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Accelerating
growth
Annual Report and
Financial Statements 2025
Accelerating
growth and the
pace of change
See page 4 for Our strategy
IPF is a leading international consumer
credit provider supporting customers who
are underserved by traditional lenders.
Guided by our purpose to build a better
world through financial inclusion, we offer
fair, flexible credit and value-added
services to millions of people across our
markets through a growing multi-product,
multi-channel proposition.
2025 was a year of growth and
transformation. Through our Next Gen
strategy, we are moving faster, reaching
more customers and reshaping how we
create value. We are accelerating growth
while reinvesting in our products, people
and technology to make IPF an even better
business. From launching new digital credit
products and expanding retail partnerships
to enhancing customer journeys through
AI, we are delivering on our plans and
building momentum for the future.
Strategic Report
2025 highlights 1
At a glance 2
Our strategy 4
Next Gen financial inclusion 6
Next Gen organisation 8
Next Gen technology and data 10
Chair’s statement 12
Our business model 14
Market review 16
CEO’s review 18
Strategic progress 20
Key performance indicators 22
Operational review 24
Financial review 30
Principal risks and uncertainties 34
Viability statement 41
Responsible Business 42
Stakeholders in focus 46
Section 172 and Board decision making 64
IPF in society 66
Corporate Sustainability Reporting
Directive (CSRD) Statement
76
Independent Limited Assurance Report 110
Task Force on Climate-related Financial
Disclosures
112
Non-Financial and Sustainability
Information Statement
123
Directors’ Report
Introduction to governance 126
Our Board and Committees 128
Governance at a glance 130
Role of the Board and its Committees 132
Nominations and Governance
Committee Report
139
Audit and Risk Committee Report 145
Directors’ Remuneration Report 152
Statutory information 172
Directors’ responsibilities 177
Follow us on LinkedIn, X and Facebook
Find out more at www.ipfin.co.uk
Financial Statements
and Auditor’s Reports
Independent Auditor’s Report 180
Consolidated income statement 187
Statements of comprehensive income 187
Balance sheets 188
Statements of changes in equity 189
Cash flow statements 191
Notes to the Financial Statements 192
Alternative performance measures 231
Supplementary
Information
Shareholder information 236
1.7m
customers served with affordable,
responsible credit solutions
Pre-exceptional return
on required equity
14.9%
Closing net
receivables growth
+13.9%
*
2025 highlights
Accelerating
growth across the Group
Good customer demand and
disciplined execution drove strong
lending and receivables growth
inevery division.
Investing
in technology and data
Upgraded digital platforms
andtechnology-enabled insights
are improving customer journeys
and making our operations
moreefficient.
Transforming
our business for the long term
We are investing in our people,
systems and markets to support
further sustainable growth and
improved productivity.
Innovating
to enhance our offering
New digital credit cards, retail
partnerships and shorter-term
loans are helping us reach
more customers with tailored
credit solutions.
Maintaining
robust credit quality
Customer repayment performance
remains strong, reflecting our
disciplined approach to lending
and repayments.
Building
financial strength
Strong capital and funding
flexibilityenable us to reinvest
forgrowth and accelerate
ourNextGen strategy.
Awards
We were
recognised for
multiple awards
in 2025
Customer lending (£m)
Pre-exceptional profit
before tax (£m)
Pre-exceptional
earnings per share (p)
Dividend per share (p)
+12%*
+4%
+5.6%
+12.3%
2023 2024 2025
1,342.0
1,214.5
1,150.6
2023 2024 2025
83.9
85.2
88.6
26.3
24.9
23.2
2023 2024 2025
12.8
11.4
10.3
2023 2024 2025
Annual Report and Financial Statements 2025
1
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
* at constant exchange rates
* at constant exchange rates
738,000
customers
+2%
£575m
closing net receivables
+16%*
705,000
customers
+4%
£191m
closing net receivables
+11%*
286,000
customers
+16%
£295m
closing net receivables
+12%*
* at constant exchange rates
Provident MexicoProvident Europe IPF Digital
Accelerating growth across our three divisions
IPF is a global financial services business operating across nine international markets.
We support financial inclusion by providing affordable, small-sum unsecured credit and
value-added services responsibly. Our Next Gen strategy is delivering sustainable growth
and long-term value for our stakeholders.
IPF plc
head
office
Lithuania
Latvia
Estonia
Romania
Hungary
Poland
Czech
Republic
Our divisions
Mexico
Australia
Our products
Digital
instalment
loans
An affordable, fully
digital service with
terms from one month
to three years and
monthly repayments.
Home credit
instalment loans
Small loans with weekly
repayments and a
personal service
delivered at home by
our customer
representatives.
Hybrid
loans
A blend of personal
and digital service for
customers whose
credit profile is not
strong enough for a
fully digital offer.
Credit
cards
A convenient way
to shop in-store or online,
oraccess cash via our
customer representatives
orat ATMs.
1
2 43
At a glance
4 6
1 54 6 7 8
6 7
1
1
6 8
6 7
4 6 7
1
2
4
5
8
1 2 3 4 8
8
Provident Europe
and IPF Digital
Provident Mexico
and IPF Digital
Our customers
Our customers budget carefully
andprefer to borrow small amounts
withclear, affordable repayments.
Manyarenew to credit or excluded
bytraditional lenders and value our
responsible, understanding approach
asa trusted way to buy the things they
want and need.
Many face barriers to financial
services due to:
• Modest incomes and limited savings
• Irregular earnings
• Little or no credit history
• Rural location or poor bank access
• Previous credit issues
• High bank fees
For more information on our
customers see page 46.
Typical loan
£950
Typical loan
£350
Average credit line
£1,250
Average term
83weeks
Average term
47weeks
Average instalment loan
£250
Provident MexicoProvident Europe IPF Digital
Meeting our customers’ needs
60%
of customers are female
45%
of customers are 30-50 years old
Medical expenses
School and education costs
How our customers use their loans
Budgeting and emergencies
Home or household needs
Family occasions and holidays
Revolving
credit line
Flexible access to funds
up toaset limit, with
more credit available as
balances are repaid.
Mobile
wallet
Online payments
and value-added
services, all in
ourcustomers’
pockets.
Value-added
services
A range of value-added
products beyond credit,
including health and life
insurance.
Retail
credit
Partnering with
retailers to offer
instalment loans
in-store and online.
8765
Annual Report and Financial Statements 2025
3
International Personal Finance plc
2
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
Our strategy
Strategic framework
Building a better world through financial inclusion.
Our vision
Our strategic pillars
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.
Supported by our values
Guided by our financial model
Balancing sustainable returns and value for all stakeholders.
Responsible Respectful
Straightforward
Our purpose
These pillars define how our strategy delivers sustainable
growth and long-term value for all our stakeholders.
Next Gen
financial
inclusion
Building the products,
channels and territories
to ensure our offers are
attractive to the next
generation of customers.
Next Gen
organisation
Becoming a smarter,
more efficient
organisation that makes
a positive impact on
society.
Next Gen
technology
and data
Investing in the
capabilities required to
become a data-driven
and technology-enabled
partner for our customers.
For more information see Strategic progress onpage 20
Our Next Gen strategy is delivering results. It is driving faster
growth, stronger customer outcomes and improving efficiency.
Momentum is building across all pillars of the strategy as we
expand the products, channels and services we offer, build
ahigh-performing and inclusive workplace, and enhance
ourdigital capability.
Our strategy to accelerate
growth and the pace of change
See page 6 See page 8 See page 10
Annual Report and Financial Statements 2025
5
International Personal Finance plc
4
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
Next Gen
financial inclusion
Our strategy continued
We are helping more people access
fair, affordable credit and supporting
financial inclusion across our
markets. Through our Next Gen
strategy, we are broadening our
reach, developing new products
andchannels, and ensuring more
customers can benefit from the
financial services they need.
Making
a difference
We are building on the success of our established products by introducing new products,
channelsand customer experiences from one market to another. This approach gives
customersawider choice of products that meet their needs, enhances efficiency
andstrengthensour presenceinourexisting markets.
c.200,000
active credit cards
2,700
stores and online merchants
offering our retail finance
2
new branches
in Mexico
30-60
day repayment terms
added to our portfolio
How we are accelerating growth to deliver on our strategy
Credit cards gaining momentum
We delivered strong growth in credit cards in Poland and we
also launched a fully digital card, a product that we expect
to be a key driver of future growth. In2025, the credit card’s
strong appeal has supported our extension of the product
into Romania, where testing commenced in late 2025 ahead
of an expected full launch to consumers in this market in the
third quarter of 2026.
Innovating to create more choice
Responding to strong demand for small, fast-repay
borrowing, we introduced short-term digital loans in Mexico
and Poland. Offering credit in the £100–£200 range for
repayment within 30–60 days, these loans complement
ourlonger-term products. They are also proving to be
aneffective way to attract new customers and introduce
them to our broader offering, including longer duration
loans, credit lines and credit cards. Customers needing
moretime to repay can also switch to a longer-term plan.
Expanding in Mexico
We opened two new branches in Provident Mexico in 2025 –
the first in Monterrey and a second in Ensenada, south
ofTijuana. With momentum building across the business,
expanding into new areas will support Provident Mexico’s
delivery of sustainable, long-term growth.
Growing reach through retail credit
We continued to scale our retail partnerships model,
providing tailored credit solutions at the point of sale.
InRomania, purchase finance is now available across
morethan 1,700 offline and online retail locations.
InMexico,the partnerships proposition expanded
significantly, with retail finance available at over 100
onlinemerchants and more than 900 physical stores.
“Our priority is to drive financial inclusion through innovation –
expanding our product range, strengthening digital access
and serving more customers, in more ways.”
For more information see Strategic progress on page 20
Focus for 2026
Annual Report and Financial Statements 2025
7
International Personal Finance plc
6
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
How we are building a culture that drives performance and impact
Next Gen
organisation
Our strategy continued
We are shaping a business that’s
inspiring to work for, active in the
communities we serve, and
increasingly smarter and more
efficient in how we operate.
Weareinvesting in leadership,
culture, capability and data-led ways
ofworking to help colleagues reach
theirpotential, deliver the products
andservices our customers value
most, and support our purpose of
building financial inclusion.
Shaping the future
of how we work
Through our Next Gen organisation pillar, we are building a workplace where people feel
empowered, connected and proud of what they do. By nurturing talent, strengthening
leadership and embracing smarter, more efficient ways of working, we are creating a culture
that inspires collaboration and drives lasting success for our business and stakeholders.
91%
response rate to our
Global People Survey
1
new finance, HR
and procurement platform
will replace multiple systems
c.75%
of colleagues are female
4,000
colleagues volunteered
in our communities
Highly engaged colleagues
Our Global People Survey gave every colleague a voice
across our 20,000+ strong workforce. The results show a deep
sense of pride and belonging at IPF, reflecting the positive
impact of our culture, leadership and care for people
aswecontinue to strengthen our organisation.
Readmoreon page 50.
Making a difference together
Every year, our Volunteering and Financial Inclusion Month
brings colleagues together to make a positive impact on
people and communities across our markets. In 2025,
4,000colleagues took part in activities that brought teams
together, built connections and made a real difference.
Through our Invisibles programme, we also continue to shine
a light on overlooked groups, improving access to finance
and opportunity. Read more on page 58.
Partnering for women’s empowerment
In Mexico, we joined forces with UN Women through
athree-year partnership that champions gender
equalityand financial inclusion. Guided by the Women’s
Empowerment Principles, we are helping to create
opportunities, drive organisational change and inspire
progress, an important step forward in supporting women
across our business and in the communities we serve.
Simplifying how we work
We are introducing new systems and more consistent,
repeatable processes to reduce complexity, improve
accuracy and make day-to-day work simpler for colleagues
so they can focus more time on customers and value-adding
activity. An example is ONE IPF, our programme transforming
how our finance, HR and procurement teams operate with
anew enterprise resource planning system, which will
standardise processes, improve data quality and drive
greater efficiency.
“Our focus will be to keep strengthening our culture and helping
colleagues grow, collaborate and thrive, while embedding smarter,
more efficient ways of working that support long-term success.”
For more information see Strategic progress on page 20
Focus for 2026
Annual Report and Financial Statements 2025
9
International Personal Finance plc
8
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
Next Gen
technology and data
Our strategy continued
We are using technology and data
to strengthen how we serve our
customers and run our business.
We are investing in the systems,
tools and skills that make us a more
data-driven, technology-enabled
and resilient organisation – one
that can innovate faster, adapt
more effectively and deliver
smarter solutions.
Transforming
our business
We are enhancing customer experience through better use of data, digital tools and automation –
making our services faster, more personalised and easier to use for both customers and
colleagues.These changes are also improving accuracy and efficiency, helping to build
amoreconnected, responsive and resilient business that delivers lasting value for customers,
colleagues and investors.
185,000
mobile wallet customers
100,000
customers used web chat
in Provident Europe in 2025
3
new repayment options available
toProvident Mexico customers
Offering more payment choices
In Provident Mexico, we piloted new digital and in-store
payment options that give customers more flexibility
andconvenience when repaying their loans. From secure
online payment links to partnerships with major retailers,
these improvements make repayments easier, strengthen
financial inclusion for the communities we serve and
reducecosts.
Smarter learning and support
We are using AI to support how we build and deploy
technology, helping make software development faster
and more efficient. This approach is speeding up delivery,
improving accuracy and helping us bring new digital
capabilities to customers more quickly. We also launched
pilot projects using AI and digital avatars to create
more engaging learning experiences for our customer
service teams.
Improving our customer journey
In Provident Europe, more customers are using our
omnichannel platform, which brings together call centres,
websites and mobile apps into one seamless journey.
Thisgives us a complete view of each customer, enabling
more personalised, efficient and consistent service.
Wealsolaunched web chat in all four of our Provident
Europe markets, giving customers more choice in how
theyinteract with us.
Expanding digital service capabilities
We focused on continuing to develop our mobile apps for
customers in Provident Europe, with a new app going live
inHungary at the end of 2025, and the Czech Republic
andRomania set to launch in the first half of 2026.
Thesecomplement our existing apps in Mexico and Poland.
InIPFDigital, we also expanded the reach of our mobile
wallet, giving more than 185,000 customers faster, simpler
and more secure access to credit.
“We will use technology and data to make our services better for
customers – helpingus anticipate needs, make their experience easier
and build lasting relationships through smart tools and understanding.”
For more information see Strategic progress on page 20
Focus for 2026
How data and technology drive smarter decisions
Annual Report and Financial Statements 2025
11
International Personal Finance plc
10
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Strategic
Report
Chair's statement
“We are making a real difference in the lives of
millions of people and helping to shape more
financially inclusive communities.”
Stuart Sinclair
Chair
Welcome to our 2025 Annual Report
I am pleased to report that 2025 was a year of continued
progress for IPF, as we advanced the delivery of our strategy
and achieved further growth across the Group. This growth,
however, has not been solely about scale, but about extending
our reach and relevance across our markets. By broadening
our product range, expanding our channels and entering new
regions, wearecreating more opportunities for customers
toaccesscredit when they need it.
This blend of innovation, responsibility and human connection
continues todefine what sets IPF apart. We are supporting
more customers and extending financial access to people
whooften struggle to borrow elsewhere. Every loan we provide
shows our purpose in action – building a better world through
financial inclusion.
Performance and delivery
This year’s results underline the strength of our business
modeland the momentum created by our Next Gen strategy.
Lendingvolumes and customer numbers increased year on
year, supported by robust credit quality as we balanced our
approach to risk and reward. This progress reflects the trust
wehave built with our customers by providing simple,
transparent and affordable credit whenitis needed most.
We continued to invest in digital innovation and efficiency
which is helping us to create a more resilient andscalable
business, while maintaining the high standards of conduct
andcare that define how we serve our customers.
TheGroup’sprofitability, strong capital position
andhealthycash generation provide a solid platform
forfuturegrowthandinvestment.
The Board has worked closely with management to ensure
westrike the right balance between short-term performance
and long-term value creation, and through disciplined
execution and a clear sense of purpose, IPF is demonstrating
that responsible financial inclusion can deliver both meaningful
social impact and strong, sustainable performance.
Financial inclusion at the
heart of growth and change
Dividend and returns
Reflecting the Group’s strong performance and the Board’s
confidence in the business’s long-term growth prospects,
afinaldividend of 9.0 pence per share is being recommended,
bringing the total dividend for the year to 12.8 pence per share.
This is subject to shareholder approval at the AGM in April.
Overall, the dividend declared represents an increase
of12.3%on 2024 and remains fully aligned with our
progressivedividend policy.
The Group’s profitability, strong funding position and robust
balance sheet provide the flexibility to reward shareholders
while continuing to invest ingrowth through our Next
Genstrategy.
Leadership and Board changes
The Board brings deep experience in financial services,
strategy, risk management and digital innovation, providing
strong oversight as the Group continues its journey of growth
and transformation. During the year, Deborah Davis retired from
the Board, and Aileen Wallace succeeded her as Chair of the
Remuneration Committee following the AGM in May. At the
same time, Katrina Cliffe, Senior Independent Director and
Designated Workforce Engagement Non-Executive Director,
joined the Audit and Risk Committee.
Responsible business and engagement
Operating responsibly and sustainably iscentral to how we
create long-term value for all stakeholders. As a business
founded on financial inclusion and operating in diverse
markets, our relationships with customers, colleagues,
regulators, suppliers, communities and investors are
fundamental to sustaining that success. During the year,
theBoard received regular insights into stakeholder priorities
and how these shape the choices we make – from product
design and digital investment, to operational improvements
and colleague development. We also carefully considered
stakeholder interests in major decisions, including those relating
to our Next Gen strategy and proposed Remuneration Policy,
ensuring their perspectives were properly reflected in our
strategic direction and governance. By maintaining open
dialogue and responding to what we hear, we strengthen trust
in IPF’s role as a responsible provider of credit and support
sustainable value creation for all stakeholders. You can read
more on page 14 and in our Responsible business section
starting on page 42.
The recommended cash offer for IPF
At the end of 2025, a recommended cash offer for IPF was announced which
theBoard believes represents acompelling opportunity for shareholders.
Q: What has been agreed?
On 24 December 2025, the IPF Board and IPF Parent
HoldingsLimited (BasePoint), a newly formed company
inthe same group as BasePoint Capital LLC, announced
arecommended cash acquisition of the entire issued
andto-be-issued share capital of IPF by IPF Parent Holdings
Limited (the Acquisition). The transaction remains subject
toshareholder approval, regulatory clearances
andcustomary conditions.
Q: Why did the Board recommend
the offer?
The Board believes the offer provides an attractive
opportunity for shareholders to realise the full value of their
investment set against the inherent uncertainty of realising
the value that could be generated by IPF’s business in the
future. It reflects IPF’s strong operational performance,
butalso recognises the risks associated with IPF executing
on itsstrategy and delivering shareholder value as an
independent listed company.
Q: What does this mean for IPF?
Until completion, IPF continues to operate as an
independent, listed company. Our purpose, strategy
andcustomer commitments remain unchanged,
andwecontinue to focus on delivering growth and
investingin innovation through our Next Gen strategy.
Q: What happens next?
The potential transaction is subject to shareholder approval,
regulatory clearances and court approval. Full details
oftheoffer and future processes are set out in the Rule 2.7
announcement dated 24 December 2025 which can
beaccessed at www.ipfin.co.uk. Further updates will be
announced via the London Stock Exchange and available
at www.ipfin.co.uk.
Outlook
Entering 2026, we do so with momentum and a clear ambition
to grow and continue modernising our business. Thepace of
change in financial services is rapid, and we are committed
toinnovating, strengthening our operational foundations and
evolving our product range so we can meet the changing
needs of our customers. Ourfocus is firmly on sustainable,
responsible growth and ensuring weremain a dependable
partner for thepeople and communities we serve.
My thanks go to our colleagues, customers and to you,
ourshareholders, for your confidence in IPF. Thissupport
isthefoundation of our success and the reason we are able
toacreate meaningful, positive impact for millions of people
across our markets.
Stuart Sinclair
Chair
25 February 2026
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Responsible
Taking due care in all
our actions and
decisions.
Respectful
Treating others as they
would like to be treated.
Straightforward
Being open and
transparent
in everything we do.
Underpinned by our values
O
u
r
k
e
y
r
e
l
a
t
i
o
n
s
h
i
p
s
a
n
d
v
a
l
u
e
c
r
e
a
t
i
o
n
Our key relationships and value creation
ColleaguesCustomers
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, responsible
and regulated credit helps customers
buy the things they want and build a
credit history.
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.
Strategic pillars key
Next Gen
financial inclusion
Next Gen
organisation
Next Gen
technology and data
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.
Investors and
ratings agencies
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.
1.7m
customers included in the
financial mainstream
20,000+
colleagues
>£250m
dividends paid to shareholders
since listing in 2007
Building a better
world through
financial inclusion
Attract target
customers
Requests
for credit
Assess
affordability and
creditworthiness
Lend
responsibly
Collect
repayments
and manage
customers
facing
difficulties
Generate
revenue
Reinvest and
deliver returns
What we do
We play an important role in supporting
financial inclusion across our nine
markets, providing customers who are
often overlooked by mainstream lenders
with simple, transparent and affordable
financial products.
Over time, we have developed a broader
product suite to meet changing
consumer needs – from home credit and
digital instalment loans tocredit cards,
retail finance, digital credit lines and
amobile wallet. This is complemented
bya range of value-added services
delivered in partnership with well-
established, trusted third-party providers.
Each of our products is designed around
our customers’ financial circumstances
and delivered with a clear focus
onresponsible lending. By doing so,
weareenabling millions of people
tobuild financial confidence, improve
resilience and participate more fully
inthe economies and communities
weserve.
17
2
3
4
5
6
SuppliersCommunities
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.
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.
Specialist lender
We bring nearly 30 years of experience
serving underbanked and underserved
customers. This specialist knowledge of
our markets, customer behaviours and
regulatory environments enables us to
provide responsible credit solutions for
people whose needs are not fully met
bymainstream lenders.
Unique product offering
We are the only financial services
provider to offer both home credit and
digital lending at scale, complemented
by a range of value-added services.
Thisbreadth allows us to meet customers’
different credit profiles and provide a
flexible pathway when their financial
circumstances, needs or market
dynamics change.
Close customer
relationships
Strong relationships underpin our model.
For Provident customers, regular face-to-
face visits help us understand their
circumstances, assess affordability and
support repayments. We also engage
through apps, messaging and care
teams and this combination of personal
contact and digital interaction enables
responsible lending and stronger
financial resilience.
Competitive advantage
Our home credit infrastructure – with
thousands of customer representatives
and tightly managed operations – is
difficult to replicate and takes years to
build. Coupled with our growing digital
capabilities, this gives us a differentiated
position in the markets we serve.
What makes us different
“ When my washing machine
broke unexpectedly or when we
needed a bike for my grandson,
you were there to help when
things didn’t go as planned.
Theteam is always kind,
helpful,and treats me with such
humanity. I feel truly supported
every time I reach out to them.”
Katalin, Hungary
Profitable and highly
scalable business
We are a profitable, cash-generative
business with a proven business model.
Our Provident Europe and Mexico
divisions deliver target returns, while
ourdigital businesses are scaling rapidly
as demand for affordable online credit
grows. Together, they provide strong
foundations for long-term value creation
and disciplined capital allocation.
Data insight
AI and machine learning enable us
tointegrate high-quality data into our
analytics, enhancing risk models and
enabling smarter lending decisions.
Thesecapabilities also improve marketing
effectiveness, refine customer journeys
and deepen our understanding of the
customers and communities we serve.
£500,000
invested in our communities in 2025
3,000
suppliers globally
c.25
sector associations
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Key trends informing our Next Gen strategy
Economic outlook
1 3 5
– Stable macro conditions in most markets.
– Further interest base rate cuts are easing
pressure for consumers but compressing
revenue yields.
– Government fiscal tightening and tax
reforms continuing across several markets.
– US tariff policies increasing geopolitical
uncertainty.
Our business is well
positioned to capture
substantial long-term
growth opportunities
inthe 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 in the
majority of our markets. Closely
monitoring key consumer and
market trends informs our Next Gen
strategy so we can capitalise on
growth opportunities, address
challenges and manage risk
effectively.
Our response
–
Leveraging our diversified footprint
to balance performance across
nine markets.
– Maintaining disciplined credit settings,
withflexibility to tighten if economic
conditions weaken.
– Protecting margins through ongoing cost
efficiency and operational optimisation.
Changing
customer expectations
4 6 7 8
10
– Demand for personal, fast and seamless
digital journeys continuing to rise.
– Consumers seeking credit at the point
ofpurchase.
– Loyalty, rewards and trusted brands
growing in importance.
– Strong appetite for multi-channel
engagement, blending digital
andpersonalsupport.
Our response
–
Expanding product and channel choice.
– Advancing our customer experience
agenda and embedding our Think
Customer programme.
– Building our brand proposition to strengthen
trust and improve engagement in all
markets.
– Enhancing our omnichannel capabilities
to deliver quicker, more personalised
customer support.
Market trendsOur response
Market review
Technology
7 8
10
– Multi-channel interactions and mobile-first
service now standard.
– AI and data analytics driving stronger credit
decisions and operational efficiency.
– Rising digital transactions are increasing
cybersecurity and fraud-prevention
demands.
– High expectations for speed, simplicity
and intuitive digital journeys.
Our response
–
Deepening our use of analytics and AI
toenhance credit decisions, marketing
efficiency and customer journeys.
– Strengthening cybersecurity and
fraud-prevention capabilities as
digitaltransactions increase.
– Streamlining digital processes and
infrastructure to deliver faster, simpler
andmore reliable customer interactions.
Competition
7
– Competition remains high across
all markets.
– While not direct competition, “Buy now, pay
later” sector consolidating and influencing
customer expectations at checkout.
– Some traditional competitors retrenching
due to regulation and capital constraints.
Our response
–
Broadening our product set and channels
toattract more customers.
– Our home credit model continues to offer
competitive barriers to entry.
– Enhancing our digital, credit card and retail
credit propositions to compete effectively.
– 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, transparency
andresponsible conduct.
– The EU Consumer Credit Directive II (CCD II)
is reshaping pricing, fees, advertising and
affordability rules.
– Political change creating some uncertainty.
– Wage, subsidy and tax policy shifts affecting
affordability and operating costs.
Our response
–
Engaging with regulators and policymakers
to demonstrate our role in promoting
financial inclusion.
– Operating effectively within pricing
andaffordability regulations.
– Preparing for CCD II transposition,
ensuringcompliance from the end
ofNovember 2026.
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
Data integrity and systems resilience
See pages 34-40 for more information
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CEO’s review
2025 was a pivotal year for IPF. We delivered a very strong
operational performance, made good progress against our
strategy and strengthened our ability to serve more customers
across our markets. At the same time, it has been a year of
reflection on how best to ensure that this progress translates
into long-term value for all stakeholders.
For several years, both our shareholders and I have been
frustrated that the great progress we have made has not been
reflected in the share price. A core part of my role is to create
shareholder value, and despite excellent operational execution
and delivery, we were not achieving this as effectively as we
should. With the Board’s support, we started to look at non-
operational avenues to create this value, the principal one
beinga change in ownership structure. After appointing
independent advisers, we undertook a strategic review
ofthebusiness and it became clear that we could achieve
ourpurpose of building financial inclusion more quickly while
atthe same time generate greater shareholder value if we
were no longer apublicly quoted entity. And more than
18 months later, having announced a recommended cash
acquisition from IPF Parent Holdings Limited (BasePoint)
inDecember last year, wefind ourselves at a point where
shareholders have the opportunity to be rewarded for their
faithin us and we, asabusiness, get the chance to make
longer-term investments to accelerate financial inclusion
without the constraints ofquarterly public reporting. It is,
inmyview, a great potentialoutcome for all concerned.
What drove the step-up ingrowth
in2025?
Success is rarely achieved through onesingle ingredient,
butrather it is acombination of factors interacting atthe right
moment that can achieve outstanding performance. In our
case, all three divisions executed on their agreed strategy to
deliver strong top-line growth, very good portfolio quality and
disciplined cost control. Strong demand from our customer
segment was evident throughout the year, and our teams
worked hard to meet this demand by expanding our product
range and our distribution channels whilst at the same time
investing in technology to improve our customer experience.
How has the Next Gen strategy
contributed todelivery this year?
Our three pillar Next Gen strategy has become our common
language across the Group. It provides the guide rails within
which we allocate multi-year investments to our strategically
Accelerating growth,
investing in change
“In 2025, 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
important initiatives. Examples include launching short-term
lending in Poland and Mexico or retail partnerships in Romania
and Mexico under our financial inclusion pillar, creating a new
business transformation office as part of our Next Gen
organisation pillar, or investing to become a cloud-based
business to deliver onour Next Gen technology anddata pillar.
These examples have enabled and accelerated our growth,
made us a more efficient organisation and improved our
customer experience.
How have you maintained such strong
repayments while accelerating growth?
Each time we updated shareholders during the year,
Icommented on the strength and consistency of our customer
repayment behaviour and I think there are three core factors
driving this. First and foremost is our application of our
affordability principles through which weseek to ensure that
the repayments acustomer is signing up to are trulyaffordable
for them, and this inturndrives our portfolio quality. Thesecond
contributing factor is that notwithstanding higher levels of
inflation, the employment markets where we trade have
remained robust and our customers have access to regular
income. And finally, and perhaps the most critical, is the very
strong operating rhythm we have across our organisation
where we develop very strong andmutually beneficial habits
withourcustomers.
Where is the biggest opportunity
toexpand financial inclusion?
It is in the nature of the business we are inthat we will always
see strong demand from our customer segment. By definition,
our customers have fewer choices when it comes to accessing
financial services and our role, therefore, is to be there
toprovide financial inclusion in atransparent and affordable
way. Wearecurrently investing strongly inMexico and Australia
because ofthegrowth opportunities we see there. In Mexico,
itis driven by the sheer scale ofthe underserved population
that needs to be addressed, whereas in Australia, we are
investing to build our brand recognition. If we look at the
opportunity to expand financial inclusion through aproduct
ordistribution lens rather than a geographic one, we see
greatscope forgrowth in our new short-term lending and
creditcard products, while our retail partnership models
inRomania andMexico are also set to be large growth
contributors in the years ahead.
What’s driving the successof your
newproducts and channels?
As I mentioned earlier, success usually has many ingredients.
Inthe case of our new products and channels, we are always
focused on what the customer wants to prioritise most.
Forthose customers who only want avery limited advance
tosee them through a short period of time, our new short-term
loan was designed to meet this requirement. For those
customers who are looking to experience the benefits of wider
usability, our credit card product with its easy instalment
repayment plan is proving to be a very good match. As for
distribution channels, to support customers who need finance
for a slightly larger purchase, ournew partnership model
isdelivering the right solution. In short, delivering what the
customer values most has proven tobe a reliable pathway
tosuccess.
How important is employee engagement
indelivering customer and performance
outcomes?
I am always humbled and positively surprised by the dedication
and commitment shown by our colleagues across the Group.
Within the business, weare very proud that we can consistently
mobilise more than 20,000 colleagues to unify around
asingular purpose of building financial inclusion. As a
leadership group, weinvest a lot of time and effort to build
aglobal team where colleagues are motivated and energised
by their work. Our internal colleague surveys, allofwhich
areanonymous, deliver consistently positive feedback
andwearealways looking to make improvements to the
rolesand opportunities we have on offer. Thereisno doubt
inmy mind that thispositivity is a key ingredient
inourcontinued success.
How is investment in technology
anddata transforming IPF?
Other than our people costs, investing intechnology has
become our single largest operating expense. Broadly
speaking, we are investing across three strategic areas:
simplifying the business, protecting the business and building
thebusiness. Our Group has evolved significantly from its early
days of being asimple, single-product home credit business
tobecome a multi-product, multi-channel, digitally enabled
provider of financial services. To ensure we get themost out
ofthe opportunity this new phase presents, we are mandating
common systems wherever possible, moving systems to the
cloud and dramatically reducing the number oftechnology
platforms in use. Thisinvestment in simplification provides us
with a great opportunity to make our technology more robust
and secure, something that has certainly become one of my
top priorities for the Group. Themost obvious evidence of the
impact of our technology investment is in our new products,
channels and ways ofworking, all of which are enabled
byacombination of our own in-house team and trusted
external partners.
How are your digital services making
lendingmore accessible?
Consumer expectations are increasing all the time, and our
customers are no exception. In particular, our customers have
come to expect seamless switching between communication
channels when using our services, perhaps starting out with
acall to one of our customer contact centres, then moving
toan email and subsequently tomessaging services such as
WhatsApp. The standardisation of the technology and services
we use, together with our transition to cloud servicing, have
enabled us to meet the increasing demands of our customers.
Every one of our customer representatives is equipped with
handheld technology andall our new services are being
designed to be mobile first. This is undoubtedly a significant
investment, but it will leadtogreater efficiencies across the
business and more customer-focused journeys, which can
onlybe a good thing for our organisation.
What impact is AI having
onyourbusiness?
I am a firm believer that AI will have asignificant and positive
impact on ourbusiness, but rather than occurring through
asingle transformative event, itwill derive from the cumulative
effect ofmultiple applications across diverse processes in our
organisation. We are already seeing benefits in onboarding
new customers more efficiently, software being developed
more rapidly and cost effectively, and training and
development being rolled out more easily to our colleagues.
Other areas where AI will surely play a big role include
productdevelopment, and market and consumer research.
Icontinue to be very optimistic about the role of AI in our
futuredevelopment.
How has competition changed?
Wherever people see a sales opportunity there will be
competition and our sector is no different. Each of our markets
is already highly competitive but it takes alot of experience
toserve our customer segment fairly and profitably, so while
wehave seen multiple new entrants specifically in the Mexican
market, mostare firmly focused on socio-demographic groups
above where weprovide our services. In our European markets,
we see the cumulative impact ofnew regulation reducing the
risk appetite of several of our competitors. Ifthere is an upside
to intense competition, it is that it has forced ustocontinually
evolve our products andservices at pace and ultimately
ourcustomers will be the beneficiaries ofthat change.
What is the outlook for2026
andbeyond?
Setting aside the possible acquisition ofour business
byBasePoint, I see greatopportunities for our business
tocontinue to grow and deliver on its purpose ofbuilding
financial inclusion. Our customers’ expectations may be
changing but their needs are not, and we are perfectly
positioned to meet those needs. We entered 2026 with good
momentum, robust credit quality and a strong balance sheet.
Our Next Gen strategy keeps us focused on what is important
and where to invest to deliver growth and efficiency. We have
very clear opportunities for growth inMexico and Australia as
well as our digital products and new channels. We therefore
plan to increase our investment in these new initiatives by
approximately £5m per annum over the next two to three years.
Although this may impact returns in 2026 and 2027, we believe
it will sustain our improved growth rates and allow us to more
effectively fulfil our purpose of building financial inclusion.
With a very committed team of colleagues focused
ondelivering forourcustomer segment, I remain confident
inourability to fulfil our purpose while providing shareholders
with an appropriate return.
Gerard Ryan
Chief Executive Officer
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Accelerating growth and the pace of change in 2025
• Expanded credit card offering in
Poland to nearly 200,000 active cards
and launched a fully digital version.
• Advanced plans to launch credit
cards to consumers in Romania
in Q3 2026.
• Retail finance now in 1,500 physical
stores and 200 online merchants
inRomania, and in 100 online
merchants and 900 stores in Mexico.
• Opened two new branches
inMexico.
• Rolled out short-term digital loan
products in Mexico and Poland.
• Began investment in Australia
toincrease market share.
• Strengthened hybrid model
inRomania, improving credit
qualityand customer reach.
• Achieved 91% participation
inourGlobal People Survey.
• 4,000 colleagues volunteered
tosupport our local communities.
• Partnered with UN Women in Mexico
to promote gender equality and
financial inclusion.
• Invested £500,000 in our ‘Invisibles’
community programme.
• Multiple award wins including
TopEmployer for our Provident
Europe businesses.
• Retained FTSE4Good status.
• Achieved ISO 45003 certification
atProvident Europe and Mexico,
andIPF Digital in Poland.
• Launched new customer mobileapp
in Hungary.
• Rolled out a single customer platform
in Provident Europe connecting
callcentres, websites and apps.
• Introduced webchat in Provident
Europe, improving real-time customer
support.
• Began migrating Group systems
tothe public cloud, strengthening
security and resilience.
• Advanced paperless process
andsystems upgrades to increase
efficiency across Provident Europe.
• Continued investments in data
management and analytics
todriveinsight-led customer
serviceand efficiency.
Priorities in 2026
• Continue to grow credit card
in Poland.
• Launch credit card to consumers
inRomania.
• Open two new branches in Mexico.
• Accelerate growth in IPF Digital
Mexico and Australia.
• Increase scale of 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.
• Roll out customer mobile app
inRomania and Czech Republic.
• Continue call centre modernisation
to unlock customer experience
and enhance productivity.
• Implement a Group-wide ERP system
making everyday work simpler
andmore efficient.
• Complete paperless transformation
programme.
• Generate further value from
dataandAI.
See pages 22 and 23 for our key performance indicators.
Next Gen
financial inclusion
Next Gen
organisation
Next Gen
technology and data
Strategic progress
We accelerated delivery against our strategic objectives in 2025, making strong progress across all pillars of our Next Gen strategy
and building real momentum in growth, innovation and change.
CEO’s review continued
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2021
4.9
8.6
12.2
9.6
9.0
2022 2023 2024 2025
2021
1,727
1,733
1,700
1,652
1,729
2022 2023 2024 2025
2021
22
22
22
27
25
81
84
80
78
83
2022 2023 2024 2025
2021
45
40
41
45
46
2022 2023 2024 2025
73
72
69
68
68
MAT%
Stability%
2021
48.1
51.9
55.3
54.7
52.5
2022 2023 2024 2025
Key performance indicators
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 2.5 million customers.
How we performed: Group customer numbers
returned to growth during the year, increasing
by 4.7% to 1.7 million, with momentum improving
as the year progressed, demonstrating the
appeal of both our core and new products.
Weexpect customer numbers to increase
in2026 as we broaden access to credit,
introduce new products andexpand
distribution channels.
See page 46 for more information
on our customers.
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
£500,000
Customer recommendations
(Net Promoter Score)
+71
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 2025, we continued to
invest in our communities through our flagship
Invisibles programme and a range of financial
education initiatives. Around 4,000 colleagues
dedicated time to volunteering for local
projects, helping to make a meaningful
difference in the communities where we live
and work. In the year ahead, we will focus
onextending our reach to support more
‘invisible’ groups within our programmes.
See page 58 for more information
on our communities.
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: At December 2025,
ourGroup Net Promoter Score was +71,
andremains comfortably above our target
of+55. During 2026, we will continue to
strengthen customer relationships and further
embed our Think Customer approach across
the Group.
See page 46 for more information
on our customers.
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
turnover and stability remained broadly
consistent year-on-year, reflecting continued
resilience across our frontline workforce.
Encouragingly, employee turnover improved
during the year, with a corresponding increase
in stability, demonstrating strengthened
retention and positive momentum across
thewider organisation. Both outcomes continue
to reflect strong colleague engagement,
supported by the results of our 2025 Global
People Survey.
Financial
Closing net receivables
£1,061.3m
Revenue yield
52.5%
Impairment rate
9.0%
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 net receivables
increased by 14% to exceed £1bn reflecting
strong growth in customer lending. All three
divisions delivered double-digit growth. With
strong customer demand and our continued
focus on disciplined growth, we expect
receivables to continue to show similarly
stronggrowth in 2026.
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,
supporting fair pricing and delivery of target
returns within our 56% to 58% range, which
reflects our product structure and the regulatory
landscape, including rate caps inmost markets.
How we performed: Revenue yield decreased
by 2.2ppts to 52.5%, reflecting lower central
bank base rates. Excluding Poland, which has
been adversely impacted by the reduction in
rate caps implemented over recent years, the
Group’s revenue yield of 56.0%, was in line with
our target range of 56% to 58%. The change
inproduct mix towards higher-yielding products
is expected to grow Group revenue yield
towards 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: Strong customer
repayment performance and robust credit
quality, together with a strong debt sale market
and £7m reduction in the cost of living provision,
drove a 0.6ppt improvement in the impairment
rate to 9.0%, despite accelerating growth
andhigher up-front IFRS 9 charges. Excluding
Poland, the rate was 13.3%. As lending increases,
we expect the rate to move gradually towards
our 14%–16% target range over the next two
years as we rescale Poland.
2021
716.8
868.8
892.9
870.0
1,061.3
2022 2023 2024 2025
2021
67.6
60.9
57.0
61.0
61.1
2022 2023 2024 2025
2021
15.1
14.6
14.8
15.7
14.9
2022 2023 2024 2025
2021
11.4
14.0
10.1
12.6
10.7
2022 2023 2024 2025
Cost-income ratio
61.1%
Pre-exceptional return on
required equity (RoRE)
14.9%
Reported return
on equity (RoE)
10.7%
What we measure: The direct expenses of 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 cost-income ratio
remained broadly flat at 61.1%, reflecting
lower revenue yield and the current lack of
scale in Poland following regulatory change
over the past three years. Excluding Poland,
the Group’s cost-income ratio was 56.2%,
compared with 55.7% in 2024. 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 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%. Consistent with our guidance, pre-exceptional RoRE moderated to 14.9% reflecting
the investment and acceleration in growth. The Group’s RoE, based on actual equity, reduced
to10.7%. We expect returns to moderate in 2026 as we invest to build scale before reaching
target returns again in 2028.
See our Financial review starting on page 30 for more information.
We track progress towards achieving our purpose and strategic priorities through
a balanced set of financial and non-financial key performance indicators.
See page 50 for more information on our colleagues.
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Operational review
Group
The Group delivered another good financial performance in 2025, reflecting our disciplined execution of our Next Gen strategy,
continued growth in customer lending and robust credit quality across the Group. Pre-exceptional profit before tax increased to
£88.6m (2024: £85.2m), up 4.0% year on year (or 7.7% on a constant currency basis), despite the adverse IFRS 9 impact of stronger
growth on impairment and our investment in new growth initiatives across the Group, including further investment in partnerships,
hybrid digital lending, short-term lending and launching credit cards in Romania.
The full-year result includes exceptional one-off costs of £3.3m relating to the potential acquisition of the Group by BasePoint
(2024: exceptional costs of £11.9m, comprising £6.1m of restructuring costs in Provident Europe and £5.8m of costs associated
withthe refinancing of the Group’s Eurobond in June 2024). Statutory profit before tax was therefore £85.3m (2024: £73.3m).
An analysis of the full-year divisional results is shown below:
FY-25
£m
FY-24
£m
Change
£m
Change
%
Provident Europe 63.2 57.4 5.8 10.1
Provident Mexico 26.6 26.0 0.6 2.3
IPF Digital 14.1 17.0 (2.9) (17.1)
Central costs (15.3) (15.2) (0.1) (0.7)
Pre-exceptional profit before taxation 88.6 85.2 3.4 4.0
Exceptional items (3.3) (11.9) 8.6 72.3
Profit before taxation 85.3 73.3 12.0 16.4
The detailed income statement of the Group, together with associated KPIs, is set out below:
FY-25
£m
FY-24
£m
Change
£m
Change
%
Change at CER
%
Customer numbers (000s) 1,729 1,652 77 4.7
Customer lending 1,342.0 1,214.5 127.5 10.5 11.8
Average gross receivables 1,405.9 1,327.5 78.4 5.9 7.5
Closing net receivables 1,061.3 870.0 191.3 22.0 13.9
Revenue 737.5 726.3 11.2 1.5 4.2
Impairment (126.8) (127.5) 0.7 0.5 (5.8)
Revenue less impairment 610.7 598.8 11.9 2.0 3.8
Costs (450.8) (443.2) (7.6) (1.7) (3.3)
Interest expense (71.3) (70.4) (0.9) (1.3) (2.4)
Pre-exceptional profit before taxation 88.6 85.2 3.4 4.0
Exceptional items (3.3) (11.9) 8.6 72.3
Profit before taxation 85.3 73.3 12.0 16.4
Revenue yield 52.5% 54.7% (2.2) ppts
Impairment rate 9.0% 9.6% 0.6 ppts
Cost-income ratio 61.1% 61.0% (0.1) ppts
Pre-exceptional EPS
1,2
26.3p 24.9p 5.6%
Pre-exceptional RoRE
1,2,3
14.9% 15.7% (0.8) ppts
Reported RoE 10.7% 12.6% (1.9) ppts
1. Prior to a pre-tax exceptional charge of £3.3m (2024: £11.9m) (see note 10 for details).
2. Prior to an exceptional tax credit of £17.4m in 2024 (see note 10 for details).
3. Based on required equity to receivables of 40%.
Consistent consumer demand and continued product innovation drove an increase in customer lending growth throughout the
course of the year. Group customer lending increased by 11.8% year on year, reflecting positive momentum across all divisions.
Pre-exceptional earnings per share increased by 5.6% year
onyear to 26.3p (2024: 24.9p), higher than the 4.0% growth
inpre-exceptional profit before tax, reflecting the reduction
inshares in issue following the share buyback in the second
half of 2024. Reported earnings per share reduced by 9.2%
to24.8p (2024: 27.3p), as 2024 included an exceptional
taxcredit of £17.4m.
The Group continued to deliver attractive returns during the year.
Consistent with our guidance, pre-exceptional RoRE moderated
to 14.9% in 2025 (2024: 15.7%), reflecting theinvestment in new
products and channels and acceleration ingrowth. The Group’s
reported RoE, based on statutory earnings and on actual
average equity, reduced from 12.6% to10.7% in 2025, again
reflecting the impact of the exceptional tax credit in 2024.
Purpose and strategy
We are committed to building a better world through financial
inclusion by providing affordable, responsible credit to people
who are often underserved by mainstream lenders. Today, we
support more than 1.7 million customers across nine markets,
and we are focused on growing our reach to 2.5 million people
in the medium term, while continuing to meet customers’
everyday financial needs in a responsible way.
Our Next Gen strategy is delivering results. It is helping us grow
faster, serve customers better and operate more efficiently
across the Group. Progress has been made across all three
strategic pillars, with clear momentum in product expansion,
digital capability and operational efficiency. This focused
approach is strengthening our customer proposition, improving
scale and supporting sustainable value creation as the business
continues to grow. See pages 4 to 11, and page 20 formore on
our strategy and progress made in 2025.
Building on the success of our established products,
weareintroducing proven offerings, channels and customer
experiences from one market to another. This approach gives
customers a wider choice of products that meet their needs,
enhances efficiency and strengthens our presence in our
existing markets. As part of this evolution, we have renamed
“European home credit” to “Provident Europe” and “Mexico
home credit” to “Provident Mexico” to better reflect the broader
product set and distribution channels provided by both
divisions as well leveraging the strong brand name both
havein their respective geographies.
In 2025, we invested a record £35.2m (2024: £24.2m) in capital
expenditure to accelerate the transition to becoming a data
driven, technology-enabled partner for our customers. To
support the three pillars of our strategy and the ongoing
transformation of the Group, we expect to accelerate capital
expenditure in 2026 and 2027 to between £45m to £50m per
annum before reducing expenditure thereafter to a more
normalised run rate of between £25m to £30m per annum.
Demand for our newer products is encouraging, including
credit cards, retail partnerships, digitalhybrid loans and
shorter-term lending, which have supported both improved
customer acquisition and increasedengagement.
Group customer numbers returned to growth during the year,
increasing by 4.7% to 1.7m, with momentum improving as the
year progressed, demonstrating the appeal of both our core
and new products. Customer numbers increased by 46,000
inMexico during the second half, with Mexico digital growing
by 24,000 customers and Provident Mexico growing by 22,000.
In Provident Europe, Romania and Poland both added 10,000
customers in the second half.
Group net receivables broke through the £1bn mark in 2025,
closing at £1,061.3m, representing year-on-year growth of 14%
(at CER). All three divisions delivered double-digit growth.
Withgood customer demand and our continued focus
ondisciplined growth, we expect receivables to continue
toshow similar growth in 2026.
Our financial model is designed to deliver sustainable returns
by optimising three core value drivers – revenue yield, credit
performance and operational efficiency – and we remain firmly
focused on managing these levers to support delivery of our
growth ambitions and drive long-term shareholder value.
The Group’s revenue yield decreased by 2.2 ppts to 52.5%
driven primarily by the impact of lower interest base rates set by
central banks in our markets during the year. Excluding Poland,
which has been adversely impacted by the reduction in rate
caps implemented over recent years, the Group’s revenue yield
of 56.0%, was in line with our target range of 56% to 58%.
Looking ahead, the transition to higher-yielding products,
including further growth in Polish credit cards and new
customer acquisition in Mexico, is expected to grow the
overallGroup revenue yield towards our target range.
Consistent customer repayment performance continued to
support very good credit quality across the Group. Together
with a strong debt sale market and a further £8m reduction
inthe Group’s cost of living provision (2024: £7m reduction),
this resulted in a 0.6 ppt improvement in the impairment rate
to9.0% (2024: 9.6%) despite the impact of higher up-front IFRS 9
impairment charges. Excluding Poland, the Group’s impairment
rate was 13.3%, justbelow the Group’s target range of 14% to
16%. As Poland continues to regrow, we expect the overall
Group impairment rate to trend back towards the target level
over the next twoyears. The strong repayment performance
has resulted inareduction in the impairment coverage provision
from 32.9% at December 2024 to 31.1% at December 2025.
Cost growth of 3.3% in the year was lower than the average
inflation rate in our markets, as the Group maintained cost
discipline whilst continuing to invest in sales activities and
enhancing our strategic capabilities. The Group’s cost-income
ratio remained broadly flat at 61.1% (2024: 61.0%), mainly
reflecting the reduction in the Group’s revenue yield and
thecurrent lack of scale in Poland following the changes in
regulation and transition of the business over the last three
years. Excluding Poland, the Group’s cost-income ratio was
56.2%, compared with 55.7% in 2024. Whilst the ratio remains
above the Group’s medium-term target range, the underlying
trajectory is positive, and we continue to expect further
progress towards our 49% to 51% target as scale benefits
arerealised and revenue growth continues to outpace
costgrowth.
Annual Report and Financial Statements 2025
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Provident Europe
FY-25
£m
FY-24
£m
Change
£m
Change
%
Changeat CER
%
Customer numbers (000s) 738 725 13 1.8
Customer lending 764.2 662.1 102.1 15.4 13.2
Average gross receivables 757.6 706.0 51.6 7.3 5.8
Closing net receivables 575.4 459.6 115.8 25.2 15.8
Revenue 339.7 328.2 11.5 3.5 2.0
Impairment (5.5) (8.1) 2.6 32.1 32.9
Revenue less impairment 334.2 320.1 14.1 4.4 2.9
Costs (231.8) (225.1) (6.7) (3.0) (1.3)
Interest expense (39.2) (37.6) (1.6) (4.3) (2.9)
Pre-exceptional profit before taxation
1
63.2 57.4 5.8 10.1
Revenue yield 44.8% 46.5% (1.7) ppts
Impairment rate 0.7% 1.1% 0.4 ppts
Cost-income ratio 68.2% 68.6% 0.4 ppts
Pre-exceptional RoRE
1,2
19.8% 19.9% (0.1) ppts
1. In 2024, prior to a pre-tax exceptional charge of £6.1m and, in respect of RoRE, an exceptional tax credit of £1.1m.
2. Based on required equity to receivables of 40%.
Provident Europe delivered a very good financial performance,
with pre-exceptional profit before tax increasing by £5.8m
(10.1%) to £63.2m (2024: £57.4m), reflecting disciplined
execution of the Group’s strategy and continued robust
creditquality.
Customer lending increased by 13.2% year on year (at CER),
with particularly good performances from Poland and
Romania. In Poland, access to the full payment licence and
continued momentum from our evolving and improving credit
card proposition, resulted in year-on-year growth in customer
lending of 20% (at CER). Romania, supported by the continued
expansion of its retail partnerships and hybrid digital channels,
delivered 18% (at CER) year-on-year growth. Hungary and the
Czech Republic combined delivered growth of 4% (at CER).
Closing net receivables increased by 15.8% (at CER) to £575.4m
(2024: £459.6m), reflecting 22% growth in Romania, 19% in
Poland, 16% in the Czech Republic and 9% in Hungary.
Customer numbers in Provident Europe increased by 1.8%,
ending theyear at 738,000. Growth was driven primarily
byRomania (7%) with the other three countries combined
broadly flat. Poland added 10,000 customers in the second
half, offsetting the shrinkage experienced in the first six months
of the year.
The revenue yield reduced by 1.7 ppts to 44.8% (2024: 46.5%),
reflecting the impact of reductions in base rate linked rate caps
in Poland and Hungary, together with the introduction of the
Total Cost of Credit cap in Romania late in 2024. We expect
theyield to grow in 2026 as credit card lending, which carries
ahigher yield than loans, increases in Poland.
Customer repayment behaviour remained robust across
Provident Europe and, together with a strong debt sale market,
resulted in a 0.4 ppt improvement in the impairment rate
to0.7% (2024: 1.1%). Looking ahead, as customer lending
increases, particularly in Poland, we expect the impairment rate
to normalise in the medium term to within the target range for
Provident Europe of 8% to 10%.
The cost-income ratio improved by 0.4 ppts year on year
to68.2% (2024: 68.6%). This reflects increasing scale together
with continued cost discipline which was reflected in a modest
1.3% increase in costs (at CER). As revenue momentum builds
and operating leverage increases, particularly in Poland, this
positive trajectory is expected to continue, with the cost-income
ratio moving towards the medium-term target range of 49%
to51%, while maintaining investment to support growth.
Provident Europe continues to generate good returns,
delivering a RoRE of 19.8% in 2025 (2024: 19.9%), a slight
year-on-year moderation due to the investment in receivables
growth intheyear. We expect returns to improve over the
medium termas we invest in rebuilding the receivables book
inPoland.
Regulatory update
The second Consumer Credit Directive (CCD II) came into force
in December 2023, with EU Member States required to comply
within 24 months. With the exception of Hungary, where the
process has been completed, implementation plans within
ourEuropean markets are continuing to evolve. As part of
thetransposition of CCD II, a number of regulatory changes
enabled or driven by the Directive are being considered
anddebated in each jurisdiction as the deadline for
implementation approaches. Discussions include, but are not
limited to: (i) the introduction of caps on lending-related fees;
(ii) the introduction of a rate cap in the Czech Republic; (iii)
enhancements to affordability assessments; (iv) changes to
rebates on early settlement of credit agreements; (v) additional
training for colleagues and customer representatives; (vi)
increasing restrictions on the advertising of credit agreements;
(vii) tightening the rules governing the selling of value-added
services; and (viii) the introduction of free credit sanctions.
Wecontinue to monitor the potential impact on the Group
andwork with industry bodies in our markets to ensure that any
changes in regulation are appropriate and assist the provision
of responsibly provided credit to those in need. Whilst the scope
of the potential change is broad, we have demonstrated
agood track record in adapting to regulatory interventions
across the Group, including the implementation of CCD I,
newrate caps and enhanced creditworthiness requirements.
Outlook
We have entered 2026 with good momentum, underpinned
byrobust credit quality and a strong balance sheet. There
continues to be good demand for credit, and while consumer
expectations continue to evolve, we are well positioned
tomeetthese needs through our diversified product set, strong
local market positions and clear strategic focus. Our Next Gen
strategy provides a disciplined framework for investment,
prioritising growth, efficiency and scalable digital capability.
Wesee clear opportunities to further invest for growth in key
markets, particularly Mexico and Australia, alongside
continued development of our new products and customer
acquisition channels. We therefore plan to increase our
investment in these new initiatives by approximately £5m
perannum over the next two to three years. Although this
mayimpact returns in 2026 and 2027, we believe it will
sustainourgrowth rates and allow us to more effectively
fulfilour purpose of building financial inclusion.
We remain confident in our ability to deliver against the
operational and financial plans we have set, supported
byprudent risk management and our strong capital position.
Looking ahead, the Board believes the Group is well placed
tocontinue making progress towards its long-term purpose
ofincreasing financial inclusion, while delivering attractive
andsustainable returns.
Annual Report and Financial Statements 2025
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Operational review continued
IPF Digital
FY-25
£m
FY-24
£m
Change
£m
Change
%
Changeat CER
%
Customer numbers (000s) 286 247 39 15.8
Customer lending 291.9 263.2 28.7 10.9 12.6
Average gross receivables 352.4 314.6 37.8 12.0 13.9
Closing net receivables 294.7 251.0 43.7 17.4 11.7
Revenue 150.7 134.3 16.4 12.2 14.7
Impairment (41.0) (27.0) (14.0) (51.9) (60.8)
Revenue less impairment 109.7 107.3 2.4 2.2 3.6
Costs (77.2) (72.0) (5.2) (7.2) (8.1)
Interest expense (18.4) (18.3) (0.1) (0.5) (2.8)
Reported profit before taxation 14.1 17.0 (2.9) (17.1)
Revenue yield 42.8% 42.7% 0.1 ppts
Impairment rate 11.6% 8.6% (3.0) ppts
Cost-income ratio 51.2% 53.6% 2.4 ppts
RoRE
1
8.4% 11.4% (3.0) ppts
1. Based on required equity to receivables of 40%.
IPF Digital delivered strong growth in customer numbers
andlending during the year, and delivered a profit before
taxof £14.1m (2024: £17.0m), reflecting the ongoing investment
tobuild scale.
