | £m |
Financial assets | |||||
Amounts receivable from customers | 892.9 | – | – | 1,139.3 | 1,139.3 |
Derivative financial instruments | 2.9 | – | 2.9 | – | 2.9 |
Cash and cash equivalents | 42.5 | 42.5 | – | – | 42.5 |
Other receivables | 16.0 | – | – | 16.0 | 16.0 |
954.3 | 42.5 | 2.9 | 1,155.3 | 1,200.7 | |
Financial liabilities | |||||
Bonds | 428.2 | 420.8 | – | – | 420.8 |
Bank borrowings | 83.6 | 83.6 | – | – | 83.6 |
Derivative financial instruments | 4.4 | – | 4.4 | – | 4.4 |
Trade and other payables | 132.9 | – | – | 132.9 | 132.9 |
649.1 | 504.4 | 4.4 | 132.9 | 641.7 |
| Fair values | |||||
| Carrying | Total fair | ||||
| value | Level 1 | Level 2 | Level 3 | value | |
At 31 December 202 4 | £m | £m | £m | £m | £m |
Financial assets | |||||
Amounts receivable from customers | 870.0 | – | – | 1,124.5 | 1,124.5 |
Derivative financial instruments | 2.6 | – | 2.6 | – | 2.6 |
Cash and cash equivalents | 27.6 | 27.6 | – | – | 27.6 |
Other receivables | 22.9 | – | – | 22.9 | 22.9 |
923.1 | 27.6 | 2.6 | 1,147.4 | 1,177.6 | |
Financial liabilities | |||||
Bonds | 433.4 | 468.2 | – | – | 468.2 |
Bank borrowings | 82.5 | 82.5 | – | – | 82.5 |
Derivative financial instruments | 1.6 | – | 1.6 | – | 1.6 |
Trade and other payables | 125.1 | – | – | 125.1 | 125.1 |
Provision for liabilities and charges | 2.8 | – | – | 2.8 | 2.8 |
645.4 | 550.7 | 1.6 | 127.9 | 680.2 |
Annual Report and Financial Statements 2024 195
Notes to the Financial Statements continued
196 Annual Report and Financial Statements 2024
25. Fair values of financial assets and liabilities continued
| Fair values | |||||
| Carrying | Total fair | ||||
| value | Level 1 | Level 2 | Level 3 | value | |
At 31 December 2023 | £m | £m | £m | £m | £m |
Financial assets | |||||
Cash and cash equivalents | 5.0 | 5.0 | – | – | 5.0 |
Other receivables | 523.4 | – | – | 523.4 | 523.4 |
528.4 | 5.0 | – | 523.4 | 528.4 | |
Financial liabilities | |||||
Bonds | 428.2 | 420.8 | – | – | 420.8 |
Trade and other payables | 397.2 | – | – | 397.2 | 397.2 |
825.4 | 420.8 | – | 397.2 | 818.0 |
| Fair values | |||||
| Carrying | Total fair | ||||
| value | Level 1 | Level 2 | Level 3 | value | |
At 31 December 202 4 | £m | £m | £m | £m | £m |
Financial assets | |||||
Cash and cash equivalents | 1.5 | 1.5 | – | – | 1.5 |
Other receivables | 553.6 | – | – | 553.6 | 553.6 |
555.1 | 1.5 | – | 553.6 | 555.1 | |
Financial liabilities | |||||
Bonds | 433.4 | 468.2 | – | – | 468.2 |
Trade and other payables | 460.3 | – | – | 460.3 | 460.3 |
893.7 | 468.2 | – | 460.3 | 928.5 |
International Personal Finance plc196
Financial Statements
Annual Report and Financial Statements 2024
197
27. Retirement benefit asset/obligation
| 2024 | 2023 | |
Group and Company | % | % |
Price inflation (‘CPI’) | 2.7 | 2.5 |
Rate of increase to pensions in payment | 3.1 | 3.0 |
Discount rate | 5.6 | 4.8 |
| 2024 | 2023 | |
Group and Company | £m | £m |
Diversified growth funds | 3.1 | 1.6 |
Corporate bonds | 8.4 | 7.6 |
Equities | 3.5 | 0.9 |
Liability driven investments | 10.7 | 19.7 |
Other | 0.6 | 0.6 |
Total fair value of scheme assets | 26.3 | 30.4 |
Present value of funded defined benefit obligations | (21.9) | (24.3 ) |
Net asset recognised in the balance sheet | 4.4 | 6.1 |
| 2024 | 2023 | |
Group and Company | £m | £m |
Interest cost | 1.1 | 1.4 |
Expected return on scheme assets | (1.4) | (1.5) |
Net credit recognised in the income statement | (0.3) | (0.1) |
Annual Report and Financial Statements 2024 197
Notes to the Financial Statements continued
198 Annual Report and Financial Statements 2024
27. Retirement benefit asset/obligation continued
| 2024 | 2023 | |
Group and Company | £m | £m |
Fair value of scheme assets at 1 January | 30.4 | 30.9 |
Expected return on scheme assets | 1.4 | 1.5 |
Actuarial loss on scheme assets | (4.3) | (0.5 ) |
