IPF Digital

IPF Digital operates an end-to-end remote lending model and Q1 performance was not materially impacted by Covid-19; nonetheless the company significantly tightened credit settings in the second half of March to protect credit quality and manage cashflow. Credit issued contracted year-on-year by 21%, driven by the March impact of Covid-19 together w... ith tighter credit settings already in place in the company's new markets. Total collections in March were 93% of budget. In the short-term, the company has reduced the amount of credit issued, and the company's focus for new lending is now on the company's highest quality customers. The company has introduced payment holiday options across all the company's markets to increase repayment flexibility for customers that have been impacted by Covid-19. April collections effectiveness is expected to be around 82%, with the main driver of the reduction being fewer customers overpaying their minimum repayment obligations. The company's Polish digital business is operating under the temporary rate cap described in the European home credit section of this trading update and in Finland, a tightening of the interest rate cap from 20% to 10% has been implemented as a temporary measure until the end of the year for all new lending.Read More