Demand for fully remote credit solutions remained positive,
driving year-on-year growth in both customer numbers and
lending of 16% and 13% respectively (at CER). This performance
was led by Mexico and Australia, which delivered lending
growth of 32% and 19% respectively (both at CER). Mexico
customer numbers have now surpassed 130,000, showing
year-on-year growth of 40%, whilst Australia delivered 17%
growth. The Group continues to invest in brand and product
propositions to support growth and capture an increasing
share of the significant opportunities available in these markets.
Year-end receivables of £295m, showed year-on-year growth
of12% (at CER), reflecting consistent execution of the Group’s
Next Gen strategy across all markets. Receivables growth was
led by Mexico and Australia, with increases of 16% and 23%
respectively (both at CER), while the Baltic markets, Poland
andthe Czech Republic delivered combined growth of 7%.
The revenue yield increased by 0.1ppts year on year to 42.8%
(2024: 42.7%), reflecting the net impact of the growth of the
receivables book in Mexico, which carries a higher yield,
partlyoffset by the impact of reductions in interest-linked
capsin the Baltic and Polish markets.
Customer repayment performance and collections discipline
remained robust across all IPF Digital markets, underpinning
very good portfolio quality. As expected, the impairment rate
increased to 11.6% (2024: 8.6%), reflecting the growth of
theportfolio, particularly in Mexico which carries ahigher
impairment rate.
To support growth and customer acquisition in our competitive
digital markets, we continued to invest in strengthening our
brand positioning and enhancing technology to improve the
customer journey, particularly in Mexico and Australia. These
investments, which are expected to deliver scale and long-term
value, contributed to an increase in operating costs of 8.1%
(atCER) in 2025. Notwithstanding this investment, the cost-
income ratio improved by 2.4 ppts to 51.2% (2024: 53.6%)
asscale benefits were realised. As the portfolio continues
togrow, the cost-income ratio is expected to move
progressively towards the medium-term target for IPF Digital
ofapproximately 45%.
IPF Digital’s RoRE moderated year on year by 3.0 ppts to 8.4%
(2024: 11.4%) reflecting continued investment to support its
growth. We expect returns to strengthen towards the Group’s
15% to 20% target range as the division scales and matures.
The business has generated good momentum and remains
well positioned to continue delivering improving returns
asitscales its digital proposition across multiple markets.
Provident Mexico
FY-25
£m
FY-24
£m
Change
£m
Change
%
ChangeatCER
%
Customer numbers (000s) 705 680 25 3.7
Customer lending 285.9 289.2 (3.3) (1.1) 7.5
Average gross receivables 295.9 306.9 (11.0) (3.6) 4.7
Closing net receivables 191.2 159.4 31.8 19.9 11.5
Revenue 247.1 263.8 (16.7) (6.3) 1.4
Impairment (80.3) (92.4) 12.1 13.1 6.8
Revenue less impairment 166.8 171.4 (4.6) (2.7) 6.0
Costs (126.6) (131.0) 4.4 3.4 (4.7)
Interest expense (13.6) (14.4) 0.8 5.6 (0.7)
Reported profit before taxation 26.6 26.0 0.6 2.3
Revenue yield 83.5% 85.9% (2.4) ppts
Impairment rate 27.1% 30.1% 3.0 ppts
Cost-income ratio 51.2% 49.6% (1.6) ppts
RoRE
1
24.7% 24.4% 0.3 ppts
1. Based on required equity to receivables of 40%.
Provident Mexico delivered improved growth and profitability
in2025, following the disruption to trading activities in the last
quarter of 2024 from upgrading the front-end lending
technology used by our customer representatives. On a
constant exchange basis, profit before tax increased by £3.6m
(15.7%) year on year to £26.6m, and by £0.6m on a reported
basis, reflecting the impact of the much stronger Peso in the
first half of 2024, prior to its significant weakening in the second
half of the year.
Customer lending increased by 7.5% (at CER) year on year
withgrowth in the second half of 13% supported by the new
front-end technology and a softer second-half comparator.
Customer numbers ended the year 3.7% higher than last
yearat 705,000, with an increase of 22,000 in the second
halfas thebusiness showed good momentum.
Closing net receivables increased by 11.5% year on year
(atCER) to £191.2m, reflecting the improvement in lending
growth. The revenue yield moderated slightly during the year
to83.5% (2024: 85.9%), due to the higher proportion of lending
to existing good-quality customers compared with new
customers. Existing customers tend to be served with higher
value, longerduration loans which have a lower yield but
abetter impairment rate.
The impairment rate improved year on year to 27.1%
(2024: 30.1%) supported by a greater focus on good-quality
existing customers together with targeted actions to ensure
improved lending quality and repayment behaviour. As lending
growth increases, including a greater proportion of new
customers, we expect the impairment rate to move towards
the30% level, in line with our longer-term expectations.
Our ongoing investment in geographic expansion combined
with the one-off cost of the front-end technology upgrade
contributed to an increase in the cost-income ratio year
onyear to 51.2% (2024: 49.6%). This is expected to return
tothetarget range of between 49% to 51% in 2026.
Provident Mexico continues to deliver strong returns and the
RoRE of 24.7%, remained above the Group’s target minimum
rates of 20% (2024: 24.4%).
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Financial review
“We delivered another strong financial performance
in 2025, building on the momentum achieved
in recent years and delivering increased returns
to shareholders.”
Gary Thompson
Chief Financial Officer
I am pleased to report that the Group delivered another strong
financial performance in 2025, building on the momentum
achieved in recent years. Wecontinued to drive progress
through the disciplined execution of our Next Gen strategy,
continued improvement in our products, services and
technology, and consistently high credit quality. We also
strengthened our funding position, while maintaining
aconservatively capitalised balance sheet that will support
ourfuture growth ambitions. Pre-exceptional profit before tax
increased to £88.6m (2024: £85.2m), up £3.4m (4.0%) year
onyear. The full-year result includes exceptional one-off costs
of£3.3m relating to the potential acquisition of the Group
byBasepoint Capital LLC (2024: exceptional costs of £11.9m,
comprising £6.1m of restructuring costs in Provident Europe
and£5.8m of costs associated with the refinancing of the
Group’s Eurobond in June 2024). Statutory profit before tax
wastherefore £85.3m (2024: £73.3m).
Our financial model
We operate our business with clear financial and ethical
disciplines, supported by arobust financial model that
underpins delivery of our Next Gen strategy. This model ensures
we balance the needs of all our stakeholders – customers,
colleagues, regulators, shareholders and investors – while
staying true to our purpose of building abetter world through
financial inclusion.
At its core, our model is designed to deliver attractive
andsustainable returns, maintain a strong balance sheet,
fundfuture growth and support a progressive dividend policy.
Itprovides the foundation for disciplined, responsible
decision-making, ensuring that our loans are affordable for
customers while delivering appropriate returns for investors.
The key principle is to achieve a return on required equity
(RoRE) of between 15% and 20%. We believe this range strikes
the right balance between generating sustainable shareholder
value and meeting the needs of our wider stakeholders.
Returnsmaterially above this level would indicate we are
notsharing value appropriately across those we serve.
Looking ahead, our financial model is designed to support
continued growth and investment in innovation, while
maintaining robust capital strength. We are committed
toaminimum dividend payout of 40% of post-tax earnings
andto sustaining an equity-to-receivables ratio of around 40%,
ensuring we fund expansion responsibly and deliver long-term
value for all stakeholders.
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
4. Maintains equity to
receivables ratio at
2. Supports minimum
dividend payout ratio of
3. Funds annual net
receivables growth of up to
15-20%
40%
40%
10%
1. Return on
required equity
2. Distribution of earnings
Delivery of a RoRE of around 15% supports a dividend payout of
at least 40% of post-tax earnings, consistent with our progressive
dividend policy. In 2025, the Board has recommended
adividend payout of 49% of post-tax earnings, providing
abalanced return to shareholders while maintaining flexibility
to reinvest for growth as we continue to expand the business.
3. Receivables growth
Our financial model enables us to fund receivables growth
inthe following year of up to 10% while maintaining our capital
ratio. If we grow in excess of 10% we will utilise any additional
capital resources over our target capital base. In 2025,
receivables increased by a strong 13.9% (2024: 6.8%),
reflectingcontinued customer lending growth across
alldivisions.
4. Equity-to-receivables ratio
We continue to target a 40% equity-to-receivables ratio,
whichwe believe represents an appropriate balance between
efficient use of capital to innovate and grow, while offering
security for more challenging periods. At the 2025 year end,
theGroup’s equity-to-receivables ratio was 51% (2024: 54%).
Our strong capital position supports the Group’s 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 which
weexpecttobe in 2028.
1. Return on required equity (RoRE)
Our objective is to deliver a target RoRE of between 15% and
20%, balancing profitability with the needs of all stakeholders.
Inpractice, 15% is a short-term target with sustainable returns
ofnearer 20% being the medium to longer-term target.
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. We will also disclose our return on equity (RoE) on a
Group basis. We target each of our divisions to deliver a return
of at least 20% to ensure that we can deliver the Group RoRE,
after taking account of central costs.
The Group continued to deliver attractive returns in 2025.
Consistent with our guidance, the pre-exceptional RoRE
moderated to 14.9% (2024 pre-exceptional RoRE: 15.7%),
reflecting the investment and acceleration in growth.
TheGroup’s reported RoE, based on actual equity,
reducedto10.7% (2024: 12.6%).
We believe each of our businesses is capable of delivering
a20% RoRE and the RoRE by division is set out below:
2025 2024
Provident Europe 19.8% 19.9%
Provident Mexico 24.7% 24.4%
IPF Digital 8.4% 11.4%
Provident Europe and Provident Mexico continue to generate
strong returns. Provident Europe delivered a RoRE of 19.8%
in2025, which was a slight year-on-year moderation due
totheinvestment in receivables growth. We expect returns
toimprove as we continue to invest in rebuilding the receivables
book inPoland. Provident Mexico’s RoRE of 24.7%, remained
above the Group’s target minimum rates of 20%. IPFDigital’s
RoRE moderated year on year by 3.0ppts to 8.4% reflecting
continued investment to support the division’s very strong
growth. We expect returns to moderate in 2026 as we invest
tobuild scale before returning to the Group’s target returns
ofbetween 15% to 20% in 2027.
Delivery of RoRE is supported by our ongoing focus on revenue
yield, impairment rate and the cost–income ratio (see Key
performance indicators on page 22).
Taxation
The pre-exceptional tax charge on the profit for 2025 is £31.1m,
which represents an effective tax rate of approximately 35%
(2024: 35%).
There was no tax credit in respect of the exceptional costs
of£3.3m in 2025. The 2024 results reflected an exceptional tax
credit of £17.4m comprising: (i) a £15.2m tax credit following
reinstatement of amounts previously paid to HMRC in respect
ofthe Group’s financing company arrangements following
afavourable judgement by the European Court of Justice –
themonies in respect of this matter were repaid to the Group
by HMRC during 2025; and (ii) a tax credit of £2.2m in respect
of the costs incurred on the refinancing of the Group’s Eurobond
and restructuring of the Provident Poland business in 2024.
Earnings per share (EPS)
Pre-exceptional earnings per share increased by 5.6% year
onyear to 26.3p (2024: 24.9p), higher than the 4.0% growth
inprofit before tax, reflecting the reduction in shares in issue
following the share buyback in the second half of 2024.
Reported earnings per share reduced by 9.2% to 24.8p
(2024: 27.3p), as 2024 included an exceptional tax credit
of£17.4m.
Our financial model
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Financial review continued
Dividend
Based on the Group’s capital strength and the Board’s
confidence in our outlook, we are pleased to declare a 12.5%
increase in the proposed final dividend to 9.0 pence per share
(2024: 8.0p), in line with the Group’s progressive dividend
policy. Together with the 2025 interim dividend of 3.8 pence
pershare (2024: 3.4p), the total dividend for 2025 has
increased by 12.3%. The final dividend will be paid on 8 May
2026 to shareholders on the register at the close of business
on27 March 2026. The shares will be marked ex-dividend
on26 March 2026.
Balance sheet, treasury risk
management and funding
We maintained a conservatively capitalised balance sheet
anda strong funding position throughout 2025.
At the end of December, the Group’s equity-to-receivables
ratiowas 51% (2024: 54%), compared with our target of 40%.
The reduction in the ratio reflects the growth in receivables
during 2025 partly offset by a foreign exchange gain of£47m
taken to reserves as the majority ofourcurrencies strengthened
against sterling.
The Group’s gearing ratio was 1.2 times (2024: 1.2 times)
attheend of December 2025 and is comfortably within our
covenant limit of 3.75 times. Our interest cover covenant
was2.6 times (2024: 2.6 times) and, again, is well within
ourcovenant limit of2.0 times.
Group net receivables increased by 14% at CER to £1,061.3m,
with growth delivered by all three divisions. The average period
of receivables outstanding at the end of 2025 was 13.1 months
(2024: 13.5 months) with 73% of year-end receivables due
within one year (2024: 72%). The gross contractual cashflows
supporting the receivables valuation amounted to £1.9bn
atthe end of 2025 (2024: £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 to inadequate returns
being available (e.g. Slovakia in Provident Europe in 2015
andFinland in IPF Digital in 2020), we have demonstrated
thatthe collect-out takes around two to three 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 2025. With receivables growth of 14% in 2025,
theGroup generated cash from operating activities of £70m
(2024: £114m).
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
andeconomic 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.
The Group 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 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.
Debt funding is provided through a diversified debt portfolio with
acceptable terms and conditions. We have wholesale and retail
bonds denominated in euro, sterling, Polish zloty and Swedish
krona, with varying maturities, together with facilities from a
group of 17 banks that have a good strategic and geographic
fit with our business. The Group’s debt is senior unsecured debt,
with all lenders substantially in the same structural position.
Wemaintain our Euro Medium Term Note programme as the
platform for bond issuance across a range of currencies.
Funding
As at 31 December 2025, the Group held total debt facilities
of£750m, comprising £483m in bonds and £267m in bank
funding, including £55m of new bank facilities arranged during
the year. Net borrowings at the end of 2025 totalled £621m and
headroom, consisting of undrawn facilities and non-operational
cash balances, amounted to £129m.
In March 2025, we repaid at par and subsequently delisted the
remaining €66.7m of our 2020 Eurobond. The strong secondary
market performance of our €341m 2029 Eurobond and 2027
retail sterling bond reflected continued investor confidence
inour business and, as such, we took the opportunity in the
second half of the year to successfully secure SEK 1bn (c.£80m)
senior unsecured floating rate notes due 2028 at an issue price
of 100 per cent. The notes carry a floating interest rate
ofthree-month STIBOR plus 5.75% and have been admitted
totrading on the Frankfurt Open Market (Freiverkehr).
Maturity profile of debt facilities
Maturity £m
Polish bond November 2026 15.0
Hungarian bond December 2026 10.1
Sterling bond December 2027 80.0
SEK bond November 2028 80.7
Eurobond December 2029 297.3
Total bonds 483.1
Bank facilities 2026 to 2029 266.7
Total debt facilities 749.8
Total borrowings 624.6
Headroom against debt
facilities 125.2
Non-operational cash
balances 3.5
Headroom and non-
operational cash balances 128.7
Our blended cost of funding reduced steadily andwas 12.2%
at the end of December 2025 (2024: 13.3%) duetothe
reduction in interest rates across our markets as wellaslower
costs of hedging as interest differentials narrowed.
2025
£m
2024
£m
Bond costs 46.4 47.5
Bank funding cost 12.6 6.3
Hedging costs 7.2 11.0
Other 5.1 5.6
Total interest 71.3 70.4
Average gross borrowings 586.0 529.3
Cost of funding % 12.2% 13.3%
Both Fitch Ratings and Moody’s Ratings reviewed the Group’s
long-term credit ratings in the first half of the year and reaffirmed
their previous assessments. Fitch maintained itsrating at BB
witha Stable outlook, while Moody’s confirmed itsBa3 rating,
also with a Stable outlook.
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 2025 2024
Gearing
1
Max 3.75 x 1.2x 1.2x
Interest cover Min 2x 2.6x 2.6x
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ouroperating currencies, 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 £47m (2024: £57m)
foreignexchange movement, which has been credited
(2024:debited) to the foreign exchange reserve.
Going concern
In considering whether the Group is a going concern,
theBoard has taken into account the Group’s financial
forecasts and its principal risks (with particular reference
tofunding, liquidity and regulatory risks). The forecasts have
been prepared for the two years to 31 December 2027 and
include projected profit and loss, balance sheet, cashflows,
borrowings, headroom against debt facilities and funding
requirements. These forecasts represent the best estimate
oftheGroup’s performance, and in particular the evolution of
customer lending and repayments cash flows as well
asmanagement’s best assumption regarding the renewal/
extension of maturing financing facilities.
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 funding, liquidity 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 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. This showed that net revenue
would need to deteriorate significantly from the financial
forecast and the Directors have a reasonable expectation
thatit is unlikely todeteriorate to this extent.
At 31 December 2025, the Group had £129m 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 2.6 years. Total debt facilities asat
31 December 2025 amounted to £750m of which £97m
(excluding £47m of uncommitted loans, which do not require
extension) 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), 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 risk set out on page 37 ofthe2025 Annual Report
and Financial Statements, 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 2025 Annual Report and Financial Statements.
Gary Thompson
Chief Financial Officer
25 February 2026
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Managing our risks
Our ability to achieve the objectives of our Next Gen
strategy relies on effective risk management and a proactive
response to current and emerging risks. As we accelerate
growth and the pace of change across the Group,
ourapproach allows us to pursue sustainable expansion,
underpinned by our robust risk management framework
thatsupports long-term success and value creation for
allourstakeholders.
Enterprise risk
management approach
We manage risk strategically through our enterprise risk
management (ERM) framework, which enables us to identify,
assess and respond to a wide range of risks and opportunities
across the Group in an integrated and efficient manner.
Risk appetite
We aim to mitigate risks within our control to the fullest
reasonable extent, making the internal control framework
akeypillar of our risk management approach. The relationship
between our ERM framework, individual risk management
processes, and internal controls is illustrated on page 34.
When setting risk appetite, the Board considers four main
risk types:
• Strategic risks – These affect the Group’s long-term goals
and sustainability. While they often carry potential rewards,
they are analysed carefully and addressed through strategic
decision-making.
• Operational risks – Arising from day-to-day activities and
requiring prompt, effective action to minimise impact.
• Internally driven risks – Triggered by internal factors such
assystems, processes or people, and managed through
ourinternal control framework.
• Externally driven risks – Triggered by factors beyond
ourcontrol, these are monitored closely to enable timely
responses and contingency planning that support
businessresilience.
Risk appetite is reviewed and approved by the Board annually.
It underpins the structure and execution of our ERM
programme. Each risk is assessed regularly based on its
likelihood and impact at both market and Group level.
Wemonitor current exposures against our appetite
todetermine whether further action is needed or if
opportunitiesexist within acceptable boundaries.
Risk assessments
We conduct quarterly risk assessments across the Group
toupdate our risk profile, identify control weaknesses
andtakeaction where risks exceed appetite. The Chair
oftheRisk Advisory Group reviews and challenges these
assessments using assurance data from first-line control testing,
key risk indicators and independent internal audit findings.
Risksarealso evaluated as part of any new project, initiative
orstrategic plan to ensure they are addressed from the outset.
In 2025, a dedicated strategic risk assessment was
launched,with regular updates provided to the Board
aheadof strategic planning.
Risk culture
We have a comprehensive strategy to embed a strong risk
culture across the organisation. This includes clearly defined
roles and responsibilities at both market and Group level,
supported by a bottom-up and top-down risk assessment
process that encourages open debate and transparency.
The three lines of defence model is implemented across
theGroup, with clear risk ownership and tailored training
programmes for senior management. Non-executive
directorsalso receive regular risk education to support
theiroversight role.
We report regularly to the Audit and Risk Committee (ARC),
engaging in detailed discussions on the Group’s risk profile
andbroader risk management principles.
Focused training is delivered throughout the organisation,
including quarterly roundtables covering topics such
asemerging risks, recent risk events, the three lines
ofdefence model, ERMroles and responsibilities,
riskupdates,and risk appetite.
The ERM programme supports the achievement of our strategic
objectives and stakeholder expectations by addressing risks
that could impact our business model, performance, solvency,
liquidity, or reputation. Our principal risks – those with the greatest
potential impact – are summarised on pages 37 to40, including
how they evolved in 2025, the actions we took in response,
andtheir alignment with the Group’s Next Gen strategy.
The ERM framework provides an overarching structure for
managing all key risks across the Group, with clear ownership
and tailored management processes, as illustrated on page
35. Risk appetite plays a central role to this approach, guiding
our understanding of the level of risk we are willing to accept
over time, embedding risk considerations into decision-making
and enabling the Board to fulfil its oversight responsibilities.
Ourapproach is aligned with the UK Corporate Governance
Code (2024).
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 was developed
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
Board of Directors
Determines the nature and extent of risks the Board
iswilling to take to achieve strategic objectives.
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.
Business
continuity
Funding
liquidity,
market and
counterparty
Legal and
regulatory
challenges
ESG
Financial
reporting
People
Change
management
Data
protection
and privacy
Fraud and
AML
Competition
Loss or Misuse
of Data
Reputation
Credit
Disruption
of systems
Safety
Enterprise risk management framework
IPF internal control and risk management systems
Traditional risk
management
Distinct risk
management
process at each
category level:
– Context
– Risk assessment
– Risk treatment
– Recording
and reporting
– Communication
and consultation
– Monitoring
and review
Category
control
environment
Key ERM
components
• Risk appetite framework
• Risk Advisory Group
• Three lines of defence
• Roles and responsibilities across the Group
• Category-level risk management policies
• ERM events process
Control
environment
Assured by three lines of defence
1. Operational
management
2. Risk
management
3. Internal
audit
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.
Internal Control System
Control
environment
Control
environment
Control
environment
Control
environment
Customer
service
Customer
protection and
licensing legal
compliance
Technology
Brand and
product
proposition
Future
legal and
regulatory
development
Taxation
Control
Environment
Control
Environment
Principal risks and uncertainties
Annual Report and Financial Statements 2025
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Principal risks and uncertainties continued
Transition from climate risk to
ESG risk
In 2025, we introduced a new ESG risk category to expand our
focus beyond climate-related risks and incorporate broader
social and governance dimensions. These include:
• Social risks such as labour practices, community impact,
and discrimination.
• Governance risks including transparency and ethical
business conduct.
As part of this change, the standalone climate change
riskcategory was retired and is now integrated within
theESGframework.
To assess physical climate risks, we use a scenario-based
model, detailed on page 117. Our climate strategy remains
aligned with a maximum global warming pathway of 1.5°C
andsupports the transition to a net zero economy by 2050.
Emerging risks
We define emerging risks as new or evolving
circumstances that could affect the Group significantly,
where the likelihood, timing or potential impact is difficult
to assess with certainty. These risks are monitored to
determine whether they should be escalated to key
risksand whether mitigation is required. We classify
emerging risks into two categories based on the
urgencyof response:
• High-velocity risks are treated as crisis events,
triggeringour crisis management protocols.
• Moderate and low-velocity risks are tracked and
reported until their impact is better understood,
atwhich point tailored response actions and
contingency plans are developed.
Emerging risks in 2025
In our 2024 Annual Report, we disclosed that economic
conditions, tax developments, and the use of AI were
reclassified from emerging risks to standard key risks,
reflecting their maturity and integration into our ERM
programme. Although cyber risk remains a Group key
risk, we continue to monitor it through an emerging risk
lens due to the pace of change and evolving threat
landscape. Cyber-attacks are now considered a
business-as-usual threat, yet the rapid advancement
ofattack methods – particularly ransomware –
continuesto pose significant operational and
reputational challenges. For further details on our
mitigation efforts, please refer to the data integrity
andsystems resilience risk disclosure on page 40.
In 2025, we identified several new emerging risks.
Theevolving political stance of the United States in
itsglobal relations presents a high-velocity risk, with
potential implications across IT costs, data protection
andregulatory exposure. This is being monitored closely
to determine the appropriate response.
Changes in European taxation are under analysis,
withpotential long-term implications for our operations.
We are also monitoring the reopening of topics under
theConsumer Credit Directive II (CCD II), which may
influence regulatory developments.
Ongoing legislative developments affecting transatlantic
data transfers could lead to stricter rules governing data
flows between the EU, UK and US. While no immediate
changes have been introduced, increased scrutiny
andpotential shifts in US legislation or court rulings may
create legal uncertainty. This could result in higher
compliance costs, administrative burdens, and operational
adjustments, requiring continued monitoring.
These emerging risks are reviewed regularly to determine
whether they should be elevated to key risks and whether
specific mitigation or contingency planning is required.
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 took proactive
steps throughout 2024 to prepare for its provisions,
whichcome into force in 2026. Our focus was on defining
material controls, establishing effectiveness thresholds,
and developing clear definitions for financial,
operational, reporting, and compliance controls.
Building on this foundation, we advanced the development
of the IPF internal control framework in 2025 under the
leadership of the Chair of the Audit and Risk Committee.
As part of this work, we engaged the Group’s non-
executive directors to explore the rationale behind the
Code’s new disclosure requirements, refine the definition
of material controls, and align interpretations ofthe four
control categories. The Board supports ahigh-level,
balanced disclosure on overall control effectiveness,
withthe ERM framework expected toidentify any gaps
and inform future reporting.
See page 145 for more information on the work
of our Audit and Risk Committee.
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 demand for borrowing remained strong, supporting a robust credit performance across the Group
andkeeping the level of risk comfortably within appetite. Credit losses for the year remained in line with plan.
Anexcellent customer repayment performance supported an improvement in the Group’s impairment rate
to9.0%, despite the impact of accelerating growth and higher up-front IFRS 9 charges. This remains well within
ourrisk appetite and below the target range of 14% to 16%.
How it is managed
•
Detailed, regular monitoring of customer repayments to identify specific issues.
• Detailed analysis, testing 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.
We continue to manage a range of regulatory risks across the Group’s markets, with a particular focus on price
legislation, employment models and licensing frameworks.
CCD II remains the primary regulatory focus across Europe, with national transposition completed by November
2025 and full application required by the end of November 2026. In Romania, a Consumer Protection Authority
proposal linked to CCD II is under review, while in the Czech Republic, a price cap proposal remains active.
There were no material changes to risks related to employment models or licensing frameworks. We continue
tomonitor developments and maintain readiness to adapt where needed. For further information on regulation
see page 26.
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 and geopolitical backdrop globally, we continued to strengthen
theGroup’s funding position. At the year end, the Group held total debt facilities of £750m, comprising £483m in
bonds and £267m in bank funding, including £55m of new bank facilities arranged in 2025. We also successfully
secured SEK 1,000,000,000 senior unsecured floating rate notes due 2028.
Monetary policy easing across our markets supported funding costs, with central banks in Mexico, Australia,
andthe Eurozone reducing base interest rates. These reductions are also expected to have a positive impact
onthe Group’s financing costs going forward. Foreign exchange movements have also benefited the Group’s
netasset position. For further information on funding see page 32.
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
Risk environment and link to strategic pillars key
IPF risk environment improving
Next Gen financial inclusion
IPF risk environment remains stable
Next Gen organisation
IPF risk environment worsening
Next Gen technology and data
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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 Group continues to manage a range of reputational risks linked to stakeholder perceptions, regulatory
expectations and broader sector dynamics. The financial sector remains under scrutiny, particularly given political
developments in some markets.
We maintain strong relationships with key stakeholders to enhance understanding of our business model, purpose
and societal role. We remain alert to the reputational risks within the non-bank financial institution (NBFI) sector,
particularly where poor practices by other providers could influence public and regulatory sentiment. We also
monitor risks arising from non-compliance investigations, mystery shopping exercises and customer complaints,
which could lead to adverse media coverage.
To mitigate these risks, we have strengthened compliance oversight, enhanced controls around customer
interactions and marketing, and maintained active engagement with regulators and policymakers.
Ourparticipation in industry associations continues to support best practice in lending and the fair treatment
ofcustomers.
Our working practices are subject to rigorous oversight to ensure compliance with legislation and alignment with
customer expectations, helping safeguard the Group from reputational harm. In 2025, we were again recognised
for responsible business practices, customer service excellence, and as a leading employer.
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.
• Regular monitoring of internal and external reputation indicators, with agreed actions taken in response
tofindings.
• Ongoing media tracking, including bi-monthly Group-level reviews, to assess reputational performance
andemerging risks.
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. The Group’s first year within the scope of the OECD’s Pillar 2 rules was 2024, and for this year the safe harbour
provisions applied across all territories. An assessment has been carried out and it is expected that the Group will
again fall within the safe harbour provisions with respect to all of the territories in which it operates for 2025 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 were repaid in full, along with circa £1.6m repayment interest during 2025. Furtherrisks
associated with the Group’s Irish finance company are set out in note 32.
In Hungary, the extra profit special tax will also apply in 2026 and the rate has increased. Theliability for 2026
isestimated at c.£2.3m.
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 remains critical to minimising financial impacts, maintaining
employee engagement and ensuring successful delivery of strategic priorities. We continue to manage a large
and complex change agenda across the Group 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 change, aligned to strategic objectives and performance improvement.
In 2025, we worked on a Group Change Framework to strengthen consistency and control across divisional
change functions. The establishment of a Business Transformation Office in Q4 2025 will enhance strategic
prioritisation and improve oversight of market-level impacts.
We also increased scrutiny of business case development and benefits realisation. Group-wide change initiatives
are also now tracked through a single Project Portfolio Management tool, improving visibility and control.
How it is managed
•
Business Transformation Office.
• 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 established in 2024 focused on synergy and consistency across the Group,
andagreed a Group-wide approach for oversight of change and transformation.
Brand and proposition risk
The risk of brand perception
deteriorating and failing to
respond to market trends
can limit profitable growth.
Competitive activity remained elevated across our markets in 2025, with heightened pressure on brand visibility
and product relevance. While there were no major new entrants serving our core consumer base, competition
intensified particularly in Mexico where fintech offerings continued to evolve and attract prime segment customers.
We increased marketing investment across key markets and plan to maintain this momentum to reinforce brand
visibility and strengthen customer engagement.
Targeted actions were taken in Mexico to improve product competitiveness, and broader initiatives are underway
to enhance prioritisation in product development and innovation across the Group.
To meet evolving consumer expectations, we continued to invest in customer experience tools and digital
capabilities, including mobile apps and online communication channels. For more information see pages 46 to 49.
We also continued to expand our retail credit offering in Romania and Mexico, refreshed the Provident brand,
andsustained investment in our Creditea digital brand.
How it is managed
•
Product development committees and processes are in place to review the roadmap, manage product-related
risks and oversee new propositions.
• 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.
We take a proactive approach to technology risk management to maintain the Group’s capabilities and resilience
in an increasingly digital environment. In 2025, our focus remained on addressing risks associated with
technological obsolescence, ensuring strategic alignment and building the foundations to support future
investment and growth.
Development of our core technology platforms progressed well including the establishment of ONE IPF,
aprogramme to implement a new ERP system in 2026 to provide more integrated, real-time data
andstrengthencontrol, decision-making and efficiency. We also enhanced our omnichannel customer
serviceplatform to further improve customer experience.
Alongside these platform developments, we continued to strengthen our infrastructure and skills base.
Cloudtraining programmes are underway in Provident Europe, with AWS certification rolled out to IT teams
toimprove capability and support the shift to more modern, scalable technologies.
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.
• Engaging experienced third parties to handle security penetration testing and security network operations.
Principal risks and uncertainties continued
Risk environment and link to strategic pillars key
IPF risk environment improving
Next Gen financial inclusion
IPF risk environment remains stable
Next Gen organisation
IPF risk environment worsening
Next Gen technology and data
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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 continued to shape our organisational structures and
operating processes in 2025. Our employee value proposition and reward strategy continue to support the
attraction and retention of talent, with vacancy rates remaining within acceptable thresholds in most markets.
We remain committed to developing and engaging colleagues through expanded learning programmes,
structured career pathways, and recognition initiatives. We also continued to enhance oversight of incentive
scheme performance. Our culture remains strong, supported by high Global People Survey scores and ongoing
ethics and engagement initiatives. For more information on our colleagues see page 50.
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.
Data integrity and systems resilience risk
The risk that the Group
suffers a significant loss
dueto either:
• business disruption
caused by the
unavailability of ICT
systems arising through
poorly managed ICT
systems; the actions of
amalicious third party;
orthe failure to
adequately manage our
third-party providers of
ICT services which
support the business.
Or
• the malicious or
accidental exposure,
lossor corruption of data
arising from a failure
toadequately manage
and protect all classes
ofGroup data.
We continue to evolve our ICT risk management strategy to build a more resilient, modern, and secure technology
environment. In 2025, we made significant strides in identifying and measuring performance of key controls,
enhancing baseline security, improving detection and response capabilities, and advancing recovery planning
toimprove our resilience to modern cyber and other ICT-related threats.
Recognising the dynamic nature of cyber risk driven by human behaviour, rapid technological change and
legacy system challenges, we are addressing vulnerabilities and investing in long-term resilience. The global rise
ofAI-driven cyber threats and increasingly sophisticated malicious actors underscores the importance of our
strategic focus.
For more information on IT Operational Risk and Resilience, including Cybersecurity, please see page 70.
How it is managed
•
Group-wide cyber and data risk strategy with executive oversight and alignment to regulatory and resilience
priorities.
• Robust identity and access management including privileged access controls and user authentication.
• Advanced threat detection and response through enhanced Security Operations Centre (SOC) capabilities
andincident management.
• Comprehensive asset and system mapping to support recovery, continuity, and vulnerability management.
• Ongoing staff training and awareness programme to reduce human error and strengthen security culture.
Principal risks and uncertainties continued
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 historic resilience of the Group’s business
modelovermany years, including times of adverse
macro-economic 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 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macroeconomic and regulatory risks) as outlined
onpages37-40. 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 2026 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 32 and 33.
Viability statement
Risk environment and link to strategic pillars key
IPF risk environment improving
Next Gen financial inclusion
IPF risk environment remains stable
Next Gen organisation
IPF risk environment worsening
Next Gen technology and data
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When Joanna needed urgent support to repair her car,
herincome wasn’t enough to cover the cost. She applied for
one of our loans online and was struck by how simple and
reassuring the process felt. That positive experience stayed
with her, andafterlearning more about careeropportunities
at Provident, shedecided to apply. Joanna joined us in 2023
and now supports customers withthe same care and
empathy sheonce received herself.
“I learned about the opportunities for
personal growth and thought, maybe,
there was a place here for me.
It’sbeen a rewarding journey and
I’mexcited to see where it leads.”
From customer
to colleague
Stakeholders in focus 46
Section 172 and Board decision-making 64
IPF in society 66
Corporate Sustainability Reporting Directive Statement 76
Independent Limited Assurance Report 110
Task Force on Climate-related Financial disclosures 112
Non-Financial and Sustainability Information Statement 123
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Responsible Business
2025 highlights
Our approach
At IPF, our responsible business vision is built on the belief that
long-term success is achieved only when we create positive
outcomes for our customers, colleagues, communities and
wider society. As a business that serves financially underserved
customers, we recognise the responsibility we have to ensure
our products are fair, our conduct is responsible and our
operations support long-term resilience and inclusion.
Actingresponsibly is therefore embedded in how we run
ourbusiness, manage risk and deliver sustainable growth
across our markets.
Customers
We support customers by providing
responsible, accessible credit and
services that help improve financial
wellbeing, ensuring fair treatment
and positive outcomes across
allour markets.
Regulators, politiciansandNGOs
We maintain open, constructive
dialogue with regulators, politicians
and NGOs to ensurecompliance,
anticipate emerging
expectations and contribute
toresponsible, consumer-
focused financial services.
Investors and ratings agencies
We engage with investors and rating
agencies to provide insight into
ourperformance, strategy and risk
management, supporting informed
decision-making and sustainable
long-term value creation.
Communities
We aim to create a positive social
impact in the communities where
weoperate bypromoting financial
inclusion, supporting local initiatives
andcontributing to wider economic
andsocial wellbeing.
Colleagues
Our colleagues deliver
ourpurpose everyday.
Wefocus on creating
asafe, inclusive and
engaging workplace
thatsupports development,
wellbeing and long-term
career opportunities.
Suppliers
We work with suppliers
who share ourvalues
andsupport our
operations responsibly.
Strong partnerships
helpusmaintain high
standards of service,
conduct and regulatory
compliance.
£500,000
Total community investment
4,000
colleagues volunteered to support
theircommunities
89%
Customer satisfaction
c.75%
Female global workforce
Understanding ourstakeholders
Delivering on our responsible business commitments
requiresaclear understanding of the people and groups
whoareinfluenced by, or have an influence on, our business.
Ourstakeholders play a critical role in shaping our priorities
bysharing insights on our products, services, conduct
andbroader impact on society.
Through structured engagement and ongoing dialogue
weensure thatstakeholder expectations are reflected
inourstrategic planning, operational decision-making
andsustainability disclosures. Their perspectives help
usanticipate emerging risksand opportunities, strengthen
trust,and continually improve how we deliver value.
The following pages outline who our key stakeholders are,
whythey matter to IPF and how we engage with them
throughout the year as part of our commitment to being
aresponsible, sustainable business.
Our Responsible BusinessFramework
To deliver our vision consistently and transparently, we use
ourResponsible Business Framework. This brings together
theprinciples, policies and practices that guide how we
operate, and ensures that responsible business considerations
are embedded in everyday decision-making.
Agreed with the Board, the framework reflects our commitment
to conducting our business in a socially responsible and ethical
manner – prioritising fair outcomes for customers, supporting
the wellbeing and development of our colleagues, protecting
the environment, and contributing positively to the communities
where we operate.
Our approach is grounded in clear guiding principles that help
ensure we continue to act responsibly as the business evolves.
These include prioritising the actions that matter most, building
on strong foundations already in place across our markets,
andanticipating and responding to changing regulatory
expectations.
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Financial inclusion
At IPF, our customers sit at the heart of our purpose.
Weservepeople who may have been excluded or underserved
by traditional lenders – including people living inrural or low-access
banking areas, older consumers who prefer personal support,
microbusiness owners, and individuals with past credit difficulties.
By providing simple, accessible andaffordable credit, we help
people navigate daily financial challenges andbuild greater
financial confidence.
As customer expectations evolve, we continue to expand
financial inclusion by adopting new technologies and diversifying
our proposition for those who prefer digital journeys – from
mobile apps to faster onboarding and real-time communication.
Yet we are still a business driven by people, not just technology:
our customer service advisers and customer representatives
bring the empathy, clarity and personalised support that many
customers value most.
Our Customer Promises define the experience we strive
todeliver: flexible products that adapt to individual
circumstances, transparent information with no surprises,
asense of being valued, support when situations change,
personal guidance from our advisers, and timely access
tofunds. These commitments guide every interaction
andreflect our responsibility to treat customers with
fairness,respect and care while helping them access
creditinthe waythat works best for them.
Delivering for our customersin 2025
We continued to evolve our Think Customer programme
asakey component of our Next Gen strategy andhow
weoperate. What began as a home credit-focused initiative
hasnow been scaled across all our divisions and embedded
into every market, driving our vision to deepen customer
relationships, deliver high-quality experiences and keep
customers at the heart of everything we do. By uniting our
teams, data and customer insight, we are building integrated
connections between delivering great service and driving
sustainable growth. We are also ensuring that customer
experience drivesloyalty and long-term performance.
Customer service quality training
As part of strengthening our customer experience capabilities,
we enhanced service training across all Provident markets
in2025. We delivered face-to-face sessions in Romania,
engaging over 150 colleagues, with further in-person
workshopsrolled out in Hungary. We also refreshed online
training in the Czech Republic. These sessions focused on
embedding consistent service behaviours, improving the
quality and clarity of customer interactions, and ensuring
ourfield teams feel confident supporting customers’ needs.
Ongoing refresher modules will continue to drive consistency,
elevate service standards and help us build deeper,
moretrusted customer relationships.
Extending mobile customer
appsacross markets
We accelerated mobile innovation during the year by extending
ourcustomer app roadmap across Europe. Therollout is being
phased to ensure stability and strong userexperience.
InHungary, ‘family and friends’ testing beganduring 2025,
withrollouts in the Czech Republic and Romania scheduled
toreflect lessons learned during the pilot. Theseenhancements
strengthen digital accessibility and offercustomers more
convenient ways to manage their credit.
Refreshing our Heartbeat insights
In 2025, we completed a major refresh of our Customer Journey
Heartbeat programme across Romania, the Czech Republic,
Poland and Hungary, gathering feedback from more than
4,000 customers to understand what truly drives trust, transparency
and feeling valued. The findings mark a clear shift from
functional trust to emotional trust, with customers placing
greater emphasis on fairness, empathy and how they are
treated. We saw strong gains in transparency and fairness,
alongside a 66% improvement in delivery across key touchpoints
compared withour 2023 baseline, helping shape updated
training, communication flows and service standards more
closely aligned with customer needs. Insight presentations
andplanning workshops are now underway toembed these
learnings and strengthen emotional connections in every
customer interaction.
Building customer value
At the heart of our approach is a simple belief: real value is
created when our colleagues connect with each other and
with our customers. In 2025, our Think Customer programme
included aseries of practical initiatives to help colleagues stay
closer tothe people we serve.
• Close to Customer days to strengthen understanding
ofcustomer needs.
• Customer home visits with customer representatives
tobuildaclearer picture of their day-to-day needs.
• Call-listening sessions and real-time feedback dashboards
tosupport fast learning and improvement.
• Mystery shopping with coaching to enhance service quality
and consistency.
• Customer Heroes recognition programme celebrating
colleagues who go the extra mile.
• Internal engagement campaigns to share insights widely
andturn learning into action.
These actions are delivering measurable impacts and are
helping customer experience to become a shared, daily
habitacross our business.
Building impact throughconnection
Through the Think Customer programme, we are also
strengthening collaboration between head office teams and
sales teams to better serve our customers. By embedding
empathy and feedback into everyday work, colleagues across
all our functions gain a clearer understanding of our customers’
realities and needs. Initiatives such as call centre listening
sessions provide valuable feedback, and customer home visits
with customer representatives allow colleagues to experience
day-to-day interactions firsthand, helping them identify
practical ways to simplify processes, resolve issues faster and
improve service quality. Internal engagement campaigns also
help share these insights across teams, ensuring that learning
turns into action.
Every story matters
Keeping our focus firmly on customers, we launched our
Customer Book featuring 365 real-life stories of those served
byour Provident Europe division, one for each day of the year.
Each story captures the human connection behind every loan
we serve, the trust we build, the moments that matter, andthe
difference our support makes to our customers’ lives. More
thanacollection of testimonials – it’s a daily reminder that
every interaction matters.
Excellence in customer service
Provident Hungary was recognised for the eleventh
consecutiveyear in the national Excellence in Customer Service
competition, winning the large-enterprise award for personal
customer service alongside major international brands.
Customers
89%
Customer satisfaction
+71
Net Promoter Score
Stakeholders in focus
Why they matter
Regular engagement and face-to-face contact with our customers
build trust and long-term relationships, which inturnencourages
loyalty when they seek to finance their needsinatransparent
andreliable manner (ESRS 2 SBM-2; ESRS S4-2).
What matters to them?
– Access to financial services
– Affordability and price
– Data protection and privacy
– Flexible repayments when things go wrong
– Convenience
– Range of products to choose from
– Responsible and ethical marketing and sales practices
– Simple, personal and seamless experience
– Trusted brands
(Identified through the Double Materiality Assessment –
ESRS2SBM-3; ESRS S4-2)
Ways we engage
– Customer surveys and focus groups
– Product proposition and usability testing
– Colleague immersion activities, including customer
homevisitsandcall-listening sessions
– Digital analytics
– Complaints analysis
– Double materiality assessment
– External reputation survey
(Consumer engagement processes – ESRS S4-2)
Board considerations of stakeholder interest
– Biannual stakeholder update
– Customer metrics and updates included in the CEO’s report
atevery Board meeting
– Customer visits and meetings with customer representatives
inour markets
– Twice-yearly deep-dive sessions with Chief Marketing Officer
– Review of double materiality assessment results
– Strategic planning gives significant consideration
tocustomermatters
(Board oversight of material IROs – ESRS 2 GOV-2; SBM-3)
Outcomes from feedback to the Board
– Feedback from the Customer Journey Heartbeat programme
informed the Board-approved Customer Strategy, in particular
helping to shape training, communication and service standards
to ensure they were aligned with customer needs.
(Actions in response to material impacts – ESRS S4-4)
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Stakeholders in focus continued
Advancing financial inclusion
through digital transformation
As customer expectations evolve, we continue to broaden
access to our services by strengthening the digital channels
ourcustomers use most. A growing share of interactions now
take place online or through mobile devices, and we are
enhancing these touchpoints to make it easier for customers
tocontact us, manage their accounts and stay informed
throughout their journey.
In Mexico, we introduced WhatsApp as an additional
communication channel, giving customers an easy way
toreach us and receive information. We also expanded
webchat support in Hungary, and in Romania and the Czech
Republic we now provide web chat with automated self-service
options for completing common tasks, so customers don’t need
to wait to speak to a customer adviser. These enhancements
support a more accessible and flexible customer experience,
offering digital options for those who prefer them while
complementing the personal support that remains central
toour model.
In Provident Mexico, we piloted the digitisation of repayments
togive customers more convenient, flexible ways to stay
ontrack with their loans. By expanding our cash-in network
through new partners and introducing secure digital payment
links for debit card payments, we are widening access to
simple self-service options. We also ran a pilot enabling field
teams to take payments using mobile point of sale devices,
making it easier for customers to pay intheir preferred way.
Early results indicate improvements in customer experience,
collections and lower operational costs.
In Romania, we continued to strengthen our fully digital lending
proposition, supported by increased marketing investment.
Within IPF Digital, we began enhancing mobile wallet
functionalities, informed by extensive customer analysis,
toprovide greater control, clearer visibility and more self-service
options. These developments reflect our ongoing commitment
to making our products easier to use while supporting
customers in the way that best suits their needs.
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 in our markets. Consideration of new
products and assessment of the performance of existing
products from acustomer satisfaction perspective are reviewed
regularly byLocal 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 where required.
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 market information 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
itcomes 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, weprioritise
prudent credit underwriting to mitigate potentialdebt challenges.
Our approach includes thoroughassessments ofinternal and
external data, aswellascustomers’ income and expenses,
toensure loan affordability. In our Provident 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.
Resolving customer
concernsandcomplaints
An effective complaints-handling process is critical for building
transparency, trust, and continuous improvement. Wemanage
complaints in line with established policies and legal requirements,
ensuring accessibility and responsiveness for all customers.
Weclearly outline how customers can raise concerns through
our consumer-facing websites, which explainthe complaints
process, expected timeframes andresolution 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.
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 2025
waslow. In2025, complaints totalled approximately 76,000
(2024: 60,200), representing 4% of active customers and the
average resolution time was 9 days (2024: 8 days). In 2026,
wewill continue monitoring complaints trends and addressing
root causes to enhance the customer experience.
Looking ahead
In 2026, we will continue to evolve the Think Customer
programme to strengthen trust and deepen our culture of care.
We will focus on improving our digital experience for customers,
expanding our mobile app functionality and using AI to share
feedback instantly across our customer service centres so we
can act faster, especially when things don't go as smoothly
asexpected. Insights from our refreshed Customer Journey
Heartbeat will help each market create tailored action plans
andshape how we respond to customer needs.
We plan to bring our Customer Book stories to life in colleague
training, helping to keep customers visible in everyday
decisions. We will also explore how customer experience
drivesbusiness performance, linking service quality more
closely to delivering growth.
Finally, we will continue to celebrate customer connection
andteamwork through customer experience days and
byrecognising our Customer Heroes – keeping us close
tothecustomers we serve and making IPF an even more
customer-centred business.
100
colleagues spent a day inthe field or
Contact Centre through ourClose to
Customer activities.
65
sales and service colleagues
wererecognised for outstanding
contributions to customer experience.
1,500
loyal customers received
appreciationgifts,delivered with
supportfrom 140+ colleagues.
Romania customer experience in action outcomes
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Why they matter
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.
What matters to them?
– Development opportunities
– Recognition and reward
– Wellbeing
– An ethical and customer-focused culture
– A safe working environment
Ways we engage
– Global People Survey
– Wellbeing surveys
– Annual engagement conferences
– Internal reputation survey
– Double materiality assessment
Board considerations of stakeholder interest
– Biannual stakeholder update
– Workforce Engagement Director meetings with colleagues
– Remuneration discussions with Board members
– Skip-level Board dinners
– Colleague metrics and updates included in the CEO’s report
discussed at every Board meeting
– Twice-annual HR strategy sessions at Board meetings
includingreview of Global People Survey results
– Review of double materiality assessment results
– Talent and succession reviews by Nominations and Governance
Committee
– Reviews by the Remuneration Committee of workforce
policiesand practices
– Non-executive director participation in our Annual
LearningFestival
– Workforce policy reviews by Remuneration Committee
Outcomes from feedback to the Board
– Feedback from workforce engagement sessions on
remuneration helped inform discussions on wider workforce
remuneration policies
– Global People Survey feedback considered as part of the Board
approved HR Strategy
Our 20,000+ colleagues are the driving force behind our
continued success. Every day, they bring energy, skill and
purpose to delivering affordable, accessible and responsible
financial services that make a real difference to our customers’
lives. Their dedication enables us to support communities that
are often underserved by traditional lenders. In return,
wecreate an inclusive and supportive environment where
colleagues can thrive, contribute and reach their full potential.
Our people strategy focuses on attracting, developing and
rewarding diverse, high-performing teams who are inspired
byour purpose and committed to our long-term success.
Our people’s voice
In 2025, we strengthened the connection between our
peopleand our purpose, building on the strong foundations
established through our Next Gen organisation pillar. Thelatest
Global People Survey (GPS), completed by more than 17,600
colleagues, reflected this progress with an exceptional 91%
participation rate. Overall positive sentiment among employees
reached 79.5% (2023: 77%), while customer representative
sentiment was maintained at an excellent 81%, highlighting
thedepth of engagement and pride across our global teams.
The GPS explores four dimensions – pride, care, challenged
andinspired – providing valuable insight into how our people
experience purpose, leadership and inclusion at IPF. Results
reaffirmed our colleagues’ strong connection to our purpose
and values, with sentiment improving across every dimension
for employees compared with our previous survey undertaken
in 2023. Thisdemonstrates a culture in which colleagues feel
valued, supported and inspired to make a difference.
Across all our divisions, colleagues continued to share
feedback directly with leaders through open forums, townhalls
and business updates. This two-way dialogue reinforces our
culture of openness and respect, reflecting our values of being
straightforward, responsible and respectful. We also uphold
theright to freedom of association and collective bargaining
inevery market where we operate.
Strong engagement continues to drive customer
satisfactionand strengthen the link between how
colleaguesfeel and howour business performs.
Our colleagues
2025 Global People Survey highlights
Pride Care
Employees
Customer representatives
Employees
Customer representatives
Employees Customer representatives Employees Customer representatives
Our view Our view
Pride in working for IPF remains one of our strongest cultural indicators.
Colleagues continue to express confidence in our purpose of building
abetter world through financial inclusion, and responsible lending.
Thisyear’s results show a significant increase in employees’ pride in,
and connection with, our purpose. Wewill continue to build on this
through visible leadership, local recognition programmes and clear
communication of how every role contributes to customer success
andGroupperformance.
Colleagues appreciate the continued focus that we place on
wellbeing and psychological safety. The improvement in this score
reflects the positive impact of our Global Care Programme and local
mental health initiatives. We will continue to strengthen support for
leaders to have meaningful wellbeing conversations and ensure that
our care programmes evolve to meet the changing needs of our
colleagues across all markets.
Challenged Inspired
Employees
Customer representatives
Customer representatives
Employees Customer representatives Employees Customer representatives
Our view Our view
Colleagues feel increasingly motivated by their work, reflecting greater
empowerment and trust in local teams. The increase in this score
shows that our focus on leadership capability, digital transformation
and clear performance goals is helping colleagues feel challenged in
a positive way. We will continue to invest in developing leadership and
management skills to maintain this momentum and ensure
thatallcolleagues have the tools and confidence to succeed.
This score reflects continued alignment with our values of being
responsible, respectful and straightforward, alongside strengthened
confidence in our purpose-led culture. Colleagues are inspired
byourNext Gen strategy and by the opportunities created through
technology and collaboration. We will continue to share success stories,
promote learning opportunities and celebrate the impact our people
have in delivering financial inclusion for millions ofcustomers worldwide.
This year’s Global People Survey results show continued
strongengagement across the Group. Employee sentiment
strengthened in areas linked to pride, growth and feeling cared
for, and customer representatives again delivered high scores,
reflecting the positive impact of our investment in belonging,
wellbeing and capability.
Across Provident Europe, colleagues valued clearer
communication, meaningful recognition and stronger
leadership support. Actions for 2026 will focus on further
increasing leadership visibility, broadening opportunities
forfeedback and simplifying processes to help colleagues
perform at their best.
Within IPF Digital, flexibility, digital learning and wellbeing
supportwere particular strengths. The 2026 plan builds on this by
expanding digital learning pathways, deepening development
opportunities and strengthening connection across markets.
In Provident Mexico, colleagues and customer representatives
reported high levels of pride, purpose and commitment.
Building on this momentum, the leadership team has agreed
acountry-wide plan centred on care, inspire and challenge,
including enhanced field visibility, quarterly town halls and
astronger focus on recognition and development.
These actions form a strong foundation for our 2026
engagement priorities as we continue to build connection,
inclusion and performance across the Group.
Stakeholders in focus continued
Participation
91%
Positive sentiment
79.5%
Employees
81%
Customer representatives
84%
(2023: 79%)
83%
(2023: 80%)
84%
(2023: 84%)
83%
(2023: 83%)
76%
(2023: 73%)
79%
(2023: 77%)
78%
(2023: 78%)
81%
(2023: 82%)
Overall summary
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Caring for our
colleagues’wellbeing
In 2025, we continued to strengthen colleague wellbeing
andpsychological safety as part of our Next Gen organisation
ambition to be a great place to work, where care is reflected
inhow we support, listen to and value our colleagues.
Weembedded our wellbeing framework across all markets,
and this approach was recognised externally through
certification confirming alignment with ISO 45003 guidance.
We expanded access to emotional and psychological support,
and continued to build early-intervention pathways so
colleagues can get the right help at the right time. We also
introduced foundational learning on psychological safety
tohelp everyone understand what it is and why it matters.
In2026, we will extend this work by supporting leaders to
bringthese behaviours to life in everyday work. Throughout
2025, colleagues across all our markets took part in wellbeing
activities that helped people feel connected, encouraged,
andsupported – reinforcing a culture of care at the heart
ofhow we work together.
ProviFest
Provident Romania hosted ProviFest, a national wellbeing
and culture event attended by 350 colleagues, featuring
workshops on empathy, inclusion, personal expression,
resilience and cultural heritage. With more than 900
workshop participations and strong positive feedback,
theevent created meaningful connections and
strengthened belonging and psychological safety at work.
Colleagues in Romania taking part in ProviFest
Launch of Línea Cuidándote
careline
To mark World Mental Health Day, Provident Mexico
launched Línea Cuidándote, a confidential emotional
support line for employees and customer representatives.
The service provides professional psychological support
for personal and workplace challenges, reducing stigma
around seeking help and supports a culture of openness,
empathy andpsychological safety. More than 40
colleagues called the helpline during this first20days
ofoperations, demonstrating strongawareness and trust
in the service, anditsimportance in supporting mental
healthacross the organisation.
Mental Health Day, Mexico
Stakeholders in focus continued
Supporting connection and shared
understanding
Supporting colleague wellbeing goes beyond individual
initiatives and relies on creating connection, shared purpose
and consistency across the Group. In a geographically diverse
organisation, this helps ensure colleagues feel supported,
informed and part of a wider community. Our Global Care
Team plays a central role, maintaining a consistent focus
onwellbeing across all our markets. Regular Global Care
newsletters keep colleagues informed, celebrate good practice
and reinforce a sense of belonging.
Transformation andresiliencesupport
In 2025, we introduced a transformation initiative to help
colleagues navigate change with confidence. Communication
campaigns and resilience workshops focused on practical
ways to help colleagues adapt, manage uncertainty
andsustain wellbeing during periods of transition.