Net benefits paid out | (1.2) | (1.5 ) |
Fair value of scheme assets at 31 December | 26.3 | 30.4 |
| 2024 | 2023 | |
Group and Company | £m | £m |
Defined benefit obligation at 1 January | (24.3) | (28.8) |
Interest cost | (1.1) | (1.4 ) |
Actuarial gain on scheme liabilities | 2.3 | 4.4 |
Net benefits paid out | 1.2 | 1.5 |
Defined benefit obligation at 31 December | (21.9) | (24.3 ) |
| 2024 | 2023 | |
Group and Company | £m | £m |
Expected return on scheme assets | 1.4 | 1.5 |
Actuarial loss on scheme assets | (4.3) | (0.5 ) |
Actual (loss)/gain on scheme assets | (2.9) | 1.0 |
| 2024 | 2023 | |
Group and Company | £m | £m |
Actuarial loss on scheme assets | (4.3) | (0.5 ) |
Actuarial gain on scheme liabilities | 2.3 | 4.4 |
Total (loss) /gain recognised in the SOCI in the year | (2.0) | 3.9 |
Cumulative amount of losses recognised in the SOCI | (18.6) | (16.6 ) |
Group and Company | 2024 | 2023 | 2022 * | 2021 * | 2020* | |
Actuarial (losses)/gains on scheme assets: | ||||||
– | amount (£m) | (4.3) | (0.5 ) | (21.3) | (1.6) | 6.7 |
– | percentage of scheme assets (%) | (16.3) | (1.6 ) | (68.9) | (3.1) | 12.8 |
Experience gains/(losses) on scheme liabilities: | ||||||
– | amount (£m) | – | 3.4 | (2.4) | 1.7 | – |
– | percentage of scheme liabilities (%) | – | 14.2 | (8.3) | 3.7 | – |
International Personal Finance plc198
Financial Statements
Annual Report and Financial Statements 2024
199
28. Share-based payments
The Group currently operates six categories of share schemes: The International Personal Finance plc Performance Share Plan
(the Performance Share Plan); The International Personal Finance plc Approved Company Share Option Plan (the CSOP);
The International Personal Finance plc Employee Savings-Related Share Option Scheme (the SAYE scheme); The International
Personal Finance plc Deferred Share Plan (the Deferred Share Plan); The International Personal Finance plc Discretionary Award
Plan (the Discretionary Award Plan); and The International Personal Finance plc Restricted Share Plan (the Restricted Share Plan).
A number of awards have been granted under these schemes during the period under review. No awards have been granted under
the Performance Share Plan, CSOP or the Discretionary Award Plan in 2024.
Options granted under the Performance Share Plans and CSOPs may be subject to a total shareholder return (TSR) performance target
and/or EPS growth; net revenue growth; customer numbers growth; customer representative turnover; and earnings before interest
and tax (EBIT) performance targets. The income statement charge in respect of the Performance Share Plan and the CSOP has been
calculated using both a Monte Carlo simulation (for TSR) and Black-Scholes model (for the other non-market related conditions) as
these schemes include performance targets. There are no performance conditions associated with the Discretionary Award Plan and,
therefore, the income statement charge in respect of this scheme is calculated using the share price at the date of grant. The income
statement charge in respect of the Restricted Share Plan has been calculated using the Black-Scholes model as this scheme’s
performance criteria is primarily adherence to the internally set progressive dividend policy.
The income statement charge in respect of the SAYE scheme is calculated using a Monte Carlo simulation model, although, no TSR
targets are assigned. The Deferred Share Plan comprises deferred awards with matching awards. From the 2018 scheme onwards, the
Deferred Share Plan does not have matching awards. There are no additional performance criteria attached to the deferred awards,
therefore, the income statement charge is calculated using the actual share price at the date the award is granted. The matching
awards are subject to the same criteria as the Performance Share Plan.