Togetherness Day
Our annual Togetherness Day brought colleagues together
around three themes – Care for Me, Care for My Teamand
Care for Others. Through personal storytelling, conversations
about psychological safety, and volunteering activities,
theevent strengthened belonging and shared purpose.
Psychological safety awareness
We introduced foundational learning on psychological safety
to build understanding of what it is and why it matters. In 2026,
we will build on this by strengthening leaders’ capability to
create environments where colleagues feel safeto speak
openly, learn and grow.
Building an inclusive
anddiverseculture
We are committed to fostering a culture where every
colleaguefeels they belong and can thrive.
With operations across Europe, Mexico and Australia, local
recruitment remains a cornerstone of our people strategy.
Withmore than 7,850 new colleagues joining IPF in 2025,
wecontinue to invest in local talent to improve customer
experience and drive business growth.
Our Global Code of Ethics provides the foundation for our
inclusive and respectful culture. It defines the standards
ofbehaviour expected of everyone who works for or with IPF,
and underpins our Responsible Business Framework. The Code
sets clear expectations on equality, non-discrimination and
respect, and applies consistently to all colleagues, customer
representatives and contractors across our markets.
A highlight of the year was our 11
th
annual Ethics Week,
whichbrought together colleagues from every division to reflect
on our values that guide how we work – acting responsibly,
treating others with respect and being straightforward in
everything wedo. Through discussion forums, case studies
andmandatory e-learning modules, Ethics Week helps
colleagues apply ethical decision-making to real situations,
strengthening integrity andinclusion across our business.
Gender split of employees
at 31 December2025
*
5,3462,847
3773
24
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.
Building on this foundation, our Diversity and Inclusion Policy
reinforces these principles with a zero-tolerance approach
todiscrimination, bullying and harassment. It is supported
byclear reporting channels and confidential whistleblowing
processes that protect colleagues from any detrimental
treatment or retaliation and ensure all concerns are investigated
fairly. These actions strengthen our commitment todiversity
andequal opportunity, supporting our broader sustainability
and workforce reporting.
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Stakeholders in focus continued
Our diverse culture
In 2025, Provident Mexico expanded its Power of Women
programme to support career progression and leadership
development. More than 90 participants completed
tailored learning modules on building confidence, resilience
and personal growth. As a result of this programme,
women now represent over half of all Development
Managers in Mexico. The programme also created new
opportunities for shared learning through sessions like
theCircle of Allies, where three of our female directors
discussed their personal experiences and leadership
journeys. Together, these initiatives helped women across
the business develop new skills and progress their careers.
Our business in Romania became one of the first
companies inthe country to be accredited as a Best
Inclusive Workplace. The team also co-hosted Romania’s
largest diversity and inclusion event helpingtoadvance
inclusive practice nationally.
Women now represent over 50% of our 1,050
Development Managers in Provident Mexico
Estrellas Pathway toExcellence
In 2025, Provident Mexico launched Estrellas Pathway
toExcellence, a flagship development initiative focused
on strengthening capability, engagement and customer
experience across our customer representative workforce.
Known in Mexico as Estrellas, these colleagues form the
backbone of our service and play a critical role in how
we support customers in the market.
Developed through research, interviews and workshops
with Estrellas in six cities, the programme addresses key
pain points across the full colleague journey from
attraction andonboarding through to performance,
incentives, development and recognition.
Delivered through our established Estrellas Academy,
theprogramme offers tailored learning pathways focused
on sales excellence, customer care, digital tools and
ethical conduct. It also strengthens peer-to-peer support
and community among Estrellas. Early results are strong:
85% of participants improved productivity and reported
increased confidence in their role. Supporting more than
9,000 Estrellas nationwide in Mexico, the framework is now
a model for capability development and professional
growth across the Group.
85% of Estrellas taking part in our Pathway to Excellence
programme improved productivity
Developing skills
andgrowingpotential
In 2025, we advanced the digital transformation of learning,
strengthened leadership capability across all markets and
accelerated upskilling to prepare our people for the future.
Ourfocus remained on creating inclusive, impactful and
future-ready learning experiences that drive performance,
agility and leadership strength. Investing in our people builds
the skills and mindset needed to deliver outstanding results
andsupports our commitment to responsible business.
Colleagues across all markets took part in a wide range
oflearning experiences designed to connect people, ideas
and leadership excellence. Highlights included our fifth Global
Learning Festival, which generated over 4,500 session
attendances across a wide range of topics, as colleagues
andcustomer representatives explored areas such as AI,
cultural awareness and collaboration. We also enhanced
ourSenior Leadership Development Programme, delivered
withLinkedIn Learning, to build strategic, commercial and
future-ready skills consistently across the Group.
In Provident Mexico, refreshed content within our Leadership,
Commercial and Estrellas Academies supported performance
and engagement, while gamified and hybrid learning made
development more accessible and engaging. In Provident
Europe, ourMyBusiness Programme equipped over 650
colleagues with the skills and confidence to lead effectively,
supported by stronger regional alignment and harmonised
learning frameworks.
We continued to strengthen how we measure the impact
oflearning by linking development outcomes to business KPIs,
demonstrating the value of our investment in capability building.
We also launched pilot projects using AI and digital avatars
tocreate more adaptive and engaging learning experiences.
Development activity is integrated with succession planning
toensure a sustainable talent pipeline and strong leadership
capability across all markets.
By continuing to invest in learning, leadership and career
development, we are building a capable, connected
andconfident organisation – one that reflects our values,
advancesopportunity and supports IPF’s long-term success.
Rewarding performance andpurpose
Our approach to reward supports both individual performance
and strengthens our commitment to financial inclusion.
Wewant colleagues to feel valued for the vital role they play
inenhancing customer experience, driving our growth
ambitions and helping to shape the future of IPF through
thedelivery ofour Next Gen strategy.
In 2025, we continued to strengthen the link between pay,
performance and purpose. Our total reward framework is
designed to be fair, transparent and competitive. It supports
colleague wellbeing while driving sustainable business
performance. We apply consistent reward principles across
alldivisions, centred on fairness, transparency and alignment
between performance and reward, ensuring equity with market
practice and our values of being responsible, respectful
andstraightforward.
We review and refine our incentive structures regularly to
promote sustainable growth and inclusive leadership across
the Group. In support of our purpose and sustainability
commitments, the objectives of our executive and senior
leadership include both financial and non-financial measures.
The non-financial measures reflect our people and culture
priorities – including colleague engagement, leadership
behaviour and capability development – and are linked
explicitly to operating in a responsible, respectful and
straightforward way.
As a UK Living Wage-accredited employer, we remain
committed to fair pay and good working conditions across
allour markets. We review reward structures regularly to ensure
they are transparent, competitive and aligned with the needs
of our colleagues. For employees, our fair pay principles include
ensuring pay meets or exceeds statutory minimum wage
requirements in every market, benchmarking salaries against
industry standards, supporting healthy working patterns and
providing paid annual leave. This approach helps us create
aconsistent, fair and inclusive experience across the Group.
Regular performance discussions ensure that colleagues
receive constructive feedback and recognition while identifying
future growth opportunities. This approach keeps performance
management and development closely connected to our
values, purpose and commitment to fairness.
Our total reward approach also reflects our commitment
tocore labour rights, including freedom of association
andtheright to collective bargaining, which underpin
ourfairemployment practices globally.
Looking ahead
In 2026, we will continue to strengthen leadership capability,
modernise how we work and ensure IPF has the talent, systems
and culture to deliver sustainable growth. Our priorities will include:
• continuing to build a great place to work by maintaining the
high engagement and wellbeing levels reflected in our 2025
Global People Survey, deepening leadership capability,
andembedding consistent, values-based people practices
across all markets;
• improving organisational effectiveness by modernising
processes, and harnessing data and technology to enhance
decision-making, collaboration and accountability.
Theintroduction of ONE IPF, our new ERP system, will integrate
HR, Finance and procurement operations, standardise
analytics across divisions and create a more agile, efficient
and connected organisation;
• strengthening our approach to psychological wellbeing
byembedding our framework into everyday leadership and
teamwork practices, and enhancing early-support pathways
and building manager capability through training to ensure
colleagues feel supported in the moments that matter; and
• ensuring future-ready talent by expanding access to digital
learning, leadership pathways and succession programmes
that build capability, foster internal mobility and equip
colleagues to deliver sustainable growth.
These priorities underpin our commitment to responsible
business and the European Sustainability Reporting Standards
(ESRS), while building a connected, capable and inclusive
organisation – one that delivers on our purpose andhelps build
a better world through financial inclusion. For more information
on our workplace disclosures see the CSRD section from page76.
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Why they matter
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.
What matters to them?
– Business performance
– Payment practices
– Ethical business policies and practices
Ways we engage
– Supplier feedback
– Supplier surveys
– Double materiality assessment
Board considerations ofstakeholderinterest
– Biannual stakeholder update
– Approval of key supplier contracts
– CFO report to the Board highlights material supplier performance
issues
– Review of modern slavery strategy and supply chain risks
– Review of double materiality assessment results
Outcomes from feedback to the Board
– Feedback from the supplier evaluation process and due
diligence assisted in the development of a third-party risk matrix.
Our ability to operate effectively and deliver for our customers
depends on strong, trusted relationships with our suppliers.
In2025, we worked with almost 3,000 suppliers worldwide
andspent around £200 million across key categories such
asmedia, digital marketing, IT hardware and software,
facilitiesand car leasing.
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.
Theiractions 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. The Group’s Responsible Procurement Policy and
Group Procurement Standards document the minimum
standards for procurement function engagement with
suppliers, including sourcing, supplier selection, negotiations,
contracting, supplier risk management, contract requirements,
and supplier management and evaluation processes.
Group Procurement Standards ensure that all procurement
activity isundertaken according to the following principles:
• Social responsibility: mitigating the risk that suppliers do not
comply with international labour standards, including fair
wages, safe working conditions, non-discrimination, and
prohibition of child or forced labour, and promoting respect
for human rights aligned with the United Nations Guiding
Principles on Business and Human Rights throughout the
Group’s supply chain;
Our suppliers
Stakeholders in focus continued
• Ethical governance: ensuring that procurement and
outsourcing decisions are made with transparency,
accountability, and ethical considerations. Critical
andstrategic suppliers must demonstrate appropriate
anti-corruption and anti-bribery measures, ensure data
protection and information security across outsourced
operations and demonstrate good business ethics
andaccountability; and
• Environmental responsibility: looking to engage with suppliers
who demonstrate environmental responsibility by reducing
environmental impact, for example, through reductions in
greenhouse gas emissions, supporting nature and reducing
the use of resources. The Group Responsible Procurement
Policy is approved by the Chief Financial Officer.
Creating a sustainable supplychain
In 2025, we introduced a new Group Responsible Procurement
Policy to ensure that our supplier relationships create sustainable
value while delivering competitive advantage through strategic
sourcing, risk management, andthe delivery of high-quality
goods and services at the lowest total cost. As a leading
provider of financial services for underserved communities,
werecognise the importance and impact of our supply chain.
We are committed to sourcing goods and services responsibly
and in full compliance with regulatory requirements, while
ensuring data protection, cybersecurity and digital operational
resilience, promoting sustainability, respecting human rights
and upholding the highest ethical standards. The new Group
Responsible Procurement Policy integrates ethical, environmental,
social and governance principles into all our procurement
processes alongside high standards of data protection,
privacy, cybersecurity and digital operational resilience.
Together with the Group Procurement Standards and ICT
Third-Party Risk Policies, it ensures that all procurement
andoutsourcing activities across the Group contribute
toenvironmental sustainability, social responsibility and robust
governance while complying with operational andregulatory
requirements.
Following the introduction of the new Group Responsible
Procurement Policy, our Group Procurement Standards
wereupdated to fully integrate its commitments into our
sourcing processes and supplier management procedures.
Keychanges included:
• Supplier Segmentation Standard: Updated to broaden
thedefinition of critical suppliers in line with European Bank
Association guidelines for outsourcing services and the
Digital Operational Resilience Act (DORA) definition of critical
functions and processes;
• Sourcing Standard: Enhanced by introducing obligatory due
diligence procedures as part of the supplier selection process
for all our critical suppliers. All sourcing activities are now
aligned with an updated list of internal policies including the
Anti-bribery and Corruption, Conflict of Interest, Data
Protection, Gifts and Hospitality, Human Rights, ICT Third-Party
Risk Management, Information Security, Modern Slavery,
andWhistleblowing policies; and
• Supplier Risk Management Standard: Strengthened by adding
an annual Supplier Risk Assessment as an obligatory step in
our supplier evaluation process. The assessment now monitors
a wider range of potential risks including conflict of interests,
concentration risk, strength of exit strategy, ICT resilience risk,
business continuity, sustainability and reputational and
financial risks. Additionally, a Supplier Sustainability Assessment
has become mandatory for all critical suppliers.
Engaging with suppliers
Our procurement teams engage with suppliers through clearly
defined processes and channels, with particular focus on those
classified as strategic and critical under our Supplier Segmentation
Standard. The segmentation process is reviewed annually and,
in 2025, identified 136 critical suppliers. Procurement engagement
with suppliers is precisely defined in Supplier Operational
Management, Supplier Relationship Management and Supplier
Risk Management Group Procurement Standards. As of 2025,
all critical suppliers are subject to a documented Supplier
Evaluation Process, including annual risk and sustainability
assessments, with new due diligence procedure introduced
forsuppliers defined as outsourcers under European Banking
Association guidelines.
Modern slavery and human rights remain the most significant
sustainability risks within our supply chain. Building on our
comprehensive 2024 assessment, we refined our supplier
segmentation criteria to better identify and manage these risks.
In 2025, 31 suppliers were classified as critical from a human
rights and modern slavery perspective and were assessed
through our enhanced supplier risk process.
In 2025, we also engaged 63 suppliers across all markets
aspart of our double materiality assessment process. Their
strong participation via a survey supported the prioritisation
ofthe most important sustainability-related topics, and reflected
high engagement and shared commitment to responsible
andsustainability business practices.
New Supplier Code of Conduct
We can only achieve our purpose of extending financial
inclusion by working in partnership with our suppliers.
Toreinforce this partnership, in 2025 we created and
introduced a new Supplier Code of Conduct, which
setsoutthe principles and standards we expect all our
suppliers, contractors and business partners to follow.
Aligned with internationally recognised good practice,
including the UN Global Compact principles, the Code
ispart of our shared journey of continuous improvement
and covers key areas suchas:
• Labour and Human Rights including child and forced
labour, wages and benefits, working hours, disciplinary
practices, non-discrimination, freedom of association;
• Health and safety;
• Environment;
• Ethics and Integrity including anticorruption,
businessintegrity, conflict of interest,
confidentialityanddata protection;
• Responsible sourcing; and
• Reporting concerns.
The introduction of our new Group Responsible Procurement
Policy and updated Group Procurement Standards at the start
of 2025 launched a significant programme of new obligations
and activities. During the year, we completed 26 due diligence
reviews for key suppliers supporting critical or important functions,
including those classified as outsourcers under the European
Banking Authority definition. A further 95 critical suppliers
underwent our enhanced Supplier Evaluation process –
covering risk assessment and sustainability checks. Together
with insights gathered through due diligence, this work enabled
us to build a global Third-Party Risk Matrix, giving us much clearer
visibility of potential risks and helping us shape effective
mitigation plans to strengthen operational resilience.
Looking ahead
Building on this progress, we plan to extend due diligence
toallcritical suppliers over the next two to three years,
introduce a formal supplier audit procedure, and conduct
ourfirst audits. We will also continue to embed our new
SupplierCode of Conduct through regular engagement
andmeetings with suppliers.
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Why they matter
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.
What matters to them?
– Community investment
– Financial literacy
– Social wellbeing
– Environmental impacts
– Volunteering
Ways we engage
– Our Invisibles programme
– Other community programmes
– Colleague volunteering
– Double materiality assessment
Board considerations ofstakeholderinterest
– Biannual stakeholder update
– Visits to community investment projects
– Updates included in CEO report to the Board
– Review of double materiality assessment results
– Updates from the Corporate Affairs Director on the Invisibles
Programme
– Biannual Board stakeholder updates
Outcomes from feedback to the Board
– Feedback from the communities helps inform our Invisibles
programme throughout the year.
Our communities
We play an active role in supporting the social and economic
wellbeing of the communities where we operate. Our focus
remains on helping people who face barriers to financial
inclusion – listening to their stories, supporting education
andcreating opportunities that promote lasting financial
resilience. In 2025, westrengthened our community impact
through increased investment, volunteering and partnerships,
with all markets uniting behind our flagship Invisibles programme.
Thisglobal initiative continues to highlight andsupport people
whose contributions tosociety often gounseen, combining
financial support, practicalassistance and employee volunteering
to make ameasurable difference in local communities.
Our community strategy is centred on three pillars:
• our Invisibles programme;
• financial education initiatives; and
• volunteering opportunities for colleagues.
In 2025, our community investment exceeded £500,000,
withmore than 4,000 colleagues contributing over 12,000 hours
of volunteering to support local initiatives across our markets.
Stakeholders in focus continued
Empowering women through
research and partnership
In Mexico, our Provident and digital teams collaborated on
astudy to understand the barriers faced by women excluded
from the formal financial system. The findings were presented
ata national press conference, helping draw attention to the
challenges experienced by thousands of women across the
country. To support lasting change, our Mexico home credit
business also entered into partnership with UN Women,
creating a platform for joint action and advocacy. As part
ofthis collaboration, we are supporting the financial education
of1,500 women in Mexico and developing a new training
model for 150 of our customer representatives covering
financial skills, digital tools, leadership and community
development. The partnership also includes work on
preventingviolence against women and, from 2026, the
introduction of the UN Women’s Gender Gap Analytic Tool to
identify further opportunities to improve employee wellbeing.
Helping Invisibles build
resilience and opportunity
Our partnership with the NGO Hungarian Interchurch Aid
continued toprovide practical support to people in need
andpromote responsible financial habits. Alongside financial
education programmes for the NGO’s clients, we helped
launch a small-scale farming initiative that enabled 130 rural
families togrow their own food and build self-sufficiency.
Wealso supported disadvantaged children through the Dream
Championship football project, which offered summer training
and mentoring. The programme concluded with a final match
at the Ferencváros training centre, giving children the chance
to meet professional players – a memorable moment that
reinforced themes of opportunity, teamwork and inclusion.
Making Invisibles visible
through art in Romania
In Romania, the focus was on raising national awareness
ofInvisibles in this market and their everyday struggles.
TheRomanian team partnered with a group of artists to create
an interactive street installation symbolising the Invisibles – giving
them a public presence and a voice in the heart of communities.
The installation toured around the country, attracting thousands
of visitors and encouraging dialogue onfinancial and social
inclusion. A QR code displayed alongside the installations
directed viewers to the Invisibles website, inviting them to
learnmore and share their stories. Thecampaign aims to reach
one million visitors online, amplifyingthe visibility of those too
often overlooked.
Relaunching Invisibles
to reach more people
In the Czech Republic, where our Invisibles programme was first
introduced five years ago, we relaunched the initiative in 2025
drawing on updated research that identified four major groups
at risk of financial exclusion: senior citizens, informal carers,
social workers and experienced people aged 50+ who are
unemployed. The renewed focus is on providing practical help
and raising awareness of the challenges these groups face.
Working with NGO partners, we delivered on-the-spot financial
education, offered assistance through our Invisibles website
and supported clients in vulnerable situations. The relaunch
aims to give a stronger voice to these communities and inspire
greater understanding among the public and policymakers.
Our Invisibles programme
We understand that financial vulnerability – often driven
byeconomic inequality – remains a major barrier for many
people, and we have a responsibility to help address it.
OurInvisibles programme was established to shine a light
ongroups who are underserved by financial services
andtoprovide them with meaningful support.
The programme comprises four key steps:
1. Identify: Independent third-party research in each market
helps us pinpoint underbanked groups and understand
thespecific challenges they face.
2. Highlight: We share these findings publicly to raise
awarenessof the issues and what they mean locally.
3. Engage: We work with stakeholders to explore practical
actions that could improve outcomes for the groups
identified.
4. Help: We partner with relevant NGOs to deliver targeted
assistance and support to selected vulnerable groups.
Our Invisibles programme remained the flagship of our
community activities in 2025. We continued some of the most
successful projects in established markets while launching new
initiatives elsewhere. As the programme matures, we are
increasingly able to share learnings and apply best practices
across the Group, strengthening its impact year by year.
£500,000
invested in our community investment
4,000
colleagues contributions
12,000
hours of volunteering to support local
initiatives across our markets
Community investment in 2025
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Stakeholders in focus continued
Why they matter
Our investors provide capital and we rely on their confidence,
support and investment to deliver our strategy and long-term
sustainable success.
What matters to them?
– Performance and growth potential
– Risk management
– Cash generation
– ESG risks and reporting
– Executive remuneration
– Easily available information on the Group
– Share price growth
Ways we engage
– Results presentations, webinars and podcasts
– Corporate website
– Investor meetings
– Market visits
– Double materiality assessment
Board considerations ofstakeholderinterest
– 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
– Recommended acquisition by IPF Parent Holdings Limited
(BasePoint)
Outcomes from feedback totheBoard
– Approved a share buyback following investor feedback
oncapital returns options; however, due to market volatility,
subsequent share price recovery and possible offer activity,
theprogramme has not yet commenced.
– Considered investor sentiment on returns, growth expectations
and funding costs when approving strategy and budgets.
– Refined external messaging following themes from investor
roadshows and other shareholder meetings.
– Incorporated debt investor insights into funding strategy
andriskmanagement discussions.
Investors and ratings agencies
Financial education made easy
Provident Romania strengthened its role in supporting
customers’ financial wellbeing by sharing simple and
accessible financial education content, providing practical
guidance on budgeting, managing household expenses,
understanding loan costs and repayment obligations, and
making informed financial decisions. This content is designed
to be easy to understand and relevant to everyday situations,
helping customers gain confidence in managing their money
and using credit responsibly.
ProviRun and activity challenges
ProviRun events once again brought colleagues together
across all Provident markets and at our Leeds head office.
Morethan 2,000 participants – including employees, friends
and families – took part in runs, walks and activity challenges,
raising nearly £40,000 for charities supporting children and
families in vulnerable situations. Additional initiatives, such as
IPF Digital’s Kilometre Challenge and the UK Step Challenge,
unlocked further donations for local NGOs and Invisibles
projects, demonstrating the collective impact of our
colleagues’ commitment to community support.
Local action, global impact
Alongside Group-wide events, teams across our markets
ledtheir own volunteering activities tailored to local needs –
fromhelping schools in the Czech Republic improve
playgrounds and sensory pathways, to supporting foodbank
operations in Mexico. These efforts reflect the commitment
ofour colleagues to make a meaningful difference in their
communities, reinforcing our wider purpose of building
abetterworld through financial inclusion.
Supporting communities
throughvolunteering
Volunteering is an important part of how our colleagues
contribute to the communities we serve. Thousands of
employees give their time each year – both during working
hours and in their own time – supporting projects ranging
from financial education and youth programmes to
environmental initiatives. Our efforts come together during
our annual Volunteer and Financial Inclusion Month each
May, when nearly 2,500 colleagues took part in 85 projects
that benefited around 250,000 people and raised more than
£100,000 in 2025. These activities not only deliver meaningful
local impact but also strengthen teamwork, engagement
and pride across the Group.
Building empowerment
throughfinancial education
Alongside our Invisibles programme, we continue to invest in
financial education initiatives that help people take control of
their financial lives. Financial literacy is a foundation of financial
inclusion, enabling individuals to manage money confidently,
make informed decisions and strengthen long-term wellbeing.
Research across our markets shows that access to formal
financial education remains limited and that many people are
eager to improve their knowledge of budgeting, responsible
borrowing and saving. In response, we expanded our activities
in 2025 with practical initiatives such as a Financial Academy
for seniors delivered in three Hungarian towns, participation
inGlobal Money Week, and targeted financial education
programmes rolled out across our IPF Digital markets. These
initiatives also create valuable opportunities for colleagues
tovolunteer and share their expertise with people who are
financially vulnerable.
Our investors and the credit rating agencies that cover IPF play
a vital role in supporting the Group’s long-term growth and
financial resilience.
We have a proactive investor relations programme to keep
them fully informed about our business. Our CEO, CFO and
Investor Relations team hold regular discussions with existing
and potential investors, and the Chair and Committee Chairs
meet major shareholders periodically to understand their views
on governance, remuneration and strategic progress.
Engagement also takes place through one-to-one and group
meetings, results presentations, webcasts, our Annual Report
and the AGM. We also provide opportunities several times
ayear for investors to ask questions or share feedback
onareassuch as performance, governance and risk
management, helping to inform management decisions
andenhance the quality of our reporting.
Engaging throughpodcasts
In 2025, we broadcast the second episode in our podcast
series, giving investors deeper insight into our business
fundamentals and priorities. This year’s podcast featured CFO
Gary Thompson discussing the drivers of IPF’s accelerating
growth, including the strength of our dual operating model,
therole of customer representatives in managing credit risk,
ourfinancial model and enhancing colleague engagement.
Annual Report and recognition
Our Annual Report is a key channel for providing investors with
a clear, balanced view of the Group’s performance. Available
in print and online, it is fully accessible to shareholders.
The2024 report received a commendation in the Investor
Relations Society’s Best Annual Report (Small Cap) award
in2025, following our win last year, reflecting our commitment
to transparent reporting. We also engaged with our top 10
shareholders as part of the consultation on our new 2026
Remuneration Policy. For more information see the Directors
Remuneration Report from page 152.
Looking ahead
We will continue to prioritise clear, consistent and proactive
engagement with our shareholders and investors, in line with
our obligations as a public company, ensuring they remain
informed, heard and confident in our strategy to deliver
sustainable growth and long-term value creation.
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Why they matter
Having positive relationships with regulators, politicians and NGOs
helps their understanding of our value in society and ensures our
business practices reflect their expectations.
What matters to them?
– Regulatory compliance
– Control and supervision
– Responsible lending
– Social inclusion
– Tax contribution
– Community engagement
– Ethical business policies and practices
Ways we engage
– Active membership of trade associations and cross-sector
associations
– Contributing to public consultations
– Engagement on draft regulations with decision-makers
– Partnerships with NGOs
– Double materiality assessment
Board considerations ofstakeholderinterest
– Biannual stakeholder update
– Regulatory updates included in the CEO’s report discussed
atevery Board meeting
– Regulatory and legal updates provided to the Audit and Risk
Committee
– Review of double materiality assessment results
– Regulatory updates from the Corporate Affairs Director
Outcomes from feedback totheBoard
– Feedback from regulators, politicians and NGOs is considered
aspart of the strategy review process and throughout all
strategic decisions that are made by the Board.
Regulators, politicians and
non-governmental organisations
(NGOs)
Stakeholders in focus continued
Engaging in the future of
digital finance
In 2025, IPF Digital participated in a roundtable hosted by
the European Digital Finance Association (EDFA) at the
European Parliament in Brussels. The session brought
together policymakers, regulators, industry leaders and
innovators to discuss the future of Europe’s digital finance
landscape, with a particular focus on financial inclusion,
regulatory frameworks and competitiveness. IPF Digital
shared its perspective on the importance of proportionate,
risk-based regulation and constructive collaboration
between regulators and industry. The discussion highlighted
a shared ambition to ensure that innovation in digital
finance continues to broaden access, while delivering
fair, transparent and responsible outcomes for consumers
across Europe.
Engaging with policymakers and industry leaders on the
future of Europe’s digital finance landscape
Contributing to regulatory
dialogue in the Czech Republic
In March 2025, Provident in the Czech Republic
participated in the Den s Registry (Day with Credit
Registers), hosted atthe Czech National Bank, which
focused on innovation, regulation and scrutiny within
thecredit finance sector. The event brought together
banks, non-bank lenders, credit registries and regulators
to discuss market trends, the use of artificial intelligence
andincreasing regulatory focus on consumer credit.
Werepresented the non-bank lending sector in a panel
discussion focused on theConsumer Credit Directive II
transposition, including advertising standards,
creditworthiness assessments andprice caps. The
discussion demonstrated ouractiveengagement
inshaping balanced, consumer-focused regulation.
Provident in the Czech Republic contributing
todiscussions on consumer credit regulation
We engage actively with governments, regulators and trade
bodies on policy matters that affect our customers and the
wider consumer credit sector. Our focus is on supporting fair,
proportionate regulation that enables greater financial
inclusion and responsible lending. Through our participation
inindustry associations and consultations, we share insights
from our markets to help shape policy outcomes that benefit
underserved communities and promote sustainable access
tocredit. 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; Hungarian Chamber of
Commerce and Trade, 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 Institute
Romania; National Association of Treasurers.
• Czech Republic: Association of Non-Banking Financial
Institutions.
• 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.
• Europe: European Digital Finance Association.
All of our public policy engagements and lobbying are aligned
with the Paris Agreement for direct lobbying activities, and
none of the trade associations of which we are a member,
asfar as we are aware, has taken a position not aligned to the
Paris Agreement on climate. In 2025, 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 2025 and consistent with this policy, the Group made
no political contributions directly or indirectly, including in-kind
contributions. No governmental body has any ownership stake
in the Group.
In 2025, our key areas of focus with governmental and regulatory
bodies has been focused on:
• the European Union’s Consumer Credit Directive – following
the Directive entering into force in November 2023, in 2025
we focused on working with our associations and stakeholders
on the local transposition plans;
• responsible lending – key areas of discussions included
advertising rules, creditworthiness assessment general rules/
guidelines in the area of responsible lending;
• financial inclusion – we organised and participated in a series
ofevents with regulators and governmental stakeholders to
promote the importance of financial inclusion. Additionally,
public and media events around our Invisibles programme
provided opportunities to raise the awareness of the subject;
and
• the Invisibles programme – 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 to the regulated financial market.
Seepage 58 for more information.
A particular focus for our advocacy efforts remains 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 for the needs of consumers to key groups
of decision-makers.
In 2025, we issued the IPF/Provident Compass, a booklet
summarising key information about our business, our customers
and questions frequently asked about our operations.
TheCompass has become instrumental in both our internal
and external communication, providing our key stakeholders
with aconsistent and clear view about our operations and
financial inclusion.
Looking ahead
In 2026, we will continue to support our Next Gen strategy
byworking closely with policymakers and industry stakeholders
to help shape regulation that enables fair, responsible lending
for all customers, particularly as new EU rules emerge. We will
also deepen our partnerships with NGOs and community
organisations to expand our Invisibles initiatives and financial
education programmes – ensuring we keep championing
inclusion and strengthening the communities we serve.
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Section 172 and Board decision-making
The Board of International Personal Finance
plc (the Board) considers that it has,
bothindividually and collectively, acted
ingood faith to promote the long-term
success of the Company (and its Group)
forthe benefit of the members as a whole,
while having due regard to (amongst
othermatters) factors (a) to (f) as set out
inSection 172(1)of the Companies Act
2006 forthedecisions taken during the
yearended 31 December 2025.
More information on how we engage with our stakeholders
canbe found on the following pages:
Page
Customers
46
Colleagues
50
Suppliers
56
Communities
58
Investors and rating agencies
61
Regulators, Politicians and NGOs
62
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.
You can read more on how the Board had regard to each
Section 172(1) factor, during the year, as follows:
Understanding and engaging
withour stakeholders
As we continue to accelerate growth and the pace of change
through our Next Gen strategy (see pages 4 and 11),
stakeholder engagement remains central to our approach.
TheBoard values stakeholders’ perspectives and recognises
their integral role in supporting our long-term, sustainable
success. The Board has identified our key stakeholders to
beour customers, colleagues, investors and rating agencies,
suppliers, communities, and regulators and legislators.
Wemaintain ongoing dialogue with these groups through
avariety of channels, both directly and via regular reporting
from business areas and Group functions to gain an
understanding of what each stakeholder group values
most.Insights from these engagements are integrated
intodecision-making processes to ensure that stakeholder
interests are considered and balanced appropriately.
Our cultural values of being responsible, respectful and
straightforward lie at the heart of how we operate and engage
with our stakeholders. The Board is committed to ensuring these
values guide decision-making, shape our workplace culture
and influence how we interact with external stakeholders.
Byleading the way in fostering a positive culture, the Board
aims to deliver long-term, sustainable benefits for the Group
and our stakeholders. For more information on our culture
andvalues see page 136.
Board oversight and governance
The importance of stakeholder considerations is embedded
inour governance framework. Our Matters Reserved for
theBoard and Committee Terms of Reference reinforce
theimportance of the Board considering stakeholder views
inits decision-making.
At each Board meeting, the Chief Executive Officer reports
onhow we have delivered value for our key stakeholders.
Additionally, the Board receives detailed updates
onstakeholder engagement twice a year, enabling
acomprehensive understanding of their priorities and
concerns. Our Board and Committee papers also include
adedicated section assessing the relevant impacts on
stakeholders. These various stakeholder touchpoints informed
Board discussions and shaped Board decisions to balance
stakeholders’ interests, where possible.
s.172 (1) factor Relevant disclosure Page
A. The likely consequences of
any decision in the long term
Our Strategy
Our Business Model
Operational Review
Financial Review
Our Financial Model
4
14
24
30
30
B. The interests of the
Company’s employees
Our Strategy
Responsible Business
CSRD Statement
Employee Engagement
Company Culture
Diversity and Inclusion
4
42
92
50
136
53
C. The need to foster
business relationships with
suppliers, customers and
others
Our Strategy
Responsible Business
CSRD Statement
IPF in Society
4
42
103
66
D. The impact of the
Company’s operations on
the community and the
environment
Our Strategy
Responsible Business
Framework
CSRD Statement
4
44
87
E. The desirability of the
Company maintaining a
reputation for high standards
of business conduct
Our Strategy
Regulators, Politicians
andNGOs
Whistleblowing
Internal Controls
andRiskManagement
Responsible Business
4
62
68
34
42
F. The need to act fairly as
between members of the
Company
Our Strategy
Stakeholder Engagement
4
46
How the Board considers
stakeholders initsdecision-making
We have highlighted opposite, some of the key decisions made
by the Boardin 2025 and how stakeholders were considered
during the process, including how the Board had regard to
Section 172(1) considerations when discussing them. More
information on other matters discussed by the Board during
theyear and the Board’s approach to decision-making can be
found on pages 134 to135.
Enterprise resource
planning system (ERP)
Double materiality
assessment
Recommended
cash offer
Decision
The Board approved the implementation
ofONE IPF, a new ERP system to integrate
andautomate Finance, Procurement and HR
processes, concluding that the long-term
benefits in efficiency, data integrity,
transparency and employee experience
outweigh the time and financial investment
required.
Outcome
Following Board approval, the Group entered
into key third-party agreements to deliver
ONEIPF, the ERP programme. Core Finance,
Procurement and HR processes are being
automated, and expected to improve data
quality and visibility and strengthen efficiency,
internal controls and decision-making.
Relevant stakeholders
–
Investors
– Colleagues
– Suppliers
– Regulators, politicians and NGOs
Balancing stakeholder impacts
Investors: The investment in ONE IPF is
expected to deliver long-term value through
enhanced operational efficiency, improved
data quality, and better decision-making
capabilities.
Colleagues: The system will reduce manual
processes and support more streamlined
workflows. The Board ensured that appropriate
training and change management support
would be in place tofacilitate a smooth
transition.
Suppliers: ONE IPF will introduce new
procurement and data processes, requiring
some suppliers to adapt to updated systems
and interfaces. Potential disruption was
considered and the importance of relationship
management during the transition period
with key suppliers was noted.
Regulators: The system enhances data
integrity and auditability, supporting
compliance and governance standards.
Balancing stakeholder impacts
Customers: The Responsible Business
Framework reflects a commitment
toresponsible and ethical practices,
alignedwithgrowing customer
expectationson sustainability.
Investors: The assessment supports long-term
value creation by identifying sustainability risks
and opportunities with potential material
financial impact..
Colleagues: Strategic initiatives include
workforce development, diversity and
wellbeing, ensuring employees are supported
in adapting to evolving sustainability priorities.
Suppliers: The Group will collaborate with
suppliers to promote responsible sourcing
andESG compliance across the value chain.
Regulators: The Board ensured alignment
withCSRD and other regulatory frameworks,
enhancing transparency and accountability
insustainability reporting.
Communities: The broader social and
environmental impacts on local communities
were considered.
Balancing stakeholder impacts
Investors: The Board assessed the financial
value of the cash offer against the long-term
sustainability of the business, balancing
certainty of value realisation with the inherent
uncertainty of future returns.
Colleagues: The Board recognised
potentialimpacts on employees, including
organisational change and future
employment conditions, and will continue
tomonitor these impacts and support
asmooth transition.
Suppliers: The Board considered the
importance of maintaining stable supplier
relationships and contractual obligations.
Regulators: The Board ensured compliance
with relevant legal and regulatory requirements,
supported by independent advice, and
recognised that regulatory engagement
andapprovals will be required in certain
jurisdictions.
Relevant stakeholders
–
Customers
– Investors
– Colleagues
– Suppliers
– Regulators, politicians and NGOs
– Communities
Relevant stakeholders
–
Investors
– Colleagues
– Suppliers
– Regulators, politicians and NGOs
Relevant S172(1) decision criteria
A, C, E
Link to strategy
Relevant S172(1) decision criteria
A, B, C, D, E, F
Link to strategy
Relevant S172(1) decision criteria
A, B, C, D, E, F
Link to strategy
Decision
As part of its commitment to responsible
governance and long-term value creation,
theBoard reviewed and approved the Group's
second double materiality assessment,
identifying sustainability-related impacts,
risksand opportunities (IROs) and supporting
compliance with the CSRD to improve
sustainability reporting.
Outcome
Having reviewed and approved the double
materiality assessment, the results informed
strategic decision making including a review
ofour 2026 strategic plan, and helped prioritise
themes in our external reporting and broader
stakeholder communication.
Decision
The Board considered and recommended
toshareholders a cash offer for IPF by IPF
Parent Holdings Limited (Basepoint).
TheBoard’s recommendation was made with
aview to balancing financial value, strategic
alignment, and long-term sustainability
oftheCompany.
Outcome
Following Board consideration and approval
of the cash offer, the proposed transaction
isnow subject to shareholder approval.
Ifapproved, it will then require financial
regulatory, antitrust and foreign investment
clearances before the Scheme is sanctioned
by the Court.
A
The likely consequences of any decision in the long term
D
The impact of the Company’s operations on the community
and the environment
B
The interests of the Company’s employees
E
The desirability of the Company maintaining a reputation
for high standards of business conduct
C
The need to foster business relationships with suppliers,
customers and others
F
The need to act fairly as between members oftheCompany
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Our Code of Ethics
Our Code of Ethics is designed to ensure everyone working
forthe Group understands how we deliver on our purpose
andhow to act ethically and with integrity at all times.
TheCode can be viewed on the policies section of our website
at www.ipfin.co.uk. The Chief Legal Officer has responsibility
forthe implementation and effectiveness of the Code of Ethics.
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 Group’s Audit and Risk Committee receives
bi-annual reports from the Chief Legal Officer on ethical issues.
The Board has oversight of the Code of Ethics and seeks to
review this annually. The last review was carried out in February
2026. This year we have continued to implement andembed
various aspects of the Code and supporting policies and
procedures. In early 2026, we will undertake aneffectiveness
review of the Code and report on this totheBoardtogether
with proposed updates.
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.
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.
Whistleblowing processes are available if for any reason
reporting to line management is not appropriate or preferred.
There were nomaterial breaches of our Code of Ethics in 2025.
We revised our Code of Ethics in 2024 and the updated Code
was approved by the Board, translated into local languages
andcascaded throughout the business globally. We continued
communications and training throughout 2025 to ensure high
awareness and understanding of our Code which is divided into
three pillars: Doing the Right Thing as a responsible business,
asa responsible employer and as individuals. In September
2025, we held our eleventh 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 Code,
howitsets our standards and how it should be used to guide
behaviour. 97% of all employees and customer representatives
globally completed our online annual ethics training in 2025
which was designed to ensure that everybody across our
business understands the key components of our Code of Ethics.
In addition, 100% of our leadership team completed a
supplementary module on ethics issues targeted at senior
leadership. This training delved more deeply into issues which
senior employees are well placed to identify, and the policies
and processes in place to ensure colleagues know to respond.
Human rights
The Group is a member of the UN Global Compact.
Ourcommitment 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, and to 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 and supply
chain together with our approach to raise awareness of these
absolute and fundamental rights. No violations of human
rightswere reported in 2025.
We undertake additional targeted due diligence on suppliers
we assess to be high risk for potential modern slavery and
human rights violations. In addition, in 2025 we introduced
aSupplier Code of Conduct which can be found on our
website alongside our Responsible Procurement Policy.
TheCode sets out the principles and standards which we
encourage our business partners to adhere to. It underpins
ashared journey of continuous improvement in critical areas
such as labour standards and human rights. The Code will be
communicated to suppliers as part our established responsible
procurement processes.
In 2026, 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. The
assessment will include risk identification in our own operations,
value chain and business relations. It will identify groups at risk
of having their human rights impacted by our business and
plans to mitigate any concerns which are identified.
Combatting financial crime,
bribery and corruption
We are committed to protecting our customers and the
business by combatting 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 is further committed to
complying with all relevant legislation is this area, including the
requirements of the Sixth Anti-Money Laundering Directive, the
UK Bribery Act 2010 and the UK Economic Crime and Corporate
Transparency Act 2023.
Our commitment to countering bribery and corruption
isdetailed in our Anti-Bribery and Corruption Policy, which
isapproved by the Group Audit and Risk Committee 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. Risk assessments for all
markets were performed in 2025. Corruption risks are managed
by an established framework including first-line functional
controls, second-line oversight and specialised risk
management. Control assurance and investigations
areconducted by subject matter experts and third-line
independent assurance is provided by the Group’s internal
audit function. Our processes for disclosure of interests and
management of potential conflicts are set out in our Conflicts
ofInterest Policy and our processes for disclosure, review
andapproval of gifts and entertainment are set out in our
Giftsand Hospitality Policy.
The Group has Fraud and Anti-Money Laundering (AML)
frameworks in place which define minimum standards and
controls for all markets on fraud, AML, counter-terrorism
financing (CTF) and financial 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. Implementation and operational assurance
ofthese required standards in is the responsibility of the Loss
Prevention function in each market. Compliance with the fraud,
AML and CTF frameworks and monitoring of the local risk
landscape is overseen on a market basis by local Loss
Prevention Committees, comprising senior management in
each market. 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. The output of this
activity is then monitored at Group level by the Group Credit
Committee. The Group Fraud Risk and AML Manager also
reports on a quarterly basis to the 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.
In 2025, we strengthened our systems and controls to detect
and prevent fraud and corruption in response to the
introduction of the UK Economic Crime and Corporate
Transparency Act, and reported to Audit and Risk Committee
onhow our processes operate to ensure compliance with the
requirements of the Act. Training on this topic was provided to
all employees and customer representatives in 2025 as part of
our annual ethics e-learning, and relevant functions received
additional targeted training.
The Loss Prevention teams are also responsible for investigating
suspected frauds and instances of money laundering and
terrorism financing and, where confirmed, remediating actions
are taken. Management information is produced and
monitored totrack trends and patterns of behaviour relating
tofraud, AMLand CTF risks.
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 processes and controls are in
operation. Included in these processes are requirements
relating to the identification and verification of a customer’s
identify for both face-to-face or online applications, including
the utilisation of external data sources to confirm validity of
submitted data and documents and to further ensure
compliance with legislative requirements. Jurisdiction-specific
lists, issued by competent authorities, are searched to identify
sanctioned individuals, suspected terrorists and politically
exposed persons (PEPs). Processes compliant with local
legislation are in place to reject credit applications or, where
relevant, to conduct enhanced customer due diligence and
obtain sign-off by managers with appropriate levels of authority
before commencing any business relationship with any
identified individuals. We apply a risk-based approach to our
customers and transactions, with systematic risk assessments
made at the point of a credit application and regularly during
the lifetime of the customer relationship. As a result of these
assessments each customer is allocated a risk category and
97%
of all employees and customer representatives globally
completed our online annual ethics training in 2025
100%
of our leadership team completed a supplementary
module on ethics issues targeted at senior leadership
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the scope and/or frequency of the assessments change
dependant on the designated risk category. Independent
assessments and audits by national regulators and/or external
auditors assure our compliance with AML regulations.
In 2025, incidents of fraud remained low and well within the
defined risk appetite. There were no substantiated material
incidents of bribery or corruption in 2025 across the Group.
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.
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 and
organisational integrity are formalised in the Group
Whistleblowing Policy, which is approved annually by the Group
Audit and Risk Committee and available on the policies section
of our website. This Policy, which is implemented in local
language in all the markets in which we operate, states that
there should be no retaliation against whistleblowers, sets out
how to raise a concern and details processes for ensuring
reports are handled 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. The Committee meets
quarterly and receives updates on the operation of the
whistleblowing systems together with statistical 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.
OurLegal 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.
Our investigation processes are documented in a Group-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 to ensure that
confidentiality, discretion and independence are maintained
at all stages of an investigation. All investigators received
interactive training on the Protocol and how to apply it
inpractice.
In 2025, 352 whistleblowing reports were received.
Alloftheseconcerns were, or are being, investigated and
resolved. 135ofthe reports made (38%) were found to be
unsubstantiated. We continue to embed processes and raise
awareness through regular internal communications to our
employees and customer representatives and our annual
ethics week which highlights the importance of this issue.
Ourwhistleblowing 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
andinlinewith best practice. These processes sit alongside
ourrequirements for disclosing and obtaining approvals
forallgifts or entertainment, which are set out in our Gifts
andHospitality Policy. Our Responsible Procurement Policy
andGroup Procurement Standards include processes
toensure conflicts in our supplier relationships are
managedappropriately.
In 2025, we enhanced our policies and processes for
managing conflicts of interest to ensure that our approach
reflects best practice. Processes for recording and managing
potential conflicts are fully implemented across the Group.
Potential issues are escalated to the Chief Legal Officer and/or
Group Ethics Committee for appropriate consideration
andmanagement. Registers of material conflicts and gifts
andhospitality are reported to the Group Ethics Committee
onaquarterly basis. Our Legal Directors are responsible
foremphasising the importance of effective management
ofconflicts of interest with local boards, and training is provided
to colleagues engaged with managing conflicts of interest.
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
inanti-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 2025.
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 are
permitted 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 2025 did not
identify any significant instances of non-compliance.
We maintain good relationships with regulators, legislators
andgovernments who play a key role in shaping the consumer
finance sector. We respond constructively to all regulatory audits
and investigations to address any findings, and continuously
improve our business practices in line with changing regulation.
There have been no material adverse regulatory findings,
sanctions or fines against the Group in 2025.
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 or trafficked
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 on our website.
Oversightof compliance with the policy is managed by the
legal function, which works closely with the human resources
function and procurement function. The Board approves the
Policy and the Group’s Modern Slavery Statement annually,
and receives an update on performance of processes to
combat this risk. We updated our processes and the content
ofour Modern Slavery Statement in 2025 in response to the
Home Office’s call for transparency and the requirements
ofitsnew Guidance on Transparency in Supply Chains.
To address the risk of modern slavery in our own workforce,
theGroup’s Human Resources Control Framework and relevant
human resources policies are designed to ensure a safe, fair
andinclusive workplace for all our employees and customer
representatives. All employees are provided with a written
contract of employment and steps are 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. In 2025,
31suppliers were assessed as being high risk for modern
slavery or human rights and a Sustainability Assessment was
completed by the Procurement function on these suppliers
through the review of publicly available resources, completion
of questionnaires by suppliers, and dialogue with suppliers.
Nofurther action was required in relation to these suppliers
following completion of the detailed review.
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 2025. The Group is committed to continuous
improvement in our approach to combatting modern slavery.
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Each market has a dedicated cybersecurity team under
thesupervision of the CISO, 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. Each employee
receives mandatory training before accessing the Group’s
information and later undergoes refresher training on an annual
basis. Targeted phishing campaigns are also conducted to
assess and enhance awareness levels across the organisation.
Our commitment to operational risk and resilience is supported
by technical and end user policies and standards designed to
ensure all employees understand and adhere to best practices
in information security. These 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 reviews, monitoring, 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 2025 included setting up an
Operational Risk and Resilience Programme to strengthen
assetinventory, security monitoring, identity and access
management, code security and business continuity. In 2026,
we will complete the rollout of this programme and continue
toenhance resilience across our systems and processes.
Health and safety
We remain deeply committed to protecting the health, safety
and wellbeing of our colleagues across all markets. The Board
continues to hold overall responsibility for health and safety,
reviewing and approving our Health and Safety Policy annually
and receiving regular updates on performance.
Operational responsibility sits with the Group Credit and Risk
Director, supported by the Group Safety Manager, who leads
aglobal team of health and safety professionals. This team
ensures consistent implementation of our Global Health
andSafety Framework, promotes high standards and fosters
aculture of safety throughout the business.
Governance and assurance are maintained through Quarterly
Safety Management Review Committees at market board level
in each home credit business. These forums provide oversight,
review performance and drive continuous improvement.
Inaddition, the Group Safety Manager conducts annual safety
reviews in each market to assess the effectiveness of local
Safety Management Systems and ensure alignment with
Groupstandards.
Our second-line control function also plays a key role
inassurance, performing annual self-assessments
ofcompliance with safety protocols. These assessments,
conducted by trained reviewers, help identify opportunities
tostrengthen our approach.
Strengthening our safety culture
Reporting and investigating all health and safety-related events
remains a core part of our culture and our Safety Management
System. Reporting is fundamental – if we do not know, we
cannot act – and this principle is reinforced throughout the
colleague lifecycle. All new joiners receive safety induction
training emphasising the importance of reporting, and all
colleagues complete annual refresher training and targeted
e-learning modules. We also promote strong reporting
behaviours through quarterly safety meetings in the field,
teambriefings and regular communications via the MyNews
application. These channels ensure visibility, encourage early
reporting of incidents and near misses, and promote a culture
of openness. Every incident is reviewed to identify learning and
implement preventative actions that strengthen our approach.
Safety performance in 2025
Work-related safety performance in 2025 remained stable
compared with 2024. A total of 785 safety events were
recorded, involving 807 colleagues and representing 4.0%
ofthe workforce. This compares with 811 colleagues (3.6%)
affected in 2024, indicating a broadly consistent level
ofsafetyperformance year on year. Most incidents
resultedinno physical harm and were linked primarily to car
accidents, verbal threats, or theft associated with street crime.
Thisoutcome reflects the continued effectiveness of our safety
training and preventative measures, supported by a mature
reporting culture that ensures visibility and enables timely
intervention.
Work-related safety events and harm caused 2025
% of colleagues
Total work-related safety events 785 3.9%
Worker injury type
No injury 533 2.6%
Minor injury 130 0.6%
Moderate injury 101 0.4%
Serious injury (requiring
hospitaltreatment)
42 0.2%
Life-threatening injury 0 0.0%
Fatalities 1 0.005%
However, during the year we experienced a tragic loss that
deeply affected our organisation. One of our colleagues –
aDevelopment Manager in Mexico – was fatally injured when
alorry crossed the central reservation and collided with her
vehicle while she was travelling for work. We extend our
heartfelt condolences to her family, friends and colleagues.
Inresponse, we provided support to her family, conducted
afull investigation, delivered safe-driving workshops across
ourMexico operations and offered psychological support to
allcolleagues impacted by this devastating event. This incident
serves as a powerful reminder of the importance of continuous
vigilance and reinforces our commitment to learning from every
event and strengthening our safety practices to protect
ourpeople.
While minor errors occur occasionally, often due to human
error or process issues, these are addressed promptly and
resolved. In 2025, we did not experience any significant
personal data breaches requiring notification to data
protection authorities or affected individuals.
In 2025, we strengthened our data protection framework
through targeted enhancements, such as improving supplier
assessment integration, increasing cross-market coordination,
and working more closely with our data governance function
toensure greater consistency in privacy-related policies.
Wemaintained our privacy compliance monitoring programme
and increased our focus on the responsible use of advanced
technologies, such as cloud computing and artificial
intelligence, expanding our review and oversight of related
initiatives from a data protection perspective.
Legislative and regulatory developments in key markets –
suchas data protection reforms in the UK, Australia and Mexico
– are being monitored closely and integrated into our
framework. These reforms are not expected to have a material
impact on the Group’s operations but further reinforce our
commitment tocontinuous compliance and adaptation to
changing legal environments. In 2026, our focus will be on
embedding these legislative changes, maintaining alignment
with evolving General Data Protection Regulation-related
requirements, andstrengthening our oversight of technological
developments to ensure continued compliance and protection
of stakeholder data.
IT operational risk and resilience
(including cybersecurity)
As organisations continue to navigate increasing operational
and cybersecurity risks, we also remain focused on
strengthening our IT operational resilience across the Group.
Our Group ICT Risk Management Strategy, which supersedes
the previous Cybersecurity Governance Framework, is built
around four pillars: Governance, IT Security, IT Operational Risk,
and User Policies. This is designed to ensure clear
accountability, oversight and protection of the Group against
IToperational and resilience risks, including cybersecurity,
andoutlines the mandatory requirements across all our
markets. The Group Credit and Risk Director is responsible
forthe oversight of the strategy and framework, while
theGroupChief Information Officer (CIO) is responsible
forimplementation of the framework. The Chief Information
Security Officer (CISO) reports to the CIO and has first-line
responsibility for IT operational risk, overseeing the Group’s
cybersecurity programme. The Group Head of ICT and Business
Continuity Risk holds a second-line responsibility for IT
operational and business continuity risk, and provides regular
updates to the Board on IT operational risk and resilience
initiatives, risks, and progress.
The Group Audit and Risk Committee further oversees the
Group ICT Risk Management Strategy’s global implementation,
ensuring alignment with strategic resilience objectives.
This governance structure reinforces accountability and
supports continuous improvement in our operational resilience
position across the organisation. Our revised leadership
structure reflects our commitment to adapting to emerging
cyber threats, and driving innovation in safeguarding our
information assets.
Data privacy
In a landscape where responsible data handling is an
increasing priority for organisations, we continue to strengthen
our focus on safeguarding the security and privacy of our
customers, colleagues and partners. We process large volumes
of personal information every day and uphold rigorous
standards to safeguard privacy and data protection.
Ourcommitment to protecting the privacy of our
stakeholdersisembedded in our business culture.
Our data protection approach is anchored in the following
principles:
• We collect only personal data that is relevant, use it solely for
its intended purpose, and apply data minimisation practices.
• We maintain transparency regarding our use of personal
data.
• We process data lawfully, including by obtaining consent
where required and in alignment with applicable local laws.
• We ensure data accuracy and uphold individual rights under
data protection and privacy legislation.
• We keep personal data confidential and secure.
Compliance with data protection and privacy legislation is
achieved through our Group Data Protection and Privacy Policy
(the Policy), reviewed annually to address emerging risks,
maintain control standards, ensure all personal information
isprotected, and individuals’ rights are observed. Breaches of
this Policy may result in disciplinary action, including contract
termination. This policy aligns with both our purpose, and
applicable legislation, reinforcing its importance within our
Code of Ethics and underlining every employee responsibility
inthis area.
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 are accountable to the Board. The GDPO is supported
bya team of Data Protection Officers across all markets,
responsible for advising and ensuring compliance locally.
Theyalso liaise with data protection authorities and manage
individual requests concerning 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, while the Group Audit and Risk Committee
oversees the plan’s global implementation.
Training and awareness remained a key focus in 2025.
Allemployees and customer representatives completed
annualdata protection training, with tailored modules for
specific functions. We also ask our suppliers to follow our data
protection principles through due diligence and contracting
processes. Looking ahead, we will continue to enhance our
monitoring practices and build our expertise to manage data
protection risks associated with new and emerging
technologies, including artificial intelligence.
Management of data breaches is governed through a Data
Breach Policy which sets out the response process, roles and
responsibilities. Data breaches may arise from malicious
attacks or accidental errors and can range from isolated
incidents to wider system impacts. We operate a robust process
to ensure data breaches are identified, reported and resolved
appropriately.
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IPF in society continued
Care Survey findings
The Care Survey offered a clear view of colleague experiences
across the Group, identifying what is working well and where
further focus is needed.
Key strengths identified
across markets included:
• High psychological safety
• Strong support from
managers and peers
• Clear role expectations
Opportunities for
improvement highlighted
bycolleagues included:
• Managing organisational
change more effectively
• Strengthening leadership
capability, particularly in
providing feedback
• Addressing workload
pressures and supporting
work–life balance
Through this work, we have strengthened the foundations for
psychological safety across the Group. Colleagues report
feeling more supported and confident in raising concerns,
while leaders are better equipped to build trust, inclusion and
resilience. The insights gained enable each market to take
targeted action and continuous improvement in wellbeing.
Embedding psychological safety –
our journey
Achieving ISO 45003 certification was the outcome of
astructured programme to embed psychological health
andsafety into everyday practice across the Group,
supportedby our Strive to Thrive initiative under the Next
Genorganisation pillar.