The total income statement charge in respect of these share-based payments in 2024 was £1.7m (2023: charge of £2.7m).
The fair value per award granted and the assumptions used in the calculation of the share-based payment charge are as follows:
| SAYE | Deferred | Restricted | |
Group and Company | Scheme | Share Plan | Share Plan* |
Grant date | 12/09/2024 | 20/03/2024 | 20/03/2024 |
Share price at award date | 1.54 | 1.13 | 1.13 |
Base price for TSR | n/a | n/a | n/a |
Exercise price | 1.26 | n/a | n/a |
Vesting period (years) | 3 and 5 | 3 | 3 |
Expected volatility | 62% | n/a | 43% |
Award life (years) | Up to 5 | n/a | 3 |
Expected life (years) | Up to 5 | n/a | 3 |
Risk -free rate | 3.78% | n/a | 4.02% |
Expected dividends expressed as a dividend yield | 6.69% | n/a | 8.50% |
Deferred portion | n/a | n/a | n/a |
TSR threshold | n/a | n/a | n/a |
TSR maximum target | n/a | n/a | n/a |
EPS threshold | n/a | n/a | n/a |
EPS maximum target | n/a | n/a | n/a |
Net revenue threshold | n/a | n/a | n/a |
Net revenue maximum target | n/a | n/a | n/a |
Fair value per award (£) | 0.77 – 0.81 | n/a | 0.88 |
* The vesting of awards will be determined by the committee and adherence to its progressive dividend policy.
No exercise price is payable in respect of any awards made under the Performance Share Plan, Discretionary Award Plan, Deferred Share
Plan or the Restricted Share Plan. The risk-free rate of return is the yield on zero coupon UK government bonds with a remaining term
equal to the expected life of the award.
Further detail in respect of the Performance Share Plans, CSOPs, Deferred Share Plans, SAYE schemes, Discretionary Award Plans and
Restricted Share Plan is provided in the Corporate Governance Report.
Annual Report and Financial Statements 2024 199
Notes to the Financial Statements continued
200 Annual Report and Financial Statements 2024
28. Share-based payments continued
| SAYE | Deferred | Performance | Discretionary | |||||||||
| schemes | CSOPs | Share Plans | Share Plans | Restricted Share Plans | Award Plans | |||||||
Weighted | Weighted | Weighted | Weighted | Weighted | Weighted | |||||||
| average | average | average | average | average | average | |||||||
| exercise | exercise | exercise | exercise | exercise | exercise | |||||||
Group | Number | price £ | Number | price £ | Number | price £ | Number | price £ | Number | price £ | Number | price £ |
Outstanding at 1 January 2023 | 1,748,396 | 0.82 | 8,657 | 4.05 | 2,394,715 | – | 6,550,918 | – | – | – | 1,137,460 | – |
Granted | 132,099 | 0.99 | – | – | 1,191,844 | – | 496,873 | – | 2,040,396 | – | – | – |
Expired/lapsed | (245,569 ) | 0.89 | (2,999 ) | 3.64 | (20,604 ) | – | (81,738 ) | – | – | – | – | – |
Exercised | (481,389 ) | 0.86 | – | – | (835,616 ) | – | (120,041 ) | – | – | – | – | – |
Outstanding at 31 December | ||||||||||||
2023 | 1,153,537 | 0.81 | 5,658 | 4.27 | 2,730,339 | – | 6,846,012 | – | 2,040,396 | – | 1,137,460 | – |
Outstanding at 1 January 202 4 | 1,153,537 | 0.81 | 5,658 | 4.27 | 2,730,339 | – | 6,846,012 | – | 2,040,396 | – | 1,137,460 | – |
Granted | 147,791 | 1.26 | – | – | 839,872 | – | – | – | 2,374,904 | – | – | |
Expired/lapsed | (103,750) | 0.86 | (3,250) | 5.26 | (3,009) | – | (205,555) | – | (356,107) | – | (1,137,460) | – |
Exercised | (159,678) | 0.90 | – | – | (160,867) | – | (2,618,830) | – | – | – | – | |
Outstanding at 31 December | ||||||||||||
202 4 | 1,037,900 | 0.85 | 2,408 | 2.93 | 3,406,335 | – | 4,021,627 | – | 4,059,193 | – | – | – |
| SAYE | Deferred | Performance | Discretionary | |||||||||
| schemes | CSOPs | Share Plans | Share Plans | Restricted Share Plans | Award Plans | |||||||
| Weighted | Weighted | Weighted | Weighted | Weighted | Weighted | |||||||
| average | average | average | average | average | average | |||||||
| exercise | exercise | exercise | exercise | exercise | exercise | |||||||
Company | Number | price £ | Number | price £ | Number | price £ | Number | price £ | Number | price £ | Number | price £ |
Outstanding at 1 January 2023 | 1,181,125 | 0.81 | 3,896 | 4.87 | 1,057,229 | – | 3,516,924 | – | – | – | 589,405 | – |
Granted | 66,338 | 0.99 | – | – | 781,132 | – | 40,504 | – | 1,273,695 | – | – | – |
Expired/lapsed | (175,728 ) | 0.84 | – | – | – | – | – | – | – | – | – | – |
Exercised | (365,228 ) | 0.86 | – | – | (293,762 ) | – | (111,520 ) | – | – | – | – | – |
Outstanding at 31 December 2023 | 706,507 | 0.80 | 3,896 | 4.87 | 1,544,599 | – | 3,445,908 | – | 1,273,695 | – | 589,405 | – |
Outstanding at 1 January 202 4 | 706,507 | 0.80 | 3,896 | 4.87 | 1,544,599 | – | 3,445,908 | – | 1,273,695 | – | 589,405 | – |
Granted | 79,497 | 1.26 | – | – | 608,628 | – | – | – | 1,222,410 | – | – | – |
Expired/lapsed | (55,402) | 0.88 | (3,250) | 5.26 | – | – | (35,854) | – | (164,880) | – | (589,405) | – |
Exercised | (96,201) | 0.91 | – | – | (138,281) | – | (1,314,743) | – | – | – | – | – |
Outstanding at 31 December 202 4 | 634,401 | 0.84 | 646 | 2.93 | 2,014,946 | – | 2,095,311 | – | 2,331,225 | – | – | – |
International Personal Finance plc200
Financial Statements
Annual Report and Financial Statements 2024
201
| 2024 | 2023 | |
Company | £m | £m |
At 1 January | 23.4 | 23.4 |
Own shares acquired | (0.9) | – |
At 31 December | 22.5 | 23.4 |
30. Reconciliation of profit/(loss) after taxation to cash generated from
operating activities
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| £m | £m | £m | £m | ||
Profit/(loss) after taxation from operations | 60.9 | 48.0 | (4.4) | (24.6 ) | |
Adjusted for: | |||||
– | tax charge | 12.4 | 35.9 | 3.4 | 1.4 |
– | finance costs | 71.7 | 76.9 | 91.1 | 80.0 |
– | finance income | (1.3) | – | (63.9) | (51.8) |
– | share-based payment charge (note 28) | 1.7 | 2.7 | 1.0 | 1.5 |
– | depreciation of property, plant and equipment (note 14) | 6.8 | 6.5 | 0.1 | 0.2 |
– | loss on disposal of property, plant and equipment (note 14) | – | 0.1 | – | – |
– | amortisation of intangible assets (note 12) | 12.4 | 13.1 | – | – |
– | depreciation of right-of-use assets (note 15) | 10.1 | 9.7 | 0.3 | 0.3 |
– | impairment of intangible assets (note 12) | – | 0.2 | – | – |
– | short-term and low value lease costs (note 15) | 1.4 | 1.7 | – | – |
Changes in operating assets and liabilities: | |||||
– | increase in amounts receivable from customers | (58.8 ) | (3.8) | – | – |
– | (increase)/decrease in other receivables | (10.4 ) | 0.9 | (33.4) | 4.4 |
– | Increase in trade and other payables | 7.6 | 4.8 | 66.7 | 25.7 |
– | change in provisions | 2.8 | (4.7) | – | – |
– | change in retirement benefit asset | (0.3) | (0.1) | (0.3) | (0.1 ) |
– | (decrease)/increase in derivative financial instrument liabilities | (2.9 ) | 1.5 | – | – |
Cash generated from operating activities | 114.1 | 193.4 | 60.6 | 37.0 | |
| 2024 | 2023 | |
Group | £m | £m |
Capital expenditure commitments contracted with third parties but not provided for at 31 December | 5.5 | 6.7 |
Annual Report and Financial Statements 2024 201
Notes to the Financial Statements continued
202 Annual Report and Financial Statements 2024
| 2024 | 2023 | |||||
| Recharge | Interest | Outstanding | Recharge | Interest | Outstanding | |
| of costs | charge | balance | of costs | charge | balance | |
Company | £m | £m | £m | £m | £m | £m |
Europe | 0.1 | – | 46.8 | 0.1 | – | 43.4 |
Mexico | 2.4 | 14.4 | 114.5 | – | 12.8 | 101.9 |
Other UK companies | 12.3 | 5.6 | (54.0) | 6.9 | 3.7 | (6.5 ) |
14.8 | 20.0 | 107.3 | 7.0 | 16.5 | 138.8 |
International Personal Finance plc202
Financial Statements
Alternative performance measures
Annual Report and Financial Statements 2024
203
This Annual Report and Financial Statements provides alternative performance measures (APMs) which are not defined or specified
under the requirements of International Financial Reporting Standards. We believe these APMs provide readers with important additional
information on our business. To support this we have included a reconciliation of the APMs we use, where relevant, and a glossary
indicating the APMs that we use, an explanation of how they are calculated and why we use them.