Our focus was on creating an environment where colleagues
feel safe, supported and able to thrive. Key actions included:
• conducting gap analyses across all markets based
onISO45003 requirements;
• integrating psychological safety principles into our
GlobalCare Programme;
• delivering targeted training and awareness campaigns;
• developing tools and resources to support leadership
capability; and
• strengthening colleague voice through surveys,
feedbackloops and engagement.
Alongside certification, we also:
• launched a Care Survey to all colleagues to assess
psychosocial risks and workplace wellbeing;
• aligned the Care Survey insights with our Global People
Survey, enabling more targeted and meaningful action
planning;
• delivered psychological safety training to all colleagues,
providing essential knowledge on psychosocial hazards,
howthey arise, and how they can be managed
effectively;and
• developed and published a new Leadership Guidebook
online, providing guidance on work organisation, team
dynamics, feedback skills, early intervention and recovery,
and serving as a core resource for embedding ISO 45003
principles into everyday leadership practice.
Advancing psychological
health and safety
ISO 45003 certification
In 2025, we reached a key milestone in strengthening
psychological health and safety across the Group by achieving
ISO 45003 certification across all home credit businesses
andIPF Digital in Poland. This reflected a two-year,
voluntarystrategic decision to adopt the highest
internationalstandard for managing psychosocial risks.
Although not required by law, ISO 45003 strengthens our
compliance position across diverse regulatory environments,
provides a consistent global framework and reinforces our
commitment to creating a safe, supportive and high-
performing workplace.
This achievement builds on the strong culture of care at the
heart of our Global Care Programme and supports our Next
Gen organisation ambition to make IPF a great place to work.
Italso complements our long-standing ISO 45001 accreditation,
which was successfully retained across our home credit
businesses following independent surveillance audits during
the year. Together, these internationally-recognised standards
demonstrate our commitment to protecting both physical and
psychological wellbeing and to continuously improving safety
performance across the Group.
Looking ahead
We will continue embedding ISO 45003 principles into
leadership development, performance management
andorganisational culture. Our priorities for 2026 include:
• expanding psychological safety and psychosocial risk
training for managers;
• strengthening measurement and reporting of psychosocial risks;
• deepening integration with DE&I and wellbeing strategies;
• sharing best practice across markets; and
• supporting broad adoption of our Leadership Guidebook.
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,
theGroup 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,
byadvice 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 addition to managing domestic
tax issues, the Group’s global tax team also ensures compliance
with new obligations following the implementation of the ‘Pillar
Two’ global minimum tax model rules of the OECD’s Inclusive
Framework on Base Erosion and Profit Shifting (‘BEPS’) across
various of the Group’s markets, including the United Kingdom.
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 and reviewed regularly
by the Risk Advisory Group and the Audit and Risk Committee.
Our overall approach to tax is included in our Code of Ethics
and reinforced in the global ethics training which is undertaken
annually by all colleagues. Specific anti-facilitation of tax evasion
training is provided to colleagues identified as working in roles
where there is a relevant consideration.
£175m
Total tax contribution in 2025
*
, supporting the wider economy.
* The total tax contribution in 2025 comprised £78m taxes paid
representing a cost to the Group (including profit taxes, employer
payroll taxes and irrecoverable VAT/sales taxes) and £97m taxes
collected from employees and customers on behalf of governments
(including taxes collected on employee salaries and net VAT collected).
Neither the 2025 £15.2m repayment of State Aid, nor the original
payment in 2021 of £15.2m, were included as part of the total tax
contribution in either year.
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IPF in society continued
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* 2025
Difference
vs 2024
2025
difference
vs 2019
Scope 1
Gas 927 1,008 476 468 721 606 526 (13.2%) (43.3%)
Business travel
by car 24,273 16,304 18,277 19,012 17,826 16,816 16,173 (3.8%) (33.4%)
Scope 2 Purchased
electricity and
district heating 3,236 2,664 2,494 1,944 1,713 1,220 1,032 (15.4%) (68.1%)
Scope 1 and 2 28,437 19,976 21,247 21,424 20,260 18,642 17,731 (4.9%) (37.6%)
CO
2
e emissions
per customer 0.013 0.011 0.013 0.013 0.013 0.011 0.010
* 2024 data restated where based on estimates.
**Please note that 2024 energy consumption figures were misstated in the prior year report as MWh rather than mKWh. This has been corrected
inthe current report. The misstatement related solely to unit labelling and did not affect the underlying consumption data.
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 reported 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 ambition by 2050.
• Energy efficiency improvements within offices, including
theinstallation of LED lighting, sensor-controlled lighting,
andmore energy-efficient office equipment, alongside
initiatives to raise employee awareness of energy consumption.
• Fleet and travel optimisation, with continued progress in
replacing petrol and diesel vehicles with lower-emission
alternatives, and measures to reduce unnecessary travel
through improved route planning and greater use of remote
working where appropriate.
• Enhanced management of IT and data infrastructure,
including the increased use of cloud-based services
whichare typically less energy-intensive than traditional
on-premise solutions.
• Local initiatives to reduce environmental impact, reflecting
market-specific actions such as supplier engagement on
waste disposal, improved monitoring of energy consumption,
and participation in local recycling or take-back schemes.
Together, these actions demonstrate a continued focus
onreducing the environmental footprint of our day-to-day
operations, while building stronger foundations for future progress.
Climate Performance, Metrics
IPF reports Scope 1 and Scope 2 greenhouse gas emissions in
accordance with applicable regulatory requirements. Reported
emissions include electricity, district heating, gas and fuel used
for company vehicles, with transport by car representing the
most material source of emissions.
We report annually on our material carbon emission sources
inline with the Companies Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013. Emissions data has been
calculated using the GHG Protocol Corporate Accounting and
Reporting Standard, applying the UK Government’s latest GHG
conversion factors and the current International Energy Agency
emission factors for non-UK electricity.
The emissions data covers all Group offices globally and aligns
with the scope of our Consolidated Financial Statements.
Where complete data was not available, figures have been
extrapolated in line with the methodology applied.
In 2025, the Group’s GHG emissions for Scope 1 and 2 reduced
by 5% year on year. We are also pleased to report that overall
emissions have reduced by 38% since 2019. This positive trend
isdue primarily to more effective fleet management practices.
In 2025, in accordance with the Large and Medium-sized
Companies and Groups (Accounts and Reports)
Regulations2008:
• the Group’s Scope 1 and 2 emissions in the UK represent 0.3%
of the Group’s total (2024: 0.3%);
• the Group used 2.5 m kWh of electricity (2024: 3.0 m kWh**)
withthe UK representing approximately 5.9% of the Group’s
total (2024: 5.3%); and
• During the year, the Group did not implement any material
standalone initiatives specifically targeted at improving
energy efficiency. Energy efficiency continues to be
considered through business-as-usual operational
management and procurement decisions.
In 2026, we intend to continue transitioning our fleet towards
hybrid vehicles, where practicable, to support the reduction
ofScope 1 and Scope 2 emissions. Scope 3 indirect emissions
have not been included in our 2025 reporting. The Group does
not currently intend to report Scope 3 emissions and continues to
assess the appropriate methodology and feasibility of establishing
reliable baseline data for potential future reporting periods.
Environment
The environmental challenges facing the global economy are
urgent and complex, requiring sustained action and long-term
commitment as economies transition towards a more
sustainable future. For IPF, responding to these challenges
isboth a responsibility and an opportunity to act in a way that
is aligned with our purpose, proportionate to our environmental
footprint, and integrated with our business strategy and risk
management framework. We remain focused on reducing the
environmental impact of our operations while continuing to
build our understanding of how climate-related considerations
may evolve for our business over time.
Our approach to managing environmental
and climate-related topics
In 2023, the Board agreed an ambition for the Group to be
netzero by 2050, across all our operations and supply chain.
This ambition provides a clear long-term direction for our
environmental strategy and informs our ongoing work to
reduce emissions and improve the efficiency of our operations.
The lending activities we undertake consists of originating
unsecured consumer loans. This activity is not covered by
anyglobally accepted methodology for measuring financed
emissions. As a lender, we do not have visibility over how
customers use the funds we provide, which limits our ability
toassess associated emissions in a meaningful or reliable way.
We continue to monitor guidance from credible international
bodies and will review our approach should relevant
methodologies emerge. Updates will be provided in future
Annual Reports as appropriate.
In relation to financing the transition to a low-carbon economy,
we do not currently believe that the Group’s products are well
suited to supporting customer transition activities in a way that
would be aligned with our purpose or customer needs. This
reflects both the profile of the customers we serve and the
relatively small average loan sizes. We will continue to review
this assessment periodically across our markets to identify
whether this position changes over time.
During 2025, our environmental focus remained on reducing
our operational footprint, particularly through actions to
address Scope 1 and Scope 2 emissions.
Managing our operations
Our Environment Policy sets out the framework for our
environmental strategy and is overseen by the Chief Executive
Officer and the Board. In line with this policy, we continue to
take practical steps to reduce the environmental impact of our
operations, reflecting local market conditions while maintaining
a consistent overall approach. Key actions include:
• Improved waste management and recycling practices,
including the introduction or enhancement of waste
segregation in offices and the recycling of materials such
aspaper, plastics, batteries and electronic waste, in line
withlocal infrastructure and regulations.
• Reduction in paper usage, supported by increased
digitisation of processes, wider use of electronic
documentation, and more selective use of printed materials
across customer and internal communications.
• Increased use of renewable electricity, with several markets
operating offices powered wholly or partly by renewable
energy, and others actively assessing options to transition
asavailability and commercial conditions allow.
Looking ahead
Building on the progress made to date, our focus during 2026
will be on further strengthening our understanding of Scope 3
emissions and advancing the establishment of a robust base
year for our supply chain. This work will support the
development of a credible and proportionate strategy
todeliver our long-term net zero ambition.
We will continue to track performance against our targets,
monitor relevant regulatory and scientific developments,
andregularly review and refine our environmental strategy
asour understanding and data quality improve. Progress will
continue to be reported transparently in future Annual Reports.
While we recognise that we remain at a relatively early stage
ofour net zero journey, meaningful progress has been made
and important foundations are now in place. Over the coming
years, we aim to maintain momentum, further enhance the
quality of our data, metrics and disclosures, and continue
totake practical steps towards achieving net zero by 2050.
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Corporate Sustainability
ReportingDirective (CSRD) Statement
Introduction
This section of the 2025 Annual Report and Financial
Statements (2025 Annual Report) describes our sustainability
approach and performance, in accordance with the Corporate
Sustainability Reporting Directive (CSRD). The 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. These standards ensure
consistency and comparability across industries and companies.
Our CSRD disclosures are integrated into this 2025 Annual
Report and present a connected view of ourfinancial and
sustainability performance, reflecting how environmental, social
and governance (ESG) matters influence our strategy, business
model, risk profile and long-term value creation.
The CSRD framework requires us to report on material impacts,
risks and opportunities (IROs) across our value chain using
adouble materiality perspective. We conducted our first
double materiality assessment (DMA) in 2024 and updated
theassessment in 2025. The assessment identifies the
sustainability matters that are material to our business,
andensures we disclose both how IPF’s activities affect people
and the environment, and how sustainability-related matters
may influence our business performance and future prospects.
You can find more information on our DMA process and
reporting criteria onpage85.
ESRS 2 General disclosures
BP-1 General basis for preparation
ofthesustainability statements
This CSRD Statement for IPF plc has been prepared on
aconsolidated basis with the same scope as the financial
statements. It covers the parent company, IPF plc
andsubsidiaries controlled directly or indirectly by IPF plc.
Subsidiaries of IPF plc are exempted from preparing individual
company or sustainability reports pursuant to Articles 19a(9)
or29a(8) of Directive 2013/34/EU, as their sustainability
information is incorporated into this consolidated report. A list
ofthe entities covered by this report can be found in the notes
of this report on page 109. The CSRD Statement covers the
main value chain of IPF plc, including the IROs in our upstream,
downstream and own operations.
BP-2 Disclosures in relation to specific
circumstances
In preparing these sustainability statements, the Group has
considered the specific circumstances set out in ESRS 2 BP-2
and confirms the following:
Time horizons
In assessing material IROs, the Group has applied time horizons
consistent with its internal strategic planning, risk management
and climate-related assessment processes.
For the purposes of the 2025 reporting period these are:
Short term (0–3 years): aligned to the average loan term
andthe flexibility of our credit strategies and field operations.
Medium term (3–10 years): aligned to the Group’s strategic
planning horizon.
Long term (10+ years): aligned to the useful economic life of
the majority of Group assets and longer-term transition pathways.
These time horizons differ in part from the default definitions set
out in ESRS 1. The Group has adopted horizons that reflect how
sustainability-related matters are managed internally, including
alignment with its strategic planning cycle and climate
scenario analysis. The Group considers that this approach
provides decision-useful information by ensuring consistency
between sustainability reporting, risk management and
financial planning processes.
Time horizons applied to individual material IROs are disclosed
within the relevant tables in this report and are consistent with
the approach described above.
Prior period error
During the preparation of the 2025 sustainability statements,
the Group identified a prior period error in the calculation
ofDisclosure Requirement S1-15 (employees entitled
tofamily-related leave) for the 2024 reporting period.
The error arose from an inconsistency in the population used
tocalculate the percentage in one jurisdiction. The 2024
comparative figure has been restated to ensure consistency
with the methodology applied in 2025, which is based on
active employees at the reporting date only. As a result,
thepreviously reported 2024 percentage of 98% has been
revised to 88.9%.
There is no impact on other sustainability disclosures, narrative
reporting or the Group’s financial statements. Further detail
isprovided in the ESRS S1 disclosures.
Use of phase-in reliefs and transitional provisions
The Group has applied the transitional provisions permitted
under the ESRS where applicable. Any such use of phase-in
reliefs is explained in the relevant topical ESRS disclosures.
Where transitional reliefs have been applied, this reflects the
availability and maturity of underlying data and processes
during the reporting period.
Use of estimates, assumptions and measurement
uncertainty
Where quantitative or qualitative information is based on
estimates or assumptions, these reflect management’s best
judgement based on information available at the reporting
date. Estimates and assumptions used in the preparation of
thesustainability statements are consistent with those applied
in the Group’s financial reporting processes, where relevant.
The Group continues to enhance data collection processes
toimprove accuracy and completeness over time.
Value chain information
In certain areas, sustainability information relating to the value
chain is based on a combination of internally available data,
engagement with relevant counterparties, and reasonable
assumptions where direct information is not available. The use
of such approaches reflects the current availability of data
within the value chain and is considered appropriate to provide
a fair and balanced view of the Group’s material IROs.
The Group confirms that none of the sustainability metrics
disclosed in these sustainability statements include upstream
ordownstream value chain data estimated using indirect
sources. All reported metrics are based on data derived
fromthe Group’s own operations and internal systems.
Accordingly, the disclosure requirements set out in ESRS 2 BP-2
paragraph 10 in relation to estimated value chain metrics are
not applicable for the reporting period.
Data availability and comparability
The sustainability statements have been prepared for the same
reporting period as the consolidated financial statements.
Nomaterial changes to the basis of preparation or measurement
methodologies have been made compared to the prior
reporting period. Where comparative information is limited
ornot available, this reflects the first-time or evolving nature
ofcertain disclosures under the ESRS framework.
The Group has assessed the quantitative metrics and monetary
amounts disclosed in these sustainability statements for
measurement uncertainty. No metrics have been identified
assubject to a high level of measurement uncertainty.
Thereported metrics are based on direct operational data,
documented policies, and established measurement
methodologies with reliable data sources.
Omission of information due to undue cost or effort
The Group has not omitted any information required by the
ESRS on the grounds of undue cost or effort.
Omission of information due to intellectual property,
know-how or results of innovation
The Group confirms that, during the reporting period, no
information has been omitted from the sustainability statements
due to concerns regarding intellectual property, know-how,
orthe results of innovation.
The Group has reassessed the applicability of the specific
circumstances set out in ESRS 2 BP-2 for the current reporting
period and confirms that these remain appropriate and
consistent with the prior reporting period.
GOV-1 Our sustainability governance
At IPF, sustainability matters are embedded within our existing
governance framework. The Group Board is ultimately
responsible for the oversight of sustainability matters, including
the management of material IROs and for ensuring that these
considerations are integrated appropriately into the Group’s
strategy, risk management and decision-making processes.
Details of the roles, responsibilities and composition of the
Group Board, together with the operation of its Committees,
areset out in the Directors’ Report on pages 131 to 132.
Thissection focuses specifically on how sustainability
mattersare governed within those established structures.
This diagram demonstrates
how our sustainability
governance operates.
It is designed to ensure
effective oversight by
theBoard and Executive
Management with input
fromfunctions and markets.
RBF Reporting Group
All key Group functions involved in ESG
are part of this Group. This Group creates
our ESG Plan, oversees delivery and
enables the delivery of ESG Reporting,
including the CSRD Statement. It also
inputs to DMA processes.
RBF Champions Group
Each market has an RBF Champion
whoprovides regular updates to local
boards on our ESG activities and
contributes to key ESG processes
including our ESG Plan and CSRD
compliance matters. They also coordinate
the collation of data for ESG management
information and external reporting.
Audit and Risk Committee
Responsible for overseeing financial andnon-financial reporting
aswell asriskmanagement relating to climate. It also oversees
whistleblowing/ethics.
RBF Steering Group
Monitors new requirements and trends
around ESG, makes recommendations
onkey ESG initiatives to ensure compliance
with stakeholder expectations, and
executes on strategic targets. Reportsto
the RBF Executive Steering Group and
comprises members ofFinance, Risk, HR,
Procurement, Legalfunctions.
Group Board
Approves Group-wide Responsible Business Strategy, key ESG policies
and is updated quarterly on ESG performance.
Responsible Business Framework (RBF)
Executive SteeringGroup
Defines initiatives to achieve the Responsible Business Strategy and
oversees progress. Driven in close liaison with regional management,
work and reporting are supported byvarious Group and local
functions and the RBF management-level committees, shown below.
Our sustainability governance
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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 Group Board.
Committees of the Board support the Group Board 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 Group Board annually.
TheTerms of Reference for each Committee are available
onour website at www.ipfin.co.uk. Members of the Board
Committees, including the Chair, are appointed by the Group
Board from its own members. Specific Board Committees
whichoperated in 2025 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 reported effectively.
• 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, and the
composition of the Group Board and Executive Management.
Details of the membership of each of these Committees are set
out on pages 139, 145 and 153 of the 2025 Annual Report.
The members of the Board possess substantial experience
infinancial services, governance, and risk management.
Formore detailed information on the expertise of Group Board
members, see pages 128 to 129 of the 2025 Annual Report.
The Nominations and Governance Committee assists the
Group Board in determining if appropriate strategic, sector-
specific, sustainability, and other necessary skills and expertise
are available within the Group Board and the Executive
Management. The Committee must ensure that all candidates
for membership of the Group Board fulfil stakeholder
expectations and have the right skills, including relevant
sustainability and business conduct expertise.
The Group Board evaluates the competencies, diversity,
knowledge, and experience of the individual members of the
Group Board 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 2025 the Board and its Committees reviewed
a number of items relevant to its material IROs including: (i)
employee engagement and development (S1 – Own
Workforce) through Chief HR Officer’s People updates to the
Board; and (ii) consumer-related matters (S4 – Consumers and
end-users), including ethical marketing and consumer protection,
social inclusion of customers, and information-related impacts
for customers, through the Chief Marketing Officer customer
updates to the Board and twice-yearly privacy updates from
the Group Data Protection Officer and the Audit & Risk Committee.
The Executive Management is made up of 15 individuals
reporting to the Chief Executive Officer. 6.7% of these individuals
are female and 93.3% are male. In 2024, the number of Executive
Management members remained unchanged; however,
thecomposition was 13.3% female and 86.7% male. The purpose
of the Executive Management is to undertake day-to-day
management in a way that aligns with the overall strategic
direction set by the Group Board. 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.
The Group Board is responsible for setting the Group’s overall
strategy and for oversight of management. Information on
thecomposition of the Group Board, including the number
ofNon-Executive Directors, gender diversity of the Board,
andthe proportion of independent Board members,
isdisclosed on page 131 of the 2025 Annual Report.
The division of responsibilities between the Executive
Management and the Group Board is set out in the Matters
Reserved to the Board document, which is approved by the
Board annually.
Responsibility for the oversight of IROs is embedded within
theroles of the Board and the Board Committees, particularly
the Audit and Risk Committee. Business conduct policies,
including our Code of Ethics, are reviewed and approved
annually by the Group Board. 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. It ensures compliance through
the establishment of appropriate procedures for sustainability
data collection. It also ensures 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 own
workforce are anchored within Group HR, which reports data
about our employees and customer representatives together
with 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
sustainability matters. Executive Management participate in discussions and use their knowledge and expertise to guide
theGroup Board and enable them tomake informed decisions on sustainability matters. Finaldecisions on IROs are made
bytheGroup Board
The Group Board used the results of the DMA to guide thesetting 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. Weare considering how and where
we will set strategic targets to accelerate both business strategy and sustainability performance further.
GOV-2 Information provided to and sustainability matters addressed
bytheundertaking’s administrative, management and supervisory bodies
The Group Board and Board Committees are informed ofsustainability matters by the Chief Legal Officer as required. In 2025,
thismeant the Group Board approved the Company’s Sustainability Plan for 2025/2026 and received aninterim update on
progress. In relation to IROs, the DMA process was briefed to Executive Management in Q3 2025, and the results were reviewed
byExecutive Management and the Group Board as part of strategic planning activities in Q4 2025. The Group Board considered
matters relevant to the Group’s material IROs during the reporting period. These comprised the material IROs identified through
theGroup’s DMA, as set out on page 84.
GOV-3 Integration of sustainability-related performance in incentive schemes
The incentive schemes provided to the Group’s executive directors included sustainability-related matters in 2025. Noother
member of any administrative or management bodiesat the Group are remunerated on the basis ofincentiveschemes linked
tosustainability matters.
Full details of the Group executive directors’ incentive schemes are detailed in the 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 Group Board 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 and isassessed using the following criteria:
• typically 80% of total bonus opportunity is subject toachievement of financial measures; and
• typically 20% of total bonus opportunity is subject toachievement of personal objectives linked toachievementofGroup strategy.
The personal objectives agreed for Group executive directorsincluded a sustainability-related objective in 2025. 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 Group executive directors are made by the Remuneration Committee.
GOV-4 Statement on sustainability duediligence
The table below indicates the paragraphs thatcontain disclosures about our current sustainability due diligence performance.
Core elements
ofduediligence Description
Relevant section
inCSRDStatement
Identification of
sustainability risks
andimpacts
We assess actual and potential adverse sustainability
impacts across our operations andvalue chain.
(i) SBM-3 Material IROs and their
interaction with strategy and business
model (ii) Double Materiality
Assessment and (iii) Risk identification
and assessment (pages 84-88).
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 (pages
77-79) and Policies (page 92).
Stakeholder
engagement
We engage with stakeholders, including employees,
suppliers, communities and investors, to identify
andaddress sustainability concerns.
Interests and views of stakeholders
(page 83).
Grievance and
remediation
mechanisms
We provide reporting channels for
sustainability-related concerns and havemechanisms
toaddress grievances.
Processes to remediate negative
impacts and channels for own
workforce to raise concerns
(pages 96-97).
Reporting and
transparency
We disclose sustainability-related risks, impacts
andmitigation strategies inalignmentwith regulatory
requirements.
(i) SBM-3 Material IROs and their
interaction with strategy and business
model (ii) Double Materiality
Assessment and (iii) Risk identification
and assessment (pages 84-88).
CSRD Statement continued
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SBM-1 Strategy, business model andvalue chain
Products and services offered
Our products and services are tailored to meet our customers’ needs and different credit profiles and preferences. The table
below shows the products offered in 2024 and 2025.
Product
Estonia
Latvia
Lithuania
Mexico
Australia
Poland
Romania
Hungary
Czech
Republic
Home credit instalment loans (1): Small-sum loans with weekly
personal service and an increasingly digital touch, provided
incustomers’ homes by our customer representatives.
Home credit instalment loans (2) : Medium-sum loans with monthly
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.
Product offered in 24
Product offered in 25
Market
Number of Employees
2025 2024
Mexico 2,605 2,569
Poland 1,018 1,040
Hungary 2,065 2,150
Czech Republic 319 302
Romania 1,944 1,960
United Kingdom 131 126
Estonia 130 120
Lithuania 34 30
Latvia 35 34
Australia 24 20
In the reporting period, the Group generated total revenue
of£737.5m (2024: £726.3m).
The Group provides regulated consumer credit products
designed to meet the needs of underserved and underbanked
consumers across the markets in which it operates. Products
are offered through the Group’s established operating models,
including home credit and digital lending, and are designed
tobe transparent, affordable and aligned with applicable
regulatory requirements in each jurisdiction.
The Group’s products are originated, distributed and serviced
primarily through its own operations, including customer-facing
roles and supporting back-office functions. Customer
interactions, including loan origination, servicing and
collections, represent a key part of the Group’s downstream
value chain, while product design, governance, risk
management and oversight sit within the Group’s own
operations.
The table on page 80 summarises the Group’s principal
product types by market.
Changes in product offering during the year
In Poland, medium-sum loans with monthly personal service
were introduced in response to rising inflation, increased
competition and higher customer income levels, which have
shifted demand towards larger, longer-term borrowing.
Regulatory price caps on short-term lending also influenced
thischange. The new product better aligns with customer
demand, supports competitiveness and improves portfolio
economics within the regulatory framework.
In the Baltics, the value-added services (VAS) proposition was
withdrawn following a strategic review. Customer uptake was
low and the expected long-term financial returns did not justify
the operational investment required. Resources have been
reallocated to higher-priority initiatives,
The Group’s consumer credit products incorporate product
andservice characteristics intended to avoid or mitigate
potential negative impacts on consumers, including risks
related to affordability, transparency and customer understanding.
These characteristics include clearly defined pricing structures,
contractual terms and customer communications designed to
support informed decision-making, as well as credit assessment
and affordability checks aligned with applicable regulatory
requirements in each market.
GOV-5 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 as follows:
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the
Group Audit and Risk Committee meetings, is accountable
forsustainability reporting.
• The oversight of this process is managed by the RBF Steering
Group, which is composed ofkey functions including Finance,
Risk,Legal, Procurement and HR.
Defined responsibilities
• The Sustainability function oversees the collation
ofinformation from different business units.
• Each business unit which is required to provide
sustainability-related information must nominate
aSustainability Reporting Officer to ensure consistent
datacollection.
Integration into reporting and decision-making
• Sustainability performance is reported quarterly to the Group
Boardthrough the provision of a dedicated
ESGmanagement information pack.
Stakeholder engagement
• Formal stakeholder consultation (customers, colleagues,
suppliers, investors, NGOs), to identify sustainability risks
andopportunities.
• Sustainability risks and opportunities are an input
tothestrategic planning process undertaken by
ExecutiveManagement and the Group Board.
There is no specific risk prioritisation methodology used
bytheGroup. The following risks have been identified
asrelevant to the Group’s sustainability reporting following
internal discussions:
• Data quality and accuracy: Ensuring that sustainability
metrics and disclosures are accurate, reliable, and based
onverifiable data.
• Regulatory compliance: Monitoring compliance with evolving
sustainability regulations and standards, such as ESRS
requirements, to avoid legal and financial penalties.
Product design, approval and ongoing review are subject
tointernal governance processes, including oversight by
relevant risk, compliance and product governance functions.
These processes apply across the product lifecycle, including
origination, servicing and collections, and are intended to
promote fair customer outcomes and consistent application
ofregulatory standards.
The Group enables access to consumer credit for underserved
and underbanked consumers by offering products through
operating models designed to reach customers who may have
limited access to mainstream financial services. This includes
the provision of home credit and digital lending models, which
allow customers to access credit through channels that reflect
local market conditions, customer preferences and levels of
digital inclusion.
These operating models are supported by locally tailored
product features and distribution approaches, while operating
within a consistent Group-wide framework for governance, risk
management and customer protection.
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,
withsustainability considerations such as our workforce
andresponsible lending integrated into our operations.
Whilesustainability is not a primary driver, we monitor emerging
trends and regulations, exploring training and data analysis
toinform future strategic development. We regularly review
ourapproach and will adapt as needed.
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
ofproducts which are tailored to our customers’ financial
circumstances, needs and preferences, and we deliver them
ina responsible way. In doing so, we are increasing financial
inclusion for millions of people. Ourapproach 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 to ensure
accessibility and convenience. We are committed to responsible
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 to consumer protection laws, fair lending
standards, and financial regulations.
This model illustrates where our material IROs occur across
ourdirect and indirect business relationships throughout
thefullvalue chain; upstream, within our ownoperation
anddownstream, including in relation to key stakeholders.
CSRD Statement continued
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Social material topics (ESRS S1,S4)
Own operations
S1 – Employee engagement
and development
• Engagement, wellbeing
andretention
• Skills, learning and career
development
• Fair treatment, inclusion
and internal mobility
Cross-cutting
• Engagement with regulators,
politicians and NGOs
• Compliance with consumer
protection frameworks
• Trust, legitimacy and social licence
to operate
S4 – Information-related impacts
forcustomers
• Customer data protection
andprivacy
• Responsible data collection,
useand storage
• Cybersecurity and data breach
prevention
• Transparency on data rights
andusage
S4 – Social inclusion
of consumers
• Access to credit for
underserved groups
• Fair product design and affordability
• Non-discriminatory lending practices
S4 – Ethical marketing and consumer
protection
• Responsible advertising
andsales practices
• Avoidance of misleading
oraggressive tactics
• Protection of vulnerable customers
Cross-cutting (applies across value chain)
Value chain assessment
Upstream
(supply chain and
enabling environment)
Downstream
(communities)
Own operations
(engagement
and development)
Customers/
Consumers
Regulators,
politicians
and NGOs
Suppliers
and service
providers
Investors
and capital
providers
Communities
Downstream (communities)
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
lendingplatforms.
• Credit bureaus: We subscribe to credit reporting services,
recognising that access to accurate credit information is
fundamental to our underwriting process and responsible
lending practices.
• Third-party service providers: We engage with 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
toprovide 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
theloan 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
tostreamline processes, improve decision-making, and
enhance the customer experience. Data analytics plays
avital role in credit scoring, fraud detection and portfolio
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 (where 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’
paymenthistory to credit bureaus, contributing
tothecreditecosystem.
• 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.
SBM-2 Interests and views of stakeholders
Detailed below is information on stakeholder engagement in 2025. More information can be found in the stakeholder
engagement section of this 2025 Annual Report on pages 46 to 63.
DMA Stakeholder engagement
Customers Investors Communities
Engagement
approach
• Surveys
Focus areas
•
Information
management and
data protection
• Corruption and bribery
prevention
• Equal treatment (own
workforce)
• Working conditions
(own workforce)
• Employee
engagement and
development
Strategic pillars Strategic pillars Strategic pillars Strategic pillars Strategic pillars
Engagement
approach
• Surveys
Focus areas
•
Equal treatment
(own workforce)
• Employee
engagement and
development
• Social inclusion
ofconsumers
• Health and safety
• Working conditions
(own workforce)
Engagement
approach
• Surveys
• Workshop with
investment brokers
Focus areas
•
Social inclusion
ofconsumers
• Community economic
and social rights
• Ethical marketing and
consumer protection
• Information
management and
data protection
• Social inclusion and
diversity (own
workforce)
Engagement
approach
• Surveys
Focus areas
•
Social inclusion
ofconsumers
• Ethical marketing and
consumer protection
• Employee
engagement and
development
• Community economic
and social rights
• Social inclusion
anddiversity
(own workforce)
The Group Board 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 Group Board has made impacting specific stakeholder groups;
and (iii) each paper considered by the Group Board and Board Committees includes a section highlighting stakeholder impacts.
Colleagues Suppliers
Engagement
approach
• Surveys
Focus areas
•
Employee
engagement and
development
• Corruption and bribery
prevention
• Working conditions
(own workforce)
• Equal treatment
(own workforce)
• Social inclusion
ofconsumers
Strategic pillars key
Next Gen financial inclusion Next Gen organisation Next Gen technology anddata
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SBM-3 Material IROs and their interaction with strategy and business model
In identifying IROs, the Sustainability function considered how each material ESRS topic interacts specifically with the Group’s
business model and day-to-day activities. This involved considering, for each material topic, how the design, marketing, provision
and servicing of regulated consumer credit products could give rise to actual or potential impacts on consumers or employees,
and how those impacts could in turn create risks or opportunities for the Group. In identifying IROs, the Sustainability function
applied qualitative judgement consistent with ESRS requirements, considering the nature, severity and likelihood of impacts on
stakeholders, and the relevance of associated risks and opportunities to the Group’s business model, without applying separate
quantitative thresholds at IRO level.
In line with ESRS requirements, the Group distinguishes clearly between its impacts on people and society and the risks and
opportunities that may arise for the Group as a result of those impacts. Impacts describe the Group’s actual or potential positive
or negative effects on consumers and employees resulting from its activities and business relationships. Risks and opportunities
describe the potential effects of sustainability matters on the Group’s financial position, financial performance or future prospects.
As part of the DMA, impacts were identified and assessed first. Where relevant, the Sustainability function then considered whether
those impacts could give rise to associated risks or opportunities for the Group. These are presented separately inthe IRO table
below to reflect their distinct nature, even where they are closely linked.
This topic-by-topic consideration of the Group’s specific activities and operating model informed the identification ofthe concrete
IROs set out in the table below.
The Group has assessed the anticipated financial effects
ofitsmaterial sustainability-related risks and opportunities
onitsfinancial position, financial performance and cash flows
over the short, medium, and long term. Based on this assessment,
no material current or anticipated financial effects have been
identified that would require quantification at the reporting date.
This reflects the nature of the Group’s material sustainability-
related risks and opportunities, which are closely linked to the
Group’s core regulated business activities and are managed
through established governance, risk management and
control frameworks. As a result, these matters are not expected
to give rise to discrete or incremental financial effects that can
be separately identified from the Group’s overall financial
performance at this stage.
ESRS topic DMA material topic IRO Type Description of impact / risk / opportunity
Affected
stakeholders
Value
chain
Time
horizon
S4 Consumers Ethical marketing and
consumer protection
Impact
(Negative)
Risk of consumer detriment arising from
misleading, unclear or inappropriate
marketing or sales practices, particularly
in relation to financial decision-making
Consumers Own
operations
Short /
Medium
S4 Consumers Ethical marketing and
consumer protection
Risk Regulatory, legal or reputational risk
arising from non-compliance with
consumer protection or responsible
marketing requirements
Consumers Own
operations
Short
S4 Consumers Information-related
impacts
Risk Financial, regulatory and trust-related risk
associated with data protection or privacy
incidents
Consumers /
Business
Own
operations
/ third
parties
Short
S4 Consumers Information-related
impacts
Impact
(Negative)
Potential adverse impact on consumers
arising from misuse, loss or unauthorised
access to personal or financial data
Consumers Own
operations
/ third
parties
Short
S4 Consumers Social inclusion of
consumers
Opportunity Provision of access to responsible financial
products and services to underbanked or
underserved consumers, supporting social
and economic inclusion
Consumers Own
operations
Medium
/ Long
S4 Consumers Social inclusion of
consumers
Impact
(Positive)
Positive impact arising from fair access
tocredit and financial services where
delivered responsibly and transparently
Consumers Own
operations
Medium
S1 Own
workforce
Employee
engagement and
development
Impact
(Negative)
Risk of reduced employee engagement,
capability or wellbeing where
development, feedback or support
mechanisms are ineffective
Employees Own
operations
Medium
S1 Own
workforce
Employee
engagement and
development
Opportunity Opportunity to strengthen workforce
capability, retention and engagement
through effective training, development
and feedback
Employees Own
operations
Medium
/ Long
Further detail on the time horizons, is set out in the Group’s
climate-related financial disclosures prepared in line with
theTask Force on Climate-related Financial Disclosures (TCFD)
on page 113 of the 2025 Annual Report
These matters will remain a key focus for management and
theGroup Board, and will be assessed regularly through the
strategic planning process to ensure appropriate risk mitigation
and opportunity management.
In the context of ongoing strategic developments, including
thecash offer for IPF plc, the Group continues to assess
theinteraction between its material IROs and its strategy
andbusiness model. At the reporting date, no specific
changestothe Group’s approach to managing material
sustainability-related risks and opportunities have been
reflected in its strategy, investment or funding plans.
The Group will continue to monitor developments and consider
their implications through its established governance
anddecisionmaking frameworks.
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 in
place 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 as outlined on page 77 of this CSRD Statement.
During the reporting period, the Group refined its identification
and presentation of material IROs compared to 2024, to align
more closely with the structure and requirements of the ESRS.
Matters previously described under the topic of access to
financial services have been disaggregated and mapped to
the relevant ESRS S4 consumer-related IROs, including ethical
marketing and consumer protection, information-related
impacts and social inclusion of consumers. Workforce-related
IROs have also been articulated more explicitly under ESRS S1.
These changes reflect increased granularity and clearer
alignment with ESRS topical standards rather than a change
inthe underlying materiality of these matters.
Double Materiality Assessment
IRO-1 Processes to identify and
assess IROs
In 2024, we undertook our first DMA to map and gain a deeper
understanding of its most material impacts in alignment with
the requirements of ESRS 1 and 2. In 2025, the assessment was
refreshed and repeated to ensure that we continue to report
onthe sustainability matters that are most material to the
Group and our key stakeholders.
A sustainability matter is considered double material where
itismaterial from both an impact perspective (the actual
orpotential impacts of IPF’s activities on people or the
environment) and a financial perspective (the potential effects
of sustainability matters on the Group’s financial performance,
position, cash flows or access to capital).
Identification of sustainability topics
An initial long list of sustainability topics was developed using
ESRS topical standards (E, S and G), CSRD regulatory
requirements and ESRS guidance on IROs across the value
chain. This process resulted in a long list of 38 sustainability
topics, which were assessed against defined qualitative criteria,
including impact severity, financial relevance, key risks and
opportunities, stakeholder concern, strategic alignment and
regulatory relevance. Following review and challenge by the
Responsible Business Framework (RBF) Steering Committee,
ashortlist of 15 topics was agreed for the detailed DMA. This
shortlist was endorsed subsequently by the RBF Executive
Steering Committee.
Stakeholder identification and engagement
Stakeholder groups were identified in accordance with ESRS 1
definitions and the disclosure requirements of ESRS 2 (SBM-2),
with particular consideration given to the stakeholder categories
referenced explicitly in ESRS social topical standards. The final
stakeholder groups engaged in the 2025 DMA were customers,
colleagues, investors, suppliers, NGOs/community groups
andsenior management.
Stakeholder engagement was conducted primarily through
structured surveys, selected as the most proportionate and
effective method for gathering quantitative and qualitative
input at scale.
The impact materiality survey was structured into 15 questions,
each focused on the individual materiality topic and issued
toall stakeholder groups. Each question included contextual
explanations and examples relevant to IPF’s operating model,
enabling respondents to assess impacts in a practical and
informed manner without requiring technical sustainability
expertise.
For each topic, respondents were asked to provide two
quantitative assessments using a consistent five-point scale:
i. Impact size assesses the significance of IPF’s actual or
potential impacts on people, society or the environment,
irrespective of whether those impacts are positive or
negative. This aligns with the concept of impact materiality
under ESRS.
ii. Stakeholder relevance assesses how IPF’s performance on
the topic could influence stakeholders’ decisions to engage
with, remain with, or support IPF, depending on the
stakeholder group.
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Impact materiality was assessed through stakeholder
engagement with customers, colleagues, suppliers, investors
and community groups. Stakeholders rated each sustainability
topic using a five-point scale reflecting their judgement of
thesignificance of the Group’s actual or potential impacts.
Thisstakeholder judgement captured both the severity/scale
ofthe impact and its likelihood in a single score, rather than
requiring respondents to assess these dimensions separately.
The assessment did not require stakeholders to distinguish
between positive and negative impacts; respondents evaluated
overall impact significance. Financial materiality was assessed
by senior management using the same five-point scale, based
on the potential financial effects of sustainability matters (risks
and opportunities), considering expected magnitude and
likelihood. Responses were aggregated to a mean score per
topic and normalised to a percentage scale anchored at
theaverage response across all topics. Topics scoring above
the defined thresholds were classified as medium or high
materiality. A topic was considered material for reporting
whereit exceeded the threshold on either impact materiality
orfinancial materiality. These thresholds were set to identify
topics where stakeholder perception or management
assessment significantly exceeds the baseline average,
indicating material significance.
The assessment did not separately categorise positive versus
negative impacts; stakeholders and management evaluated
overall impact significance. All 15 topics were assessed using
consistent criteria.
The financial materiality survey sought to assess which
sustainability topics could reasonably be expected to influence
the Group’s enterprise value. The survey was completed by
theGroup’s senior management team with an informed
understanding of IPF’s strategy, risk profile and financial
performance. Consistent with the impact materiality survey,
tailored descriptions were developed for each material topic,
aligned to IPF’s business model and explicitly linked to potential
financial outcomes, including costs, revenues, cash flows,
access to capital, regulatory exposure and long-term
strategic resilience.
Financial materiality
Impact materiality
Community wellbeing
and economic
inclusion
Whistleblowing
2025 IPF Double Materiality Assessment results
GovernanceEnvironment Social
Climate Change
Social inclusion and
diversity (workforce)
Equal treatment
(own workforce)
Responsible supply
chain management
Corporate
culture
Corruption
and bribery
Health
and safety
Working
conditions
Social
inclusion of
consumers
Ethical marketing
and consumer
protection
Employee
engagement and
development
Information-
related impacts
for consumers
Political
engagement
IPF’s material topics Corresponding ESRS topics
Employee engagement
and development
S1 – Own Workforce
Ethical marketing and
consumer protection
S4 – Consumers and end–users
Information-related
impacts for customers
S4 – Consumers and end–users
Social inclusion
of customers
S4 – Consumers and end–users
For each topic, respondents were asked to assess financial
materiality using a structured, multi-factor approach,
comprising:
• estimated quantitative financial impact, based on defined
monetary thresholds over a 12-month horizon;
• qualitative financial drivers, including reputational damage,
regulatory consequences, investor and lender confidence,
and business model implications; and
• likelihood and frequency, assessing the probability of the
issue causing a material financial impact over a three-year
timeframe if not effectively managed.
This structure reflects ESRS financial materiality concepts
bycombining quantitative indicators with qualitative
considerations and risk likelihood, rather than relying
onfinancial magnitude alone.
The results of the impact and financial materiality surveys were
consolidated and analysed to inform the Group’s DMA.
Quantitative scores were aggregated by topic to identify
relative impact severity and financial significance, while
qualitative feedback was reviewed to identify contextual
factors, emerging concerns and areas requiring further
management consideration.
Stakeholder input was used as a key input into the initial
scoring and prioritisation of sustainability topics. These results
were then reviewed by management as part of the materiality
assessment process, alongside internal analysis of the Group’s
business model, operating context and risk profile. Where
appropriate, management judgement was applied to validate
the outcomes, ensure consistency with the Group’s activities
and value chain, and determine the final list of material IROs.
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.
Following our sustainability governance process, the Group
Sustainability function managed the DMA process in
collaboration with internal subject-matter experts. The results
ofthe DMA were discussed with the RBF Steering Group and the
RBF Executive Steering Group before being reviewed bythe
Group Board.
Sustainability-related risks are identified, assessed, managed
and monitored through the Group’s Enterprise Risk Management
(ERM) framework. This ensures that sustainability-related
considerations are integrated into broader risk management
practices and are subject to the same governance, oversight
and controls as other principal risks. During 2025, the Group
further evolved its approach to risk management by introducing
a broader ESG risk category. This expanded focus reflects the
interconnected nature of ESG risks and enables a more holistic
assessment of sustainability-related impacts on the business.
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 2025
Annual Report on pages 34 to 40.
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 identified as part of the Group’s DMA
whichconsiders actual and potential impacts, risks and
dependencies in order to determine material sustainability
matters and associated IROs.
The DMA is used to inform the Group’s sustainability disclosures
and is a contributing input to the Group’s strategic planning
process. Decisions on whether and how to pursue identified
opportunities are considered through the Group’s strategic
planning and budgeting processes, taking into account
business priorities, market conditions and operational
considerations as well as feedback from the DMA.
Thisprocess does not include an explicit assessment
oftheconnections between the Group’s impacts,
dependencies or opportunities that may arise from them.
Theassessment of financial effects related to opportunities
follows aqualitative approach, with decisionsguided 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
andcovered 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 DMA in 2024 and
further refined the process in 2025 toreflect the requirements
detailed in the ESRS for materiality assessments.
Processes to identify and assess material
IROs – environmental topics
The Group has assessed its potential environmental IROs
inaccordance with ESRS E1–E5. These were assessed for
materiality as part of the DMA process in the same way as other
topics. This meant that a wide variety ofpotential topics relating
to climate and the environment were on the initial “long list” of
topics. Following discussions, “Climate Change” was included
on the shortlist of topics and subsequently included in the
stakeholder consultation. In undertaking this assessment, the
consideration was not only for the Group’s own operations but
also those of the Group’s upstream and downstream value
chain for these topics.
CSRD Statement continued
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Based on the 2025 DMA, this topic was not identified as
material for the purposes of CSRD reporting, as it did not meet
the applicable impact or financial materiality thresholds.
Notwithstanding this outcome, the topic remains relevant
totheGroup’s broader sustainability and risk management
framework and is subject to ongoing management through
established processes. In particular, the Group provides more
detailed information on this topic within its TCFD report (see
pages 112-119), reflecting regulatory expectations, stakeholder
interest and the importance of the topic to the Group’s climate
risk management approach. Below are specific disclosures
made against standards ESRS E1-E5:
ESRS E1 Climate Change
The Group reviewed its potential contributions to any risks from
climate change. This process included consideration of climate
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. As a service-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 risks
and opportunities have not been identified as material.
TheGroup’s primary environmental footprint relates to office
operations and digital infrastructure, which are not considered
significant sources of pollution.
ESRS E3 Water and Marine Resources
The Group’s business activities do not involve high water
consumption, discharge of pollutants into water bodies
ordependency on marine resources. As such, the Group
doesnot consider water and marine resource management
tobeamaterial issue.
ESRS E4 Biodiversity and Ecosystems
The Group has a limited geographic footprint and is focused
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 the context of circular
economy principles.
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 not considered to
be a material IRO for our business. This assessment considered
both our direct impacts and those arising 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, primarily
related to vehicle emissions, office premises and data centres,
generates limited greenhouse gas emissions. We do not
engage in manufacturing, transportation, or other activities
typically associated with significant direct emissions.
• 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
tothe 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,
werecognise that the situation may evolve. We will continue
tomonitor 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 in
climate-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 in
our TCFD Disclosures. (See pages 112-119).
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 to understand material IROs
and how they are managed. The Group has sought to take a prudent approach, ensuring that all relevant information related
toits material IROs are disclosed. 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.
EU legislation data points
The table below outlines the data points derived from other EU legislation as listed in ESRS 2 Appendix B.
It indicates where these data points can be found in our 2025 Annual Report 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).
Disclosure
Requirement Data point Legislation Page/relevance
ESRS 2 GOV-1 21 (d) Board’s gender diversity SFDR/BRR Page 131
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent BRR Page 131
ESRS 2 GOV-4 30 Statement on due diligence SFDR Page 79
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
ESRS E3-4 28 (c) Total water recycled and reused SFDR Not relevant
ESRS E3-4 29 Total water consumption in m
3
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 92
ESRS 2 SBM-3 – S1 14 (g) Risk of incidents of child labour SFDR Page 92
ESRS S1-1 20 Human rights policy commitments SFDR Page 93
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 94
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms SFDR Pages 96-97
ESRS S1-14 88 (b), (c) Number of fatalities and number and rate of work-related accidents SFDR/BRR Page 101
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness SFDR Page 101
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Disclosure
Requirement Data point Legislation Page/relevance
ESRS S1-16 97 (a) Unadjusted gender pay gap SFDR /BRR Page 102
ESRS S1-16 97 (b) Excessive CEO pay ratio SFDR Page 102
ESRS S1-17 103 (a) Incidents of discrimination SFDR Page 102
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 Labour 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
ESRS S3-4 36 Human rights issues and incidents SFDR Not material
ESRS S4-1 16 Policies related to consumers and end-users SFDR Pages 104-105
ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines SFDR/BRR Pages 104-105
ESRS S4-4 35 Human rights issues and incidents SFDR Pages 107-109
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
Key
• Sustainable Finance Disclosure Regulation: SFDR
• EBA Pillar 3 disclosure requirements: P3
• Climate Benchmark Standards Regulation: BRR
• EU Climate Law: EUCL
List of ESRS Disclosure Requirements incorporated by reference
(in accordance withESRS 2 BP-2 para. 16)
ESRS Disclosure Requirement / Datapoint Location in 2025 Annual Report
ESRS E1 – Climate governance TCFD Report – Governance section (page 113)
ESRS E1 – Climate strategy, including resilience and scenario analysis TCFD Report – Strategy section (pages 113-118)
ESRS E1 – Climate risk management processes TCFD Report – Risk Management section (pages 114-116)
ESRS E1 – Climate metrics and targets (including Scope 1 and Scope 2
GHG emissions)
TCFD Report – Metrics and Targets section (pages 118-119)
ESRS 2 GOV-1 – Role of administrative, management and supervisory
bodies
Corporate Governance Report (pages 131-132)
ESRS 2 GOV-2 – Information provided to and sustainability matters
addressed by the Board and Committees
Audit and Risk Committee Report (pages 145-151)
ESRS 2 GOV-3 – Integration of sustainability-related performance into
remuneration policies
Directors’ Remuneration Report (pages 152-155)
ESRS 2 SBM-1 – Revenue Consolidated Income Statement, Financial Statements section
(page 187)
ESRS 2 SBM-2 – Interests and viewsof stakeholders Stakeholders in focus (pages 45-63)
ESRS 2 IRO-1 – Description of material risks (where incorporated by
reference to Principal Risks section)
Principal Risks and Uncertainties section (pages 34-40)
ESRS S1 –ESRS S5 – Targets related to managing material impacts,
risksand opportunities (workforce turnover target)
Workforce / KPIs section (page 23)
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 80-83
ESRS 2 SBM-2 Interests and views of stakeholders Yes Interests and views of stakeholders, page 83
ESRS 2 SBM-3 Material impacts, risks and opportunities Yes Material impacts, risks and opportunities, pages 84-88
ESRS 2 GOV-1 Governance of sustainability matters Yes Governance disclosures, pages 77-79
ESRS 2 GOV-2 Information provided by administrative,
management, and supervisory bodies
Yes Governance disclosures, page 79
ESRS 2 GOV-3 Integration of sustainability-related
performance in incentive schemes
Yes Integration of sustainability-related performance in incentive
schemes, page 79
ESRS 2 GOV-4 Statement on due diligence Yes Statement on sustainability due diligence, page 79
ESRS 2 GOV-5 Risk management and internal controls
oversustainability reporting
Yes Risk management and internal controls over sustainability
reporting, page 80
ESRS 2 IRO-1 Description of processes to identify
andassessmaterial IROs
Yes Disclosures on the materiality assessment process, pages85-87
ESRS 2 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 88
ESRS S1 Own Workforce Yes Own Workforce, pages 92-103
S1-1 Policies related to own workforce Yes Policies, pages 92-95
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 95
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 96-97
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 Taking action on managing material impacts, advancing
positive impacts and managing material risks and
opportunities, page 97-98
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 98
S1-6 Characteristics of the undertaking’s employees Yes Characteristics of the undertaking’s employees, page 99
S1-7 Characteristics of non-employees in the undertaking’s
own workforce
Yes Characteristics of non-employees in the undertaking’s own
workforce, page 100
S1-8 Collective bargaining coverage and social dialogue Yes Collective bargaining coverage and social dialogue, page 100
S1-9 Diversity metrics Yes Diversity metrics, page 100
S1-10 Adequate wages Yes Adequate wages, page 100
S1-11 Social protection Yes Social protection, page 101
S1-12 Persons with disabilities Yes Persons with disabilities, page 101
S1-13 Training and skills development metrics Yes Training and skills development metrics, page 101
S1-14 Health and safety metrics Yes Health and safety metrics, page 101
S1-15 Work-life balance metrics Yes Work-life balance metrics, page 102
S1-16 Remuneration metrics (pay gap and
totalremuneration)
Yes Remuneration metrics (pay gap and total remuneration),
page 102
S1-17 Incidents, complaints and severe human
rightsimpacts
Yes Incidents, complaints and severe human rights impacts,
pages102-103
S4-1 Policies related to consumers and end-users Yes Policies related to consumers and end-users, pages 104-105
S4-2 Processes for engaging with consumers and end-users Yes Processes for engaging with consumers and end-users,
pages 105-106
S4-3 Processes to remediate negative impacts and
channels for consumers and end-users to raise concerns
Yes Processes to remediate negative impacts and channels
forconsumers and end-users to raise concerns, page 107
S4-4 Taking action on material impacts on consumers and
end-users, and approaches to managing material risks
and pursuing material opportunities
Yes Actions and approaches relating to consumers and end-users,
pages 107-109
S4-5 Targets related to consumers and end-users Yes Targets related to consumers and end-users, page 109
CSRD Statement continued
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Social information
ESRS S1 Own Workforce
Our people are the core of our business. We are committed
totheir 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.
Thissection of the CSRD Statement provides more details on
ourworkforce in line with ESRS S1 “Own Workforce”, including
disclosures relating to the characteristics of our workforce,
working conditions, equal opportunities and other work-related
rights, as required by ESRS S1, including Disclosure
Requirements S1-1 to S1-17.
Our workforce and business model
The Group recognises that its workforce is central to the delivery
of its strategy and business model. The availability, engagement
and skills of employees underpin the Group’s ability to operate
effectively, deliver services to customers and achieve its
long-term business objectives. Workforce-related considerations,
including wellbeing, health and safety and skills development,
are therefore integrated into the Group’s approach to
workforce management and operational decision-making.
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
andcontractors may be exposed to material impacts due
toour operations and all are covered within this disclosure.
TheGroup, therefore, includes all individuals in its own
workforce within the scope of this disclosure. The Group’s
ownworkforce includes the following categories:
• Full-time and part-time employees: across all operational
locations, who are subject to the Group’s policies and
practices relating to working conditions, health and safety,
compensation and career development.
• Customer representatives: whose roles involve direct
interaction with customers as part of the Group’s operating
model, including visits to customers’ homes to disburse loans
and collect repayments.
• Temporary and contract workers: who support the Group’s
operations and are subject to the Group’s applicable labour
practices and safety standards during their engagement.
IROs relating to own workforce
In accordance with ESRS S1, the Group has assessed the actual
and potential impacts on its own workforce, as well as the
related risks, opportunities and dependencies arising from
itsoperations. This assessment draws on the outcomes of the
Group’s DMA and the subsequent identification of material
IROs for the reporting period.
Impacts on own workforce
The Group has identified a potential negative impact
relatingto employee engagement, capability and wellbeing,
which could arise where development, feedback or support
mechanisms are ineffective. This potential impact is associated
primarily with the Group’s own operations and has a medium-
term time horizon.
Customer representatives, whose roles involve direct interaction
with customers, including visits to customers’ homes, have
been identified as a workforce group that may be exposed to
specific health and safety-related impacts. A suite of policies,
procedures and training requirements is in place to manage
these impacts, as described below.
The Group has not identified any material negative impacts on
its own workforce that are widespread or systemic, or that relate
to individual incidents.
The Group has identified positive impacts on its workforce
through initiatives aimed at supporting colleague development,
wellbeing, and engagement. These include training and
development programmes, flexible working arrangements and
engagement initiatives that support job satisfaction, capability
and retention. These positive impacts are accessible across the
workforce and are monitored on an ongoing basis to ensure they
continue to align with business objectives and workforce needs.
Risks relating to own workforce
The potential negative impacts identified above give rise to risks
relating to workforce engagement, capability and wellbeing,
which could affect operational effectiveness if not appropriately
managed. In addition, the Group recognises dependencies on
its workforce as material, given its reliance on employees to
deliver core business activities and maintain service quality.
These risks are managed through existing processes, including
workforce planning, employee engagement initiatives, training
and development programmes, health and safety arrangements
and the Group’s broader risk management framework.
Opportunities relating to own workforce
The Group has identified a material opportunity to strengthen
workforce capability, engagement and retention through
effective training, development and feedback mechanisms.
This opportunity supports the Group’s long-term operational
resilience and service quality and is considered to have
amedium- to long-term time horizon.
Other workforce-related considerations
The Group has not identified any material impacts on its
ownworkforce arising from actions to reduce environmental
impacts or to achieve its sustainability objectives. As a financial
services provider with limited direct environmental footprint,
theGroup does not anticipate significant workforce changes,
such as restructuring, job losses or large-scale reskilling in
connection with such initiatives.
The Group has assessed its operations and has not identified
any significant risks of forced or compulsory labour or child
labour, taking into account the nature of its business activities
and the geographic areas in which it operates.
The Group will reassess workforce-related IROs
anddependencies annually as part of its ongoing
materialityassessment.
Policies
The Group has a comprehensive set of policies governing
howissues related to our entire workforce are handled in
astructured 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.
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 the Group’s material own-workforce IROs identified under ESRS S1. In particular it
supports the mitigation of potential negative impacts relating to employee engagement, wellbeing and fair
treatment, including risks arising from discrimination, harassment, unsafe working practices or unethical behaviour.
The Code also supports the opportunity to strengthen workforce engagement, capability and retention by setting
clear expectations for ethical conduct, respect, inclusion and leadership behaviour across the Group.
Description of the
processfor monitoring
The Group monitors compliance with the Code through regular training, senior oversight and reporting mechanisms,
including a whistleblowing channel for confidential concerns. Oversight is provided ultimately by the Group Board,
who approve the Code. Executive oversight is provided by the Group Ethics Committee, which comprises the Chief
Executive Officer, Chief Financial Officer, Chief HR Officer and Chief Legal Officer. Day-to-day oversight and
management of the Code is undertaken by the Group Legal function, which reviews adherence to theCode
andensures any breaches are addressed in line with established 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 where relevant. It governs ethical conduct
inall geographies where the Group operates and applies to activities 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 Group Board.
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 in the Code.
Stakeholder
considerations
While no formal stakeholder consultation was conducted, the policy reflects established expectations for ethical
conduct, compliance and responsible business practices across the Group’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 or other local policy communication platforms. 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.
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 across its operations
andvalue chain. Its key objectives are to ensure fair and ethical treatment of employees, prevent discrimination
andharassment, promote safe working conditions, and uphold labour rights in line with international standards.
ThePolicy also reinforces the Group’s stance against modern slavery, child labour and forced labour.
Description of the
material IROs the
policyrelates to
The Human Rights Policy relates to material IROs associated with actual and potential adverse human rights impacts
across theGroup’s own operations and supply chain. This includes risks relating to modern slavery, human trafficking,
forced or compulsory labour and child labour, as well as risks associated with unsafe working conditions, discrimination
and exploitation. The policy supports the identification, prevention and mitigation of such impacts andunderpins
theGroup’s approach to respecting internationally recognised human rights standards.
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. The Policy is reviewed periodically to assess its effectiveness, andany identified issues are
addressed through corrective actions as part of the Group’s broader governance andcompliance 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 Group Board.
Reference to relevant
third-party standards
The Human Rights Policy is aligned with the United Nations Guiding Principles on Business and Human Rights.
Itisinformed by the International Bill of Human Rights, including the Universal Declaration of Human Rights and the
International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights, the International
Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for
Multinational Enterprises and UNICEF’s Children’s Rights and Business Principles. The Group is also guided by
theprinciples of the United Nations Global Compact in determining its approach to human rights.
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 Human Rights Policy is made available to all potentially affected stakeholders through being published
ontheGroup’s website and its intranet sites or other local policy communication platforms in local language.
TheCode ofEthics incorporates the key elements of the Policy, which is available publicly on the Group website,
ensuring accessibility to employees, stakeholders and other interested parties.
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Health and Safety Policy
Description of the key
contents of the policy,
including its general
objectives
The Health and Safety Policy outlines the Group’s commitment to providing a safe, healthy, and supportive working
environment for all employees, customer representatives, contractors, and others who may be affected by its
operations. It establishes clear expectations for risk prevention, safe working practices, and the promotion of physical
and psychological health, safety, and wellbeing. The Policy aims to eliminate or reduce workplace hazards, ensure
compliance with applicable safety legislation and international standards, and foster a culture of continuous
improvement where health and safety are integral to everyday operations and decision-making.
Description of the
material IROs the
policyrelates to
The Policy addresses workforce-related risks including workplace accidents, occupational illnesses, psychosocial
risks, and non-compliance with safety requirements. It recognises the potential impact of these risks on employee
wellbeing, business continuity, and reputation. Through proactive risk management, the Policy supports the
prevention of harm, reduction of absenteeism, and enhancement of productivity and engagement across all
markets. Specific emphasis is placed on protecting lone-working customer representatives, who may face elevated
risks associated with travel and community-based activities.
Description of the
process for monitoring
Compliance with the Policy is monitored through regular workplace inspections, incident reporting and investigation,
risk assessments, and annual self-assessments in each market. The Group also monitors performance against
defined safety objectives, including completion of induction and refresher training, and personal safety risk
assessments. A confidential reporting system allows employees to raise safety concerns, which are reviewed
andaddressed as part of the Group’s broader risk management and assurance framework. Annual reviews
ofhealthand safety performance are undertaken at Group and market level to drive continual improvement
andtransparency inESG reporting.
Description of the scope
of the policy
The Policy applies to all persons working for or on behalf of the Group in any capacity, including employees,
directors, officers, customer representatives, contractors, consultants, agency and seconded workers, and business
partners. It sets out responsibilities for maintaining workplace safety at all levels and across all operational
environments, ensuring consistency in standards and expectations globally.
Body with accountability
for the implementation
ofthe Policy
The Group Board.
Reference to relevant
third party standards
The Policy aligns with ISO 45001: Occupational Health and Safety Management Systems and ISO 45003:
Psychological Health and Safety at Work – Guidelines for managing psychosocial risks. These frameworks underpin
the Group’s integrated approach to health, safety, and wellbeing and ensure compliance with international best
practice and relevant legal requirements. These standards underpin the Group’s approach to managing physical
and psychological health and safety risks across its operations.
Stakeholder
considerations
The Policy is aligned with legal and regulatory obligations, industry standards, and internal risk management
frameworks. It reflects employee feedback, workplace assessments, and consultation processes that encourage
participation and dialogue on health, safety, and wellbeing matters. This inclusive approach supports a culture
ofshared responsibility and engagement across all levels of the organisation.
How the Policy is
madeavailable
The Policy is communicated through Group-wide announcements, onboarding and induction programmes,
andannual refresher training for employees, contractors, and customer representatives. It is readily accessible
oninternal communication platforms and is integrated into operational guidelines to ensure consistent awareness
and application. Regular updates and engagement sessions reinforce understanding of safety responsibilities
andencourage proactive participation in creating a safe and supportive work environment.
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 2025,
established employee forums across all markets and customer
representative forums in all home credit markets provided
structured opportunities for dialogue on workforce-related matters.
In addition, the Group conducted its Global People Survey
(GPS) across all divisions, with participation from more than
17,600 colleagues, representing a participation rate of 91%.
TheGPS provides workforce insight across four dimensions –
pride, care, challenge and inspired – and is used as a tool
tomonitor employee engagement and sentiment. Reported
results for 2025 included overall positive sentiment of 79.5%
among employees and 81% among customer representatives,
with results reported across each of the four dimensions.
The outputs of the GPS are reviewed by the HR Function,
Executive Management and the Group Board as part of regular
governance and oversight processes. Insights from the survey,
alongside feedback obtained through employee and customer
representative forums, are used to inform workforce-related
considerations within existing HR and operational frameworks.
These engagement mechanisms support the Group
inmonitoring workforce perspectives in a consistent
andstructured 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,
theGroup remains committed to applying its broader policies
on diversity, equity and inclusion to ensure fair treatment
andequal opportunities for all employees.
Diversity Policy
Description of the key
contents of the policy,
including its general
objectives
The Diversity 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 on gender, ethnicity, age, disability, sexual orientation,
or other protected characteristics. The Policy supports a diverse workforce by ensuring fair treatment and
encouraging a culture of inclusion and belonging.
Description of the
material IROs the
policyrelates to
The Diversity Policy relates to the Group’s material own-workforce IROs associated with employee engagement,
wellbeing and fair treatment. In particular, it supports the prevention and mitigation of potential negative impacts
arising from discrimination, harassment or exclusionary behaviour, which could adversely affect workforce
engagement and morale. TheDiversity Policy also supports the opportunity to strengthen workforce engagement,
inclusion and retention by promoting equitable practices and an inclusive workplace culture across the Group’s
ownworkforce.
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 and inclusion principles, and any concerns can be raised
through established reporting channels, including a confidential whistleblowing mechanism.
Description of the scope
of the 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 the Group. 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
ofthe Policy
Group Ethics Committee.
Reference to relevant
third-party standards
The Policy is informed by internationally recognised standards on equality and non-discrimination, including the
principles of the United Nations Global Compact and relevant International Labour Organization (ILO) conventions.
Itis also designed to comply with applicable local employment and anti-discrimination laws across the jurisdictions
inwhich the Group operates.
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 and inclusion frameworks and incorporates insights from
ongoing employee engagement and workforce 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 programmes. 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 of Ethics incorporates the key elements of the Policy.
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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
toa 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 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 include:
• Independent whistleblowing service: The Group
providesanindependent, confidential whistleblowing
serviceavailable to all colleagues. This service allows
colleagues toreport 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, and are assured 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 in onboarding materials, Group-wide emails,
andon 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
oron an ad hoc basis, ensuring that issues are addressed
promptly. These internal channels are overseen by the
relevant departments, with clear procedures in place
toensure that concerns are addressed in a timely
andeffective 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,
both ofwhich 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 and other
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 Audit and Risk
Committee, ensuring that Executive Management and the
Group Board 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 assesses workforce awareness and trust in these
channels through monitoring channel utilisation rates, case
outcomes, and feedback mechanisms. Awareness of
whistleblowing channels is promoted through onboarding,
regular communications, and mandatory training.
The Group is committed to maintaining a safe, transparent,
and ethical work environment where all employees and
customer representatives can raise concerns without fear of
retaliation. 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. ThePolicyexplicitly
prohibits any form of retaliation againstindividuals who use this
channel to report concernsingood faith.
Concerns raised through the Group’s whistleblowing
andgrievance channels are assessed and addressed
inaccordance with established internal procedures. Reported
matters are reviewed to determine the appropriate course of
action, which may include investigation, corrective measures,
or escalation to relevant management or governance bodies,
depending on the nature and severity of the issue.
Where a negative impact on employees is identified, the Group
seeks to provide appropriate remediation, which may include
addressing the underlying cause, implementing corrective
actions, and, where relevant, taking disciplinary or remedial
steps in line with applicable policies and local legal requirements.
The approach to remediation is proportionate to the issue
identified and is intended to prevent recurrence and support
fair outcomes for affected employees.
The Whistleblowing Policy applies to all individuals in our
workforce, including full-time and part-time employees,
contractors and self-employed customer representatives.
TheWhistleblowing Policy reflects a framework in place
tosupport the management of workforce-related risks,
byproviding employees with a confidential and secure
channel to report concerns about misconduct, unethical
behaviour, or policy violations. It guarantees that anyone
raising a concern through the designated channels, including
the independent whistleblowing service, will be protected from
any adverse action or retaliation. The Group provides
independent third-party whistleblowing services that allow
colleagues to report concerns confidentially and, if desired,
anonymously. This external service ensures that individuals feel
secure when raising issues. To further protect those who report
concerns, thewhistleblowing service ensures strict confidentiality.
Noidentifying details are shared without theconsent of the
individual raising the concern, except asrequired by law.
TheGroup takes any allegation of retaliation seriously. Any
report of retaliatory action is investigated immediately, and
appropriate disciplinary measures are taken against individuals
found to be engagingin retaliatory behaviour.
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. In addition, 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, and other touchpoints
that provide insights into workforce wellbeing and workplace
conditions. Workforce-related concerns are managed through
established HR policies, grievance mechanisms and
whistleblowing channels to address 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,
areintegrated into ongoing HR activities and managed within
existing frameworks and budgets.
The Group manages its material own-workforce IROs as part
ofbusiness-as-usual operations through established HR policies,
governance frameworks and colleague engagement
mechanisms. Actions are primarily preventive and mitigative
innature and are integrated into standard workforce
management practices.
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Actions to prevent or mitigate negative impacts
andmanage risks
To prevent or mitigate potential negative impacts relating
toemployee engagement, wellbeing and workplace
conditions, the Group undertakes the following actions
onanongoing basis:
• conducts regular colleague engagement surveys
andPulseSurveys to identify emerging workforce concerns;
• operates formal employee forums across all markets
andcustomer representative forums in home credit
marketsto enable structured dialogue;
• provides training and guidance on expected behaviours,
health and safety and ethical conduct through mandatory
policies and training programmes; and
• maintains grievance and whistleblowing mechanisms
toenable colleagues to raise concerns confidentially.
Customer representatives, identified as a workforce group
potentially exposed to specific health and safety-related
impacts, are subject to targeted training, safety procedures
and oversight measures appropriate to their roles.
Actions to pursue positive impacts and opportunities
To pursue positive impacts and opportunities relating
toworkforce engagement, capability and retention,
theGroupimplements initiatives including training and
development programmes, wellbeing support and flexible
working arrangements. These actions are designed to
strengthen workforce capability and support long-term
operational effectiveness.
Remedy and corrective action
Where an actual negative impact on a member of the
workforce is identified, the Group enables remedy through
established internal processes. Reported concerns are
assessed by the HR Function and relevant management,
andmay result in internal investigations, direct engagement
with affected colleagues and the implementation of corrective
actions. Corrective actions may include changes to working
arrangements, targeted training, disciplinary measures
whereappropriate, or updates to policies and procedures.
Whistleblowing and grievance mechanisms are available
toallemployees and customer representatives to support
access to remedy.
Effectiveness of actions
The effectiveness of actions taken to address workforce-related
IROs is monitored through colleague feedback, survey
outcomes, retention and turnover indicators, and review
bytheHR Function and management. Insights from these
mechanisms are used to inform ongoing improvements
toworkforce management practices.
No separate action plans or additional resources beyond
existing HR operations have been established, as the Group
considers these actions to be appropriately embedded within
its existing governance and management frameworks.
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 and
opportunities for its workforce other than targets for workforce
turnover which are disclosed on page 23, and there are
no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 Group
Board. In such cases, the process would include consideration
of workforce data, colleague engagement insight, 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 HR governance frameworks.
Methodology Statement for
Disclosures S1-6 to S1-17
This methodology statement outlines the approach taken
incompiling and reporting workforce-related data for
Disclosures S1-6 to S1-17. It ensures consistency, accuracy,
andcompliance with applicable reporting standards across
allentities within the Group. The methodologies applied
provide a clear framework for classifying employees, contract
types, working time, and gender to support comprehensive
workforce analysis.
Scope and coverage:
• The data presented in Disclosures S1-6 to S1-17 covers
allentities 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 head count rather than full-time
equivalent (FTE).
• Workforce data is sourced from internal HR systems,
payrolldatabases and employment records.
Methodologies applied:
1. Employee head count classification (S1-6)
• Permanent employees are individuals directly employed
bythe Group on indefinite employment contracts at the
reporting date.
• Temporary employees are individuals directly employed
bythe Group on fixed-term employment contracts at the
reporting date.
Only individuals who have an employment relationship with the
Group are included within employee headcount disclosures.
2. Contract type classification (employees only)
• Permanent contracts refer to indefinite employment
agreements between the individual and the Group.
• Temporary contracts include fixed-duration agreements
oragency employment.
3. Non-employees in the undertaking’s own workforce (S1-7)
Individuals who work for the Group but are not employed
bythe Group, including agency workers, self-employed
Table 3 – information on employees by contract type, broken down by gender*
2025 2024
Female Male Other
*
Not
disclosed Total Female Male Other
*
Not
disclosed Total
Number of employees
(headcount) 5,383 2,922 – – 8,305 5,405 2,946 – – 8,351
Number of permanent
employees(headcount) 5,279 2,894 – – 8,173 5,287 2,918 – – 8,205
Number of temporary
employees(headcount) 104 28 – – 132 106 23 – – 129
Number of non-guaranteed
hoursemployees (headcount) – – – – – 12 5 – – 17
* Gender as specified by the employees themselves.
contractors and other non-employee arrangements, are
excluded from employee headcount disclosures and are
reported separately under Disclosure Requirement S1-7.
4. Working time classification
• Employees are categorised as full-time or part-time based on:
• Contract terms; and.
• Actual hours worked where relevant.
5. Gender classification
• Based on Group HR records, which may be informed by:
• Self-reported data, where available; and
• Local employment classifications, where applicable
andpermitted by law.
By adhering to these methodologies, the Group seeks to ensure
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.
S1-6 – Characteristicsof the undertaking’s
employees
Table 1 – information on employee head count by gender
Gender
Number of employees
(head count)
2025 2024
Male 2,922 2,946
Female 5,383 5,405
Other 0 0
Not reported 0 0
Total employees 8,305 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 have been no significant changes in total
employee numbers during the reporting period. A notable
feature of the Group’s workforce composition is that
2,987employees are customer representatives in Hungary
andRomania (in 2024 this was around 3000). A very high
proportion ofthese roles are held by female 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 isas at 31 December 2025
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
(head count)
2025 2024
Czech Republic 319 302
Estonia 130 120
Hungary 2,065 2,150
Mexico 2,605 2,569
Poland 1,018 1,040
Romania 1,944 1,960
United Kingdom 131 126
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.
It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. The presence of a large number of customer
representatives in these countries contributes to their relatively
higher employee head count, providing important context for
workforce distribution across the Group. Mexico has the largest
employee head count within the Group, reflecting the scale
ofoperations in this market.
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Most of our employees across the Group are employed
onapermanent basis. Temporary employment represents
asmall 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). This definition
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 2025
was2,430 (2,562 in 2024) and the rate of employee turnover
inthe reporting periodwas 28.1% (29.2% in 2024).
S1-7 – Characteristics of non-employees
intheundertaking’s workforce
Metric Unit Total Total
2025 2024
Total number of non-employees
inown workforce Head count 11,904 12,139
Classification of non-employees
• Czech Republic: Customer representatives are classified
asself-employed individuals.
• Poland: Customer representatives operate as civil
contractors.
• Mexico: Customer representatives are engaged as
commission 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.
S1-8 – Collective bargaining coverage
andsocial dialogue
23% of employees are covered by collective bargaining
agreements globally. This was 0% in 2024.
In the European Economic Area (EEA), a collective bargaining
agreement is in place in Romania, covering employees in that
market. In all other EEA countries. Outside the EEA, 0%of
employees are covered by collective bargaining agreements.
Country
% of employees covered by
workers’ representatives for
each EEA country
2025 2024
Czech Republic 0% 0%
Estonia 0% 0%
Hungary 0% 0%
Poland 0% 0%
Romania 100% 0%
Latvia 0% 0%
Lithuania 0% 0%
The Group has no agreements in place for representation
byaEuropean Works Council, a Societas Europaea Works
Council or a Societas Cooperativa Europaea Works Council.
S1-9 – Diversity metrics
Gender diversity at top management level
In preparing the disclosure on gender at top management,
wehave used the definition of top management as one
andtwo levels below the administrative and supervisory level.
Thegender distribution within this group is as follows:
Metric Unit Total Total
2025 2024
Number and percentage
at top management level
by gender Head count (%) 112 (100%) 88 (100%)
Female Head count (%) 37 (33%) 29 (33%)
Male Head count (%) 75 (67%) 59 (67%)
Other gender Head count (%) 0 (0%) 0 (0%)
Not reported Head count (%) 0 (0%) 0 (0%)
Age distribution of employees
Our workforce is composed of employees across different
agegroups. The distribution is as follows:
Metric Unit Total Total
2025 2024
Distribution of colleagues
by age groups Head count (%)
8,305
(100%)
8,351
(100%)
< 30 years Head count (%)
1,003
(12.1%)
1,038
(12.4%)
30-50 years Head count (%)
5,381
(64.8%)
5,443
(65.2%)
> 50 years Head count (%)
1,921
(23.1%)
1,870
(22.4%)
S1-10 – Adequatewages
We confirm that no employee within the Group is paid
belowan adequate wage. The position was the same in 2024.
This aligns with our commitment to fair and responsible
employment practices, ensuring financial security and
wellbeing for our workforce.
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 that
cover workplace injuries or disabilities.
• Retirement benefits: Employees are enrolled in government-
provided pension schemes in all markets.
S1-12 – Personswithdisabilities
Metric Unit Total Total
2025 2024
Percentage of persons
with disabilities amongst
employees Head count (%) 97 (1.2%) 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
ofdisability 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,and workplace support.
S1-13 – Training and skills development metrics
The Group does not collate data on the average number
oftraining hours per employee and by gender.
Metric Unit Total Total
2025 2024
Employees that participated in
regular performance and career
development reviews by gender % 65.2% 52%
Female % 54.9% 45.5%
Male % 45.1% 63.9%
Other gender % 0% 0%
Not reported % 0% 0%
S1-14 – Health and safety metrics
Metric Unit Total Total
2025 2024
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% 100%
All IPF home credit businesses are accredited with theISO 45001
Occupational Health and Safety Management Standard. All
markets undergo safety management system assessments to
monitor compliance with the Group’s health and safety protocols.
Metric Unit Total Total
2025 2024
Number of fatalities as a result
ofwork-related injuries and
work-related illhealth Fatalities 1 0
Metric Unit Total Total
2025 2024
Rate of recordable
work-related accidents
Number of
injuries/hours
worked 1.05 1.1
Number of recordable
work-related injuries Number 274 302
This was calculated using industry standard:
Total recordable incident rate = Number of incidents x 100,000
/ total number of employee/customer representative hours
worked in a year.
Metric Unit Total Total
2025 2024
Number of cases of recordable
work-related ill health among
employees in own workforce Number 0 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,
wehave not recorded any cases of reportable work-related
illhealth in the reporting period.
Metric Unit Total Total
2025 2024
Number of days lost to work-related
injuries and fatalities among
colleagues in own workforce Days 1,731 1,529
Metric
There was one fatality in 2025 resulting from work-related
injuryor work-related ill health involving other workers operating
onthe Group’s sites. In 2024, there were no fatalities.
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S1-15 – Work-life balance
Below are our family-related leave metrics:
Metric Unit Total Total
2025
2024
(Restated)
Percentage of employees entitled
totake family-related leave % 88.2% 88.9%
Metric Unit Total Total
2025 2024
Percentage of entitled employees that
took family-related leave by gender % 21% 23%
Female % 26% 29%
Male % 12% 15%
Other gender % 0% 0%
Not reported % 0% 0%
These figures demonstrate our commitment to supporting
employees with family-related responsibilities through
accessible and inclusive leave policies.
During the preparation of the 2025 CSRD disclosures, the Group
identified a methodological inconsistency in the calculation
ofDisclosure Requirement S1-15 (employees entitled to
family-related leave) for the 2024 reporting period.
In 2024, the denominator used to calculate the percentage
ofemployees entitled to family-related leave in Romania
included certain inactive employees and leavers at year
end.This approach was not consistent with the methodology
applied across other jurisdictions and was not aligned with
therefined methodology adopted in 2025, which includes
active employees at the reporting date only.
For 2025, the Group has applied a consistent methodology
across all jurisdictions. Both:
• total employees (S1-6), and
• employees entitled to family-related leave (S1-15),
are calculated using active employees at year end only.
As a result of this methodological refinement, the previously
reported 2024 percentage (98%) has been recalculated
onaconsistent basis. Applying the 2025 methodology to 2024
data results in a revised 2024 percentage of 88.9%.
The reported 2025 percentage is 88.2%. On a like-for-like basis
(using the 2025 methodology for both years), the movement
between 2024 and 2025 is therefore minimal (88.9% to 88.2%).
This correction represents a material prior period error in
quantitative terms. The Group has therefore restated the
comparative 2024 figure for S1-15 to ensure consistency,
transparency and comparability in accordance with ESRS 2
BP-2 paragraph 14.
There is no impact on other disclosures, narrative reporting,
orthe Group’s financial statements.
Disclosure Requirement S1-16 –
Remuneration metrics
Metric Unit Total Total
2025 2024
Annual total remuneration for the
undertaking’s highest-paid individual GBP 2,102,419 2,349,609
Median annual total remuneration GBP 13,853 11,198
Annual total remuneration ratio Ratio 151.76 209.82
Gender pay gap percentage % 37.39% 37.98%
S1-17 – Human rights impacts
Discrimination and complaints
Metric Unit Total Total
2025 2024
Total number of incidents of
discrimination and harassment
reported: Number 0 3
In 2025, the Group did not identify any substantiated incidents
of discrimination within its own workforce. A small number of
allegations relating to inappropriate conduct or discrimination
were raised through the Group’s grievance and whistleblowing
channels and were assessed through established investigation
processes.
The Group takes all allegations of discrimination seriously
andiscommitted to fostering a culture of inclusion, respect
and fairness. All reported concerns are investigated
proportionately and, where appropriate, addressed through
corrective or disciplinary measures and employee support.
Metric Unit Total Total
2025 2024
Number of complaints filed
through channels for own
workforce to raiseconcerns Number 191 165
Metric Unit Total Total
2025 2024
Total amount of fines, penalties, and
compensation for damages as result
of reported incidents and
complaints GBP 0 0
Severe human rights incidents
Metric Unit Total Total
2025 2024
Number of severe human rights
incidents connected to the
undertaking’s workforce Number 0 0
Metric Unit Total Total
2025 2024
Total amount of fines, penalties
and compensation for damages
as a result of severe human rights
incidents connected to the
undertaking’s workforce GBP 0 0
ESRS S4 Consumers and end-users
This section of the CSRD Statement explains how the Group
manages its material IROs relating to consumers and end-users,
in accordance with ESRS S4, as identified through the Group’s
DMA.
ESRS 2 SBM-3 What matters most to our business
and stakeholders
The Group’s material IROs in relation to consumers and end-users
arise directly from its strategy and business model of designing,
marketing and providing regulated consumer credit products
across multiple markets. These impacts are primarily connected
to responsible lending practices, fair treatment of customers,
marketing and sales conduct, and the protection ofconsumer
information and personal data.
The identification of material consumer-related IROs informs
theGroup’s strategy through its emphasis on operating
withinapplicable local regulatory frameworks, maintaining
appropriate compliance and conduct standards at market
level, and embedding consumer protection requirements into
product design, pricing, marketing and servicing activities.
TheGroup’s strategy and business model are not adapted
through changes to product offerings or target markets in
response to these impacts, but through ongoing refinement
ofpolicies, controls and governance arrangements
tomanageconsumer-related risks.
For the purposes of ESRS S4, the Group considers its consumers
and end-users to be its retail borrowers who use its consumer
credit products and related services. The scope of this disclosure
covers customers and end-users of the Group across all channels,
including digital-only customers and customers in arrears, who
may be materially impacted by the Group’s own operations,
products and services. Guarantors and customers of third-party
distribution partners are excluded from scope. Based on the
materiality assessment, the main types of consumers affected
are retail customers who are dependent on accurate, transparent
and accessible product-related information, and whose personal
data is processed in the provision of financial services.
TheGroup does not offer products that are inherently harmful
to consumers.
Material negative impacts are generally systemic in nature,
reflecting the regulated environments in which the Group
operates, rather than arising from isolated incidents or specific
business relationships. These impacts are reflected in the
Group’s material IROs for consumers and end-users disclosed
under ESRS 2 SBM-3, including negative impacts and associated
risks relating to ethical marketing and consumer protection,
and information-related impacts (such as data protection
andprivacy).
No material positive impacts beyond those arising from
theresponsible provision of regulated consumer credit and
compliance with applicable consumer protection requirements
have been identified, other than the positive impacts and
opportunities relating to social inclusion of consumers disclosed
under ESRS 2 SBM-3.
Material risks and opportunities arising from impacts and
dependencies on consumers and end-users primarily relate
toregulatory compliance, conduct risk, reputational risk
andcustomer trust. These risks and opportunities apply broadly
across the Group’s consumer base and are managed through
market-level governance arrangements, regulatory engagement
and internal control frameworks.
CSRD Statement continued
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(a) Respect for the human rights of consumers
and end-users
The Code of Ethics and Human Rights Policy commit the Group
to respecting the fundamental human rights of consumers and
end-users, including non-discrimination, privacy, health, life
and safety, and freedom of expression. These rights are
particularly relevant given the Group’s provision of responsible
finance and its interactions with consumers across different
markets and customer segments. These commitments are
aligned with internationally-recognised standards, including
theOECD Guidelines for Multinational Enterprises.
The Group seeks to mitigate potential human rights impacts
byembedding ethical conduct, responsible lending, customer
protection and respect for privacy into the design, marketing
and delivery of its products and services. Providing access
toresponsible and transparent financial products is also
considered a key contribution to consumers’ social and
economic inclusion.
(b) Engagement with consumers and end-users
Engagement with consumers and end-users is guided by
theprinciples set out in the Code of Ethics, which emphasises
ethical behaviour, respect for individual rights and responsible
business practices. The Code of Ethics establishes expectations
for non-discriminatory conduct, respect for privacy and
safeguarding of health and safety, which inform day-to-day
customer interactions across all markets and underpin the
Group’s approach to responsible marketing and customer
communications.
Description of the key
contents of the policy,
including its general
objectives
The Responsible Marketing Policy sets out minimum standards and requirements governing marketing and customer
communications across the Group. The Policy is intended to ensure that marketing activities are accurate, transparent
and fair, comply with applicable laws and regulations, and align with customer protection and financial inclusion
objectives. It establishes expectations for responsible product promotion, avoidance of misleading or aggressive
practices, appropriate disclosure, data protection in marketing activities, and the use of AI and automated tools
inmarketing.
Description of the
material IROs the policy
relates to
The Policy relates to the Group’s material impacts and risks for consumers and end-users identified and disclosed
under ESRS 2 SBM-3 in respect of ESRS S4. In particular, it addresses:
• the material negative impact and associated risk relating to ethical marketing and consumer protection, including
the risk of consumer detriment arising from misleading, unclear or inappropriate marketing communications,
inadequate disclosure of product features, costs or risks, inappropriate targeting of customers (including
vulnerable or underserved groups), or aggressive sales practices; and
• the material risks and impacts relating to information-related matters, including the risk of adverse impacts
onconsumers and regulatory or trust-related risks arising from failures in data protection, privacy, or the use
ofcustomer data in marketing activities (including through automation or AI tools).
The Policy also supports the material positive impacts and opportunities relating to the social inclusion of consumers
disclosed under ESRS 2 SBM-3, by promoting fair access to products, transparent communications, financial
inclusion, and customer protection outcomes when marketing regulated consumer credit responsibly.
Description of the
process for monitoring
Monitoring is carried out through market-level procedures and controls, including the maintenance of marketing
approval records, review of marketing materials, and consideration of customer feedback, complaints and product
and service quality reporting. Oversight is provided by Marketing, Compliance and Sustainability functions, with
periodic reporting to the Group Product Development Committee. Internal audits are conducted to assess
adherence to the Policy and the effectiveness of related controls.
Description of the scope
of the policy
The Policy applies to all colleagues across the Group, including employees, directors, contractors and other
customer-facing representatives. It applies to all marketing activities and customer communications in all markets
inwhich the Group operates and is implemented alongside local marketing policies and applicable country-specific
legal requirements.
Body with accountability
for the implementation of
the Policy
Chief Marketing Officer and Global Product Development Committee.
Reference to relevant
third-party standards
The Policy does not reference alignment with specific third-party standards.
Stakeholder
considerations
The Policy is made available internally through Group and local policy communication channels and available
online on the Group’s website.
S4-1 – Policies related to consumers and end-users
The Group has adopted Group-wide policies that set out its commitments and approach to managing IROs related to consumers
and end-users arising from the design, marketing and provision of its consumer credit products and services. These policies
establish minimum standards for conduct, consumer protection, data protection and human rights across the Group and are
implemented at market level in accordance with applicable local legal and regulatory requirements.
Details of the Group’s Data Protection and Privacy Policy, the Code of Ethics and the Human Rights Policy, which apply across
theGroup’s operations and supply chain, are set out on pages 70 and 93. These policies reflect the Group’s commitment
tooperate in line with the United Nations Universal Declaration of Human Rights and other internationally recognised human rights
standards. The principles contained in the Human Rights Policy are brought to life for employees and customer representatives
through the Code of Ethics, which establishes expectations for ethical conduct in all interactions with customers and other
stakeholders. The Responsible Marketing Policy is summarised below:
(c) Measures to provide and/or enable
remedyfor human rights impacts
The Group’s Code of Ethics and Human Rights Policy provide
the framework for addressing and, where possible, remedying
adverse human rights impacts arising from its activities, products
or services. Actual or potential human rights concerns may be
raised through established channels, including customer
complaints mechanisms, internal escalation processes
andtheGroup’s whistleblowing arrangements. Reported issues
are assessed and investigated in line with applicable policies
and procedures, and appropriate corrective or remedial
actions are taken where issues are identified.
These commitments are supported by annual ethics training
foremployees and customer representatives, including training
on counteracting modern slavery, which is intended to strengthen
awareness of human rights risks and the use of established
reporting and remediation mechanisms. During the reporting
period, the Group is not aware of any reported cases of
non-respect of the UN Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental Principles
and Rights at Work, or the OECD Guidelines for Multinational
Enterprises that involve consumers and/or end-users in its
downstream value chain.
Oversight of the Responsible Marketing Policy sits with the
ChiefMarketing Officer, supported by local Marketing Directors.
Oversight of data protection and privacy matters sits with
theGroup Data Protection Officer, reporting to the Chief Legal
Officer. Responsibility for the Human Rights Policy and Code
ofEthics sits with the Chief Legal Officer, with oversight by
theGroup Board. All policies referred to above are available
publicly on the Group’s website at www.ipfin.co.uk and apply
across all markets served by the Group.
S4-2 – Engagement with consumers
and end-users
(i) How we engage on impacts
The Group engages with consumers and end-users through
structured and recurring processes to inform its understanding
of actual and potential impacts related to its activities,
products and services.
As part of the DMA, the Group conducted a customer survey
across all markets during the reporting year. Customers were
approached through online channels, and 2,987 responses
were received. The survey was designed to gather customer
perspectives on topics relevant to the Group’s activities,
including social and governance matters that may affect
consumers and end-users.
Survey responses indicated that customers primarily associate
the Group’s responsibilities with social and governance-related
topics, particularly fairness, ethical conduct, customer
protection and the protection of personal data. These
areasalign with the Group’s identified material impacts
onconsumers and end-users, including ethical marketing,
social inclusion and information-related impacts.
The results of the customer survey are used as an input into
theGroup’s sustainability governance and DMA processes,
supporting the identification and prioritisation of actual and
potential impacts on consumers and end-users. The survey
complements ongoing engagement with consumers through
day-to-day customer interactions, customer service channels
and complaints handling processes, which provide additional
qualitative insight into customer experiences and emerging
concerns.
The Group’s engagement processes are designed to be
proportionate to its business model and customer base
andtosupport an ongoing understanding of consumer
expectations and impacts over time.
(ii) How consumer perspectives inform decisions
The Group considers the perspectives of consumers and
end-users when making decisions and Group activities aimed
at managing actual and potential impacts on consumers
andend-users. Consumer perspectives are gathered directly
from consumers, primarily through customer engagement
processes, including customer surveys, feedback mechanisms
and complaints analysis. The Group does not engage with
consumers and end-users through legitimate representatives
orcredible proxies for these purposes. These inputs are taken
into account as part of the Group’s sustainability governance
and DMA processes.
Insights from consumer engagement are used to inform
management’s understanding of customer expectations
andpotential areas of customer impact, particularly
inrelationto ethical conduct, fairness, customer protection
andthe handling of personal data. These insights support the
prioritisation of material consumer-related topics and help
guide the Group’s approach to responsible marketing, product
governance and customer protection practices.
(iii) Engagement stages, methods and frequency
Engagement with consumers and end-users takes
place onanongoing basis across the full customer lifecycle,
and atdefined stages of the Group’s processes for identifying,
assessing and managing actual and potential impacts on
consumers and end-users. Engagement is embedded into the
Group’s day-to-day operations and governance arrangements
and is supplemented by structured engagement conducted
aspart of the DMA.
Engagement occurs at the following stages:
Marketing and pre-onboarding, where engagement focuses
on preventing potential negative impacts by testing marketing
practices and sales interactions before customers enter into
acontractual relationship;
Onboarding and early tenure, where engagement is used
toassess clarity, accessibility and early customer experience
and to identify potential issues at an early stage;
CSRD Statement continued
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Active servicing and relationship management, where
engagement focuses on service quality, customer outcomes,
trust and emerging risks throughout the customer relationship;
Collections and arrears, including continuous direct
interaction with customers, supported by structured feedback
and quality monitoring, particularly in relation to customers
invulnerable circumstances;
Complaints and remediation, where formal complaints
handling and root-cause analysis provide insight into actual
negative impacts and the effectiveness of remediation; and
Group-level and cross-market engagement, which provides
periodic insight into customer perception, experience and trust
across markets and the full customer lifecycle.
The Group engages with consumers and end-users through
acombination of:
Proactive engagement mechanisms, including mystery
shopping, proactive quality assurance, call monitoring,
post-interaction and journey-based surveys, and customer
experience indicators;
Reactive engagement mechanisms, including formal
complaints handling, complaints satisfaction surveys
androot-cause analysis; and
Ongoing direct interaction, including day-to-day customer
service interactions and, in markets operating a home credit
model, regular face-to-face interactions between customer
representatives and customers.
These mechanisms generate both quantitative and qualitative
insight, including customer verbatims, which inform
management understanding of customer expectations,
experiences and potential impacts.
Engagement with consumers and end-users occurs at different
frequencies depending on the mechanism:
Continuous engagement through customer service
interactions, collections activities and complaints handling;
Weekly and monthly engagement through customer
experience indicators, post-interaction surveys, complaints
reporting and quality monitoring;
Periodic engagement through structured customer journey
analysis and customer experience reviews; and
Annual or biennial engagement through Group-level
brandtracking, Customer Experience Heartbeat® surveys
andthe customer survey conducted as part of the DMA.
Insights from these engagement mechanisms are reviewed
atmarket level through operational management and boards,
and are aggregated and escalated to Group-level forums
andgovernance bodies where relevant, including to inform
sustainability governance and materiality-related considerations.
(iv) Responsibility for consumer engagement
Operational responsibility for engagement with consumers and
end-users is shared across Group and market-level functions.
Day-to-day engagement with consumers primarily takes place
through market-level sales, customer service and servicing
functions, which are responsible for customer interactions,
feedback capture and complaints handling as part of normal
business operations.
At Group level, the Marketing function has responsibility for
coordinating customer insight and engagement activities with
a Group-wide perspective, including the design and execution
of the annual sustainability survey and the consolidation of
consumer insight across markets. The Chief Marketing Officer
isthe most senior role with overall responsibility for oversight
ofconsumer engagement at Group level.
Insights from consumer engagement are communicated
toand considered by relevant internal functions, including
market management teams, compliance, legal, data protection,
risk and sustainability functions, to inform management review
of customer-related impacts, risks and business practices.
(v) Reviewing the effectiveness of engagement
The Group assesses the effectiveness of its engagement with
consumers and end-users through a combination of quantitative
and qualitative measures linked to its engagement mechanisms.
Effectiveness is primarily assessed by monitoring participation
levels and response rates in the customer survey conducted as
part of the DMA, which provide an indication of the reach and
relevance of the engagement. The Group also considers the
consistency and clarity of themes identified across markets and
customer segments, which supports management’s assessment
of the reliability and usefulness of the insights obtained.
In addition, the Group assesses whether and how consumer
feedback informs management discussions and the prioritisation
of consumer-related impacts, risks and topics, including ethical
conduct, customer protection and information-related impacts.
In the reporting period, the customer survey received responses
from 2,987 consumers across all markets, enabling the
identification of clear and recurring priorities, particularly in
relation to social and governance matters such as fairness,
ethical behaviour, customer protection and data protection.
These insights were used as an input into sustainability
governance and materiality-related considerations.
(vi) Engagement with vulnerable or marginalised
consumers
The Group recognises that certain consumers and end-users
may be particularly vulnerable to adverse impacts or may face
barriers to accessing financial services, including underbanked
individuals and socially or economically marginalised groups.
The Group does not currently apply a formal, Group-wide
definition of “vulnerable consumers” for the purposes of
engagement or impact assessment. Instead, insights into the
perspectives of potentially vulnerable consumers are primarily
gained through the Group’s financial inclusion activities
andday-to-day customer interactions.
The Group does not currently operate dedicated engagement
mechanisms exclusively for vulnerable consumer groups.
S4-3 Processes to remediate negative impacts
Raising concerns and remediation
The Group has established processes across all markets
toenable consumers and end-users to raise concerns
andcomplaints, and to provide for, or cooperate in, the
remediation of negative impacts on consumers and end-users
that the Group is connected with.
In each market in which the Group operates, consumers and
end-users have access to a dedicated complaints-handling
function operating in line with applicable local legal and
regulatory requirements. Complaints and concerns may be
raised through customer service and feedback channels,
including in-person in those markets where the Group maintains
branches, telephone and digital channels, and may relate
tomatters such as customer treatment, service delivery,
dataprotection and privacy, or other issues connected with
theGroup’s activities. Information on how to raise complaints
ismade available to consumers through customer
communications and service touchpoints in each market.
All complaints are recorded and handled in accordance
withlocal regulatory frameworks and internal procedures,
withthe objective of ensuring timely, fair and appropriate
resolution. Where concerns or complaints indicate a potential
negative impact on consumers or end-users, the Group
investigates thematter and determines appropriate remedial
actions basedon the nature and severity of the issue.
Remediation may include corrective actions in customer
interactions, clarification of information provided, service or
process adjustments, or other measures intended to address
theissueand reduce the risk of recurrence.
The Group seeks to ensure that consumers and end-users
areaware of and able to use these processes through clear
communication of complaints procedures and regulatory rights
at market level. The Group’s approach is guided by the IPF
Global Code of Ethics, which commits the Group to ethical
conduct, protection of individual rights and the mitigation
ofdetrimental human rights impacts, and supports the use
ofcomplaints and reporting channels without retaliation or
disadvantage to individuals who raise concerns in good faith.
Information arising from complaints and concerns is reviewed
to identify recurring issues or potential systemic risks. These
insights inform management review and regular improvement
of customer-related practices and controls, supporting the
management of actual and potential impacts on consumers
and end-users.
S4-4 How we address negative
impacts on consumers
(i) Our actions
Based on its assessment of material impacts on consumers
andend-users, the Group focuses its actions on preventing,
mitigating and, where necessary, remediating impacts related
to customer protection and fair treatment, responsible provision
of financial services, and data protection and privacy.
Thesematerial impacts correspond to those identified through
the Group’s DMA, namely ethical marketing and consumer
protection, information-related impacts for consumers,
andsocial inclusion of consumers.
Actions taken and underway include the application of
market-level policies and procedures governing customer
interactions, service delivery and complaints handling, aimed
at reducing the risk of unfair treatment, misinformation or
customer detriment. The Group has also implemented controls
and processes to safeguard customer data and protect
privacy, in order to prevent misuse of personal information
andmaintain consumer trust.
In support of responsible provision of financial services,
theGroup provides access to financial products and services
to underbanked populations, with product design and
customer-facing practices guided by internal standards
andregulatory requirements. Employees involved in
customer-facing activities receive training and guidance to
support consistent and appropriate treatment of consumers.
These actions are intended to support fair and transparent
customer interactions, reduce the risk of consumer harm,
enhance protection of personal data and improve access
tofinancial services. At this stage, the Group primarily monitors
the implementation of actions and controls, rather than
systematically measuring outcome-level changes for
consumers and end-users.
Consumer feedback, complaints data and survey results are
reviewed to identify areas where additional actions may be
required to further prevent or mitigate material negative impacts.
In cases where actual material negative impacts on consumers
and end-users are identified, the Group provides or enables
remedy through its customer complaints mechanisms and
internal escalation processes. These processes are used to
investigate issues, determine appropriate corrective or remedial
actions in line with local regulatory requirements, and implement
measures to address identified customer detriment. The Group
tracks the effectiveness of actions taken to address material
negative impacts on consumers and end-users through a
combination of ongoing monitoring of customer complaints
and feedback, periodic review of marketing and customer
practices, and management oversight of identified issues
andcorrective actions, with findings used to inform continuous
improvement where appropriate.
CSRD Statement continued
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(ii) Additional actions or initiatives contributing
toimproved social outcomes
The Group does not have additional actions or initiatives with
the primary purpose of positively contributing to improved
social outcomes for consumers and end-users beyond those
actions described in relation to the prevention, mitigation
andremediation of material negative impacts.
(iii) How we assess whether actions are effective
The Group tracks and assesses the effectiveness of actions and
initiatives aimed at managing material impacts on consumers
and end-users primarily through process-based indicators,
consumer feedback mechanisms and management review,
rather than through outcome-level impact measurement.
Effectiveness is monitored using insights from consumer
engagement activities, including customer surveys, ongoing
feedback received through customer service channels and
complaints data collected at market level. This information
isused to assess whether actions taken are aligned with
consumer expectations and to identify recurring issues
relatedto fairness, customer protection and service delivery.
Market-level complaints handling processes provide
information on the nature, frequency and resolution of
consumer concerns. Complaints trends and root-cause
analysis are used to assess whether actions implemented
arereducing recurring issues or highlighting areas requiring
further attention.
Brand perception indicators, such as awareness, consideration
and rejection, are monitored as supplementary measures
ofconsumer sentiment and trust. These indicators provide
contextual insight into changes in consumer perceptions over
time but are not used as direct measures of outcome-level
social impact.
Information from these sources is reviewed by management
atmarket and Group level to determine whether existing
actions and controls remain appropriate or require adjustment.
At present, the Group focuses on tracking the implementation
and consistency of actions, rather than systematically measuring
behavioural or outcome-level changes for consumers
andend-users.
(iv) Identifying appropriate actions
and approaches
The Group identifies appropriate actions in response to actual
or potential negative impacts on consumers and end-users
through market-level processes, including consumer feedback,
complaints handling, analysis of complaints trends and
management review. This approach is applied to the material
negative impacts identified through the Group’s materiality
assessment, which relate to customer protection and fair
treatment, marketing and sales conduct, and the protection
ofconsumer information and personal data.
Where potential or actual impacts are identified, the relevant
market assesses their nature, severity and likelihood and
determines whether the impact arises from the Group’s own
practices or is directly linked to its products or services. This
assessment informs the identification of proportionate actions
within existing policies, controls and regulatory frameworks.
Actions may include adjustments to customer communications,
marketing or sales practices, internal processes or controls,
orcase-level corrective action through established
complaints-handling procedures. Responsibility for identifying
and implementing actions sits primarily at market level, with
escalation to Group level where appropriate. The Group’s
approach focuses on actions within its own operations;
nomaterial negative impacts have been identified that
requirecollaborative or industry-wide action beyond existing
regulatory engagement.
In addressing material negative impacts, engagement with
consumers and end-users takes place primarily through existing
feedback, complaints and customer contact mechanisms,
which enable affected consumers to raise concerns and inform
corrective action at case and process level. Given the nature
ofthe Group’s material negative impacts, which are generally
systemic and managed within regulated frameworks,
noadditional standalone or proactive engagement
processeshave been established specifically for the purpose
ofaddressing impacts beyond these mechanisms.
(v) Actions to avoid negative impacts
in own operations
The Group takes preventive action through its own practices
toavoid causing or contributing to material negative impacts
on consumers and end-users. This approach is embedded
inhow the Group conducts its marketing, sales, customer
interactions and data use, with a focus on prevention rather
than reliance on corrective or remedial measures.
Preventive controls include the application of a Group
Responsible Marketing Policy, which sets requirements
toensure marketing and sales activities are fair, transparent,
accurate and not misleading, and controls governing the
useand protection of customer data to reduce the risk of
privacy-related harm. Expectations for appropriate customer
treatment are reinforced through internal standards and
applied in day-to-day decision-making across markets.
Guidance and training provided to customer-facing and
commercial staff support early identification of potential risks
and help prevent negative impacts from arising.
Where tensions arise between commercial objectives and
theprevention of potential negative impacts on consumers,
decisions are expected to prioritise compliance with applicable
regulatory requirements, responsible marketing standards and
consumer protection principles, even where this may constrain
short-term commercial outcomes.
(vi) Severe human rights issues and incidents
During the reporting period, the Group did not identify
anysevere human rights issues or incidents connected
toconsumers and/or end-users arising from its own
operationsorvalue chain.
(vii) Resources to manage consumer impacts
The Group allocates a combination of human, organisational
and operational resources to the management of its material
impacts on consumers and end-users. These resources are
embedded across Group and market-level functions and
reflect the Group’s decentralised operating model and local
regulatory requirements.
Management of consumer-related impacts is primarily
resourced through market-level customer service,
complaints-handling and operational teams responsible
forday-to-day consumer interactions and issue resolution.
Additional resources are provided through marketing and
commercial functions overseeing responsible marketing
practices, and through compliance, legal and data protection
functions supporting consumer protection, ethical conduct
and data privacy, with senior management oversight provided
through established governance structures.
Operational resources include formal market-level policies
andprocedures (such as complaints-handling and customer
protection processes), customer engagement mechanisms,
monitoring and analysis tools (including complaints data
andbrand perception indicators), and training and guidance
relevant to responsible customer practices. Resources are
notmanaged through a single, consolidated budget but are
integrated into core business operations and support functions.
This integrated resourcing approach enables the Group
toidentify, manage and monitor material consumer-related
impacts as part of normal business activity.
(viii) How we address consumer risks
andopportunities
The Group has actions in place and underway to mitigate
thematerial risks identified in ESRS 2 SBM-3 arising from its
impacts on, and dependencies on, consumers and end-users,
including regulatory compliance risk, conduct risk, reputational
risk and risks to customer trust associated with responsible
lending, fair treatment of customers, marketing and sales
conduct, and data protection and privacy. These risks are
addressed through preventive and mitigating controls
embedded in Group-wide and market-level policies and
operational practices, including responsible marketing
standards, customer protection processes, data protection
controls, and complaints-handling and escalation mechanisms.
These actions are integrated into the Group’s existing risk
management and compliance frameworks, with monitoring
through management review, complaints trends and
escalation outcomes, and consumer perception indicators.
Inparallel, the Group pursues material opportunities identified
in SBM-3 by applying fair treatment and responsible marketing
practices to support consumer trust, maintain regulatory
compliance and strengthen long-term customer relationships
within its existing governance and operational structures.
(ix) Our actions on material matters
The Group has adopted actions and allocated resources
inrelation to all material sustainability matters concerning
consumers and end-users identified through its materiality
assessment.
These actions comprise preventive, mitigating and remedial
measures embedded in Group and market-level policies,
operational practices, customer engagement mechanisms,
complaints-handling and remediation processes, and are
described in accordance with the requirements of MDR-A
under ESRS S4-4.
S4-5 – Targets related to consumers
and end-users
The Group has not established formal, measurable, time-bound
or outcome-oriented targets in relation to consumers and
end-users. Consumer-related impacts, risks and performance
are managed through established internal processes, policies
and regulatory compliance rather than through formal
target-setting.
_______________________________________________________
This consolidated report covers the following entities:
• IPF Digital Aktsiaselts
• IPF Digital Australia Pty Limited
• IPF Digital Latvia Sabiedr
ī
ba ar Ierobežotu Atbild
ī
bu
• IPF Digital Lietuva Uždaroji Akcin
ė
Bendrov
ė
• IPF Polska Sp. z o.o.
• Provident Financial Romania Institu
ție Financiar
ă
Nebancar
ă
Societate pe Acțiuni
• Provident Financial spole
č
nost s ru
č
ením omezeným
• Provident Mexico Sociedad Anónima de Capital Variable
• Provident Pénzügyi Zártkör
ű
en M
ű
köd Részvénytársaság
• Provident Polska Spolka Akcyjna
• Provident Services SRL
CSRD Statement continued
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Strategic
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Responsible
Business
Independent Limited Assurance Report
to the 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 2025
aspresented on pages 76 to 109 of the 2025 Annual Report
and Financial Statements, hereafter referred to as the
“CSRDInformation”.
Directors’ responsibilities
The Directors of Company are responsible for:
• developing, implementing and reporting the double
materiality assessment (DMA) 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
theCSRD 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 is free from
material misstatement, whether due to fraud or error;
• maintaining adequate records for preparing and to support
the CSRD Information; and
• the contents and disclosures contained within the CSRD
Information.
Our independence and
quality management
We have complied with the independence and other ethical
requirements 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
andcontent of the CSRD Statement achieves fair
presentation inaccordance with ESRS and the DMA carried
out by the Company to identify the information reported
isinaccordance with the description set out in the CSRD
Statement; and
• forming and reporting an independent conclusion, based
onthe procedures we have performed and the evidence
wehave 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
(‘ISAE3000’) issued by the International Auditing and
Assurance 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 to 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 DMA 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 is consistent with the description
ofthe process set out in the CSRD Statement;
• inquiring of management and others within the Company
tounderstand the CSRD Information and the criteria used
formeasurement and evaluation;
• performing limited substantive testing of the CSRD Information
including agreeing arithmetical accuracy of calculations
and agreeing data points and disclosures to underlying
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
ofthe CSRD Statement.
The procedures we perform in a limited assurance engagement
vary in nature and timing from, and are less inextent 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, we do not 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 to fraud or error. Therefore, there is an unavoidable
risk that some material misstatements may not be detected
bythis engagement even though it is properly planned and
performed. Furthermore, such a limited assurance engagement
is not designed to detect matters that are 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.
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 additional
sustainability disclosures not made in accordance with
reporting obligations under the CSRD. We do not express a
conclusion or other form of assurance on other information
presented with the CSRD Information that is not subject to our
limited assurance engagement.
Limited assurance conclusion
Based on the procedures we have performed and the
evidence 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 2025 has not been prepared,
in all material respects, in accordance with the applicable
criteria, including:
• the DMA process to identify the information reported is in
accordance with the description set out in the “disclosures
on the materiality assessment process” section on pages 85
to 88 of the CSRD Statement; and
• the CSRD Information included in the CSRD Statement
isfairlypresented 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 12 January 2026. Our limited assurance engagement
has been undertaken so that we might state toInternational
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 ortoany 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
25 February 2026
CSRD Statement continued
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TCFD Report
Introduction
This Task Force on Climate-related Financial Disclosures (TCFD)
report sets out the Group’s 2025 disclosures on climate-related
risks and opportunities and how these are considered within
our business. It describes how different climate-related scenarios
could affect the Group over the short, medium and long term,
and outlines the actions we are taking to manage these
impacts and support the resilience of our business.
The report has been prepared in line with the TCFD
recommendations and is structured around the four core
pillarsof governance, strategy, risk management, and metrics
and targets. We recognise that the stability of the global
financial system is closely linked to environmental outcomes,
and that a changing climate has implications for businesses,
customers and wider society.
Our approach focuses on identifying, assessing and managing
the potential transition and physical risks associated with
climate change, while also considering potential opportunities
that may arise as economies move towards a lower-carbon
future. As our understanding, data and methodologies
continue to evolve, we remain committed to transparent
reporting and to further strengthening our approach to
climate-related risk management over time.
Governance
Sustainability considerations are embedded within the way
theGroup is governed and managed, supporting alignment
between our business priorities and broader societal expectations.
Our approach is set out in the Group’s Sustainability Policy,
which is reviewed annually by the Group Board, and available
to view on our website, It defines expectations for responsible
business conduct and sustainable development across the
Group and our value chain, and provides a consistent
framework for assessing business opportunities and risks, taking
into account both direct and indirect sustainability impacts.
Oversight of climate-related risks and opportunities is
integratedinto existing Board and management governance
structures. These arrangements are designed to ensure climate
considerations are appropriately reflected in strategic
decision-making, risk management and operational
planningacross the Group.
Board oversight of climate risks
The Group Board has overall responsibility for oversight of
sustainability-related matters, including climate-related risks
and opportunities. The Chief Executive Officer retains ultimate
accountability for management of these matters, with
responsibility delegated to the Chief Legal Officer (CLO)
forday-to-day oversight and implementation within the
Responsible Business Framework, including assessing risks
andopportunities from climate change, and also ensuring
these are identified and managed appropriately.
The Group Board and its Committees receive regular updates
on climate-related matters, enabling appropriate challenge
and oversight.
Management oversight
Management oversight of climate-related risks and
opportunities is led by the CLO, who oversees scenario analysis,
risk assessments and reporting, and provides updates to the
Audit and Risk Committee and the Global Executive. Climate
considerations are also incorporated into the Group’s annual
budgeting process and capital planning, including the use
ofacentrally held climate resilience fund available to markets
to support resilience-building initiatives.
A number of management-level forums support oversight and
execution of climate-related activity, including the Responsible
Business Framework Executive Oversight Group, Risk Advisory
Group, Global Executive, and supporting steering and
champions groups. These bodies provide coordination,
challenge and escalation across the Group, ensuring climate
considerations are embedded at both Group and market level.