APM
Closest
equivalent
statutory measure
Reconciling items
to statutory measure
Definition and purpose
Income statement
measures
Customer lending
growth
at constant exchange
rates
(%)
None
Not applicable
Customer lending
is the principal value of loans advanced to customers and is
an important measure of the level of lending in the business.
Customer lending
growth is the period
-on-period change in this metric which is calculated by
retranslating the previous year’s
customer lending at the average actual
exchange rates used in the current financial year. This ensures that the measure
is presented having eliminated the effects of exchange rate fluctuations on the
period
-on-period reported results (constant exchange rates).
Closing net receivables
growth at constant
exchange rates (%)
None
Not applicable
Closing net receivables growth is the period
-on-period change in closing net
receivables which is calculated by retranslating the previous year’s closing net
receivables at the closing actual exchange rate used in the current financial
year. This ensures t
hat the measure is presented having eliminated the effects
of
exchange rate fluctuations on the period-on-period reported results
(
constant exchange rates).
Revenue growth at
constant exchange
rates
(%)
None
Not applicable
The period
-on-period change in revenue which is calculated by retranslating
the
previous year’s revenue at the average actual exchange rates used in the
current financial year. This measure is presented as a means of eliminating the
effects of exchange rate fluctuations on the period
-on-period reported results
(constant exchange rates
).
Revenue yield (%)
None
Not applicable
Revenue yield is reported revenue divided by average
gross receivables
(
before impairment provision) and is an indicator of the return being generated
from average
gross receivables. This measure is reported on a rolling annual
basis (annualised).
Impairment
rate (%)
None
Not applicable
Impairment
rate is reported impairment divided by average gross receivables
(before
impairment provision) and represents a measure of credit quality
that
is used across the business. This measure is reported on a rolling annual
basis (annualised).
Cost
-income ratio (%)
None
Not applicable
The cost
-income ratio is costs, including customer representatives commission,
excluding interest expense
divided by reported revenue. This measure is reported
on a rolling annual basis (annualised).
This is useful for comparing cost efficiency
across markets.
Pre
-exceptional profit
before tax (£m)
Profit
before tax
Exceptional items
Profit
before tax and exceptional items. This is considered to be an important
measure where exceptional items distort the operating performance of
the
business.
Pre
-exceptional earnings
per share (pence)
Earnings
per share
Exceptional items
Earnings per share before the impact of exceptional items. This is considered
to
be an important measure where exceptional items distort the operating
performance of the business.
Annual Report and Financial Statements 2024 203
Alternative performance measures continued
204 Annual Report and Financial Statements 2024
APM
Closest
equivalent
statutory measure
Reconciling items
to statutory measure
Definition and purpose
Balance sheet and
returns measures
Gross receivables
(£m)
Net customer
receivables
Not
applicable
Gross receivables is the same definition as gross carrying amount
as per note 17.
Impairment coverage
ratio (%)
None
Not applicable
Expected loss allowance divided by gross carrying amount (before impairment
provision).
Pre
-exceptional return
on
equity (RoE) (%)
None
Not applicable
Calculated as
pre-exceptional profit after tax divided by average opening and
closing equity. It is used as a measure of overall shareholder returns.
Pre
-exceptional
required
return on
equity
(RoRE) (%)
None
Not applicable
Calculated as pre
-exceptional profit after tax divided by required equity of 40% of
average net receivables. It is used as a measure of overall shareholder returns.
Equity to receivables
ratio
(%)
None
Not applicable
Total equity divided by amounts receivable from customers. This is a measure
of balance sheet strength.
Headroom (
£m)
Undrawn external
bank facilities
Not applicable
Calculated as the sum of undrawn external bank facilities and non
-operational
cash.
Net debt (£m)
None
Not applicable
Borrowings less cash.
Other measures
Customers
None
Not applicable
Customers that are being served by our agents or through our money transfer
product in the home credit business and customers that are not in
default in our
digital business.
Customer retention (%)
None
Not applicable
The proportion of customers that are retained for their third or subsequent loan.
Our ability to retain customers is central to achieving our strategy and is an
indicator of the quality of our customer service. We do not retain customers who
have a poor pa
yment history as it can create a continuing impairment risk and
runs counter to our responsible lending commitments.
Employees and
Customer
representatives
Employee
information
Not applicable
Customer representatives are self
-employed individuals who represent the Group’s
subsidiaries and are engaged under civil contracts with the exception of Hungary
and Romania where they are employees engaged under employment contracts
due to local regulator
y reasons.
Customer representatives
and employee
retention
(%)
None
Not applicable
This measure represents the proportion of our employees and customer
representatives that
have been working for or representing the Group for more
than 12
months. Experienced people help us to achieve and sustain strong
customer relationships and a high quality service, both of which are central to
achieving good customer retention. Good customer representative and employee
retention also helps reduce costs
of recruitment and training, enabling more
investment in people development.
International Personal Finance plc204
Financial Statements
Annual Report and Financial Statements 2024
205
Constant exchange rate reconciliations
The year-on-year change in profit and loss accounts is calculated by retranslating the 2023 profit and loss account at the average actual
exchange rates used in the current year.
202
4
£m
European
home credit
Mexico
home credit IPF Digital Central costs Group
Customers (000)
725 680 247 – 1,652
Average gross receivables
706.0 306.9 314.6 – 1,327.5
Closing receivables
459.6 159.4 251.0 – 870.0
Customer lending
662.1 289.2 263.2 – 1,214.5
Revenue
328.2 263.8 134.3 – 726.3
Impairment
(8.1)
(92.4)
(27.0)
– (127.5)
Net revenue
320.1 171.4 107.3 – 598.8
Interest expense
(37.6)
(14.4)
(18.3)
(0.1)
(70.4)
Costs
(225.1)
(131.0)
(72.0)
(15.1)
(443.2)
Profit/(loss) before tax
57.4 26.0 17.0 (15.2)
85.2
2023 performance at 2023 average foreign exchange rates
£m
European
home credit
Mexico
home credit IPF Digital Central costs Group
Customers (000)
754 716 230 – 1,700
Average gross receivables
791.1 299.4 298.4 – 1,388.9
Closing receivables
475.4 187.1 230.4 – 892.9
Customer lending
601.7 302.8 246.1 – 1,150.6
Revenue
375.9 261.6 130.3 – 767.8
Impairment
(35.6)
(96.7)
(37.1)
– (169.4)
Net revenue
340.3 164.9 93.2 – 598.4
Interest expense
(47.4)
(12.1)
(17.3)
(0.1)
(76.9)
Costs
(225.2)
(129.7)
(67.8)
(14.9)
(437.6)
Profit/(loss) before tax
67.7 23.1 8.1
(15.0)
83.9
Foreign exchange movements
£m
European
home credit
Mexico
home credit IPF Digital
Central costs Group
Average gross receivables
(16.1)
(16.6)
(7.3)
– (40.0)
Closing receivables
(29.3)
(32.3)
(16.9)
– (78.5)
Customer lending
(13.6)
(17.7)
(6.7)
– (38.0)
Revenue
(7.2)
(15.2)
(3.7)
– (26.1)
Impairment
0.2 6.1 1.5 – 7.8
Net revenue
(7.0)
(9.1)
(2.2)
– (18.3)
Interest expense
0.9 0.7 0.4 – 2.0
Costs
3.7 6.5 1.2 – 11.4
(2.4)
(1.9)
(0.6)
– (4.9)
2023 performance at 2024 average exchange rates
£m
European
home credit
Mexico
home credit
IPF Digital
Central costs Group
Average gross receivables
775.0 282.8 291.1 – 1,348.9
Closing