Sustainability function
The Group’s sustainability function is led by the Chief Legal
Officer, who is a member of the executive team and attends
Group Board meetings. The function works closely with colleagues
across Group functions and local markets to support the
implementation of the Responsible Business Framework,
including the coordination and delivery of climate-related
activity on a day-to-day basis.
Strategy
In line with the TCFD recommendations, we assess the
potentialimpacts of climate-related risks and opportunities
onthe Group’s business, strategy and financial planning over
the short, medium and long term. Climate considerations are
evaluated alongside other strategic factors when developing,
reviewing and executing our business strategy, ensuring that
potential climate-related impacts are considered in a structured
and proportionate manner.
The Group assesses climate-related risks and opportunities
using the following time horizons:
• Short term (0–3 years): aligned to the average loan term
andthe flexibility of our credit strategies and field operations.
• Medium term (3–10 years): aligned to the Group’s strategic
planning horizon.
• Long term (10+ years): aligned to the useful economic life
ofthe majority of Group assets and longer-term transition
pathways.
A number of factors informed the selection of these time
horizons, including developments in climate-related regulation,
ongoing volatility in energy markets, and the need to align with
the timeframes used in the Group’s climate-related scenario
analysis. These scenarios typically extend over several decades
and are discussed in more detail below.
The short-term horizon aligns with the Group’s existing risk
management framework, while the medium-term horizon
isconsistent with internal strategic planning timeframes.
Thelong-term horizon has been selected to capture
thepotential impacts associated with the transition
toalower-carbon economy across the countries in which
theGroup operates, including the implications of national
andinternational climate commitments, as detailed in the
2015Paris Agreement.
Audit and Risk Committee
Group Board
Remuneration Committee
Responsible Business Framework Executive Oversight Group
Risk Advisory Group
Responsible Business Framework Steering Group Responsible Business Framework Champions Group
Group Board
Audit and Risk Committee
Comprises all members of the UK Executive and is chaired by the Chief Legal Officer. 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.
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.
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.
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.
Escalation path
IPF climate governance structure
Showing Group Board oversight, executive accountability and market-level implementation in line with the TCFD recommendations.
Responsible for: setting
theGroup’s strategy and
overseeing performance,
including climate-related
considerations. The Board
sets the strategic direction
for sustainability at a Group
level and retains ultimate
responsibility for governance
in this area.
2025 activity: The Board
reviewed and approved the
results of the 2025 Double
Materiality Assessment,
aswell as the Corporate
Sustainability Policy and
thebroader Responsible
Business Framework, which
incorporates climate-related
matters. Progress against the
objectives set out in the
Framework is monitored by
the Board through quarterly
management information
and periodic in-depth
updates on sustainability
and climate-related topics.
Responsible for: reviewing
financial and non-financial
disclosures and overseeing
climate-related risks,
including consideration
ofscenario analysis
andemerging regulatory
and reporting developments.
2025 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
senior management
performance measures,
including relevant ESG and
climate-related
considerations, ensuring
alignment with stakeholder
expectations.
2025 activity: The Committee
reviewed proposed ESG
metrics (including climate)
for inclusion in senior
management
compensation-related
decisions.
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TCFD continued
Assessing materiality
For the purposes of assessing climate-related risks and opportunities, the Board and Global Executive have defined a climate-
related risk or opportunity as material for strategic planning where it could have a significant impact on the Group’s profitability
(for example through delayed customer repayments), operating costs, assets (such as the closure or disruption of branches),
oraccess to financing (including through regulatory or legal developments).
For these purposes, “significant” is defined as an impact that could materially affect the Group’s ability to meet its targets
asdetailed in the 2026 budget.
Determining climate risks and opportunities over different time periods
Climate-related risks and opportunities are assessed by members of the Global Executive and the Audit and Risk Committee
todetermine the likelihood and potential magnitude of impacts over the following time periods:
(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 medium and long term.
Impacts are categorised as high, medium or low, reflecting the expected degree of influence on the Group’s business,
strategyand financial performance.
Based on current assessments, material impacts from climate-related risks and opportunities are not considered likely to arise
overthe short term. This assessment is reviewed periodically and will continue to be updated as methodologies, data quality
andexternal expectations evolve.
Over the medium to long term, there continues to be a consensus that climate-related risks and opportunities are likely to increase
in relevance. This reflects the outcomes of the Group’s scenario analysis of physical climate risk, together with ongoing assessment
of evolving market, regulatory and policy developments across the countries in which the Group operates.
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
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
Gradual changes in key climate variables such as temperature, humidity and precipitation.
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.
Climate-related risks and opportunities
Details of how we define climate risks and opportunities are set out in the table below. Climate-related risks are categorised
asphysical or transition risks, while opportunities relate to resource efficiency, energy sources, products and services, markets
andresilience. These definitions have been reviewed and approved by senior management and the Board, and are reassessed
periodically to reflect emerging risks, stakeholder expectations and regulatory developments. Based on current assessments,
material climate-related risks and opportunities are not expected to have a significant impact on the Group over the short term.
Over the medium to long term, climate-related factors are expected to increase in relevance, reflecting both physical climate
impacts and broader regulatory, market and societal transitions.
Given the relatively short duration of
theGroup’s loan book, the flexibility of its
operating mode, and the ability to adjust
pricing, credit strategies and operational
practices over this period, climate-related
risks and opportunities are not currently
expected to have a material impact
ontheGroup’s business, strategy
or financial performance.
Short term Medium term Long term
Over the medium term, transition-related
risks are expected to become more relevant,
particularly those arising from evolving
regulatory requirements, changes in
stakeholder expectations, and potential
increases in operating costs associated
withdecarbonisation. Opportunities linked
tooperational efficiency, digitalisation and
access to funding aligned to sustainability
objectives are also expected to increase
inrelevance over this period.
Over the long term, the Group expects
chronic physical climate risks and broader
structural transition risks to increase in
relevance, reflecting longer-term changes
inclimate patterns, national policy pathways
and market expectations. While uncertainty
increases over longer horizons, these factors
are considered as part of scenario analysis
and long-term strategic planning to assess
the resilience of the Group’s business model.
Differentiation of climate-related risks and opportunities by time horizon
In line with the TCFD recommendations, the Group’s assessment of climate-related risks and opportunities across the short,
medium and long term, reflecting differences in exposure, uncertainty and management levers available over each period
is as follows:
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4°C
3°C
2°C
1°C
0
TCFD continued
Integration with our strategic
planning process
The outputs of climate-related risk and opportunity assessments
are incorporated into the Group’s strategic planning process
and reported to the Board. These assessments inform
management’s understanding of how climate-related factors
could affect the Group’s strategy, business model and financial
planning over different time horizons.
As part of its assessment of climate-related risks and opportunities,
the Group considers the potential impacts onitsbusiness
model, strategy and financial planning, including operating
costs, capital expenditure, liquidity, accessto funding and
credit risk assumptions.
In the short term, climate-related risks are not expected
tohavea material impact on the Group’s financial planning
orperformance. This reflects the limited capital intensity of the
Group’s operations, the short duration of customer lending,
and the ability to adapt operational practices and cost
structures within existing planning cycles.
Over the medium to long term, climate-related factors could
influence elements of financial planning, including operational
expenditure (for example energy, travel and premises costs),
investment decisions related to operational resilience, and
expectations from funders and other stakeholders regarding
climate strategy and disclosures. These potential impacts
aremonitored through the Group’s strategic planning and risk
management processes and are considered when reviewing
budgets, investment priorities and funding arrangements.
At present, these impacts are not expected to materially
affectthe Group’s strategy or financial viability; however,
thisassessment will continue to be reviewed as regulatory
requirements, market conditions and climate-related
expectations evolve.
Scenario analysis indicates that, under the most likely climate
pathways, climate change is not expected to have a material
impact on the Group’s strategy or financial viability in
theshortterm. As a result, the actual or potential impacts
ofclimate-related risks and opportunities are not expected
tosignificantly influence the Group’s approach to its markets
orcustomers over this period. The results of this analysis are
discussed in more detail at page 117, provide further
assurance regarding the resilience of the Group’s current
strategy under near-term climate scenarios.
Completed assessments are reviewed as part of the strategic
planning cycle, with conclusions and key judgements
presented to the Board. These assessments will continue
toberefreshed as methodologies, data quality and regulatory
expectations evolve.
Risk Management
In line with the TCFD recommendations, climate-related risks
areidentified, assessed, managed and monitored through
theGroup’s established Enterprise Risk Management (ERM)
framework. This ensures that climate-related considerations
areintegrated into broader risk management practices
andare subject to the same governance, oversight
andcontrols as other principal risks.
During 2025, the Group further evolved its approach to risk
management by introducing a broader ESG risk category.
Thisexpanded focus reflects the interconnected nature of
environmental, social and governance risks and enables
amore holistic assessment of sustainability-related impacts
onthe business.
Risk framework
The Group’s ERM methodology is defined centrally
andimplemented consistently across all markets,
balancingacommon approach to risk identification,
assessment and reporting with the benefit of local expertise
and market-specific risk action plans. Risks are classified
against a Group-wide taxonomy, with ESG risk incorporated
asa defined risk category.
Each risk category is assigned to a senior leader as first-line risk
owner, who is accountable for ongoing monitoring, mitigation
and reporting. Risk owners are required to assess risks based
onprobability and severity, supported by relevant key risk
indicators and management information. Risk assessments
arereviewed quarterly by the Risk Advisory Group (RAG),
whichprovides Group-wide oversight and escalates material
matters to the Audit and Risk Committee as appropriate.
Processes for identifying and
assessing climate-related risks
Climate-related risks are assessed as part of the ESG risk
category and include physical risks arising from acute and
chronic climate impacts, as well as transition risks associated
with policy, legal, market and reputational factors. The Chief
Legal Officer (CLO) acts as the first-line risk owner for
climate-related risks and coordinates input from across
theGroup toassess potential impacts on the business.
A series of climate-related indicators and qualitative
assessments are reported to the RAG on a quarterly basis.
These include developments in climate policy and regulation,
market and reputational trends, and emerging physical
climaterisks. This approach supports consistent monitoring
andenables early identification of potential changes
intheGroup’s risk profile.
Scenario analysis
We have undertaken scenario analysis, using a range
ofclimate scenarios described opposite to assess the resilience
of the Group's strategy to physical risks arising from climate
change across different time horizons. This analysis supports
ourunderstanding of which physical climate risks could have
the greatest potential impact on the Group and informs
ongoing monitoring and risk management activities.
The assessment draws on a combination of external climate
datasets and internal information on the geographic location
of the Group’s operations to model potential exposure to
physical climate risks under different climate pathways.
The following scenarios have been used:
While transition risks are not currently expected to result in
material impacts on the Group’s strategy or financial position
inthe short term, the Group recognises that these risks may
increase in relevance over the medium to long term as
climate-related regulation, stakeholder expectations and
market practices continue to evolve. The Group intends to
further develop its approach to assessing transition risks over
time, including exploring how these risks may be incorporated
more explicitly into future scenario analysis as methodologies
and data mature.
We have used the outputs of a high-level physical climate risk
assessment, supported by external specialist modelling, to
assess the potential impacts of material climate-related risks
and opportunities on the Group across a range of climate
scenarios and time horizons. The assessment considered
multiple Representative Concentration Pathways (RCPs),
including lower- and higher-emissions scenarios, to reflect
arange of plausible future climate outcomes and to evaluate
exposure to both acute and chronic physical climate hazards.
The analysis incorporated external climate datasets and
internally held information on the geographic distribution
oftheGroup’s operations to identify areas of potential exposure
over the short, medium and long term. The results of this
assessment were reviewed by the Audit and Risk Committee.
Consistent with prior years, the modelling indicates that, under
the most likely climate scenarios, there are no immediate
material risks orexposures expected to impact the Group’s
strategy, performance or liquidity in the short term.
The scenario analysis has enhanced the Group’s
understanding of the resilience of its business model and
strategy to physical climate risks and has highlighted areas
where exposure may increase over longer time horizons.
Thiswork supports a more targeted approach to monitoring
and informs the development of mitigation and resilience
measures where appropriate.
The Group’s scenario analysis indicates that exposure
tocertain physical climate hazards may increase over
themedium to long term, particularly under higher-emissions
scenarios. While these potential impacts are subject to
significant uncertainty, the analysis supports management’s
assessment that the Group’s business model retains flexibility
toadapt through changes to operational practices, location
strategies and resilience measures.
Over longer time horizons, climate-related risks are expected
tobe managed through ongoing monitoring, periodic
reassessment of exposure, and integration into long-term
strategic planning rather than through immediate changes
tothe Group’s strategy or financial plans.
Overall, the Group’s assessment remains that its business
model and strategy are resilient to climate-related risks and
opportunities in the short term. The Group does not currently
anticipate material impacts on financial performance or
financial position over this period and will continue to review
this assessment through its regular strategy, risk management
and scenario analysis processes.
Consideration of transition risks
in scenario analysis
The Group’s scenario analysis to date has focused primarily
onphysical climate risks, reflecting the geographic distribution
of its operations and the availability of external climate hazard
data. Transition-related risks, including policy, legal, market
andreputational risks, are currently assessed on a qualitative
basis through strategic planning, regulatory horizon scanning
and risk management processes.
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
inwhich emissions continue to rise
throughout the21
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.
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
IPCC
RCP 2.6
IPCC
RCP 4.5
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Report
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TCFD continued
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 75.
Emissions targets and metrics
Unless otherwise stated, climate-related targets use 2025
asthebaseline year. 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.
Given the long-term nature of the Group’s climate-related
targets, quantitative measurement of progress against these
targets is not yet available. Progress is currently tracked
throughqualitative actions and initiatives rather than through
year-on-year performance metrics.
Mitigation and resilience measures
The Group has implemented a range of proportionate
mitigation and resilience measures to support the management
of climate-related risks. These include the use ofscenario analysis,
the setting of targets to improve energy efficiency, and a
continued focus on transparent reporting. During 2025, we also
expanded our risk management framework to move beyond
asingular definition of climate risk to a broader ESG risk
category, reflecting the interconnected nature of environmental,
social and governance factors and their potential influence
onthe Group’s indirect greenhouse gas emissions. As the
Group has not identified any climate-related risks that are
material to its business or financial position in the short term,
mitigation actions are currently focused on monitoring,
governance oversight and proportionate resilience measures
rather than on specific risk remediation plans.
• In 2026, we will continue to engage 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.
Assumptions and limitations
The scenario analysis undertaken by the Group is subject
toinherent limitations, including reliance on external climate
models, assumptions regarding future emissions pathways,
anduncertainty associated with long-term climate projections.
The analysis is not intended to predict future outcomes but
tosupport understanding of potential exposures and inform
strategic decision-making.
As data quality, modelling techniques and external guidance
continue to develop, the Group expects to refine and enhance
its approach to climate-related scenario analysis over time.
Next steps
• commitment to continue tracking emissions;
• review the Group double materiality assessment in 2026;
• continue to monitor regulatory developments to enhance climate reporting;
• measure and report Scope 3 business travel GHG emissions;
• assess how to measure and report supply chain GHGemissions;
• measure and report waste to landfill and paper use;
• commit to set science-based targets, and commit toseek verification of these by the Science Based Targetsinitiative;
• work to eliminate and reduce emissions in line with thenet zero standard set by the Science Based Targetsinitiative; and
• move to external verification of GHG data to the ISO14064 standard.
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%.
Progress made in 2025:
We continue to take practical steps to reduce the environmental
impact of our operations. Key actions taken in2025 included:
• enhanced waste management and recycling across offices,
including segregation and recycling of key materials in line
with local requirements;
• reduced paper usage through greater digitalisation
andmore selective use of printed materials;
• increased use of renewable electricity, with several markets
already transitioned and others actively assessing options;
• improved energy efficiency in offices through LED and sensor
lighting and more efficient equipment;
• optimised fleet and travel arrangements, including transition
to lower-emission vehicles and reduced unnecessary travel;
• developing a more energy-efficient IT and data infrastructure,
supported by increased use of cloud-based services; and
• market-specific initiatives to reduce environmental impact,
including supplier engagement and local recycling schemes.
Focus on our supply chain
Our ambition to achieve net zero emissions across our
operations and supply chain by 2050 is expected to play
animportant role in influencing our approach to procurement
and supplier engagement. Based on our current assessment,
asignificant proportion of supply chain emissions are
concentrated within a relatively small number of key suppliers.
During 2025, we continued to focus on engaging these
suppliers to improve transparency, encourage the adoption
ofcredible emissions reduction targets and support the
development of appropriate decarbonisation pathways.
Insupport of this approach, the Group introduced a new
Responsible Procurement Policy, which embeds environmental,
social and governance considerations into procurement and
sourcing decisions across the Group. The Policy is designed
toensure that supplier relationships support sustainable
valuecreation while meeting regulatory, data protection,
cybersecurity and operational resilience requirements.
Over the medium term, we intend to further integrate
climate-related considerations into sourcing and procurement
processes, including the use of net zero–related requirements
intender processes and consideration of carbon impacts
alongside other commercial factors, where appropriate.
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.
Energy
efficiency
Electrification
of buildings
and vehicles
Renewable
energy and
replacing
fossil fuels
Suppliers
Travel
emissions
Interim targets
Our Board has approved the following interim
targets to be delivered by 2034
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
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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 122.
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 Continued to embed climate
considerations as part of Board
oversight of Group strategy
process.
Page 112
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 Senior management oversaw
the Group’s sustainability
disclosures.
Page 112
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 We continued to monitor
climate related risks and
opportunities.
Page 115
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 We continued to monitor the
status of climate-related risks
and how they might impact
theGroup.
Page 116
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 We continued to work with
atrusted third party to assess
physical climate risks.
Page 117
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 116
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 We continued to monitor
climate-related risks.
Page 116
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 We continued to monitor
climate-related risks.
Page 116
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 No further action taken on this
area in 2025.
Page 118
b. Disclose Scope 1, Scope 2
and if appropriate, Scope
3 GHG emissions and the
related risk.
Details of our GHG emissions in
2025 (Scope 1, Scope 2) have
been provided.
Aligned No further action taken on this
area.
Page 75
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 No further action taken on this
area.
Page 118
TCFD continued
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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 – page 14
Our customers – pages 46-49
Key performance indicators – pages 22-23
Responsible business – pages 42-123
Employees Code of Ethics
Group Health and Safety Policy
Wellbeing Policy
Diversity Policy
Our colleagues – pages 50-55
Principal risks and uncertainties: People risk – page 40
CSRD Statement – pages 76-109
Human rights Code of Ethics
Human Rights and Modern Slavery Policy
Responsible business – pages 42-123
CSRD Sustainability Statement – pages 76-109
Social matters Code of Ethics
Tax strategy
Our business model – page 14
Our customers – pages 46-49
Our communities – pages 58-60
Principal risks: Reputation risk – page 38
Responsible business – pages 42-123
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 42-123
Environmental
matters
Corporate Sustainability Policy
Environment Policy
TCFD – pages 112-121
Climate-related Financial Disclosure – page 122
Environment – pages 74-75
Principal risks Principal risks and uncertainties – pages 34-40
Non-financial KPIs Non-financial key performance indicators – page 23
Non-financial and Sustainability
Information Statement
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 Reference
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.
Pages
112-113
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.
Pages
114-115
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 116
d. A description of:
the principal climate-related risks and opportunities arising
in connection with the operations of the company; and
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 114
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.
Pages
114-116
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 117
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 118
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
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
25 February 2026
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As the sole provider for her family, Ibolya in Romania has
turned to us forsupport during both celebrations and
challenges – from her daughter’s wedding to managing
through financial setbacks. The quick andflexible service
she received helped her remain financially stable, even
when life was unpredictable.
“I helped my daughter arrange
awedding to remember…Provident
has been there for us through every
challenge and celebration.”
Supporting
families
Directors’
Report
Introduction to governance 126
Our Board and Committees 128
Governance at a glance 130
Role of the Board and its Committees 132
Nominations and Governance Committee Report 139
Audit and Risk Committee Report 145
Directors’ Remuneration Report 152
Statutory information 172
Directors’ responsibilities 177
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“Our governance framework is built on doing
theright thing for our stakeholders. As we
execute our Next Gen strategy, we continue
touphold high standards of oversight, ensuring
alignment withour purpose, values and culture.”
Stuart Sinclair
Chair
Introduction to governance
On behalf of the Board, I am pleased tointroduce
theCorporate Governance Report for the year ended
31 December 2025.
This statement, together with the following pages, provides
anoverview ofthe key work undertaken by the Board and its
Committees during the year. Ourgovernance framework is built
ondoing the right thing for our stakeholders. As we execute
ourNext Gen strategy, wecontinue to uphold high standards
of oversight, ensuringalignment with our purpose, values
andculture. Our focus remains onsupporting the long-term,
sustainable success of the Company, creating valuefor
shareholders and our other keystakeholders.
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 128
to129.
As announced in our 2024 Annual Report, Deborah Davis,
former Chair of the Remuneration Committee, stepped down
as a director at the conclusion of the Company’s 2025 Annual
General Meeting (AGM) on 1 May 2025. Herwealth of experience
and rich contributions to the Company during hertenure were
deeply valued. TheBoard approved a number of changes
tothe membership of its Committees in 2025. On 1 May 2025,
Aileen Wallace was appointed Chair ofthe Remuneration
Committee. Onappointment, Aileen hadserved asChair
oftheRemuneration Committee for Hodge Bank for over
12 months, aligning with Provision 32 of the 2024 UK Corporate
Governance Code (Code). Also effective from 1 May 2025,
Katrina Cliffe joined the Auditand Risk Committee. Under
theCode’s principles, the Board reviews annually the need
torefresh how it and its Committees arecomposed.
Board diversity
During the year, the Board’s composition met the requirements
of the Code, with at least half of our directors (excluding myself)
deemed to be independent non-executive directors. Following
the departure of Deborah Davis, female representation on the
Board dropped below the target set out in Listing Rule 6.6.6 R(9)
for 40% female representation on the Board. However, I am
confident that the Board would seek to ensure that any future
Board and Committee performance
A key mechanism of sound governance is the annual
performance review process. Provision 21 of the Code
recommends that the Chair should commission a regular
externally facilitated board performance review. In FTSE 350
companies, this should happen at least every three years.
In 2025, theBoard was scheduled to undertake an external
performance review having last commissioned such a review
in2022. TheNominations and Governance Committee
considered the recommendation of Provision 21 and, after
careful deliberation, concluded that due to the recommended
cash acquisition by IPF Parent Holdings Limited (BasePoint),
anewly formed company in the same group as BasePoint
Capital LLC, it would not be an appropriate time to conduct
anexternal review. The Board, its Committees and each
Director were appraised internally to assess whether they
continued tofunction and perform effectively. Thereview was
carried out via an anonymous questionnaire, with responses
analysed and feedback provided. The overall conclusion was
thatthe Board, its Committees and each Director remained
effective in their roles. Although the Company did not undertake
an externally facilitated review during the year, the Board
believes that the Company has met the underlying Principle L
of the Code by ensuring that an internal review considered
performance, composition, diversity and how effectively
members worked together during the year to achieve its
objectives. In the event the recommended cash acquisition
does not proceed, the Board intends to commission an
externally facilitated performance review.
Further details on the performance review process and findings
are presented on pages 141 and 144.
Recommended cash acquisition
of the Company
On 24 December 2025, IPF and BasePoint announced
arecommended cash acquisition for the Company. From
theoutset, the Board’s priority was to ensure that the process
was conducted to the highest standards of governance.
Regular updates were provided to the Board at both scheduled
and ad hoc Board meetings, supported by briefings from the
Chief Executive Officer and the Chief Legal Officer to monitor
developments and ensure the Board remained fully aligned
with their director duties and Section 172 responsibilities.
Inassessing the potential implications forcolleagues,
customers, and the communities we serve, we sought
independent advice from external financial and legal advisers
to guide ourdeliberations and ensure compliance with the UK
Takeover Code. The Board undertook a rigorous assessment
ofrisks and opportunities associated withthe offer, including
itsstrategic alignment and long-term impact on the business.
This process wasunderpinned by open debate, challenge,
anda commitment tointegrity and independence.
More information on the Board’s decision-making process in
relation tothe recommended cash acquisition can be found
on page 64.
Compliance with the UK Corporate
Governance Code (theCode)
Throughout 2025, the Company applied the principles
and complied with the relevant provisions of the 2024 UK
Corporate Governance Code (the Code) except as set
out below.
Provision 29 of the Code (on the monitoring and annual
review of the effectiveness of the Company’s risk
management and internal control framework) will
firstapply to the Company’s financial year ending
31 December 2026. Accordingly, the Company
continued to comply with Provision 29 of the 2018 version
of the UK Corporate Governance Code during the year.
The Company did not comply with Provision 21 of the
Code (externally facilitated board performance review at
least every three years) during the year. Further
information is set out under “Board and committee
performance” opposite.
The Code (and the 2018 version) can be found 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 136
Division of responsibilities 133
Composition, succession, and evaluation 139
Audit, risk and internal control 145
Remuneration 152
appointments would be made based on merit and objective
criteria, whilst also promoting diversity, inclusion andequal
opportunity in line with the Board’s Diversity Policy. Read more
about diversity of the Board and executive management
onpages 141 to 143.
Purpose, culture andvalues
As a Board, we are responsible for setting the purpose, values
and strategy of the Group and ensuring that these are aligned
to the Company’s culture. 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 assess and monitor the Group’s culture to ensure it reflects
our purpose and supports delivery of our strategic objectives.
In2025, the Board continued to embed our purpose andvalues
into decision-making so thattheyshaped strategic priorities
and operational practices across the Group. This included
challenging proposals to confirm alignment with our commitment
to financial inclusion and responsible lending, and monitoring
cultural indicators to safeguard strong leadership behaviours
across the business. Read more about the Board’s role in
shaping purpose and culture on page 136.
Engaging with stakeholders
During the year, the Board continued to place strong emphasis
on stakeholder engagement to ensure decisions reflected a
broad range of perspectives. Through structured touchpoints
including surveys, detailed management reporting and feedback
from our Workforce Engagement Director, the Board gained
valuable insights into the priorities of our key stakeholders.
These inputs informed discussions on strategy, culture and risk
management, enabling the Board to balance differing interests
and make decisions that support long-term sustainable
success. You can read more about our stakeholders on pages
46 to 63 and our S172 statement can be found onpage 64.
As part of the CSRD regime, we conducted a double materiality
assessment (DMA) in2025, evaluating theGroup’s impact
onthe environment and society, and how those factors
couldaffect our financial performance. This analysis provided
valuable insight into sustainability risks and opportunities,
strengthening our commitment to responsible operations and
informing strategic decision-making. Further details on the DMA
can be found in our Responsible Business section on page 85.
Commitment to Corporate
Governance
My role as Chair is to maintain high standards of corporate
governance, supported by the Company Secretary, and
ensure that the Board has the relevant resources to carry out its
duties, spending sufficient time on key areas that enable the
delivery of our Next Gen strategy. Our governance framework
clearly defines responsibilities, and ensures the Group has
robust systems and controls to support effective oversight and
constructive challenge. During the year, the Board strengthened
governance arrangements in line with the revised Code,
including reviewing updated principles and provisions, and
enhancing our internal control framework ahead of Provision 29
being introduced in 2026. We have reviewed the updated
principles and provisions, including the enhanced emphasis
onreporting outcomes, and are taking steps to ensure our
governance arrangements remain robust and compliant.
Thiswork reflects our commitment to maintaining the highest
standards of corporate governance, ensuring transparency,
accountability and robust oversight to support long-term
sustainable success.
Stuart Sinclair
Chair
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Gerard Ryan
Executive director and Chief Executive Officer
Stuart Sinclair
Chair
Richard Holmes
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 corporate
governance. Chair of Nominations
and Governance Committee.
Key skills: Highly-experienced
Chair, non-executive director
andCEO with a background 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.
An insightful and inclusive style
fosters a culture 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, 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
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
of Platinum 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 and TSB.
President and COO at Aspen,
President and CEO at GE Capital,
UK and 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.
ofthe Barry and Peggy High
Charitable Foundation.
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.
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
Appointed: December 2022
Responsibilities: Chair of the
Remuneration Committee
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: Non-
executive Director of Columbia
Threadneedle and Threadneedle
Asset Management, Senior
Independent Director and Chair
ofthe Board Risk Committee of
Tandem Bank, Chair of the Board
Risk Committee at Target Tech
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.
the funding base; and developing
a more proactive investor 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.
Mahindra and non-executive
director of Weatherbys Bank
Limited.
Former roles: Chair of Innovation
and Chair of Remuneration at
Hodge Bank, executive director
and Chair of ESG Committee
ofCooperative Bank, executive
director of Yorkshire Bank Home
Loans Board (a subsidiary of
National Australia Bank) and
director roles at CYBG PLC.
Qualifications: Digital strategy
from Insead, Chartered Banker
MCBI, Distinction from Institute
ofRisk Management and qualified
in Cyber Security Principles from
the British Computer Society.
International expertise:
EMEAs,Asia Pacific.
Former roles: Senior independent
non-executive director of
Homeserve plc, 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.
Key
Audit and Risk Committee
Disclosure Committee
Nominations and Governance Committee
Remuneration Committee
Committee Chair
Our Board and Committees
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Board attendance in 2025
There were six scheduled, and eleven ad hoc Board meetings during the year, with details of attendance set out in the table
below. There were also two Board strategy days that are not included in the table below.
Director Meetings
1
No. of
meetings
attended
% of
meetings
attended
Stuart Sinclair 17 17 100
Gerard Ryan 17 17 100
Gary Thompson
2
17 14 82.4
Katrina Cliffe
3
17 16 94.1
Deborah Davis
4
3 2 66.7
Richard Holmes 17 17 100
Aileen Wallace 17 17 100
1. The meetings that each individual was entitled to and had the opportunity to attend.
2. Gary Thompson was on annual leave for one scheduled meeting and two ad hoc meetings that all took place in December 2025.
3. Katrina Cliffe was unable to attend one ad hoc meeting that took place in January 2025.
4. Deborah Davis stepped down from her role as director of the Company with effect from 1 May 2025. Deborah was unable to attend one ad hoc
meeting that she was entitled to attend during the year.
Composition
Nominations and
Governance Committee
Tenure
Audit and Risk Committee
Gender diversity
Remuneration Committee
Board
Committee compositions
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
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
Strategic pillars key
Next Gen financial inclusion Next Gen organisation Next Gen technology and data
Extensive experience
Please see page 4 to 11 and page 20 for more information on our Strategic progress in 2025
Next Gen
financial inclusion
• Considered expansion of the
customer proposition and
commercial opportunities.
• Supported the continuation of
the strategic retail partnership
initiative with the long-term
aim of strengthening our
market position.
During the year, the Board and its committees considered and approved a range of
key matters across each of the Next Gen strategic pillars, reflecting its role in setting
direction and providing effective oversight. The Board also undertook annual and
mid-year strategy reviews, considering the re-articulation of the Group’s strategy,
external market developments and progress against our strategic ambitions.
Executive directors – 33%
Chair – 17%
Non-executive directors – 50%
Under 3 years - 0%
3-6 years – 83%
6-9 years – 0%
Over 9 years -17%
Female – 33%
Male – 67%
Executive directors – 0%
Chair of the Board – 25%
Non-executive directors – 75%
Executive directors – 0%
Chair of the Board – 0%
Non-executive directors – 100%
Executive directors – 0%
Chair of the Board – 25%
Non-executive directors – 75%
Next Gen
organisation
• Oversaw Group culture and how
it is set, embedded and
maintained.
• Received bi-annual updates on
stakeholder engagement.
• Received regular updates on
colleague wellbeing and health
and safety.
Next Gen
technology and data
• Received training including
sessions on ERP systems and AI.
• The Audit and Risk Committee
oversaw development of controls
for technology, change and
information security risks.
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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 64 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.
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. 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.
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
Read more on page 145.
Remuneration
Committee
Read more on page 152.
Nominations and
Governance
Committee
Read more on page 139.
Disclosure
Committee
Assists in the design and
evaluation of disclosure
controls and procedures.
Monitors compliance
withdisclosure controls
and procedures.
Reviews requirements for,
and content of, regulatory
announcements.
Role of the Board
and its Committees
How the Board operates
The Chair, supported by the CEO and Company Secretary, sets
the annual Board programme and agenda to ensure sufficient
time is allocated to strategic, financial, operational, risk, ESG
and human capital matters. This structured planning enables
the Board to maintain a clear focus on its key responsibilities
throughout the year.
Flexibility within the Board agenda allowed emerging issues to
be addressed promptly, ensuring the Board and its Committees
responded effectively to business priorities and regulatory
developments. Throughout the year, the Board convened
several ad hoc meetings to consider the recommended cash
acquisition by IPF Parent Holdings Limited (BasePoint), a newly
formed company in the same group as BasePoint Capital LLC.
These discussions culminated in the Board approving an offer
for the Company, following rigorous evaluation of strategic fit,
shareholder value and regulatory implications. More
information on the transaction can be found on page 13.
The Chair also reviews the frequency of meetings to confirm
that adequate time is devoted to all material matters,
supporting robust oversight and informed decision-making.
For further details of the Board’s activities during 2025
seepage 135.
To ensure informed and effective decision making, the Board
receives detailed summaries from the Chairs of the Audit
andRisk, Nominations and Governance, and Remuneration
Committees following each meeting. Those updates provide
insight into key issues and decisions, such as enabling all
directors to contribute meaningfully to subsequent Board
discussions and challenge where appropriate, strengthening
transparency and collective responsibility across the Board.
During the year, the Chair and the non-executive directors met
twice without the executive directors being present to allow
theindependent directors to have open and honest discussions
about the performance of management and individual
executive directors. The Chair fed back to the CEO on these
discussions and this feedback was incorporated into the CEO’s
appraisal and the executive performance reviews of other
members of the executive. This feedback also assisted the
Board in determining that all directors had been effective
during the year.
Once a year, the senior independent director also meets
withthe other non-executive directors (excluding the Chair)
todiscuss the Chair’s performance throughout the year, which
is fed back to the Chair. Throughout the year, the senior
independent director also acts as a sounding board for
theChair, providing support and discussing relevant matters
outside of formal Board meetings including, in 2025,
therecommended cash acquisition by BasePoint.
Board roles and responsibilities
The below summarises the roles and responsibilities of different members of the Board. 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. As well as these responsibilities set out in the Board role profiles, 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,
colleagues, 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
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 by the
internal audit function.
Chair
Stuart Sinclair
Senior independent director
Katrina Cliffe
Non-executive directors
Richard Holmes and 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 other
stakeholders.
• Serve as a sounding board to 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 other
stakeholders.
• Safeguard and promote the long-term
success and sustainability of the Company
for the benefit of its shareholders and other
stakeholders.
• Provide constructive challenge, hold
management to account, offer strategic
guidance and provide specialist advice.
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Role of the Board and its Committees continued
To support informed decision-making and continual development, the Board invites senior management, functional leaders
andexternal advisers to present on their areas of expertise at Board and Committee meetings. These sessions enhance
theBoard’s understanding of key business drivers, emerging risks, and market developments, enabling more robust challenge
and better strategic oversight.
HR function
Employee engagement, talent
acquisition, succession planning
Investor relations
Investor relations,
externalcommunications
Legal and CompanySecretariat
function
Regulatory, ethics, Responsible
Business Framework, human rights,
governance
IT and cyber security
Information/cyber security, IT strategy,
artificial intelligence
Strategy team
M&A, strategy, partnerships
Internal and external audit functions
and risk andinternal control teams
Audit, assurance, risk management
and internal controls
External advisers
Financial advisers, investor relations,
legal, remuneration
Divisional heads
Market knowledge, stakeholder
engagement, business performance,
geographical expansion, products
Tax, Treasury and
Financefunctions
Tax, treasury, finance, One
IPFERPprogramme
Marketing
Customers, products
Corporate Affairs
Regulatory, communities,
stakeholderengagement
The Board
Board activities in2025
The Board has ultimate responsibility
forthe overall leadership and long-term
sustainable success of the Group,
ensuring delivery of a clear strategy for
all stakeholders. During 2025, the Board
monitored operational and financial
performance against agreed objectives
and provided constructive challenge
toexecutive proposals on business
management. It oversaw the adequacy
of risk management systems and
confirmed that the Group had the
financial resources and skilled people
required to achieve its strategic goals.
The information in this section
summarises the Board’s activities during
2025 and the discussions that took
place in the discharge of its duties
to the Company. Our Section 172(1)
statement is on page 64.
At each scheduled meeting, the CEO
and CFO presented reports on business
performance and progress against
strategy, supplemented by updates
from divisional heads. Additional
presentations were delivered by senior
leaders on matters aligned to the
annual Board planner and the Matters
Reserved to the Board, providing
opportunities for wider management
engagement and insight.
Beyond routine meetings, the Board
undertook annual and mid-year
strategy reviews, considering the
re-articulation of the Group’s strategy,
external market developments and
progress against the Group’s stated
strategic ambitions. Key topics discussed
included customer proposition expansion
and commercial opportunities,
regulatory changes, adapting the
Group’s organisational structure and
the Group’s technology investment.
An overview of the matters considered
and the stakeholders engaged during
the year is set out on page 135.
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 CFO
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.
• Reviewed and approved the Group’s environmental and climate targets.
• 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 and monitored the culture of the Group and how the Board sets, embeds and maintains the culture.
• Considered the key themes of the 2025 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 ONE IPF ERP programme and Generative AI.
Financial
reporting
• Approved the 2024 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 2025 and future years.
• Monitored the Group’s funding position and compliance with the Group’s financial covenants.
• Reviewed and approved Group treasury policies.
• Approved in principle, the SEK Notes issuance.
• Approved the 2026 Group budget and business plan for 2026 to 2030, reviewing key assumptions, inputs and risks,
and monitored performance and variances against the 2025 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.
• Proposed to shareholders to approve the re-appointment of the Group’s auditor, PKF LittleJohn LLP.
• Considered and endorsed the strategic risk factors identified by executive management.
Governance • Approved the resolutions to be put to shareholders at the 2025 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.
• 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.
• Reviewed and approved the Group Health and Safety Policy.
• Reviewed and approved significant contracts, including the implementation of ONE IPF ERP programme.
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.
• Received an update on interactions with communities and regulators and legislators as part of the Group
Corporate Affairs Director update.
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
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How the Board discharges its responsibilities for culture:
– Setting the purpose and values of the Group
– Selecting directors and other senior leaders of the Group
– The Chair’s annual appraisal of the CEO
– Reviewing CEO and CFO reports to identify matters of strategic
and cultural importance
– Overseeing remuneration policies to ensure alignment
withvaluesand expected behaviours
– Annual Board report assessing how the Board monitors culture
Responsible: Lending decisions
aremade using robust affordability and
credit assessments to ensure customers
can afford to borrow. Read more on
page 46 to 49.
...embedded by:
– Codes and Policies dealing with
integrity, countering corruption,
respectand safety;
– annual conferences and learning
sessions;
– integration of values into recruitment,
performance management and
incentive structures;
– leadership behaviours reinforced
through succession planning and
appraisal processes; and
– decision-making that prioritises
valuefor customers and ethical
considerations.
Respectful: We have inclusive
leadership, wellbeing initiatives
andpsychological safety to support
colleagues to perform at their best.
Readmore on page 50 to 55.
...measured by:
– Code and Policies compliance;
– whistleblowing reports and themes;
– regulatory findings and outcomes;
– audit results and control breaches;
– risk events linked to behaviour
orculture;
– completion rates for mandatory
compliance and ethical awareness
training;
– customer metrics;
– root cause analysis of customer issues;
– customer vulnerability and treatment
measures;
– Global People Survey results;
– Employee and Customer
Representative metrics;
– health, safety and wellbeing metrics;
– alignment of performance appraisals
with behavioural objectives; and
– internal promotion and succession.
Straightforward: Our customer
contractsare simple, transparent
andinplain language so all terms
areclear andunderstood easily.
Readmore onpage 46 to 49.
...monitored by:
– HR strategy and Global People Survey
results;
– customer updates and research;
– Codes and Policies dealing with
integrity, countering corruption,
respectand safety;
– ethics and whistleblowing updates;
– sustainability data and Responsible
Business Framework;
– succession planning for senior
executives and directors;
– risk management and internal
controlseffectiveness assessments;
– Internal Audit outcomes
andcompliance metrics;
– regular board reporting on people
matters;
– “skip level” dinners;
– customer visits; and
– workforce engagement sessions
andforums with colleagues.
Our culture is defined by our values and is reflected
inour behaviours and ways of working.
Doing the right thing for customers: During the year, customer
research in our Provident Europe markets showed improved
transparency and fairness since 2023 demonstrating that decisions
supported by the Board in relation to responsible pricing and
withdrawing products that do not deliver genuine customer value
reflect our Responsible and Straightforward values. More
information on customers can be found on page 46.
Acting ethically and with integrity: The number of whistleblowing
cases reported annually were above target tolerances indicating
that our whistleblowing channels were well communicated
throughout the year, trusted and used by our workforce.
Moreinformation on whistleblowing can be found on page 68.
Promoting an inclusive, safe and supportive workplace:
The Group’s Global People Survey average positive scores
improved by 0.3% for customer representatives and 2.5% for
employees (since 2023) demonstrating that acting on feedback
from the previous survey had been well received. Moreinformation
on our employees and customer representatives can be found
onpage 50.
Embedding sustainability and social responsibility: More
information on the Responsible Business Framework can
befoundon page 44.
Our purpose is to build a better world through financial
inclusion. It defines why we exist and reminds us of who we
serve: consumers with lower to medium incomes and often a
limited credit history, helping them access the financial system.
As a responsible lender, we provide regulated credit products
that offer an entry point to mainstream consumer finance.
The Board has overall responsibility for setting the Company’s
purpose, values and strategy to deliver long-term sustainable
success and generate value for its shareholders and other
stakeholders. These are reviewed annually to ensure they
remain appropriate for the business and markets in which
weoperate and continue to align with our culture. The Board
recognises that a strong culture is essential to achieving our
purpose and sets thetone from the top, ensuring cultural
expectations are embedded throughout the Group and
monitored so that anyundesirable indicators can be
addressed promptly.
Our values of being responsible, respectful and straightforward
clarify what “doing the right thing” means in practice.
Theyguide decisions, from setting responsible pricing limits
andwithdrawing products that do not deliver genuine
customer value, to fostering fairness, openness and integrity
inevery interaction. These values bridge our purpose and
culture, underpinning how we serve customers responsibly,
manage risk effectively, and balance commercial ambition
with ethical considerations.
Our purpose, values and culture
Our values
Our values in action
Outcomes of embedding our culture
Our culture is...
Our values shape everyday decisions
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Workforce engagement
programme 2025
Employee engagement
The Board maintains a strong connection with colleagues
across the Group through a structured programme of visits,
presentations and informal interactions, complemented by
thework of the Workforce Engagement Director, Katrina Cliffe.
These activities enable the Board to gain meaningful insight
into the issues that matter most to employees globally and
provide assurance that behaviours across the Group align
withits purpose, vision and desired culture.
Throughout 2025, Katrina championed the workforce voice in
the Boardroom, undertaking a range of engagement activities
and providing regular feedback on employee and customer
representative perspectives. This insight helped the Board
validate cultural alignment, assess how colleagues understood
and related to the Next Gen strategy, and informed decisions
on strategic priorities, including organisational design.
In addition, the Board engaged directly with colleagues
through branch and market visits, dinners and presentations,
meeting individuals from diverse functions such as sales,
marketing, IT, legal, compliance, data protection, corporate
affairs, HR, finance, health and safety, internal audit, and risk.
These interactions strengthened the Board’s understanding
ofworkforce priorities and supported decisions that reflected
both strategic objectives and stakeholder needs.
See page 50 for engagement with colleagues.
Colleague engagement session on
enabling global collaboration
Colleague engagement session
on IT strategy
Colleague engagement session on
embedding the Next Gen strategy
Wider workforce remuneration
engagement
2
1
3
4
Connecting with colleagues in 2025
91%
participation rate in our Global People Survey.
Nominations and Governance
Committee Report
Committee members
Stuart Sinclair, Chair, and Chair of the Board
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 2025.
Committee member
Scheduled
meetings
1
No. of
meetings
attended
% of
meetings
attended
Stuart Sinclair 4 4 100%
Deborah Davis
2
2 2 100%
Richard Holmes 4 4 100%
Aileen Wallace 4 4 100%
Katrina Cliffe 4 4 100%
Notes
1. The scheduled meetings that each individual was entitled to,
and had the opportunityto,attend.
2. Deborah stepped down from the Board with effect from 1 May 2025.
“Throughout 2025, the Committee maintained
itsemphasis on high-quality governance
tosafeguard the Group’s long-term objectives
andsustainable future.”
Stuart Sinclair
Chair
Dear shareholder,
I am pleased to present this report fortheyear ended
31 December 2025, highlighting the Committee’s role
insupporting an effective Board and promoting robust
governance across theGroup.
The Committee plays a central role inensuring that the Board
has the skills, experience and leadership it needs toguide the
Company effectively, bothnow and in the years ahead. Its
responsibilities include maintaining astrong, balanced and
diverse Board, overseeing well-structured succession planning
for directors and senior leaders, and ensuring governance
practices meet thehighest standards expected
byourstakeholders.
During the year, the Committee concentrated on Board
effectiveness and succession, alongside reviewing the
composition of the Board and its Committees and assessing
the skills and capabilities needed to support the Company’s
strategic direction.
I hope this report provides a clear overview of the Committee’s
role and activity during the year, and the steps we are taking to
ensure that the Board remains effective, diverse and equipped
to lead the Company intothe future.
Stuart Sinclair
Chair of the Committee
25 February 2026
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Nominations and Governance Committee Report continued
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
and senior management;
• 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;
• keeps the Group’s governance arrangements under review
and makes appropriate recommendations to the Board
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
Stuart Sinclair chairs the Committee and was regarded
asindependent on appointment. Stuart will not chair the
Committee when it is dealing with matters of succession
totheChair of the Board. The Committee comprises three
otherindependent non-executive directors, Richard Holmes,
Aileen Wallace and Katrina Cliffe. Deborah Davis retired as
anon-executive director of the Company at the conclusion
ofthe 2025 AGM, and therefore stepped down from the
Committee with effect from 1 May 2025.
Key areas of focus during the year
During 2025, the Committee continued to evolve its oversight
toreinforce effective governance throughout the Group.
A key area of focus for the Committee was ensuring that
succession planning remains aligned with the Board's ability
tolead the Group effectively, particularly as we advance our
Next Gen strategy. Under the Chair's leadership, the Committee
reviewed the assessment of Board skills, knowledge and tenure
undertaken in 2025, considering its relevance to the Company’s
strategic priorities. The skills matrix (on page 130), which
isreviewed annually, highlights the capabilities viewed as key
to the Group's long-term success and illustrates how these
correspond to our strategic objectives and growth ambitions.
The Committee also undertook a detailed review ofthe skills,
potential and development ofthewider senior leadership
team, as part of the broader talent andleadership planning
process led by the Human Resources function.
A second area of priority in 2025 was ensuring that the Board
continues to operate with a high level of effectiveness.
Thiswide-ranging responsibility involved the Committee
reviewing arange of detailed topics, including the 2025
Boardtraining programme, Board Committee membership
andexternal developments in corporate governance, to assess
whether any adjustments were needed to the Group’s Board
governance arrangements. The Committee also considered
the Board's structure, size and ways of working, and guided
theGroup’s implementation of, and compliance with,
theCorporate Governance Code 2024. Additionally,
theCommittee oversaw the adoption of the recommendations
arising from the internal Board evaluation conducted in 2024,
with all recommendations being implemented in 2025.
The Committee maintained its oversight of key policies relevant
to our Responsible Business Framework such as board diversity,
political donations, access to independent advice and conflicts
of interest. More information on our diversity policy canbe
found on page 141.
Finally, the Committee continued to review the external
appointments held by current directors. This work considered
the time commitments arising from their current roles to ensure
no director is “overboarded” and that required standards
ofindependence are maintained. The Committee also determined
whether any new appointments would affect adirector’s ability
to discharge their duties to the Company effectively.
Progress in 2025
• Reviewed Board composition and succession planning.
• Evaluated the current 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 performance review.
Key priorities for 2026
• Ongoing focus on succession planning.
• Continued monitoring of broader corporate
governance developments.
• Keep under review the governance framework
andmake recommendations for improvement
whereappropriate.
Committee performance review
During 2025, the Committee took forward actions arising from
its 2024 performance review. These focused on proactive Board
and executive management succession planning aligned to
the Group’s strategy. The Committee continued to develop its
plans, reviewing talent pipelines and maintaining visibility over
future leadership requirements.
An internal review of the performance of the Board and its
Committees was also undertaken in 2025. This process consisted
of a questionnaire completed by the Committee and its regular
attendees, alongside 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.
The Committee considered the feedback and agreed to retain
a strong emphasis on succession planning across the senior
leadership cohort. This will be progressed through twice-yearly
performance reviews and the Committee's ongoing dialogue
with the Chief HR Officer and the Chief Executive Officer
regarding leadership potential and development.
Annual re-election of directors
As in previous years, Board members will stand for re-election
by shareholders at the 2026 AGM on 30 April 2026. 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.
Moreinformation on how the Committee has assessed
independence and the directors' time commitments can be
found on page 143. Accordingly, all directors are proposed for
re-election. 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 recognise
theimportance of drawing from a diverse range of individuals,
and the diversity objectives in the Board Diversity Policy on
page 141 guide how diversity is built into director recruitment
and succession planning. The Committee’s approach to
succession includes anticipating departures and allowing
sufficient time for orderly succession. Succession plans are
inplace for the Chief Executive Officer, Chief Financial Officer,
Chair and non-executive directors across contingency,
medium-term and long-term horizons.
The Committee also oversees executive talent and succession
planning on behalf of the Board. As part of the broader talent
management process, the Committee receives annual and
mid-year updates from the Chief HR Officer on talent development
and succession planning, considering the skills and potential
within the central leadership team. Having received these
updates from the Chief HR Officer, the Committee reviewed
theBoard succession plans and confirmed that they remained
appropriate for the Chief Executive and Chief Financial Officer.
Following the departure of Deborah Davis, the Committee
considered the recruitment of a new non-executive director
in2025. However, due to the potential cash offer by BasePoint
Capital LLC, it was agreed that recruitment for a new director
atthis stage would not be appropriate. The Committee has
agreed to revisit this at a more appropriate time.
TheCommittee seeks to follow best practice in making all
appointments, applying objective, merit-based criteria and
considering the Company’s strategic priorities, together with
the broader trends and factors shaping its long-term success
and future growth, including developments in technology
andinnovation.
During 2025, the Board also approved the Board skills matrix,
which sets out the capabilities of each member and allows
theCommittee to identify any skill which may be required.
These insights will be reviewed as part of the succession
planning process. In doing so, the Committee reviewed
whether Deborah Davis’s departure and the updated Code
requirements necessitated additional skills on the Board.
Aftercareful consideration, it concluded that the existing key
skills remained appropriate for the business. The skills matrix
willcontinue to guide the identification of skills and experience
forany future Board appointments. The Board skills matrix can
be found on page 130.
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tightly woven into our culture and values. It is also a
strategic imperative that contributes to the Group’s overall
success, innovation, and sustainability.
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.
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, the FTSE Women
Leaders Review and the requirements of UK Listing Rule 6.6.6
R(9) are supported fully by the Board.
The percentage of female representation for the executive
team was 7.1%.
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Nominations and Governance Committee Report continued
Annual statement on Board diversity targets
Following a change in Board composition in 2025, the Board did not meet two of the FCA’s diversity targets as at the
reporting date.
As required by Listing Rule 6.6.6 R(10), detailed numerical information on the gender and ethnicity representation on the Board
and our executive management as at 31 December 2025 is set out on page 143.
Data concerning gender and ethnicity representation was collected directly from all the individual Board and executive
management team 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 143 and therefore included the option to not specify an answer. The data was originally collected
onananonymous basis by the Company Secretariat and the information is reviewed and updated on an annual basis.
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 and remains committed
tomaintaining gender balance.
Twofemale Board members have
beenappointed in recent years,
andfuture recruitment will continue
toprioritise diversity.
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,
which was a signatory of the Standard
Voluntary Code of Conduct at the time.
Future recruitment will continue to
comply with this element of the policy.
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.
The target level fell below 40% this year
following a planned retirement. The
Committee will continue to assess its
succession needs, including
considerations around gender
representation.
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.
The Board does not currently meet
thisobjective following recent changes.
Ethnic diversity remains apriority
though, and will guide any future
appointment.
Independence and
external commitments
The Committee reviews requests for external appointments
carefully, taking into account directors’ other commitments,
their role on the Board and the time required to fulfil expected
duties. Although there is no specified time commitment
fornon-executive directors, the Company expects a typical
annual contribution of around 30 days, reflecting attendance
at Board and Committee meetings, paper review, discussions
with fellow directors, Strategy Days, market visits and
stakeholder engagement.
An executive director may, with the approval of the Board,
bepermitted to hold one non-executive directorship (and
toretain the fees from that appointment) provided that the
Board is satisfied this will not affect their executive responsibilities
adversely. The executive directors currently do not hold any
external directorships. Anon-executive director is expected
toensure that they have sufficient time to discharge their
responsibilities effectively and, as a guideline, 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 2025, the Committee confirmed its approval
of Aileen Wallace's appointment to the board of Columbia
Threadneedle/Threadneedle Asset Management, noting that
she was stepping down from her board role at Hodge Bank.
In giving its approval, the Committee was assured that Aileen
would continue to be able to devote the appropriate time
toher role as non-executive director and Chair of the
Remuneration Committee and that the new role 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 is the senior independent director,
and 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 where 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 2025
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 66.7% 3 13 92.9%
Women 2 33.3% 1 1 7.1%
Not specified/prefer not to say 0 0% 0 0 0%
Ethnic representation as at 31 December 2025
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)
6 100% 4 14 100%
Mixed/Multiple ethnic groups 0 0% 0 0 0%
Asian/Asian British 0 0% 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.
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Board performance 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 performance review due to be undertaken in 2025.
However, during 2025 the Company was the subject of
apotential takeover approach, and in light of this process,
theBoard determined that it would not be appropriate to
undertake an externally facilitated Board performance review
at that time. Accordingly, the Board decided to defer the next
externally-facilitated review, and should the transaction not
proceed, the Board will commission a review.
The Board remains committed to maintaining high standards
ofgovernance and performance. To ensure continued
oversight, an internal evaluation was nevertheless undertaken
in 2025, focusing on Board composition, decision-making
effectiveness and governance during the year. The findings
and resulting actions have been considered and will be
implemented throughout 2026.
Process for Internal Board
andCommittee review
The Committee oversaw a structured internal evaluation of the
Board, its Committees, and individual Directors during the year.
The process began in September 2025, when the Committee
reviewed and approved the approach for the annual
performance reviews, following consultation with the
Chairsofthe Board and its Committees.
In October, each Director completed a detailed questionnaire
assessing the performance of the Board and the Committees
on which they serve. Regular attendees of the Committees
were also invited to provide input. During the same period,
theChair met with the non-executive directors without the
executive directors present, enabling candid feedback
onperformance throughout the year.
Nominations and Governance Committee Report continued
By December, the Committees had considered the results
ofthe questionnaires alongside an analysis of their Terms
ofReference. Each Committee confirmed that it continues
tooperate effectively and in accordance with its remit.
Towardsthe end of the year, the Chairconducted individual
performance reviews with all non-executive directors,
confirming that they remain effective intheir roles. The Senior
Independent Director, Katrina Cliffe, also led the Chair’s own
review, concluding that the Chair continues to demonstrate
strong leadership and independence.
Finally, in February 2026, the Board reviewed the overall findings
from the performance review, taking into account feedback
from the Committees and the Matters Reserved analysis.
Outcome of the 2025
performancereviews
The Board concluded that it continues to operate effectively,
providing strong leadership and maintaining an appropriate
balance of skills, experience, and knowledge to deliver
theGroup’s strategy.
The Board continues to place significant reliance on its
Committees, receiving regular updates from their Chairs
anddelegating a wide range ofresponsibilities and issues
tothem.
Overall, the evaluation confirmed that the performance
oftheBoard, its Committees, the Chair, and each Director
remains effective.
Stuart Sinclair
Chair of the Committee
25 February 2026
Audit and Risk Committee Report
Committee members
Richard Holmes, Chair and 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 2025.
Committee member
4
Scheduled
meetings
1
No. of
meetings
attended
% of
meetings
attended
Richard Holmes 7 7 100 %
Deborah Davis
3
2 2 100 %
Aileen Wallace 7 7 100 %
Katrina Cliffe
2
5 5 100 %
Notes
1. The scheduled meetings that each individual was entitled to,
and had the opportunity to, attend as a member of the Committee.
2. Katrina Cliffe was appointed as a member of the Committee in
May 2025.