receivables 446.1 154.8 213.5 – 814.4
Customer lending
588.1 285.1 239.4 – 1,112.6
Revenue
368.7 246.4 126.6 – 741.7
Impairment
(35.4)
(90.6)
(35.6)
– (161.6)
Net revenue
333.3 155.8 91.0 – 580.1
Interest expense
(46
.5)
(11.4)
(16.9)
(0.1)
(74.9)
Costs
(221.5)
(123.2)
(66.6)
(14.9)
(426.2)
Annual Report and Financial Statements 2024 205
Alternative performance measures continued
206 Annual Report and Financial Statements 2024
Year-on-year movement at constant exchange rates
European
home credit
Mexico
home credit IPF Digital
Central costs Group
Average gross receivables
(8.9%)
8.5% 8.1% –
(1.6%)
Closing receivables
3.0% 3.0% 17.6% – 6.8%
Customer lending
12.6%
1.4%
9.9%
–
9.2%
Revenue
(11.0%)
7.1% 6.1% –
(2.1%)
Impairment
77.1%
(2.0%)
24.2% – 21.1%
Net revenue
(4.0%)
10.0%
17.9%
–
3.2%
Interest expense
19.1%
(26.3%)
(8.3%)
– 6.0%
Other costs
(1.6%)
(6.3%)
(8.1%)
(1.3%)
(4.0%)
Pre-exceptional return on equity (RoE)
Pre-exceptional RoE is calculated as pre-exceptional profit after tax divided by average pre-exceptional equity:
2024
£m
2023
£m
2022
£m
Equity (net assets)
466.3
501.9
445.2
Exceptional items
(5.5)
4.0
(10.5)
Pre
-exceptional equity 460.8 505.9 434.7
Average pre
-exceptional equity 483.4 470.3
Profit after tax
60.9 48.0
Exceptional items
(5.5)
4.0
Pre
-exceptional profit after tax 55.4 52.0
Pre
-exceptional RoE 11.5% 11.1%
Pre-exceptional return on required equity (RoRE)
Pre-exceptional RoRE is calculated as pre-exceptional profit after tax divided by required equity of 40% of average net receivables:
202
4
European
home credit
£m
Mexico
home credit
£m
IPF Digital
£m
Group
£m
Closing net receivables 202
4 459.6 159.4 251.0 870.0
Closing net
receivables 2023 475.4 187.1 230.4 892.9
Average net receivables
467.5 173.3 240.7 881.5
Equity (net assets) at 40%
187.0 69.3 96.3 352.6
Pre
-exceptional profit before tax 57.4 26.0 17.0 85.2
Tax at 35%
(20.1)
(9.1)
(6.0)
(29.8)
Pre
-exceptional profit after tax 37.3 16.9 11.0 55.4
Pre
-exceptional RoRE 19.9% 24.4% 11.4% 15.7%
2023
European
home credit
£m
Mexico
home credit
£m
IPF Digital
£m
Group
£m
Closing net receivables 2023
475.4 187.1 230.4 892.9
Closing net receivables 2022
496.3
158.5
214.0
868.8
Average net receivables
485.8 172.8 222.2 880.8
Equity (net assets) at 40%
194.3
69.1
88.9
352.3
Pre-exceptional profit before tax
67.7
23.1
8.1
83.9
Tax at 38%
(25.7)
(8.8)
(3.1)
(31.9)
Pre
-exceptional profit after tax 42.0 14.3 5.0 52.0
Pre
-exceptional RoRE 21.6% 20.7% 5.6% 14.8%
International Personal Finance plc206
Financial Statements
Annual Report and Financial Statements 2024
207
Average gross receivables
2024
£m
2023
£m
European home credit
706.0 791.1
Mexico home credit
306.9 299.4
IPF Digital
314.6 298.4
Group
1,327.5 1,388.9
Impairment coverage ratio
Impairment coverage ratio is calculated as loss allowance divided by closing gross receivables:
2024
£m
2023
£m
Closing gross receivables
1,297.5 1,401.1
Loss allowance
(427.5)
(508.2
)
Closing net receivables
870.0 892.9
Impairment coverage ratio
32.9% 36.3%
Annual Report and Financial Statements 2024 207
Shareholder Information
Financial calendar for 2025
26 February 2025 Announcement of 2024 full-year results
10 April 2025 Ex-dividend date for final dividend
11 April 2025 Record date for final dividend
17 April 2025 DRIP cut-off date
1 May 2025 AGM
12 May 2025 Payment of 2024 final dividend
30 July 2025 Announcement of 2025 half-year results
28 August 2025 Ex-dividend date of interim dividend
29 August 2025 Record date for interim dividend
5 September 2025 DRIP cut-off date
26 September 2025 Payment of 2025 interim dividend
Dividend history
Details of previous dividend payments can be found on our
website at www.ipfin.co.uk
Year Pence
Ex-dividend
date Pay date Type
2024 3.4 29/08/2024 27/09/2024 Interim
2023 7.2 11/04/2024 10/05/2024 Final
2023 3.1 31/08/2023 29/09/2023 Interim
2022 6.5 06/04/2023 05/05/2023 Final
2022 2.7 01/09/2022 30/09/2022 Interim
Dividends
Dividends can be paid directly into a shareholder’s bank
or building society account. This ensures secure delivery
and means that cleared funds are received on the payment
date. For shareholders who are resident outside the UK,
dividend payments are made by Link’s International Payment
Service and are paid in local currency. The Company offers
a dividend reinvestment plan (DRIP). A DRIP is a convenient
and easy way to build a shareholding by using cash dividends
to buy additional shares rather than receiving a cheque
or having your bank account credited with cash. To receive
more information, change your preferred dividend payment
method, or if you would like to participate in the DRIP, please
contact the Company’s registrar, MUFG Corporate Markets
(see below).
Registrar
Queries relating to your shareholdings including transfers,
dividend payments/reinvestments, lost share certificates,
duplicate accounts and amending personal details should
be addressed to the Company’s registrar:
MUFG Corporate Markets, 10
th
Floor, Central Square,
29 Wellington Street, Leeds LS1 4DL.
Telephone:
0371 664 0300 (calls are charged at the standard geographic
rate and will vary by provider). If you are calling from outside
the UK, please call +44 (0)371 644 0300 (calls outside the UK
will be charged at the applicable international rate). Lines are
open between 09:00 and 17:30, Monday to Friday, excluding
public holidays in England and Wales.
Email
shareholderenquiries@cm.mpms.mufg.com
Website:
www.mpms.mufg.com
Go paperless
Shareholders can register for electronic communications by
visiting www.myipfshares.com.
Why receive information this way?
– Online access to personal shareholding information.
– Ability to manage shareholding and personal details
proactively.
– Receive documents faster.
– Helps save paper.
– Savings on printing and delivery costs.
To register, shareholders will need their investor code,
which is printed on correspondence received from the
Company’s Registrar. This service will require a user ID and
password to be provided on registration.
ShareGift
If you have a small shareholding in International Personal
Finance plc and it would be uneconomical to sell the shares,
you may wish to donate them to ShareGift (registered charity
no. 1052686), which is an independent charity. ShareGift can
amalgamate small shareholdings in order to sell the shares
and pass the proceeds on to other charities. More information
is available at www.sharegift.org or telephone 020 7930 3737.
Cautionary statement
The purpose of this report is to provide information to the
members of the Company. It has been prepared for, and only
for, the members of the Company, as a body, and no other
persons. The Company, its directors and employees, customer
representatives or advisers do not accept or assume
responsibility to any other person to whom this document
is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed. The Annual
Report and Financial Statements contains certain forward-
looking statements with respect to the operations,
performance and financial condition of the Group.
By their nature, these statements involve uncertainty since
future events and circumstances can cause results and
developments to differ materially from those anticipated.
The forward-looking statements reflect knowledge
and information available at the date of preparation of the
Annual Report and Financial Statements and the Company
undertakes no obligation to update these forward-looking
statements (other than to the extent required by legislation
and the Listing Rules and the Disclosure and Transparency
Rules of the Financial Conduct Authority). Nothing in this year’s
Annual Report and Financial Statements should be construed
as a profit forecast.
International Personal Finance plc208
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showing that it is committed to all round excellence
and improving environmental performance
isanimportant part of this strategy.
Pureprint Ltd aims to reduce at source the effect its
operations have on the environment and is committed
to continual improvement, prevention of pollution and
compliance with any legislation of industry standards.
Pureprint Ltd is a CarbonNeutral
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International Personal Finance plc
Telephone: +44 (0)113 539 5466
Email: investors.mailbox@ipfin.co.uk
Website: www.ipfin.co.uk
Registered in England and Wales
Company number: 6018973