3. Deborah Davis stepped down as a director at the 2025 AGM
4. The Committee members’ expertise, qualifications and relevant
experience are set out ineachof their biographies on pages
128 to 129.
“The role of the Committee is to provide independent
oversight, andthis year’s Report provides an
overview of how we monitored and evaluated
theeffectiveness of the Group’s financial reporting,
systems of internal control and risk management
during the year.”
Richard Holmes
Chair of the Audit and Risk Committee
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
2025. This report explains the Committee’s work and how
wemet our audit, risk management and internal control
responsibilities including ensuring compliance with the
Financial Reporting Council’s (FRC) Audit Committee
andtheExternal Audit Minimum Standards.
The Committee monitored the impacts ofroutine and emerging
risks on the Group’s Financial Statements and, despite continuing
macroeconomic uncertainty, was pleased to see strong
operational and financial performance. This reflects the
disciplined execution ofour strategy and provides a solid
platform for continued growth alongside effective internal
control and risk management systems.
As well as its focus on emerging risks, theCommittee addressed
a range ofroutine matters, receiving regular updates from the
internal audit function on the effectiveness of internal controls,
including progress on implementing theDigital Operational
Resilience Act (DORA), enhancements to anti-money
laundering controls, financial control and the quality
ofregulatory reporting. Where improvements were identified,
whether by internal audit or the Committee, weensured the
necessary actions weretaken and that effective follow-up
processes were in place to monitor progress.
The Committee also dedicated time to consider and approve
PKF Littlejohn LLP's approach for the 2025 external audit aswell
as the 2026 internal audit plan, ensuring that both provide
robust, risk-based assurance of the Group’s keyactivities.
The Committee was pleased tonote the Group’s response
tothe newaudit, risk and internal control requirements of the
2024 UK Corporate Governance Code (the 2024 Code) which
came into effect during 2025, aswell as the Group's readiness
for theelements that will come into effect inthe following year.
TheCommittee iswell placed to discharge its duties inthe
yearahead.
Looking ahead, the Committee recognises that the demand for
the Group's products remains robust in all our markets and,
aswe drive growth, product innovation and digital capability,
theCommittee will continue to provide rigorous oversight
oftheassociated risksand opportunities.
I trust that the following report will provide a clear overview of
the Committee’s activities during the year and the actions we
will take in 2026 to ensure the Group's financial reporting, risk
management and systems of internal control remain effective.
Richard Holmes
Chair of the Audit and Risk Committee
25 February 2026
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Committee effectiveness
An effectiveness review of the Committee is undertaken
annually and following the 2024 review, two key areas of focus
were identified. The table below shows the outcomes of the
2024 review and how these were addressed in 2025.
2024 internal
effectiveness review Action in 2025
Ensuring appropriate
focus on ICT risk
andmanaging
regulatory change.
In 2025, the work planner was amended to
include a bi-annual update on regulatory
change to the Committee. It was also
agreed that ICT risk would be addressed
through the Chair of the Risk Advisory
Group’s report to the Committee.
Ensuring appropriate
coverage of strategic
risk as part of risk
management
oversight.
A dedicated strategic risk assessment
agenda item was added to the work
planner in June and September ahead
ofthe bi-annual Board strategy sessions.
An effectiveness review of the Board and its Committees was
undertaken internally at the end of 2025, which comprised
a questionnaire 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 during 2025 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 2026 should be on:
• ensuring the Committee receives a consolidated view
of the risk profile and that risk evaluation presents a clear
view from all lines of defence; and
• increasing attendance from risk owners, where appropriate,
to discuss risks out of appetite and the action plans in place
to bring them within appetite.
Composition, role and responsibilities
The Committee consists of independent non-executive directors
and met seven times during the year. Members and their
attendance at meetings can be found on page 145.
All members of the Committee are deemed to have
competence relevant to financial services, with all members
having previously held executive roles in the financial services
sector. The Chair of the Committee, Richard Holmes, is deemed
to have recent and relevant financial experience as a fellow of
the Institute of Chartered Accountants and with over 40 years
of broad international financial services experience, including
20 years as a CEO and board member in private banking,
wholesale banking, capital markets, trading operations,
strategy and finance. More information on the skills
andexperience of our Committee members can be found
onpage 130.
The Committee, along with the Board, received updates
andtraining during the year on emerging accounting
standards, regulatory developments and audit quality matters.
More information on knowledge sharing and training can
befound on page 173.
The external auditor, PKF Littlejohn LLP, the Chief Executive
Officer, Chief Financial Officer, Chief Information Officer, Group
Financial Controller, Group Credit and Risk Director 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Head of Internal Audit also meets with the Committee
annually without management present.
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.
Progress in 2025
• Reviewed and challenged updates on the Group’s
response to the 2024 Code.
• Provided oversight of progress on the development
ofacontrol framework for managing technology,
change management and information security
risksacross the Group.
• Ensured appropriate focus on evolving ways of working
and culture, with an emphasis on understanding and
embedding risk management practices that keep
pace with the changing regulatory landscape.
• Guided the Board on sustainability matters
andnon-financial reporting.
Key priorities for 2026
• Enhancing the risk management framework
andensuring appropriate oversight of material
changeprogrammes, major risk events and action
plans tobring risks back within appetite.
• Review and challenge as necessary reports on
theeffectiveness of controls for the Group’s most
material risks.
• Ensuring appropriate focus on operational resilience.
• Ensuring the Committee has sufficient opportunity for
discussion on accounting judgements for receivables.
Audit and Risk Committee Report continued
Meetings and activities
The Committee operates in accordance with a structured, forward-looking planner, developed in collaboration with the Company
Secretary, to ensure the discharge of the Committee's responsibilities throughout the year. Agenda items are determined with due
regard to applicable regulatory requirements and the Company’s reporting timetable. The planner is maintained as a dynamic
framework, subject to periodic review and adjustment to reflect the evolving priorities and strategic needs of the business.
The Chair of the Committee holds preparatory discussions with the Head of Internal Audit and Chair of the Risk Advisory Group
prior to Committee meetings to discuss the items to be considered at the meetings.
Committee meetings are generally scheduled close to Board meetings in order to facilitate an effective and timely reporting
process for any significant findings.
Throughout the year, the key activities undertaken by the Committee were:
Financial
reporting
• Monitoring the Group’s systems of internal control, including financial, operational and compliance controls,
and risk management systems, and performing an annual review of their effectiveness;
• Monitoring 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; and
• Providing 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.
Audit
matters
• Making recommendations to the Board, for the Board to put to shareholders at the Annual General Meeting, relating
tothereappointment of the external auditor, and approving its terms of appointment;
• Reviewing and monitoring the objectivity and independence of the external auditor and the effectiveness of the external
audit process following completion of detailed questionnaires by both the Committee and senior management,
takingintoconsideration relevant UK professional and regulatory requirements;
• Reviewing and approving the policy for the provision of non-audit services by the external auditor;
• Reviewing and approving the level and nature of non-audit work which the external auditor performed during the year,
including the fees paid for such work;
• Approving the remuneration and terms of engagement of the external auditor, including the audit plan;
• Reviewing and approving the internal audit programme for the year and monitoring the effectiveness oftheinternal audit
function in the delivery of its plan;
• Receiving and considering reports from the Head of Internal Audit concerning the work undertaken bytheinternal audit
function;
• Reviewing the effectiveness of the internal audit function following an external quality assessment andoverseeing
theactions resulting from the assessment; and
• Reviewing and approving the Group's internal audit charter.
Risk
management
and internal
controls
• Keeping under review the work of the Risk Advisory Group, in particular the Group schedule of key and emerging risks,
andconsidering the principal and emerging risks stated on pages 34 to 40 facing the Group and their mitigation;
• Reviewing the effectiveness of the Company's internal control and risk management systems, includingdefining the
concept of material controls;
• Advising the Board on the Group’s risk appetite together with the mechanisms that will be used for monitoring adherence
to them;
• Providing oversight of the Company's sustainability-related impacts, risksand opportunities, and non-financial reporting
and assurance; and
• Reviewing and considering the assessment of the Group’s strategic risks.
Governance
matters
• Considering incoming regulatory and legal changes, including the Group's approach to compliance withthe 2024 Code;
• Reviewing the Committee's effectiveness following an internal performance review; and
• Reviewing the Committee's terms of reference.
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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. An explanation of the Group's accounting policies
can be found in the notes to the financial statements.
The Committee considered the output from the review carried
out by the FRC of the Company’s Annual Report and Financial
Statements for the year ended 31 December 2024 in accordance
with Part 2 of the FRC Corporate Reporting Review Operating
Procedures. The Committee was pleased to note that the
review raised no questions or queries requiring a response.
TheCommittee also noted that the FRC raised a small number
of matters where users of the accounts would benefit from
improvements and these have been taken into consideration
when preparing theAnnual Report and Financial Statements
for 2025.
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 increased 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 2025 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 198. 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.
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 2025 included justification
of the Group’s uncertain tax risk provision. 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 was appropriate.
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 2025 comprised the Chief Executive
Officer, Chief Financial Officer, Group Credit and Risk 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 34 to 40.
TheChair of the Risk Advisory Group also meets with the
Committee annually, without management present to discuss
his views on how risks are managed across the Group.
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.
In 2025, the Group navigated a number of significant
regulatory developments. Within the European Union, progress
continued on the transposition and implementation of the
Consumer Credit Directive II, alongside the introduction of key
frameworks such as the European Accessibility Act and the
DORA, both of which mark important steps in shaping future
compliance and operational standards. At a market level,
notable changes included reforms to judicial appointment
processes and access to justice in Mexico, and proposed
adjustments to how the Estonian judicial system handles claims
related to unpaid debts. The Committee also received regular
updates on key tax issues and ongoing tax audits within the
Group, together with updates regarding the Organisation for
Economic Co-operation and Development’s and the European
Union’s international tax initiatives that could potentially impact
the Group in the future.
The Committee will continue to assess the impact of these
matters on the business and will monitor management’s
response throughout 2026.
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 2025 are referred
tointhe ‘Development’ section on page 173.
In 2025, the Committee requested that management begin
aligning the risk management and internal control framework
with the requirements of the revised 2024 Code. As part of this
initiative, management has defined the concept of material
control for the Group, along with definitions for financial,
operational, reporting and compliance controls, and is well
placed to monitor and assess the effectiveness of the risk
management and internal control framework for the 2026
financial year.
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.
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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.
The Committee reviews progress against the approved internal
audit plan and the results of audit activities, with a focus on
any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
anExternal Quality Assessment which was conducted during
the year by KPMG and assessed the function as Generally
Conforms (the highest rating under the framework) with the
International Professional Practices Framework of the Institute
ofInternal Auditors and Generally Adopts in relation to Internal
Audit Financial Services Code of Practice. The function
measures its operational effectiveness and efficiency via a set
of key performance indicators and via individual post-audit
quality assessments by auditees, both of which are reported
tothe Committee.
The Committee was pleased to note the positive result of
theExternal Quality Assessment and is satisfied that the quality,
experience and expertise of the function are appropriate
forthe business.
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 2025. On the basis of
the work performed by the management team throughout the
year and reported to the Committee at each meeting, the
Committee 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. This is
achieved through the reporting to the Committee of progress
to address findings raised by Internal Audit as well as, where
necessary, management attending to provide updates on
specific topics. These processes were in place throughout 2025
and up to25 February 2026.
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.
The effectiveness of the external auditor is continually
considered through the Committee's own observations
andinteractions withthe external auditor as well as through
feedback from management. In addition, a formal annual
process is conducted where external auditor effectiveness
isevaluated via a questionnaire which was completed by
theCommittee members and attendees, and by business
unitfinance directors across the Group. This evaluation
isdivided into six areas as per the table onthenext page.
Theresults of the evaluation were reviewed and considered
bythe Committee, which concluded that theexternal audit
process was effective.
External auditor effectiveness
Area Conclusion
Audit planning
and approach
• The external audit plan demonstrated an understanding of the Group, its business model, sectorand key risks.
• The scope of the audit plan is appropriate.
Quality of audit
execution and
technical competence
• Technically proficient, with sufficient expertise in the Group’s key accounting/regulatory requirements.
• Sufficient time and resources were allocated to the audit, with timely delivery of agreed deadlines and milestones.
Communication
and interaction
• Timely and transparent communication with management and executive directors.
• Responsive to feedback from executive directors and the Committee.
Independence and
professional scepticism
• Auditor independence was clearly evidenced.
• Professional scepticism was evident, with robust challenge applied to management’s accounting
judgements and assumptions.
• Non-audit services were appropriately managed and charged.
Reporting
• Timely delivery of draft and final audit reports.
• Clear and consistent audit opinion reporting.
• Clear and constructive management representation letters.
Value and
overall assessment
• The audit provided assurance and insight beyond basic compliance.
• Demonstrated an understanding of shareholder and market expectations.
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.
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
(2024), 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 2025.
Non-audit services carried out by PKF Littlejohn
LLP in 2025
Fee
£000
Other assurance services 182
Appointment and tenure
Following a competitive tender PKF Littlejohn LLP was first
appointed as the Group's external auditor atthe Group's 2024
AGM for the financial year ended 31 December 2024. The
Group is required to undertake amandatory tender process at
least every ten years. Therefore, the Committee will be required
to conduct a tender for a new external auditor no later than
ahead of the financial year ending 31 December 2034.
Following the assessment of the independence, objectivity and
effectiveness of PKF Littlejohn LLP asexternal auditor
summarised above, and the conclusion thatthe Committee
remains satisfied with PKF Littlejohn LLP, the Committee does not
anticipate that a tender process will be conducted before it is
required. The Committee istherefore pleased to recommend
that PKF Littlejohn LLP bereappointed asthe Group’s auditor at
the 2026 AGM.
Having entered the FTSE 250 during the year, the Committee
confirms its compliance for the period since it became a FTSE
250 constituent to the financial year ended 31 December 2025
with The Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender Processes
and Audit Committee Responsibilities) Order 2014.
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 2025, 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
25 February 2026
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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 Remuneration Policy
2025
2026
2027
2028
2029
2030
Links to strategy Key features
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
Remuneration at a glance
Next Gen
financial
inclusion
Next Gen
organisation
Next Gen
technology
anddata
Our Next Gen strategy
For more information
see pages 4 to 11.
Outcomes
Long-term
profitable growth
RoRE
15% to 20%
Strong capital
generation
Total business return for all our shareholders
Pay for performance
Pre-exceptional profit before tax
£88.6m
+4%
Pre-exceptional earnings per share
26.3p
+5.6%
Group net receivables
£1,061.3m
+14%
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%
2023 Restricted Share Plan vested at 100.0% 100.0%
• 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
Our remuneration outcomes for 2025
Remuneration outcomes
Our 2026 Remuneration Policy at a glance
Committee members
Committee members
Aileen Wallace, 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 total number of scheduled (five)
and ad hoc (three) meetings held and the directors’
attendance during 2025.
Committee member Meetings
1
No. of
meetings
attended
% of
meetings
attended
Aileen Wallace
2
4 4 100%
Richard Holmes 8 8 100%
Stuart Sinclair 8 8 100%
Katrina Cliffe 8 8 100%
Deborah Davis
3
4 4 100%
Notes
1. The meetings that each individual was entitled to and had
theopportunity toattend as a member of the Committee.
2. Aileen Wallace was appointed to the Committee as Chair
in May 2025 following the 2025 AGM.
3. Deborah Davis stepped down as director from the Board
at the 2025 AGM.
“ Our Committee believes that our remuneration
framework and its alignment to our business model
and operating markets provides a compelling
recognition for our executives and underpins our
commitment to continued shareholder value.”
Aileen Wallace
Chair of the Remuneration Committee
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 2025. The report explains
how the Committee carried out its duties during the year and
the rationale for the decisions that were taken. It also includes
our proposed 2026 Remuneration Policy (the 2026 Policy),
which contains no material changes, reflecting our confidence
that the existing framework remains appropriate to attract
andretain the calibre of leadership needed to deliver the
Company’s Next Gen strategy, along with details of how
thepolicy will be implemented in the year ahead. Having
anopen dialogue with shareholders is important to us and
weappreciate their engagement throughout the year. In line
with regulations, our Remuneration Policy will be subject to
abinding vote at the 2026 AGM.
The report is divided into three sections:
1. Remuneration at a glance (on the left), illustrating how
ourNext Gen strategy aligns with our Remuneration Policy,
and the link between pay and performance;
2. Our new Directors’ Remuneration Policy (the 2026 Policy);
and
3. The 2025 Annual Report on Remuneration, providing detail
ofamounts paid during the reporting year, including
incentive outcomes and the planned implementation
ofPolicy in 2026.
Directors’ Remuneration Report
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Directors’ Remuneration Report continued
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 128 and 129.
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158); and
• our commitment to building a better world through financial
inclusion is demonstrated by our continued focus on
responsible business practices. This brings together our
environmental, social and governance priorities, and
embeds them in a number of metrics within executive
directors’ remuneration, aligning clearly to our purpose
andto the issues of that matter most to our key stakeholders,
including shareholders.
Business context
The Committee’s remuneration decisions in 2025 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 12%
and 14% respectively (at constant exchange rates (CER));
• strong customer repayment performance and robust credit
quality;
• disciplined execution of the Group’s Next Gen strategy; and
• robust funding position and strong balance sheet.
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 9.0 pence per share is proposed,
representing a year-on-year increase of 12.5%. This is in line with
our progressive dividend policy and brings the full-year
dividend to 12.8 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 20,000 employees and customer representatives, and to
provide the best possible opportunities for learning and
development. This was reflected in:
• launching an enhanced Senior Leadership Development
programme with LinkedIn Learning focused on building
consistent skills across the Group specifically to develop
strategic, commercial and future-ready capability;
• holding our fifth annual Global Learning Festival, a week-long
global event which attracted over 4,500 attendances with a
wide range of topics covered such as AI, cultural awareness,
and collaboration; and
• the 2025 Global People Survey was completed by over 91%
ofcolleagues, and reported positive engagement scores
of79.5% among employees and 81% among our customer
representative colleagues. Exploring four core dimensions –
pride, care, challenged and inspired – the results highlight
aculture in which colleagues feel valued, supported and
inspired to make a difference. More information can be
found on page 51.
Remuneration decisions made in 2025
As noted in the 2024 Directors’ Remuneration Report,
remuneration decisions included:
• a 2.5% 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3.0%, with salaries increasing to £629,428 and £365,521
respectively;
• financial year 2024 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 102
ofthe 2024 Annual Report and Financial Statements);
• Approved vesting of legacy PSP 2022 awards at 29.1%;and
• 2025 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 Remuneration Policy.
• Considered the impact of the recommended cash
acquisition of the Company by IPF Parent Holdings Limited
(BasePoint), a newly formed company in the same group
asBasePoint Capital LLC, on any in-flight share awards
andmade certain decisions in relation to the vesting of
theseawards. Further details can be found by reviewing
theco-operation agreement between BasePoint and
theCompany at ipfin.co.uk.
Implementation of Remuneration
Policy in 2026
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 £645,164 and £374,659 respectively;
• financial year 2025 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 154),
andeach executive director performing exceptionally well
against their personal objectives (see pages 165 and 166);
and
• 2023 Restricted Share Plan vested at 100% reflecting
performance against the Company's dividend policy
andthebroader basket of underpins as detailed in
the2023Remuneration Policy.
Progress in 2025
• In addition to the effective implementation of the 2023
Remuneration Policy, the Committee made good
progress on its principal goals for 2025;
• completed a comprehensive review of the Remuneration
Policy and consulted with shareholders presenting a new
2026 Policy ahead of the 2026 AGM; and
• prioritising the policies and practices as part of the
Group’s broader purpose agenda.
Key priorities for 2026
• effective implementation of the 2026 Policy; and
• continue to monitor broader market and governance
trends, and appropriate adaptation in line with
compliance requirements.
The Committee considered base salary increases in the context
of the business and external environment. Base salary increases
have been tailored in each market to reflect the local
macroeconomic climate, which 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.
As Chair of the Remuneration Committee, I wouldlike
topersonally extend my thanks to Deborah Davis for her
stewardship of this important area over many years.
TheRemuneration Committee gives thoughtful consideration
toour engagement with shareholders and looks
forwardtoreporting on progress in 2026.
Aileen Wallace
Chair of the Committee
25 February 2026
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Directors’ Remuneration Policy 2026
The Committee presents the 2026 Policy, which will be put to shareholders for a binding vote at the AGM to be held on 30 April
2026. In considering the Policy for our executive directors' remuneration we have reviewed the effectiveness of the Policy and
consider that no material changes are required at this time. Subject to shareholder approval, the effective date of the 2026
Policy will be 30 April 2026. The intention of the Committee is that the 2026 Policy will remain in place for three years from
thedateof its approval.
The 2026 Remuneration Policy table for the executive directors is set out 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%. The
Company may take a deduction
to the cash allowance to take
account of any additional
employer’s NIC and other
employment taxes incurred to
ensure consistency with the
treatment of the wider workforce.
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 Report continued
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% of base salary, 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.
Threshold bonus: 20% of maximum.
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% of base salary, 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
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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 end
of the three-year period subject to:
• the executive directors’
continued employment at the
date of vesting; and
• the satisfaction of an underpin
as determined by the
Committee, whereby the
Committee 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 or
payable on the shares that vest
inthe period up to vesting.
In normal circumstances, award
levels for executive directors
equivalent to 80% of base salary
atthe time of grant.
Rules permit annual grants up
toan individual 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 remains appropriate.
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 2025 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 are expected to
acquire a beneficial shareholding
over time.
Shares which have vested
unconditionally under the
Company’s share plans will be
taken into account with effect
from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% of base salary),
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 directors' 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.
2026 Remuneration Policy – non-executive directors
The Chair of the Board and executive directors review non-executive directors’ fees periodically in the light of fees payable in
comparable companies or to reflect changes in scope of role and/or responsibility, and to attract and retain high-calibre
non-executive directors. Non-executive directors receive no other benefits and take no part in any discussion or decision
concerning their own fees. The Committee reviews the Chair of the Board’s fees. Fees were last increased on 1 October 2013 for
the Chair of the Board and 1 January 2014 for non-executive directors. No increases in fees are proposed in 2026.
Element Purpose Operation
Fees To attract and retain a high-calibre Chair of the
Board and non-executive directors by offering
market-competitive fees.
Fees are paid on a per annum basis and are not varied for the
number of days worked.
The level of the Chair of the Board’s fee is reviewed periodically by the
Committee (in the absence of the Chair) and the executive directors.
As approved at the 2014 AGM, the maximum aggregate fee level for
all non-executive directors allowed by the Company’s Articles of
Association is £650,000.
The Senior Independent Director and Chairs of the Board Committees
are paid an additional fee to reflect their extra responsibilities.
Any non-executive director who performs services which, in the
opinion of the Board, go beyond the ordinary duties of a director,
may be paid such additional remuneration as the Board may authorise.
Fees are paid on a quarterly basis.
Shareholding
requirement
To support shareholder alignment by encouraging
non-executive directors to align with shareholder
interests.
Non-executive directors are expected to acquire a beneficial
shareholding equivalent to 100% of their director’s fee within three
years of appointment.
Directors’ Remuneration Report continued
Notes to the 2026 Remuneration Policy
Determination, review and implementation
The 2026 Remuneration Policy has been set following an
extensive review and shareholder consultation, considering
both the remuneration elements and overall balance necessary
to support and recognise the delivery of Group strategy. Willis
Towers Watson provided independent advice to the Committee
in formulating the 2026 Policy and the Committee will continue
to seek independent advice on key issues including, but not
limited to, ongoing implementation of the 2026 Policy.
The Committee is at pains to ensure that no conflict of interest
can arise in respect of its activities. Where necessary and
appropriate, input is sought from executive directors, senior
leadership team members and the Group Head of Reward.
Attendance at meetings is by invitation and no individual is
present when matters relating to their own remuneration are
being determined.
The Committee considers all relevant factors when determining
Policy outcomes, including but not limited to:
• in-year and long-term performance of the Group
and individuals;
• trading conditions;
• Group strategy;
• alignment with the wider workforce;
• alignment with the Company’s purpose; and
• remuneration trends, shareholder feedback and corporate
governance frameworks.
Performance measures and targets
The Committee selects annual bonus performance conditions
that are central to the achievement of the Company’s key
strategic priorities for the year, and reflect both financial and
non-financial objectives. The Committee’s consideration of
long-term incentive performance and vesting takes account
ofthe relevant underpins, which cover a range of indicators
oflong-term performance.
Performance targets are determined annually by the
Committee and are typically set at a level that is stretching
butachievable, considering our strategic priorities and the
economic environment in which we operate. Targets are
normally set with reference to a range of data points, including
the annual business budget, historical performance and our
responsible business priorities encompassing environmental,
social and governance (ESG) risks.
The Board believes the performance measures and targets for
the annual bonus are commercially sensitive and that it would
be detrimental to the interests of the Company to disclose them
during the financial year. This is particularly so because most of
our competitors are unlisted. However, the Committee commits
to making a comprehensive retrospective disclosure in respect
of performance against the targets set where the disclosure of
that information is no longer deemed commercially sensitive.
Malus and clawback
The circumstances when malus and clawback may apply
include, but are not limited to, the following:
• reasonable evidence of fraud;
• reasonable evidence of gross misconduct or gross
negligence by the participant;
• reasonable evidence of conduct by the participant
whichresults in significant losses or reputational damage
tothe Company or the Group, or has brought, or is likely
tobring, the Group or any member of the Group into disrepute
in any way;
• misleading data and/or there is an error in the information,
assumptions or calculations on the basis of which the award
was granted or paid out or vested;
• a material misstatement of the Group’s or any member
oftheGroup’s or business unit’s financial statements;
• there has been a significant downward restatement
ofthefinancial results of the Company;
• there has been a significant deterioration in the financial
health of the Group or any member of the Group resulting
insevere financial constraints on the ability to fund awards;
and/or
• any other circumstances which, in the Committee’s opinion,
justify the operation of malus and/or a clawback adjustment
in relation to the participant’s award.
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The clawback period for the RSP normally runs for two years
from the date of vesting and from the date of payment in the
case of the cash portion of annual bonus awards. For deferred
awards under the DSP, malus will apply for the duration of the
deferral period.
Discretions
The Committee will operate the annual bonus plan, RSP and
DSP according to their respective rules and in accordance
withthe Listing Rules where relevant. The Committee retains
discretion, consistent with market practice, in a number of
regards relating to the operation and administration of these
plans. These include, but are not limited to, the following in
relation to the RSP and DSP:
• the participants;
• the timing of grant of an award;
• the size of an award;
• the determination of vesting;
• discretion required when dealing with a change of control
orrestructuring of the Group;
• determination of the treatment of leavers based on the rules
of the plan and the appropriate treatment chosen;
• adjustments required in certain circumstances (for example:
rights issues, corporate restructuring events and dividend
equivalents); and
• the annual review of performance measures and weighting,
and RSP vesting assessment from year to year.
In relation to the annual bonus plan, the Committee retains
discretion over:
• the participants;
• the timing of the grant of an award/payment;
• the determination of the bonus payment;
• dealing with a change of control or restructuring of the Group;
• determination of the treatment of leavers based on the rules
of the plan and the appropriate treatment chosen; and
• the annual review of performance measures and weighting,
and targets for the annual bonus plan from year to year.
In relation to both the Company’s long-term incentive and
annual bonus plans, the Committee retains the ability to adjust
the performance targets if events occur which cause it to
determine that the targets are no longer appropriate (for
example: material acquisition and/or divestment of a Group
business), so long as the amendment will not make the target
materially less difficult to satisfy. Any use of this discretion would
be explained in the Directors’ Remuneration Report and may
be the subject of consultation with the Company’s major
shareholders.
The use of discretion in relation to the Company’s SAYE will be
in line with the governing UK legislation, HMRC rules and the
Listing Rules.
Illustrations of total remuneration opportunity
The charts on page 161 provide an illustration of the proportion
of total remuneration made up by each component of
theproposed 2026 Policy, together with the value of each.
Benefits are calculated as per the single figure of remuneration
and four scenarios have been illustrated: ‘Fixed’, ‘On-target’,
‘Maximum’ and ‘Maximum + 50% share price growth’. The
charts are indicative, as share price movement (other than
asindicated) and dividend accrual have been excluded.
Assumptions made for each scenario are as follows:
• Fixed: fixed remuneration only, i.e. latest known salary (2026),
benefits and pension.
• On-target: fixed remuneration plus on-target annual bonus
(50% of maximum) plus 80% of salary in RSP.
• Maximum: fixed remuneration plus full payout of all
incentives, that is 130% of salary in annual bonus, 80%
ofsalary in RSP.
• Maximum plus 50% share price growth: fixed remuneration
plus full payout of all incentives, that is 130% of salary in
annual bonus, 80% of salary in RSP. 50% assumed share price
growth over three-year RSP vesting period.
Approach to recruitment remuneration
The Committee’s approach to recruitment remuneration is to pay
no more than is necessary to attract appropriate candidates.
Starting salary will be set in accordance with the approved
remuneration policy, based on a combination of market
information, internal relativities and individual experience.
Thereafter, salary progression will depend on the initial agreed
base salary and the normal review process.
The maximum level and structure of ongoing variable
remuneration will be in accordance with the approved
remuneration policy, i.e. at an aggregate maximum of up
to130% in respect of annual bonus and, if necessary, 125%
inrespect of the RSP and/or cash awards at equivalent value.
For the avoidance of doubt, these limits shall not apply to any
replacement awards which the Committee may determine it
necessary to make to secure the services of a preferred candidate.
For external appointments, it may be necessary to buy out an
individual’s awards from a previous employer. The Committee
will seek to minimise the need for such arrangements and will
aim to recruit executive directors subject to the policy maximum
defined above. However, to be able to attract the required
calibre of talent, we may offer additional cash and/or
share-based elements when we consider these to be in
thebestinterests of the Group.
In doing so, the Committee would ensure that any such
payments have a fair value no higher than that of the awards
forgone including payments for any benefits in kind, pension
and other similar allowances, and reflect the delivery mechanism,
i.e. cash, shares and/or options, time horizons and expected
value (likelihood of meeting any existing performance criteria).
Replacement share awards, if used, will be granted using
existing share plans. Wherever possible, any new arrangements
will be tied into the achievement of Group targets in either the
annual performance bonus or long-term incentives, or both. Full
details will be disclosed in the Directors’ Remuneration Report
following the date of recruitment, which will provide explanations
in relation to the amount and delivery structure of the awards
made for the purposes of recruitment.
As shares under the RSP will not normally be released for up to
three years with a further two-year holding period for executive
directors, some cash-based interim, long-term arrangement
may be provided, but the level will not be more than would
otherwise have been paid. For internal appointments, any
variable pay elements awarded in respect of the prior role may
be allowed to pay out according to the terms of the plan,
adjusted as relevant to take account of the new appointment.
In addition, any other ongoing remuneration obligations
existing prior to appointment may continue.
Any new executive director will be subject to a maximum
annual pension contribution from the Company in line with
themost common rate for UK employees (currently 12%).
For both internal and external appointments, the Committee
may agree that the Company will meet certain relocation
expenses as appropriate.
Loss of office payments
Our policy is to limit severance payments on termination to
pre-established contractual arrangements. If the employment
of an executive director is terminated, any compensation
payable will be determined having regard to the terms of the
service contract between the Company and the employee, as
well as the rules of any incentive plans. Except in circumstances
of gross misconduct or voluntary termination, the Company
retains discretion to make ex-gratia payments where
considered reasonable and fair in the Committee’s opinion,
and to cover costs relating solely to termination of employment
by the Company. Example costs may include legal, tax and
outplacement services subject to such fees being de minimis
innature and in the best interests of the Company.
Under normal circumstances, good leavers who do not serve
notice are eligible to receive termination payments in lieu
ofnotice based on base salary and contractual benefits.
Normally, we expect executive directors to mitigate their loss upon
departure. In any specific case that may arise, the Committee
willconsider carefully any compensatory payments, having
regard to performance, service, health or other circumstances
that may be relevant.
In the event an executive director leaves for reasons of injury,
disability, change of control of the Company, or any other
reason which the Committee in its absolute discretion permits
(including death in service), any unvested PSP and/or RSP
awards will normally vest at the normal time following the end
of the performance period and be pro-rated for time.
Performance conditions would apply. However, awards will vest
early on death and the Committee has the discretion to allow
the award to vest early on cessation of employment. In this
event, the Committee will determine whether the performance
conditions are, or will be, met over such period as the Committee
determines appropriate, although the award will normally
bereduced on a pro-rata basis. RSP and legacy PSP awards
that have vested at the time of leaving will be retained and
exercisable for a limited period following leaving. The Committee
may determine that the holding period will no longer apply
ifthe director leaves for one of the reasons specified above.
When determining the treatment of outstanding awards for
exiting directors, the Committee will consider the executive
director’s level of performance and any contribution to a
transition. For all other leavers, outstanding RSP and legacy
PSPawards will lapse.
Approval for payments outside the
Remuneration Policy
Remuneration payments and payments for loss of office
todirectors can only be made if they are consistent with
theapproved Remuneration Policy or if an amendment to
thatPolicy authorising the Company to make the payment
hasbeen approved by shareholders.
Differences in remuneration policy for
all employees
All employees are entitled to base salary and benefits appropriate
to the market in which they are employed. The maximum
opportunity available is based on the seniority and responsibility
of the role. Long-term incentive awards are currently available
at the absolute discretion of the Committee to executive directors,
senior management, and other selected employees. The SAYE
is available to all UK employees. The Committee considers
wider workforce remuneration in determining executive director
policy and outcomes.
Policy on executive directors holding
external appointments
With the consent of the Board, executive directors may hold
one non-executive directorship in an individual capacity
andretain any fees earned.
Directors’ Remuneration Report continued
Total remuneration illustration
Chief Financial OfficerChief Executive Officer
Fixed
On-target
Maximum
Maximum with 50% share price increase
88%
39% 4% 1% 25% 31%
31% 3% 1% 40% 25%
27% 3% 1% 36% 33%
9%
3%
£0.7m
£1.7m
£2.1m
£2.3m
£0.0m
£0.5m £1.0m £1.5m £2.0m
£2.5m
£0.0m
£0.3m £0.6m £0.9m £1.2m
£1.5m
Fixed
On-target
Maximum
Maximum with 50% share price increase
86%
38% 4% 2% 25% 31%
31% 3% 1% 40% 25%
27% 3% 1% 36% 33%
9%
5%
£0.4m
£1.0m
£1.2m
£1.4m
Base Salary Pension Benefits Bonus RSP
Annual Report and Financial Statements 2025
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Statements
Supplementary
Information
Strategic
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Directors’
Report
Annual Directors' Remuneration Report 2025
Remuneration principles and alignment with strategy
As explained in the Committee Chair’s opening statement on pages 153 to 155, 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 158), 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 continued focus on being a
responsible business which brings together our environmental, social and governance priorities and embeds those in a number
of appropriate metrics 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 held five scheduled meetings in 2025, with consideration given to a range of issues as illustrated below:
Governance Annual bonus Share plan Other
Policy
Directors’
Remuneration
Report Design Performance Grant Performance Salary
Wider
Workforce Shareholder
January
•
February
• • • • • •
April
•
September
•
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. The committee also met three times
onanad hoc basis to discuss matters in relation to the recommended cash acquisition of the Group by IPF Parent Holdings
Limited (BasePoint), a newly formed company in the same group as BasePoint Capital LLC.
Adviser to the Committee
Willis Towers Watson, appointed in April 2016, provides independent remuneration advice to the Committee. During 2025, total
fees in respect of advice to the Committee (based on time and materials) totalled £47,500 (excluding VAT), (2024: £34,125).
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 and letters of appointment
for non-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 will retire at the 2026 AGM
and submit themselves for re-election by shareholders at the AGM on 30 April 2026. 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
Non-executive director Date of appointment
Stuart Sinclair March 2020
Richard Holmes March 2020
Katrina Cliffe August 2022
Aileen Wallace December 2022
Deborah Davis was appointed as non-executive director in October 2018 and stepped down from the Board in May 2025.
Single figure of total remuneration (audited information)
The following table sets out the single figure of total remuneration for directors for the financial years 2024 and 2025.
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)
2025 2024 2025 2024 2025 2024 2025
2
2024
3
2025 2024 2025 2024 2025 2025 2025 2024
Executive directors
Gerard Ryan 626 608 25 40 813 790 1,417 594 66 64 2,947 2,096 717 712 2,230 1,384
Gary Thompson 363 353 22 23 472 459 806 143 40 38 1,703 1,016 425 414 1,278 602
Non-executive
directors
Stuart Sinclair 200 200 – – – – – – – – 200 200 200 200 – –
Deborah Davis
4
22 65 – – – – – – – – 22 65 22 65 – –
Richard Holmes
5
70 70 – – – – – – – – 70 70 70 70 – –
Katrina Cliffe
6
75 75 – – – – – – – – 75 75 75 75 – –
Aileen Wallace
7
62 55 – – – – – – – – 62 55 62 55 – –
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 2025 relates to the RSP award granted in 2023, the performance period for which is the three
financial years ending 31 December 2025. The awards have been valued according to an estimate based on expected vesting and the 1-month
average share price to 31 January 2026. This value also includes the anticipated value of dividend equivalents that will be payable in 2026,
relating to the 2023 Deferred Share Plan and 2023 Restricted 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 167.
3. The value of the awards included in the table for 2024 has been reviewed to reflect the actual value of awards at date of vesting and any dividend
equivalents received in 2025 when the awards became exercisable.
4. Deborah Davis stepped down from the Board in May 2025 and both fees of £10,000 in her capacity as Chair of the Remuneration Committee
andher base fee of £55,000 were pro rata.
5. 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.
6. 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.
7. Aileen Wallace was appointed Chair of the Remuneration Committee in May 2025 and the additional fee was pro rata, in addition to her base fee
of £55,000.
Directors’ Remuneration Report continued
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Additional disclosures for the single figure of total remuneration
Base salary
The base salary of the Chief Executive Officer increased by 2.5% in 2025 to £629,428, in line with the typical annual salary increase
of the wider UK workforce.
The base salary of the Chief Financial Officer increased by 2.5% in 2025 to £365,521, in line with the typical annual salary increase
of the wider UK workforce.
Benefits
The benefits provided to the executive directors in 2025 included: private healthcare, life assurance, annual medical cover,
long-term disability cover, and a cash allowance in lieu of a company car.
Determination of 2025 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 2025, 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 2025 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 2025 were as follows:
Metric
Weighting in
Scheme Threshold Target Stretch Achievement
Bonus payment % of
bonusable base salary
Financial
1
Group PBT 80% £80.0m £84.2m £88.4m £88.6m 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 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 2025, the Group delivered a strong financial performance, with pre-exceptional profit before tax up 4% year on year to £88.6m.
In addition to this improvement in profit before tax, each executive director performed exceptionally well against their personal objectives
as summarised on pages 165 and 166. As a result, the Committee did not apply any discretion to the formulaic bonus outcomes.
Personal objectives
The following tables explain the objectives that were set for each executive director in 2025 and achievement against them.
Gerard Ryan – Chief Executive Officer
Category Objective Weighting Results Achievement
Deliver strong
Group
performance
and financial
discipline
• Deliver strong Group performance
while executing the Next Gen
strategy, operating within the
Board-approved risk appetite
andmaintaining appropriate
financial discipline.
20%
• Group performance was delivered ahead of the
Board-approved plan, supporting continued progress
against the Next Gen strategy while operating within
the Group’s agreed risk appetite.
Deliver
enhanced
customer
value through
the Next Gen
strategy
• Execute the Next Gen strategy
toexpand customer choice,
improve value and accessibility,
and support responsible,
purpose-led growth.
20%
• Delivery of the Next Gen strategy progressed across
priority customer propositions during the year.
Inparticular, we advanced development of
customer-focused growth opportunities such as credit
cards, digital lending and retail partnerships, supporting
stronger organisational alignment around customer
value priorities.
Strengthen
organisational
capability,
leadership and
culture
• Build a scalable and effective
organisation with strong
leadership capability, succession
and engagement to support
delivery of the Group’s strategy.
15%
• A significant uplift in capability was delivered across
the senior leadership population, supported by the
rollout of LinkedIn Learning pathways to strengthen
both current performance and future readiness.
• The High Potential Senior Successor programme
continued to deliver strong outcomes, with three
participants progressing into their designated roles,
further strengthening the internal leadership pipeline
and demonstrating the effectiveness of the Group’s
succession approach.
Modernise the
Group’s
operating
platform and
enable
transformation
• Ensure Group technology, data
and transformation capability
supports delivery of the Next Gen
strategy and long-term
organisational resilience.
15%
• Strengthened the Group’s transformation governance
and delivery capability, establishing the foundations
for more effective execution of complex,
cross-functional change programmes.
• Key decisions were progressed to modernise the
Group’s technology and data platforms, alongside
continued work to improve data governance, embed
AI within business operations and prepare the
organisation for large-scale transformation.
Evaluate
strategic
options and
drive long-term
shareholder
value
• Ensure the Group actively
evaluates strategic options to
maximise long-term shareholder
value, supported by robust
governance and Board
engagement.
15%
• Undertook a structured and well-governed evaluation
of strategic options for the Group, with the Board fully
engaged throughout. This was progressed in a manner
that safeguarded ongoing business performance
while supporting informed consideration of long-term
shareholder value.
Responsible
business,
ethics, and
sustainable
governance
• Oversee the effective delivery of
the Group’s Responsible Business
Framework, ensuring strong
governance, ethical conduct and
compliant sustainability reporting
in line with regulatory
requirements and the Group’s
broader strategy.
15%
• The Board approved the 2025–26 Responsible
Business Strategy, and all priority actions from the
2024–25 Responsible Business Strategy were delivered
as planned.
• The Group strengthened its approach to ethics
through enhanced governance and reporting
arrangements, targeted awareness activity for
employees and agents globally, and the approval
ofa Group Code of Ethics by the Board.
• The Group reported sustainability performance
requirements incompliance with applicable CSRD.
Key
Criteria met
Criteria partially met
Criteria not met
Directors’ Remuneration Report continued
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Bonus outcomes for 2025
For the year ending 31 December 2025, 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 2028
£000
Total value of 2025
annual bonus
£000
Cash and DSP
shares awarded as
a % of maximum
available bonus
Gerard Ryan
1
104% 26% £610.0 £203.3 £813.3 100%
Gary Thompson 104% 26% £236.1 £236.1 £472.2 100%
1. Gerard Ryan has met the executive director shareholding requirement in 2025, therefore 25%, rather than 50%, of bonus is deferred in line
withpolicy.
In accordance with the 2023 and proposed 2026 Remuneration Policies, 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 base 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 UK workforce. At the discretion of the Committee, this may be paid wholly,
orinpart, as a cash allowance. The Company may make a deduction to the cash allowance to take account of any additional
employer’s NI contributions or taxes incurred to ensure consistency with the wider workforce.
The Company’s contributions in respect of Gerard Ryan during 2025 amounted to £65,967, all of which was paid as a cash
allowance. The Company’s contributions in respect of Gary Thompson during 2025 amounted to £39,521, of which £29,521
waspaid as a cash allowance.
Long-term incentives
Awards estimated to vest during 2026 (included in 2025 single figure)
The LTIP amount included in the 2025 single figure table on page 163 relates to the RSP awards granted in May 2023. As set outin
the 2023 Annual Report and Accounts, the 2023 RSP awards were subject to a quantifiable financial underpin in addition toa
basket of underpin factors.
IPF achieved the financial underpin, having maintained its stated dividend policy throughout the 3-year vesting period.
The Committee also reviewed performance over the vesting period against the basket of underpin factors set at grant, and was
satisfied that performance had been sufficient to warrant 100% vesting of the awards.
The underpin factors that applied include:
• no windfall gains in association with share price movements
• no material sanctions or fines were issued by a regulatory body
• no material damage was inflicted on the company's reputation
• satisfactory employee and customer engagement
The Committee were satisfied that the vesting was appropriate in the context of Group performance over the period and so did
not exercise any discretion in relation to the vesting outcome.
Gary Thompson – Chief Financial Officer
Category Objective Weighting Results Achievement
Deliver strong
Group
performance
through
effective
financial
stewardship
• Deliver strong Group performance
while executing the Next Gen
strategy, operating within the
Board-approved risk appetite and
maintaining appropriate financial
discipline.
25%
• Group performance was delivered ahead of the
Board-approved plan, with financial discipline
maintained to support continued progress against the
Next Gen strategy while operating within the Group’s
agreed risk appetite.
Ensure the
business
operates with
robust financial
management
and control
• Ensure the Group operates with
robust financial management
and control across key financial
levers, in support of sustainable
shareholder value.
25%
• During the year, the Group operated with robust
financial management and control, maintaining a
sustained focus on revenue quality, cost control, credit
performance and funding efficiency in support of
sustainable shareholder value.
• Financial outcomes were underpinned by effective
management of key financial levers, including funding
and tax, with the effective tax rate delivered ahead of
plan and the Group achieving its lowest margin since
pre-Covid on the most recent Nordic bond issuance,
reinforcing resilience, credibility and control across
theGroup.
Build a
high-
performing
Finance
function and
leadership
culture
• Build a high-performing Finance
function with strong leadership
capability, a robust succession
pipeline and the capacity to
support complex, cross-functional
delivery.
20%
• Further progress was made in strengthening Finance
capability and leadership depth, with a sustained focus
on developing high performers and building a robust
pipeline of future leaders to support the Group’s
long-term ambitions.
• The Finance Leadership Team played an active and
visible role in supporting major cross-functional and
cross-divisional initiatives, contributing to strong
alignment and effective delivery across the Group’s key
strategic priorities.
Enable Group
transformation
through
technology
and data
leadership
• Provide financial leadership and
oversight of technology and
change investment, ensuring that
Group technology transformation
capability supports delivery of the
Next Gen strategy and long-term
organisational resilience, with
disciplined capital allocation and
clear line of sight to value creation.
15%
• Progressed a record level of investment in technology
and transformation. Financial leadership was provided
to support major technology and change decisions,
with all investment subject to rigorous business-case
evaluation, strengthening oversight of capital allocation
and ensuring a clear line of sight to long-term value
delivery.
• Strong progress was made in establishing stronger
foundations for future efficiency, scalability and control
through the modernisation of Finance and HR systems,
and the development of supporting data capabilities.
Responsible
business,
ethics, and
sustainable
governance
• Support and provide appropriate
challenge to the Group’s
sustainability reporting and
disclosures, contributing financial
and governance oversight to
ensure alignment with regulatory
requirements, robust controls and
consistency with the Group’s
broader strategy.
15%
• Provided effective support and constructive challenge
to the Group’s sustainability reporting process,
contributing financial expertise and governance
perspective to enhance the quality and robustness
ofdisclosures.
• Financial reporting disciplines, controls and assurance
approaches were applied, where appropriate,
tosustainability reporting to support accuracy,
consistency and regulatory compliance, including
CSRD requirements.
• Collaborated with the Chief Legal Officer and other
senior leaders to ensure sustainability reporting
wasaligned with the Group’s strategy, risk appetite
andexternal reporting obligations.
Key
Criteria met Criteria partially met Criteria not met
Having reviewed the executive directors’ performance against their personal objectives, and in the context of the progress made
by the Group in 2025, 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. The
Committee were satisfied that the bonus outcome was appropriate in the context of overall Group performance in 2025 and
therefore no Committee discretion was exercised.
Directors’ Remuneration Report continued
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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 2025. 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
Awards granted in 2025
Executive directors were granted long-term incentive plan awards structured as RSP conditional awards in December 2025,
inlinewiththe 2023 Remuneration Policy. The awards were made at the earliest opportunity following approval by the Committee
in accordance with the agreement in relation to potential cash acquisition. The resulting number of RSP conditional awards and
associated underpin factors are set outbelow.
Name
Number of RSP
conditional
awards
Face value
1
£
Percentageof
base salary
End of
performance
period
Performance
underpin
Gerard Ryan 367,447 £503,542 80% 31 December 2027
Adherence to the Group’s dividend policy and a
further basket of underpin factors for the relevant
three-year vesting period (see page 158)
Gary Thompson 213,384 £292,417 80% 31 December 2027
Adherence to the Group’s dividend policy and a
further basket of underpin factors for the relevant
three-year vesting period (see page 158)
1. The face value was calculated using the 30 day average to 31 March 2025, being 137.04 pence per share.
DSP
In 2025, 25% of 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 2024 was deferred into shares. There are no further performance conditions attached
tothe vesting of the deferred shares. The awards were made at the earliest opportunity following approval by the Committee in
accordance with the agreement in relation to potential cash acquisition. 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 29 December 2025 £197,440
Gary Thompson 29 December 2025 £229,299
1. The face value was calculated using the 30 day average to 21 March 2025, being 137.04 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 Company did not launch
aSAYE plan in 2025, therefore no options were granted to them under the plan in 2025.
Loss of office payments
No loss of office payments were made in 2025.
Payments to past directors
There were no payments made to past directors in 2025.
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 2025 vs. 2024
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
Base
salary Benefits
1
Bonus
2
Executive directors
Gerard Ryan
3
0% 0% 100% 5% (1%) 5% 5% 110% 6% 4% (26%) 4% 3% (32%) 3%
Gary Thompson N/A N/A N/A N/A N/A N/A N/A N/A N/A 4% 2% 4% 3% (4%) 3%
Non-executive directors
Richard Holmes N/A N/A N/A 15% N/A N/A (2%) N/A N/A N/A 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 N/A N/A N/A
Katrina Cliffe N/A N/A N/A 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
4
N/A N/A N/A N/A N/A N/A N/A N/A N/A (3%) N/A N/A N/A N/A N/A
Employees (2%) (2%) 100% 15% 3% 1% 8% 7% (16%) 6% 2% (4%) 7% 1% 25%
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 included additional costs 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. Aileen Wallace was appointed to the Chair of the Remuneration Committee with effect from 1 May 2025, receiving pro rata fees in 2025. As such,
the percentage change is not reflective of a normal year-on-year comparison.
Directors’ Remuneration Report continued
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)
2025 Gerard Ryan 2,947 100.0% 100.0%
2024 Gerard Ryan 2,096 100.0% 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%
Relative spend on pay
The table below shows the expenditure and percentage change in overall spend on employee remuneration and dividend:
2025
£m
2024
£m
Percentage
change
Overall expenditure on pay 211.7 200.3 5.7%
1
Dividend paid in the year 25.8 23.9 7.9%
1. The percentage change at a constant exchange rate is 7.2%.
Other directorships
Neither executive director currently holds any external directorships or external appointments.
50
100
150
250
200
300
TSR
£500
£1,000
£1,500
£2,000
£3,000
£2,500
CEO Single Figure £ 000
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 202531 Dec 2024
CEO single figure (£’000) International Personal Finance FTSE 250
Annual Report and Financial Statements 2025
169
International Personal Finance plc
168
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Directors’
Report
Date of
award
Awards held at
31 December
2024
Awarded
in 2025
Exercised
in 2025
Lapsed /
Surrendered
in 2025
Awards held at
31 December
2025
Performance
condition
period
Market price
at date of
grant (p)
Exercise
price
(p)
Exercise
period
Gary Thompson
PSP 05 Apr 22 383,105 – – 271,621 111,484
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
RSP 29 Dec 25 – 213,384 – – 213,384
01 Jan 2025
– 31 Dec
2027 137 –
29 Dec 2028
– 28 Dec
2035
Deferred 03 Apr 23 157,425 – – – 157,425 – 103 – –
Deferred 20 Mar 24 195,690 – – – 195,690 – 112 – –
Deferred 29 Dec 25 – 167,325 – – 167,325 – 137 – –
SAYE 26 Aug 22 24,000 – – – 24,000 – – 75
01 Nov 2025
– 31 May
2026
Total 1,282,044 380,709 – 271,621 1,391,132
Share dilution
During 2025, the Company operated within the standard guidelines of 10% of issued ordinary share capital in respect of the share 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 2025 AGM respectively, including the percentage of total votes cast and number
of votes withheld:
AGM Votes for Votes against Withheld
1
2025 Annual Remuneration Report 146,713,068 99.56% 647,193 0.44% 113,873
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.
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 2025 (together with
interests held by his or her persons closely associated) are shown in the table below. 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 1,266,027 676,444 – 343,049 377,701 200 735% Y
Gary Thompson 165,700 735,208 520,440 – 111,484 24,000 200 106% N
Non-executive directors
3
Katrina Cliffe 40,000 – – – – – 100 125% Y
Deborah Davis
4
60,000 – – – – – 100 216% Y
Richard Holmes 275,133 – – – – – 100 920% Y
Stuart Sinclair 130,050 – – – – – 100 152% Y
Aileen Wallace 47,835 – – – – – 100 172% Y
1. Based on a share price of 234 pence, being the closing price on 31 December 2025 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, all of them 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.
4. Deborah Davis stepped down from the Board at the conclusion of the 2025 annual general meeting. This reflects the number of shares held
asat1 May 2025.
There were no changes to these interests between 31 December 2025 and 25 February 2026.
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 2026 Remuneration Policy
which can be found on pages 156 to 159 of the 2025 Annual Report and Financial Statements, also 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
2024
Awarded
in 2025
Exercised
in 2025
Lapsed /
Surrendered
in 2025
Awards held at
31 December
2025
Performance
condition
period
Market price
at date of
grant (p)
Exercise
price
(p)
Exercise
period
Gerard Ryan
PSP 10 Mar 22 1,178,864 – – 835,815 343,049
01 Jan 2022
– 31 Dec
2024 97 –
10 Mar 2025
– 09 Mar
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
RSP 29 Dec 25 – 367,447 – – 367,447
01 Jan 2025
– 31 Dec
2027 137 –
29 Dec 2028
– 28 Dec
2035
Deferred 10 Mar 22 377,701 – – – 377,701 – 97 – –
Deferred 03 Apr 23 363,878 – – – 363,878 – 103 – –
Deferred 20 Mar 24 168,489 – – – 168,489 – 112 – –
Deferred 29 Dec 25 – 144,077 – – 144,077 – 137 – –
Total 2,987,512 511,524 – 835,815 2,663,221
Directors’ Remuneration Report continued
Statement of Remuneration Policy
implementation for 2026
The base salary for the Chief Executive Officer will increase
by2.5% to £645,164.
The base salary for the Chief Financial Officer will increase
by2.5% to £374,659.
Maximum bonus opportunity will be 130% of base salary (on
target 50% of maximum), in line with the 2023 and proposed
2026 Policies, with performance measures weighted 80% financial
and 20% personal and strategic, also in line with the 2023 and
proposed 2026 Policies. 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 2026 RSP awards prior to the
2026 AGM in accordance with the 2023 and proposed 2026
Remuneration Policy. For details on the effect of the transaction
on all outstanding awards please refer to the co-operation
agreement and associated scheme documents.
The central, quantifiable financial underpin for 2026 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
Aileen Wallace
Chair of the Committee
25 February 2026
Annual Report and Financial Statements 2025
171
International Personal Finance plc
170
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Directors’
Report
Statutory information
The Directors’ Report for the year ended 31 December 2025
comprises pages 126 to 177 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 UK Listing Rules (UKLR).
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 33).
• The financial position of the Group (see pages 30 to 33).
• Greenhouse gas emissions (see page 74).
• Employee engagement and involvement
(see pages 50 to 55).
• Engagement with customers, suppliers and others in a
business relationship with the Company (see pages 43 to 65).
• A summary of the principal risks facing the Company
(see pages 37 to 40)
• The S172(1) statement (see page 64).
• Information on political donations (see page 63).
Disclosures required under UKLR 6.6.1 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 (3) Details of long-term incentive
schemes as required by
UKLR 9.3.3 R
Not applicable
Sub-para (4)
and (5)
Waiver of emoluments
and future emoluments
by a director
Not applicable.
Sub-para (6)
and (7)
Non pre-emptive issues
of equity for cash
Not applicable.
Sub-para (8) Parent participation in a
placing by a listed subsidiary
Not applicable.
Sub-para (9) Contracts of significance Not applicable.
Sub-para (10) Provision of services by a
controlling shareholder
Not applicable.
Sub-para (11)
and (12)
Shareholder waiver
of dividends and
future dividends
Statutory
information,
page 175
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 all
directors in office at the date of the notice convening the
annual general meeting shall retire from office and may offer
themselves for re-appointment by the members.
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. In doing so, the
Committee considered guidance from proxy agencies when
determining the policy for additional time commitments.
The Committee was satisfied that each director continues
to contribute the time required to fulfil their duties to the
Company and its shareholders, and that the number of
additional commitments held by each director remained
appropriate. Based upon the evaluation of the 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 2026 AGM.
In line with the Code, non-executive directors are required
to seek 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 143. In reviewing
suchappointments, the Committee considers the total time
commitment which an additional appointment would create,
the directors’ other additional appointments and whether the
proposed appointment would create a conflict of interest.
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are provided 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
and at their annual performance evaluation. Specific Board
training sessions carried out during the year included:
• an overview of how businesses can derive value from
Generative AI; and
• an overview of the enterprise resource planning system
beingimplemented across the Group.
As well as these training sessions, the Board regularly invites
subject matter experts to meetings to provide briefings. More
information on knowledge sharing can be found on page 101.
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 2025, 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 2026 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 can be found in the Nominations and
Governance Committee report on page 141.
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 will seek re-election
at our AGM on 30 April 2026. Details of the directors can be
found on pages 128 to 129.
Shares in issue
As at 31 December 2025, the issued share capital was
224,610,034 ordinary shares of 10 pence each of which
4,777,987 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 below. 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
in the Articles.
Restrictions on transfer of shares
and limitations on holdings
There are no restrictions on the transfer or limitations
on the holding of ordinary shares other than under the
Articles or under restrictions imposed by law or regulation.
The Articles set out the directors’ rights of refusal to effect
a transfer of any share.
Authority to purchase own shares
At the 2025 AGM, we received shareholder authority to buy
back up to 21,743,876 of the Company’s shares until the earlier
of the conclusion of the 2026 AGM or 30 June 2026. Shares
purchased can be cancelled or held in treasury. This authority
was not exercised in 2025. A further authority to purchase our
own shares will be sought at the 2026 AGM.
Annual Report and Financial Statements 2025
173
International Personal Finance plc
172
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
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
(EMTN) programme, which was
established in 2010, entitles any holder of a note to require us
to redeem that holder’s notes if there is a change of control
2
and, following such change of control, the notes or the issuer
(as applicable) 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
a takeover.
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 9.0 pence per share has been proposed
bringing the full-year dividend to 12.8 pence per share. Subject
to approval by shareholders at the 2026 AGM, the final dividend
will be payable on 8 May 2026 to shareholders on the register
of members on 27 March 2026. The shares will be marked
ex-dividend on 26 March 2026 and the deadline to elect for
theDividend Reinvestment Plan (DRIP) is 10 April 2026.
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.
Important events since
31 December 2025
Details of important events affecting the Group since the
financial year-end can be found in note 34.
Future developments
Details of any likely future developments in the Group’s business
can be found on page 33.
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 2025, the trustees held 476,104 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 2025 are set out
inthe Directors’ Remuneration Report on page 168.
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.
Authority to issue shares
At the 2025 AGM, an ordinary resolution was passed
authorising the directors to issue new shares up to an
aggregate nominal amount of £7,247,958, 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 £7,247,958 representing approximately
a further 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
2026 AGM. Further details can be found in the separate notice
of meeting.
Interest in voting rights
As at 31 December 2025, 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
Blackrock Inc. 16/07/2009 4.54
Old Mutual Asset Managers (UK)
LTD
12/04/2010 4.88
BNP Paribas Investment Partners 08/07/2015 3.02
FMR LLC 10/01/2018 5.28
Mr Hendrik Marius van Heyst 09/11/2020 3.02
Pendal Group Limited 27/02/2022 6.20
Schroder Investment Mgt/
Schroders plc
08/09/2022 7.36
Marathon Asset Management
Limited
25/09/2024 4.88
abrdn plc 16/04/2025 Below 5
Artemis Investment Management
LLP
02/05/2025 13.22
Aberforth Partners LLP 24/09/2025 4.80
Perpetual Limited 03/12/2025 5.13
Janus Henderson Group plc 30/12/2025 4.74
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 the following notifications since the 2025 year end.
Name Date notified
% of issued
share capital
1
Perpetual Limited
12/01/2026 4.30
Schroders Plc
16/01/2026 4.25
Bank of America
Corporation
21/01/2026 2.52
Sand Grove Capital
Management LLP
09/02/2026 5.00
HSBC Holdings plc
10/02/2026 10.10
Morgan Stanley & Co.
International plc
11/02/2026 6.09
J.P. Morgan Securities plc
12/02/2026 6.11
Societe Generale
13/02/2026 4.59
Voting rights
There are no restrictions on voting rights except as set out in the
Articles. Electronic and paper proxy appointments, and voting
instructions must be received by the Company’s registrar not
less than 48 hours before a general meeting (or such shorter
time as the Board may determine) and the Board may exclude
non-working days in its calculation. The Company 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 are currently directors of the Company
can be found on pages 128 to 129. Deborah Davis also served
as a director up until the conclusion of the 2025 Annual
General Meeting.
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 2025 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
on conflicts of interest and established a register of conflicts.
The directors consider that these procedures have operated
effectively in 2025 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.
1. The Euro Medium Term Note programme was established in 2010. The following notes (listed on the London, Euronext Dublin or Frankfurt
OpenMarket Freiverkehr) stock exchanges) have been issued under the programme and are outstanding as at the date of this report: £80m
witha 2027 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 maturity and a 11.50% coupon; €341m with a 2029 maturity and a 10.75% coupon; and SEK 1bn with a 2028 maturity and a coupon
ofthree-month STIBOR plus a margin of 5.75%.
2. This provision is not applicable to the €11.6m notes with a 2026 maturity and a 11.50% coupon.
Annual Report and Financial Statements 2025
175
International Personal Finance plc
174
Statutory information continued
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
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future developments
Details of important events affecting the Group since the
financial year-end can be found in note 34. Information
on indications of future developments is provided in the
Strategic Report.
Responsibility statement
Each of the persons who is a director at the date of approval of
this report (and whose name and function is set out on pages
128 and 129) confirms to the best of his/her knowledge that:
• 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
this report 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 are undertaken by the
reporting team, leadership team and executive directors. In
advance of final consideration by the Board, the Annual Report
is 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
is no 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
the Company’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 33 and 41.
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 2025 to the date of this Annual Report and Financial
Statements, and is satisfied that they are effective.
By order of the Board
Tom Crane
Company Secretary
25 February 2026
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.
Provident Europe
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 (Provident Polska S.A.) – (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 (Register of payment
service providers).
Poland (IPF Polska Sp. z o.o.) – (i) as a credit intermediary
registered in the special register of credit intermediaries
maintained by the KNF; (ii) as a payment agent registered
inthe Register of payment service providers, register kept
andsupervised by 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.
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 149.
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.
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Statutory information continued
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Supplementary
Information
Strategic
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Directors’
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Financial Statements continued
Financial
Statements
and Auditor’s
Report
Independent Auditor’s Report 180
Consolidated income statement 187
Statements of comprehensive income 187
Balance sheets 188
Statements of changes in equity 189
Cash flow statements 191
Notes to the Financial Statements 192
Alternative performance measures 231
Kornél has relied on us to help manage important
needs over the years, from buying a car to planning
a family holiday. What he values most is having a
customer representative, who visits regularly, explains
options clearly and helps him make informed decisions
that fit his circumstances.
“The personal connection with my
customer representative makes all
the difference – he visits promptly,
keeps me informed of offers and
never pushes.”
When personal
service makes
the difference
Annual Report and Financial Statements 2025
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International Personal Finance plc
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178
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Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Independent Auditor’s Report to the
Members of International Personal
Finance plc
180
International Personal Finance plc
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 2025 which comprise the consolidated income statement, the consolidated and parent company
statements of comprehensive income, the Group and company balance sheets, the Group and company statements of changes in
equity, 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
2025 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 key inputs and 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 test 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 including discussing the proposed cash offer for IPF;
– assessing the impact that changes/new legislation and regulations have on the Group’s and parent company’s ability to continue as
a going concern;
– assessing the impact of subsequent events, if any; and
– evaluating 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 2025
181
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
£
8.20m (2024: £7.20m)
£5.
00m (2024: £5.99m)
Basis for determining
overall materiality
1.5%
(2024: 1.5%) of net assets
1.5%
(2024: 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
.
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
£5.33m (2024:
£3.60m)
£3.25m (2024:
£2.99m)
Basis for determining
performance
materiality
65%
(2024: 50%) of overall materiality
65%
(2024: 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.
We have increased performance materiality to
65%
in the current year reflecting our enhanced
understanding of the Group operations, control
environment and financial
reporting processes.
In determining performance materiality, we considered a number of factors,
including risk assessment and aggregation risk as well as the external risks that
the
parent company is exposed to, which could impact its subsidiaries.
Consistent with the
benchmark applied for the Group, we believe that 65% of
overall materiality
is appropriate.
Triviality
We agreed with the Audit and Risk Committee that we would report all audit differences in excess of £410,000 (2024: £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.
Financial Statements
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Directors’
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Financial
Statements
Supplementary
Information
Strategic
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Financial
Statements
Financial Statements continued
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182
International Personal Finance plc
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 effective interest rate (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 operating
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 Collect Credit” division, which included the Home Credit
Businesses in Poland, Czech Republic, Romania, Hungary and Mexico, and one further component 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 98% of the Group revenue and 100% of the Group
amounts receivable from customers.
Revenue
Amounts receivable
from customers
Full scope audit including direct testing by Group auditor 91% 88%
Specified audit procedures 7% 12%
Review procedures performed at Group level 2% –
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 which would result in the audit team not being able to place reliance on these controls, where deficiencies were identified,
management were able to provide mitigation controls. As a result, there was no change in our audit approach.
Management’s own evaluation of the Group control environment is included in the audit and risk committee’s report on page 149.
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 Group 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 2025, 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 112 to 123 of the ‘TCFD report’ sections of the Annual Report.
Annual Report and Financial Statements 2025
183
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
Financial instruments. EIR
accounting requires significant judgement including the treatments on
certain fees and costs and whether they are integral to the loan
contract, the consideration of the length of the product including early
settlement behaviour and rebates and the a
ppropriate 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 148 and within the key sources of
estimation uncertainty note on
page 198.
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.
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Financial
Statements
Supplementary
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Strategic
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Financial
Statements
Financial Statements continued
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184
International Personal Finance plc
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
im
pairment 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 avai
lable to management.
We have determined our significant audit risk in the current year to
be the valuation of management’s material post
-model
adjustments
, including material movements in the year, ensuring
that they are appropriate
ly supported based on recent customer
repayment performance and
behaviour.
Impairment of amount receivable from customers is further
described in the
Audit and Risk Committee’s Report on page 148
and within the key sources of estimation uncertainty note on
page
198.
Our audit procedures to address this matter included:
– Testing the design, implementation and operating effectiveness of key controls
relevant to the impairment cycle;
– Engaging our data analytics 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 collect 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;
– Reviewing and challenging 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 impai
rment
loss.
Impairment of investments in subsidiaries is further described within
the accounting policies on
page 195 and key sources of
estimation uncertainty note on
page 199. Also refer to note 13 to
the
Financial Statements.
Our audit procedures to address this matter included:
– 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
impairment 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 the
proposed takeover offer; 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 Financial 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 2025
185
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
from 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 33;
– 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 41;
– 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 41;
– 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 151;
– Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 35;
– The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set out on
page 149; and
– The section describing the work of the audit and risk committee set out on page 147.
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.
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Strategic
Report
Financial
Statements
Financial Statements continued
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International Personal Finance plc
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, including those relating to
customer lending, 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 and 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 two years, covering the periods
ended 31 December 2024 to 31 December 2025.
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 151, 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 and risk 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.
James Wilkinson (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
12 King Street
Leeds
LS1 2HL
United Kingdom
25 February 2026
Consolidated income statement
for the year ended 31 December
187
International Personal Finance plc
Group
2025 2024
Notes £m £m
Revenue
1
737.5
726.3
Impairment
1
(126.8)
(127.5)
Revenue less impairment
610.7
598.8
Interest expense
2
(71.3)
(70.4)
Other operating costs
(137.9)(135.1)
Administrative expenses
(312.9)(308.1)
Total costs
(522.1)(513.6)
Pr
ofit before taxation and exceptional items
1
88.6
85.2
Exceptional items
10
(3.3)
(11.9)
Profit before taxation
85.3
73.3
T
ax income – UK
1.5
0.2
T
ax expense – overseas
(32.6)
(30.0)
Total tax expense
before exceptional items
5
(31.1)
(29.8)
Exceptional tax income
5, 10
–
17.4
Total tax expense
 (31.1)(12.4)
Profit after taxation attributable to equity shareholders
54.2
60.9
2025 2024
Group
Notes pence pence
Earnings per share
– statutory
Basic
6
24.8
27.3
Diluted
6
23.6
25.9
2025 2024
Group
Notes pence pence
Earnings per share
– before exceptional items
Basic
6
26.3
24.9
Diluted
6
25.0
23.5
Statements of comprehensive income
for the year ended 31 December
Group
Company
2025 2024 2025 2024
£m £m £m £m
Profit/(loss) after taxation attributable to equity shareholders
54.2
60.9
(41.3)(4.4)
Other comprehensive
income/(expense)
Items that may subsequently be reclassified to income statement
Exchange gains
/(losses) on foreign currency translations
46.9
(57.3)
–
–
Net fair value
gains/(losses) – cash flow hedges
0.2
(0.4)
–
–
Tax
(charge)/credit on items that may be reclassified
5
(0 .1)
0.1
–
–
Items that will not subsequently be reclassified to income statement
Actuarial
gains/(losses) on retirement benefit obligation
27
0.4
(2.0)
0.4
(2.0)
Tax
(charge)/credit on items that will not be reclassified
5
(0.1)
0.5 (0.1)0.5
Other comprehensive
income/(expense) net of taxation
47.3
(59.1)
0.3
(1.5)
Total comprehensive
income/(expense) for the year attributable
to
equity shareholders
101.5
1.8
(41.0)
(5.9)
The accounting policies and notes 1 to 34 are an integral part of these Financial Statements.
Annual Report and Financial Statements 2025
187
International Personal Finance plc
186
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Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Balance sheets
as at 31 December
188
International Personal Finance plc
Group
Company
2025 2024 2025 2024
Notes £m £m £m £m
Assets
Non-current assets
Goodwill
11
23.8
22.6
–
–
Intangible assets
12
52.7
37.1
–
–
Investment in subsidiaries
13
–
–
734.8
734.0
Property, plant and equipment
14
16.3
14.0
0.8
1.0
Right-of-use assets
15
20.5
17.7
1.7
2.0
Amounts receivable from customers
17
291.1
245.6
–
–
Deferred tax assets
16
107.4
106.7
–
–
Retirement benefit asset
27
5.0
4.4
5.0
4.4
516.8
448.1
742.3
741.4
Current assets
Amounts receivable from customers
17
770.2
624.4
–
–
Derivative financial instruments
23
1.5
2.6
–
–
Cash and cash equivalents
18
30.4
27.6
0.7
1.5
Other receivables
19
15.5
22.9
599.2
553.6
Current tax assets
2.9
16.1
–
–
820.5
693.6
599.9
555.1
Total assets
1,337.3
1,141.7
1,342.2
1,296.5
Liabilities
Current liabilities
Borrowings
21
(58.9)
(92.8)
(25.2)
(54.9)
Derivative financial instruments
23
(4.0)
(1.6)
– –
Trade and other payables
20
(133.4)
(125.1)
(513.6
)
(460.3)
Provision for liabilities and charges
26
–
(2.8)
– –
Lease liabilities
15
(8.4)
(8.1)
(0.3)
(0.3)
Current tax liabilities
(9.5)
(6.0)
– –
(214.2)
(236.4)
(539.1
)
(515.5)
Non-current liabilities
Deferred tax liabilities
16
(4.1)
(4.1)
– –
Borrowings
21
(558.8)
(423.1)
(464.2
)
(378.5)
Lease liabilities
15
(14.2)
(11.8)
(1.7)
(2.1)
(577.1)
(439.0)
(465.9
)
(380.6)
Total liabilities
(791.3)
(675.4)
(1,005.0)
(896.1)
Net assets
546.0
466.3
337.2
400.4
Equity attributable to owners of the Company
Called-up share capital
29
22.5
22.5
22.5
22.5
Other reserve
(22.5)
(22.5)
226.3
226.3
Foreign exchange reserve
21.6
(25.3)
– –
Hedging reserve
–
(0.1)
– –
Own shares
(15.4)
(24.9)
(15.4)
(24.9)
Capital redemption reserve
3.2
3.2
3.2
3.2
Retained earnings
536.6
513.4
100.6
173.3
Total equity
546.0
466.3
337.2
400.4
The accounting policies and notes 1 to 34 are an integral part of these Financial Statements.
The loss after taxation of the Parent Company for the period was £41.3m (2024: loss of £4.4m).
The Financial Statements of International Personal Finance plc, registration number 6018973 comprising the consolidated income
statement, statements of comprehensive income, balance sheets, statements of changes in equity, cash flow statements, accounting
policies and notes 1 to 34 were approved by the Board on 25 February and were signed on its behalf by:
Gerard Ryan Gary Thompson
Chief Executive Officer Chief Financial Officer
Statements of changes in equity
189
International Personal Finance plc
Called-up Foreign Capital
share Other exchange Hedging Own redemption Retained Total
Group
– 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 202
4
23.4
(22.5)
32.0
0.2
(36.7)
2.3
503.2
501.9
Comprehensive income
Profit after taxation for the year
–
–
–
–
–
–
60.9
60.9
Other comprehensive (expense)/income
Exchange
losses on foreign
currency translation
–
–
(57.3)
–
–
–
–
(57.3)
Net fair value
losses – cash flow hedges
–
–
–
(0.4)
–
–
–
(0.4)
Actuarial
loss on retirement benefit obligation
27
–
–
–
–
–
–
(2. 0)
(2.0)
Tax credit on other comprehensive expense
5
–
–
–
0.1
–
–
0.5
0.6
Total other comprehensive
expense
–
–
(57.3)
(0.3)
–
–
(1.5)
(59.1)
Total comprehensive
(expense)/income for
the year
–
–
(57.3)
(0.3)
–
–
59.4
1.8
Transactions with owners
Share
-based payment adjustment to reserves
–
–
–
–
–
–
2.9
2.9
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
(22.5)
(25.3)(0.1)(24.9)
3.2
513.4
466.3
At 1 January 202
5
22.5
(22.5)
(25.3)(0.1)(24.9)
3.2
513.4
466.3
Comprehensive income
Profit after taxation for the year
–
–
–
–
–
–
54.2
54.2
Other comprehensive income/(expense)
Exchange
gains on foreign
currency
translation
–
–
46.9
–
–
–
–
46.9
Net fair value
gains – cash flow hedges
–
–
–
0.2
–
–
–
0.2
Actuarial gain on retirement benefit obligation
27
–
–
–
–
–
–
0.4
0.4
Tax c
harge on other comprehensive income
5
–
–
–
(0.1)
–
–
(0.1)
(0.2)
Total other comprehensive
income
–
–
46.9
0.1
–
–
0.3
47.3
Total comprehensive income for the year
–
–
46.9
0.1
–
–
54.5
101.5
Transactions with owners
Share
-based payment adjustment to reserves
–
–
–
–
–
–
3.5
3.5
Deferred tax on share
-based payment
transactions
–
–
–
–
–
–
0.5
0.5
Shares granted from
employee
and
treasury trusts
–
–
–
–
9.5
–
(9.5)
–
Dividends paid to Company shareholders
7
–
–
–
–
–
–
(25.8)
(25.8)
At 31 December 202
5
22.5
(22.5)
21.6
–
(15.4)
3.2
536.6
546.0
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188
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Statements
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Information
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Financial
Statements
Financial Statements continued
Statements of changes in equity continued
190
International Personal Finance plc
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 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 loss on retirement benefit obligation
27
–
–
–
–
–
(2.0)
(2.0)
Tax credit on other comprehensive income
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
At 1 January 202
5 22.5 226.3 –
(24.9)
3.2 173.3 400.4
Comprehensive expense
Loss after taxation for the year
– – – – – (41.3
)
(41.3)
Other comprehensive
income/(expense)
Actuarial
gain on retirement benefit obligation 27 – – – – – 0.4 0.4
Tax c
harge on other comprehensive income 5 – – – – – (0.1)
(0.1)
Total other comprehensive
income – – – – – 0.3 0.3
Total comprehensive expense for the
year – – – – – (41.0
)
(41.0)
Transactions with owners
Share
-based payment adjustment to reserves – – – – – 3.5 3.5
Deferred tax on share
-based payment transactions – – – – – 0.1 0.1
Shares granted from
employee and treasury trusts – – – 9.5 – (9.5)
–
Dividends paid to Company shareholders
7 – – – – – (25.8)
(25.8)
At 31 December 202
5 22.5 226.3 – (15.4)
3.2 100.6 337.2
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 34 are an integral part of these Financial Statements.
Cash flow statements
for the year ended 31 December
191
International Personal Finance plc
Group
Company
2025 2024 2025 2024
Notes £m £m £m £m
Cash flows from operating activities
Cash generated from/(used in) operating activities
30
69.8
114.1
(1.7)
60.6
Finance costs paid
(69.7)(72.3) (79.5)(93.5)
Finance income received
2.0
1.3
50.2
64.2
Income tax
paid
(21.8)
(18.3) (2.8)(2.5)
Repayment in respect of State Aid
15.2
–
–
–
Net cash
(used in)/generated from operating activities
(4.5)
24.8
(33.8)
28.8
Cash flows from investing activities
Purchases of property, plant and equipment
14
(7.4)
(6.4)
–
–
Proceeds from sale of property, plant and equipment
–
0.1
–
–
Purchases of intangible assets
12
(27.8)
(17.8)
–
–
Net cash used in investing activities
(35.2)(24.1)
–
–
Net cash
(used in)/generated from operating and investing activities
(39.7)
0.7
(33.8)
28.8
Cash flows from financing activities
Proceeds from borrowings
140.0
313.2
92.6
291.3
Repayment of borrowings
(61.2)(273.5) (37.3)(283.2)
Principal elements of lease payments
 (12.8)(12.2) (0.5)(0.3)
Dividends paid to Company shareholders
7
(25.8)
(23.9) (25.8)(23.9)
Dividends received from subsidiaries
–
–
3.5
–
Acquisition of own shares
–
(15.1)
–
(15.1)
Shares acquired by employee and treasury trusts
–
(1.3)
–
(1.3)
Cash received on options exercised
0.5
0.2
0.5
0.2
Net cash
generated from/(used in) financing activities
40.7
(12.6)
33.0
(32.3)
Net
increase/(decrease) in cash and cash equivalents
1.0
(11.9)
 (0.8)(3.5)
Cash and cash equivalents at beginning of year
27.6
42.5
1.5
5.0
Exchange gains
/(losses) on cash and cash equivalents
1.8
(3.0)
–
–
Cash and cash equivalents at end of year
18
30.4
27.6
0.7
1.5
Cash and cash equivalents at end of year comprise:
Cash at bank and in hand
18
30.4
27.6
0.7
1.5
The accounting policies and notes 1 to 34 are an integral part of these Financial Statements.
Annual Report and Financial Statements 2025
191
International Personal Finance plc
190
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Business
Directors’
Report
Financial
Statements
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Information
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Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements
192
International Personal Finance plc
General information
International Personal Finance plc (the Company) is a public company limited by shares incorporated in the United Kingdom under
the Companies Act and is registered in England and Wales. The address of the registered office is shown on the back cover of this
Annual Report and Financial Statements.
The principal activities of the Company and its subsidiaries (IPF or the Group) and the nature of the Group’s operations are set out
in the Strategic Report.
These Financial Statements are presented in sterling because that is the currency of the primary economic environment in which the
Group operates. Foreign operations are set out in accordance with the policies set out on page 196.
The Consolidated Group and Parent Company Financial Statements have been prepared in accordance with International Financial
Reporting Standards (‘IFRSs’), International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations and the Companies
Act 2006 applicable to companies reporting under IFRS.
The following amendments to standards are mandatory for the first time for the financial year beginning 1 January 2025 but do not
have any material impact on the Group:
– Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rate: Lack of Exchangeability’.
The following standards, interpretations and amendments to existing standards are not yet effective and have not been early adopted
by the
Group:
– IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’;
– IFRS S2 ‘Climate-related Disclosures’;
– IFRS 18 ‘Presentation and Disclosure in Financial Statements’;
– IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’;
– Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: ‘Disclosures: Classification and Measurement of Financial
Instruments’; and
– Annual Improvements to IFRS standards – Volume 11.
Alternative Performance Measures
In reporting financial information, the Group presents alternative performance measures, ‘APMs’ which are not defined or specified under
the requirements of IFRS.
The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders
with additional helpful information on the performance of the business. The APMs are consistent with how the business performance is
planned and reported within the internal management reporting to the Board. Some of these measures are also used for the purpose
of setting remuneration targets.
All of the APMs, used by the Group are set out on pages 231 to 235 including explanations of how they are calculated and how they can
be reconciled to a statutory measure where relevant.
The Group reports percentage change figures for all performance measures, other than profit or loss before taxation and earnings per
share, after restating prior year figures at a constant exchange rate. The constant exchange rate, which is an APM, retranslates the
previous year measures at the average actual periodic exchange rates used in the current financial
year. These measures are presented
as a means of eliminating the effects of exchange rate fluctuations on the year-on-year reported results.
The Group makes certain adjustments to the statutory measures in order to derive APMs where relevant. The Group’s policy is to exclude
items that are considered to be significant in both nature and/or quantum and where treatment as an adjusted item provides
stakeholders with additional useful information to assess the year-on-year trading performance of the Group.
Basis of preparation
The Consolidated Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of
derivative financial instruments at fair value. The material accounting policies, which have been applied consistently, are set out in the
following paragraphs.
Going concern
The directors have, at the time of approving the Financial Statements, a reasonable expectation that the Group and Company have
adequate resources to continue in operational existence for the foreseeable future (12 months from the date of this report). Thus they
continue to adopt the going concern basis of accounting in the Financial Statements. Further detail is contained in the Financial review
on page 33.
Annual Report and Financial Statements 2025
193
Basis of consolidation
The Consolidated Financial Statements incorporate the Financial Statements of the Company and the entities controlled by the
Company (its subsidiaries) made up to 31 December each year. Control is achieved when the Company:
– has the power over the investee;
– is exposed, or has rights, to variable return from its involvement with the investee; and
– has the ability to use its power to affects its returns.
All intra-Group assets and liabilities, equity, income, expenses and cash flows relating to transactions between Group companies are
eliminated on consolidation.
The accounting policies of the subsidiaries are consistent with the accounting policies of the Group.
Finance costs
Finance costs comprise the interest on external borrowings which are recognised on an effective interest rate (EIR) basis, and gains or
losses on derivative contracts taken to the income statement. Finance costs also include interest expenses on lease liabilities as required
under IFRS 16.
Segment reporting
The Group’s operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of operating
segments, has been identified as the Board. This information is by business line – Provident Europe, Provident Mexico and
IPF Digital.
A business line is a component of the Group that operates within a particular economic environment and that is subject to risks and
returns that are different from those of components operating in other economic environments.
Revenue
Revenue, which excludes value added tax and intra-Group transactions, comprises revenue earned on amounts receivable from
customers. Revenue on customer receivables is calculated using an EIR. All fees, being interest and non-interest fees, are included within
the EIR calculation. The EIR is calculated reflecting all contractual terms using estimated cash flows, being contractual payments
adjusted for the impact of customers paying early.
Directly attributable lending costs are also taken into account in calculating the EIR. Interest income is accrued on all receivables using
the original EIR applied to the loan’s carrying value. Revenue is calculated using the EIR on the gross receivable balance for loans in
stages 1 and 2. For loans in stage 3, the calculation is applied to the net receivable from the start of the next reporting period after the
loan entered stage 3. Revenue is capped at the amount of interest fees charged.
Commissions in respect of insurance products intermediated by the Group are recognised when the underlying insurance is sold
(alongside a loan agreement) if no further service obligations are identified. These commission amounts do not make up a significant
part of the revenue of the Group. The insurance premium payable by the customer is capitalised alongside the customer loan receivable
and both are accounted for on an amortised cost basis.
The accounting for amounts receivable from customers is considered further below.
Exceptional items
Exceptional items are items that are unusual because of their size, nature or incidence and which the directors consider should be
disclosed separately to enable a full understanding of the Group’s underlying results.
Other operating costs
Other operating costs include customer representative repayment commission, marketing costs and foreign exchange gains and losses.
All other costs are included in administrative expenses.
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International Personal Finance plc
Share-based payments
The cost of providing share-based payments to employees is charged to the income statement over the vesting period of the award.
The corresponding credit is made to retained earnings. The cost is based on the fair value of awards granted at the grant date, which is
determined using both a Monte Carlo simulation and Black-Scholes option pricing model.
At each balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect
of non market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the income statement
such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves.
In the Parent Company Financial Statements, the fair value of providing share-based payments to employees of subsidiary companies is
treated as an increase in the investment in subsidiaries.
Financial instruments
Classification and measurement
Under IFRS 9 the classification of financial assets is based both on the business model within which the asset is held and the contractual
cash flow characteristics of the asset. There are three principal classification categories for financial assets that are debt instruments:
(i) amortised cost; (ii) fair value through other comprehensive income (FVTOCI); and (iii) fair value through profit or loss (FVTPL). Equity
instruments in the scope of IFRS 9 are measured at fair value with gains and losses recognised in profit or loss unless an irrevocable
election is made to recognise gains or losses in other comprehensive income.
There is no impact on the classification and measurement of the following financial assets held by the Group: derivative financial
instruments; cash and cash equivalents; other receivables and current tax assets.
There is no change in the accounting for any financial liabilities.
Hedge accounting
On initial application of IFRS 9, an entity may choose, as its accounting policy, to continue to apply the hedge accounting requirements of
IAS 39 instead of the hedge accounting requirements of IFRS 9. The Group has elected to apply the IAS 39 hedge accounting requirements.
Amounts receivable from customers
Amounts receivable from customers are measured at amortised cost under IFRS 9.
Impairment
The impairment model under IFRS 9 reflects expected credit losses. Under the impairment approach in IFRS 9, it is not necessary for
a credit event to have occurred before credit losses are recognised. Instead, an entity always accounts for expected credit losses
and changes in those expected credit losses. The amount of expected credit losses should be updated at each reporting date.
Forward-looking information
Under IFRS 9 macroeconomic overlays are required to include forward-looking information when calculating expected credit losses.
The short-term nature of our lending means that the portfolio turns over quickly, and as a result, changes in the macroeconomic
environment have not historically had a significant impact on amounts receivable from customers.
Where extreme macroeconomic scenarios are experienced, management judgement is used to identify, quantify and apply any
required approach.
Probability of default (PD)
; loss given default (LGD) and cash flow projections are based on the most recent repayments performance,
including management overlays where historic performance is not deemed to be representative of future repayments performance.
Where appropriate, consideration is also given to the proportion of undrawn credit limits that the Group is committed to at the balance
sheet date and which are expect to be utilised in the future.
See page 198 for key sources of estimation uncertainty on amounts receivable from customers in relation to post model overlays.
Other receivables
Other receivables, including amounts due from Group undertakings, are assessed annually for any evidence of impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand. Cash also includes those balances held by agents for operational
purposes. Bank overdrafts are presented in current liabilities to the extent that there is no right of offset with cash balances.
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Derivative financial instruments
The Group uses derivative financial instruments, principally interest rate swaps, currency swaps and forward currency contracts, to
manage the interest rate and currency risks arising from the Group’s underlying business operations. No transactions of a speculative
nature are undertaken and we do not expect there to be any sources of hedge ineffectiveness.
All derivative financial instruments are assessed against the hedge accounting criteria set out in IAS 39. The majority of the Group’s
derivatives are cash flow hedges of highly probable forecast transactions and meet the hedge accounting requirements of IAS 39.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into. They are subsequently remeasured at fair
value at each reporting date. Other than for derivatives qualifying for hedge accounting, all fair value movements are recognised in the
income statement immediately as they arise.
For derivatives that are designated as cash flow hedges and where the hedge accounting criteria are met, the effective portion of
changes in the fair value is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised
immediately in the income statement as part of finance costs. Amounts accumulated in equity are reclassified to the income statement
when the income or expense on the hedged item is recognised in the income statement.
The Group discontinues hedge accounting when:
– it is evident from testing that a derivative is not, or has ceased to be, highly effective as a hedge;
– the derivative expires, or
is sold, terminated or exercised; or
– the underlying hedged item matures or is sold or repaid.
Borrowings
Borrowings are recognised initially at fair value, being their issue proceeds net of any transaction costs incurred. Borrowings are stated
subsequently at amortised cost; any difference between proceeds net of transaction costs and the redemption value is recognised in the
income statement over the expected life of the borrowings using the EIR. Borrowings are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance
sheet date, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable net assets of the
acquired subsidiary at the date of acquisition.
Goodwill is recognised initially as an asset at cost and is measured subsequently at cost less any accumulated impairment losses.
Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each end of reporting period date.
Goodwill is not amortised but is tested for impairment at least annually and whenever there is an indication that the asset may be
impaired. The recoverable amount is determined from a value in use calculation, based on the expected cash flows resulting from the
legacy MCB business’ outstanding customer receivables. Any impairment is recognised immediately in the income statement.
Subsequent reversals of impairment losses for goodwill are not recognised.
Intangible assets
Intangible assets comprise computer software. Computer software is capitalised as an intangible asset on the basis of the costs incurred
to acquire or develop the specific software and bring it into use.
Intangible assets are amortised (within administrative expenses) on a straight-line basis over their estimated useful economic lives which
is typically five years. The residual values and
economic lives are reviewed by management at each balance sheet date, and any
shortfall recognised through the profit and loss account.
Investments in subsidiaries
Investments in subsidiaries are stated at cost, where cost is equal to the fair value of the consideration used to acquire the asset.
Investments are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be
recoverable. An impairment loss is recognised for the amount by which the investment carrying value exceeds the higher of the asset’s
value in use or its fair value less costs to sell.
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International Personal Finance plc
Property, plant and equipment
Property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost represents invoiced cost plus any
other costs that are attributable directly to the acquisition of the items. Repair and maintenance costs are expensed as incurred.
Depreciation is calculated to write down assets to their estimated realisable value over their useful economic lives. The following are the
principal bases used:
Category
Depreciation rate
Method
Fixtures and fittings
10%
Straight–line
Equipment
20% to 33.3%
Straight–line
Motor vehicles
25%
Reducing balance
The residual value and useful economic life of all assets are reviewed, and adjusted if appropriate, at each balance sheet date. All items
of property, plant and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying
value may not be recoverable. An impairment loss is recognised through the income statement for the amount by which the asset’s
carrying value exceeds the higher of the asset’s value in use or its fair value less costs to sell.
Right-of-use assets and lease liabilities
Right-of-use assets and lease liabilities are recognised on the balance sheet to the extent that they meet the IFRS 16 definition criteria.
Where applicable, the Group exercises its right to expense those leases classed as short term and/or low value.
Share capital
The company has only ordinary share capital. These shares, with a nominal value of 10 pence per share, are classified as equity.
Shares held in treasury and by employee trust (“own shares”)
The net amount paid to acquire shares is held in a separate reserve and shown as a reduction in equity.
Foreign currency translation
Items included in the Financial Statements of each of the Group’s subsidiaries are measured using the currency of the primary economic
environment in which the subsidiary operates (the functional currency). The Group’s financial information is presented in sterling.
Transactions that are not denominated in an entity’s functional currency are recorded
at the rate of exchange ruling at the date of
the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at the rates
of exchange ruling at the balance sheet date. Differences arising on translation are charged or credited to the income statement,
except when deferred in other comprehensive income as qualifying cash flow hedges.
The income statements of the Group’s subsidiaries (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from sterling are translated into sterling at the average exchange rate and the balance sheets are
translated at the exchange rates ruling at each balance sheet date.
Upon consolidation, exchange differences arising from the translation of the net investment in foreign subsidiaries, and of borrowings
and other currency instruments designated as hedges of such investments, are taken to other comprehensive income.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The Group has adopted IFRIC 23. IFRIC 23 sets out how to determine the accounting tax position when there is uncertainty over income
tax treatments. The interpretation requires the Group to determine whether uncertain tax positions are assessed separately or as a group;
and to assess whether it is probable that a tax authority will accept an uncertain tax treatment used/proposed by the entity in its income
tax filings. If this is deemed to be the case, the Group determines its accounting tax position with the treatment used/proposed in its
income tax filings. If this is not deemed to be the case, the Group reflects the effect of uncertainty in determining its accounting tax
position using either the most likely amount or the expected value method.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement
because it excludes items
of income or expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted
by the balance sheet date.
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Taxation continued
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in
the Financial Statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition
of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available in the foreseeable future to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based
on tax laws and rates that have been enacted or substantively enacted at the balance sheet date.
The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and
liabilities on a net basis.
Current tax and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly
in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is
included in the accounting for the business combination.
Employee benefits
Defined benefit pension scheme
The charge or credit in the income statement in respect of the defined benefit pension scheme comprises the actuarially assessed
current service cost of working employees together with the interest charge on pension liabilities offset by the expected return on pension
scheme assets. As there are no working employees that are members of the defined benefit pension scheme, there are no current
service costs. All charges or
credits are allocated to administrative expenses.
The asset or obligation recognised in the balance sheet in respect of the defined benefit pension scheme is the fair value of the scheme’s
assets less the present value of the defined benefit obligation at the balance sheet date. An asset is recognised to the extent that the
Group believes it has a right of refund of surplus economic benefits.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present
value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality
corporate bonds that have terms to maturity approximating to the terms of the related pension liability.
Cumulative actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
immediately in other comprehensive income.
The Parent Company share of the defined benefit retirement obligation is based on the proportion of total Group contributions made
by the Parent Company.
Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the income statement on an accruals basis.
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International Personal Finance plc
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Consolidated Financial Statements requires the Group to make estimates and judgements that affect the application
of policies and reported accounts.
Critical judgements represent key decisions made by management in the application of the Group accounting policies. Where a
significant risk of materially different outcomes exists due to management assumptions or sources of estimation uncertainty, this will
represent a critical accounting estimate. Estimates and judgements are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results
may differ from these estimates.
The estimates and judgements which have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities are discussed below.
Key sources of estimation uncertainty
In the application of the Group’s accounting policies, the directors are required to make estimations that have a significant impact on
the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
The following are the critical estimations that the directors have made in the process of applying the Group’s accounting policies and
that have the most significant effect on the amounts recognised in the Financial Statements.
Revenue recognition
The estimate used in respect of revenue recognition is the methodology used to calculate the effective interest rate (EIR). In order to
determine the EIR applicable to loans an estimate must be made of the expected life of each loan and hence the cash flows relating
thereto. These estimates are based on historical data and are reviewed regularly. Based on a 3% variation in the EIR (2024: 3%), it is
estimated that the amounts receivable from customers would be higher/lower by £12.8m (2024: £9.6m). This sensitivity is based on
historic fluctuations in EIRs.
Amounts receivable from customers
The Group reviews its portfolio of customer loans and receivables for impairment on a weekly or monthly basis. The Group reviews the
most recent repayments performance to determine whether there is objective evidence which indicates that there has been an adverse
effect on expected future cash flows. For the purposes of assessing the impairment of customer loans and receivables, customers are
categorised by division and product type, into stages based on days past due as this is considered to be the most reliable predictor of
future payment performance. The level of impairment is calculated using historical payment performance to generate both the
estimated expected loss and also the timing of future cash flows for each agreement. The expected loss is calculated using probability of
default (PD) and loss given default (LGD) parameters.
Recurring post-model overlays on amounts receivable from customers
Impairment models are monitored regularly to test their continued capability to predict the timing and quantum of customer repayments
in the context of the recent customer payment performance. The models used typically have a strong predictive capability reflecting the
relatively stable nature of the business and therefore the actual performance does not usually vary significantly from the estimated
performance. The models are ordinarily updated at least twice per year. Where the models are expected to show an increase in the
expected loss or a slowing of the future cashflows in the following 12 months, an adjustment is applied to the models. At 31 December
2025 , this adjustment was a reduction in receivables of £15.1m (2024: reduction of £7.9m).
Post-model overlays (PMOs) on amounts receivable from customers
Hungary Total
Cost-of-living PMO moratorium PMO PMOs
2025 £m £m £m
Provident Europe and Provident Mexico
1.0
0.7
1.7
IPF Digital
–
–
–
Group
1.0
0.7
1.7
Hungary
Cost-of-living PMO moratorium PMO Total PMOs
2024 £m £m £m
Provident Europe and Provident Mexico
6.7
1.1
7.8
IPF Digital
1.8
–
1.8
Group
8.5
1.1
9.6
Annual Report and Financial Statements 2025
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Key sources of estimation uncertainty continued
A full assessment of the impact of the global economic volatility has been performed and concluded that there remains an inherent
macroeconomic risk in Romania where inflation rates are at an unprecedented level and economic forecasts suggest a recession is
possible in 2026. A PMO has been established and based on management’s current expectations, the impact of this PMO was to
increase impairment provisions at 31 December 2025 by a further £1.0m (2024: £8.5m). The reduction in the year reflects the fact that the
risks associated with the cost of living crisis has eased across most markets. This represents management’s current assessment of the
impact that the global economic volatility may have on the Group’s customer receivables, however given the levels of uncertainty in this
area, the impacts (if any) may be greater or lower than the amount determined.
The Hungarian debt moratorium, which initially began in March 2020, ended in December 2022. There remains a small proportion of the
portfolio that has at some point been in the moratorium. Given the age of these loans, PMOs have been applied to the impairment
models in order to calculate the continued risks that are not fully reflected in the standard impairment models. Based on management’s
current expectations, the impact of these PMOs was to increase impairment provisions at 31 December 2025 by £0.7m (2024: £1.1m).
In order to calculate the PMO, the portfolio was segmented by analysis of the most recent payment performance and, using this
information, assumptions were made around expected credit losses. This represents management’s current assessment of a reasonable
outcome from the actual repayment performance on the debt moratorium impacted portfolio.
Investment in subsidiaries
During the year, as a result of the Group net asset position and the market capitalisation of the Company being lower than the carrying
value of the investment in subsidiaries, a review of the recoverable amount of the carrying value of the investment has been performed.
This review entails comparing the investments value to the net present value of latest forecast cash flows from the operating businesses.
This review confirmed that no impairment of the investment is required. A shortfall in profitability compared to current expectations may
result in future adjustments to investments in subsidiary balances. See note 13 for more details.
Tax
Estimations must be exercised in the calculation of the Group’s tax provision, in particular with regard to the existence and extent
of tax risks.
Deferred tax assets arise from timing differences between the accounting and tax treatment of revenue and impairment transactions
and tax losses. Estimations must be made regarding the extent to which timing differences reverse and an assessment must be made of
the extent to which future profits will be generated to absorb tax losses. A shortfall in profitability compared to current expectations may
result in future adjustments to deferred tax asset balances.
Climate change
When preparing the financial statements, consideration has been given to the impact of climate change on the Group’s financial
statements. There has been no material impact identified on the financial reporting judgments and estimates, with climate change
specifically considered in the context of the Group’s ability to continue trading as a going concern, the valuation of its expected credit
losses and assessment of impairment for non-financial assets including goodwill.
Whilst climate change was not considered to impact the financial statements, the Group acknowledges the short, medium and long-
term risks and opportunities associated with climate change, as highlighted in the TCFD sections of the strategic report on pages 112-123.
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International Personal Finance plc
1. Segment analysis
Pre-exceptional
Revenue Impairment profit before taxation
2025 2024 2025 2024 2025 2024
Group £m £m £m £m £m £m
Provident Europe
339.7
328.2
5.5
8.1
63.2
57.4
Provident Mexico
247.1
263.8
80.3
92.4
26.6
26.0
IPF Digital
150.7
134.3
41.0
27.0
14.1
17.0
UK costs*
–
–
–
–
(15.3)
(15.2)
Total
737.5
726.3
126.8
127.5
88.6
85.2
* Although UK costs are not classified as a separate segment in accordance with IFRS 8 ‘Operating segments’, they are shown separately above in order to provide a
reconciliation to pre-exceptional profit before taxation. There are no individual foreign countries where non-current assets, other than financial instruments, and deferred
tax assets are material.
Segment assets Segment liabilities
2025 2024 2025 2024
Group £m £m £m £m
Provident Europe
642.6
530.3
(336.3
)
(285.5)
Provident Mexico
279.6
243.3
(201.4
)
(127.3)
IPF Digital
337.2
281.3
(251.2
)
(195.1)
UK
77.9
86.8
(2.4
)
(67.5)
Total
1,337.3
1,141.7
(791.3
)
(675.4)
Expenditure on
intangible assets Amortisation
2025 2024 2025 2024
Group £m £m £m £m
Provident Europe
–
–
–
–
Provident Mexico
–
–
–
–
IPF Digital
6.5
5.2
4.3
4.3
UK
21.3
12.6
8.5
8.1
Total
27.8
17.8
12.8
12.4
Capital expenditure Depreciation
2025 2024 2025 2024
Group £m £m £m £m
Provident Europe
2.7
1.9
2.7
3.7
Provident Mexico
4.3
4.0
2.9
2.7
IPF Digital
0.3
0.3
0.3
0.2
UK
0.1
0.2
0.2
0.2
Total
7.4
6.4
6.1
6.8
All revenue comprises amounts earned on amounts receivable from customers.
The Group is domiciled in the UK and no revenue is generated in the UK.
The total of non-current assets other than financial instruments and deferred tax assets located in the UK is £40.8m (2024: £28.6m),
and the total of non-current assets located in other countries is £72.5m (2024: £62.8m). There are no individual foreign countries where
non-current assets, other than financial instruments, and deferred tax assets are material.
There is no single external customer from which significant revenue is generated.
The segments shown above are the segments for which management information is presented to the Board, which is deemed to be
the Group’s chief operating decision maker.
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201
2. Finance costs
2025 2024
Group
£m £m
Interest payable on borrowings
70.7
69.3
Interest payable on lease liabilities
2.6
2.4
Interest income
 (2.0) (1.3)
Total finance costs
71.3
70.4
3. Profit before taxation
Profit before taxation is stated after charging:
2025 2024
Group
£m £m
Depreciation of property, plant and equipment (note
14)
6.1
6.8
Depreciation of right
-of-use assets (note 15)
9.9
10.1
Amortisation of intangible assets (note
12)
12.8
12.4
Employee costs (note
9)
211.7
200.3
4. Auditor’s remuneration
During the year, the Group incurred the following costs in respect of services provided by the Group auditor:
2025 2024
Group
£m £m
Fees payable to the Company auditor for the audit of the Parent Company and Consolidated Financial Statements
0.6
0.6
Fees payable to the Company auditor and its associates for other services:
–
audit of Company’s subsidiaries pursuant to legislation
0.5
0.4
–
other assurance services
0.2
0.2
Fees payable to auditors
1.3
1.2
Fees payable to auditors not associated to the company auditor
0.3
0.2
Total audit fees
1.6
1.4
Further details on auditor remuneration can be found in the Audit and Risk Committee Report on page 151.
5. Tax expense
2025 2024
Group
£m £m
Current tax expense:
–
current year
23.5
22.6
–
prior year
0.4
(1.0)
Total current tax expense
23.9
21.6
Deferred tax expense (note 16):
–
current year
6.4
6.7
–
prior year
0.8
1.5
Total deferred tax expense
7.2
8.2
Tax expense before exceptional items
31.1
29.8
Exceptional tax income (note 10)
–
(17.4)
Total tax expense
31.1
12.4
The pre-exceptional taxation expense on the profit for 2025 is £31.1m representing an effective tax rate for the year of approximately 35%
(2024: an effective tax rate of approximately 35%).
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.
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International Personal Finance plc
5. Tax expense continued
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.
On 20 June 2023, the United Kingdom government’s legislation applying the Pillar Two income tax rules became substantively enacted,
effective for accounting periods commencing on or after 31 December 2023. 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 transitional safe harbours applies for a period of up to three years (with a further one
year extension expected following the publication of the OECD’s administrative guidance on the ‘Side-by-Side Package’ issued on 5
January 2026). 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 2025 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 2025. Accordingly, the Group does not
expect to incur any Pillar Two top-up taxes in respect of 2025. Furthermore, no Pillar Two top-up taxes are expected to arise 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.
2025 2024
Group £m £m
Deferred tax (expense)/income on net fair value losses – cash flow hedges
(0.1)
0.1
Deferred tax income on net fair value gains – share based payments
0.5
–
Deferred tax (expense)/income on actuarial gains/(losses) on retirement benefit asset
(0.1)
0.5
Total tax income on other comprehensive expense and recognised directly in equity
0.3
0.6
The rate of tax expense on the profit before taxation for the year ended 31 December 2025 is higher than (2024: higher than) the
standard rate of corporation tax in the UK of 25.0% (2024: 25.0%). The differences are explained as follows:
2025 2024
Group £m £m
Profit before taxation
85.3
73.3
Profit before taxation multiplied by the standard rate of corporation tax in the UK of 25.0% (2024: 25.0%)
21.3
18.3
Effects of:
–
adjustment in respect of prior years
1.3
0.6
– adjustment in respect of foreign tax rates
(1.9) 0.6
–
non-deductible bad debt income
8.9
1.0
–
other expenses not deductible for tax purposes
2.5
(
3.0)
–
other change in unrecognised deferred tax assets
(1.0)
10.1
–
decision of the European Court of Justice on State Aid (note 10)
–
(15.2)
Total tax expense
31.1
12.4
6. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to shareholders of 54.2m (2024: £60.9m) by the weighted
average number of shares in issue during the period of 218.3m (2024: 222.8m) 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:
2025 2024
Group £m £m
Used in basic EPS calculation
218.3
222.8
Dilutive effect of awards
11.6
12.5
Used in diluted EPS calculation
229.9
235.3
Annual Report and Financial Statements 2025
203
6. Earnings per share continued
Basic and diluted EPS are presented below:
2025 2024
Group
pence pence
Basic EPS
24.8
27.3
Dilutive effect of awards
(1.2)
(1.4)
Diluted EPS
23.6
25.9
Basic and diluted pre-exceptional EPS are presented below:
2025 2024
Group
pence pence
Basic EPS
24.8
27.3
Exceptional item
1.5
(2.4)
Basic pre
-exceptional EPS
26.3
24.9
Dilutive effect of awards
(1.3) (1.4)
Diluted pre
-exceptional EPS
25.0
23.5
7. Dividends
2025 2024
Group and Company
£m £m
Interim dividend of 3.
8 pence per share (2024: interim dividend of 3.4 pence per share)
8.3
7.7
Final
2024 dividend of 8.0 pence per share (2024: final 2023 dividend of 7.2 pence per share)
17.5
16.2
25.8
23.9
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 12.5% increase in the final dividend to 9.0 pence per share (2024: 8.0 pence per share). This is in line with
our progressive dividend policy and brings the full-year dividend to 12. 8 pence per share (2024: 11.4 pence per share), an increase of
12.3% compared with 2024 and represents a pre-exceptional payout rate of 49% (2024: 46%). Subject to shareholder approval, the 2025
final dividend will be paid on 8 May 2026 to shareholders on the register at the close of business on 27 March 2026. The shares will be
marked ex-dividend on 26 March 2026.
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.
2025 2024
£m £m
Short
-term employee benefits
5.0
4.8
Post
-employment benefits
0.1
0.1
Share
-based payments
1.6
1.3
Total
6.7
6.2
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.
Annual Report and Financial Statements 2025
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International Personal Finance plc
9. Employee information
The average full-time equivalent of people employed by the Group (including executive directors) was as follows:
2025 2024
Group Number Number
Full-time*
6,794
6,671
Part-time**
1,012
1,133
7,806
7,804
* Includes 1,690 customer representatives in Hungary and Romania (2024: includes 1,527 customer representatives in Hungary and Romania).
** Includes 858 customer representatives in Hungary and Romania (2024: includes 978 customer representatives in Hungary and Romania).
Customer representatives are self-employed other than in Hungary and Romania where they are required by legislation to be employed.
The average number of employees by category was as follows:
2025 2024
Group Number Number
Operations
4,615
4,704
Administration
391
390
Head office and loss prevention
2,800
2,710
7,806
7,804
Group employment costs for all employees (including executive directors) were as follows:
2025 2024
Group £m £m
Gross wages and salaries
181.3
172.3
Social security costs
27.3
25.5
Pension charge – defined contribution schemes (note 27)
1.2
1.1
Pension credit – defined benefit schemes (note 27)
(0.2)
(0.3)
Share-based payment charge (note 28)
2.1
1.7
Total
211.7
200.3
The average monthly number of people directly employed by the Company in 2025 was 51 (2024: 54), all of whom fulfilled administration
and operational responsibilities on behalf of the Group. In 2025, the Company paid wages and salaries totalling £8.4m (2024: £7.9m),
social security costs totalling £2.9m (2024: £1.8m) and pension-related costs of £0.6m (2024: £0.6m).
10. Exceptional items
The 2025 income statement includes an exceptional cost of £3.3m (2024: an exceptional credit of £5.5m) which comprises the following
items:
2025 2024
Group £m £m
One-off costs relating to the potential acquisition of the Group by BasePoint Capital LLC
(3.3)
–
Eurobond refinance costs
–
(5.8)
Poland restructuring costs
–
(6.1)
Exceptional items pre-tax
(3.3)
(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
Exceptional tax items
–
17.4
Exceptional items post-tax
(3.3)
5.5
Further information relating to the exceptional items is shown in the Financial review.
Annual Report and Financial Statements 2025
205
11. Goodwill
2025 2024
Group
£m £m
Net book value
At 1 January
22.6
23.6
Exchange adjustments
1.2
(1.0)
At
31 December
23.8
22.6
Goodwill is tested annually for impairment or more frequently if there are indications that goodwill might be impaired. The recoverable
amount is determined from a value in use calculation, based on the expected cash flows resulting from the legacy MCB business’
outstanding customer receivables. The key assumptions applied in the value in use calculation relate to the discount rates and the cash flow
forecasts used. The rate used to discount the forecast cash flows is 12% (2024: 12%) and would need to increase to 14% for the goodwill
balance to be impaired. The cash flow forecasts arise over a 4 year period (being the expected life of the legacy MCB business’ outstanding
customer receivables) and would need to be 17% lower than currently estimated for the goodwill balance to be impaired.
12. Intangible assets
2025 2024
Group
£m £m
Net book value
At 1 January
37.1
32.3
Additions
27.8
17.8
Amortisation
(12.8) (12.4)
Exchange adjustments
0.6
(0.6)
At
31 December
52.7
37.1
Analysed as:
–
cost
197.2
167.7
–
amortisation
(144.5)
(130.6)
At 31 December
52.7
37.1
Intangible assets comprise computer software and are a combination of self-developed and purchased assets. All purchased
assets have had further capitalised development on them, meaning it is not possible to disaggregate fully between the relevant
intangible categories.
The Company has no intangible assets.
13. Investment in subsidiaries
2025 2024
Company
£m £m
Investment in subsidiaries
712.5
712.5
Share-based payment adjustment
22.3
21.5
Total investment in subsidiaries
734.8
734.0
The company acquired the international businesses of the Provident Financial plc Group on 16 July 2007 by issuing one company share
to the shareholders of Provident Financial plc for each Provident Financial plc share held by them. The fair value of the consideration
issued in exchange for the investment in these international businesses was £663.6m and this amount was therefore capitalised as a cost
of investment. On 6 February 2015, the Group acquired 100% of the issued share capital of MCB Finance Group plc (MCB) for a cash
consideration of £23.2m. Subsequent to this, further investments of £25.7m have been made in these acquired businesses.
A further £22.3m (2024: £21.5m) has been added to the cost of investment representing the fair value of the share-based payment
awards over the Company’s shares made to employees of subsidiary companies of the company. Corresponding credits are taken
to reserves.
During the year, as a result of the Group net asset position and the market capitalisation of the Company being lower than the carrying
value of the investment in subsidiaries, a review has been carried out of the recoverable amount of the carrying value of the investment.
This review entailed comparing the investments value to the net present value of latest forecast cash flows from the operating businesses.
The cash flow forecasts are based on the most recent financial budgets approved by the Board. The rate used to discount the forecast
cash flows was 12% (2024: 12%). This review confirmed that no impairment of the investment is required. The discount rate would need
to increase to 20% for the investment balance to be impaired.
Annual Report and Financial Statements 2025
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Financial
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Financial Statements continued
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206
International Personal Finance plc
13. Investment in subsidiaries continued
The subsidiary companies of IPF plc, whose ordinary share capital is 100% owned by the Group and included in these Consolidated
Financial Statements, are detailed below:
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 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 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 Financing 2 Limited
United Kingdom
Provision of loan finance
IPF Guernsey (1) Limited
Guernsey
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 Pénzügyi Zrt.
Hungary
Home credit
Provident Financial Romania IFN SA
Romania
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
Holding Company
Provident Servicios S.A. de C.V.
Mexico
Provision of Services
* Shares directly held by the Company, otherwise shares indirectly held by the Company.
The IPF Nordic Limited (registration number 11356987) and IPF Financial Services Limited (registration number 04607141) are exempt from
the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A of the Act.
All UK subsidiaries are registered at the same registered office as the Company, and this address is shown on the back cover of this
Annual Report and Financial Statements. All subsidiaries are tax resident in their country of incorporation except for IPF Guernsey (1)
Limited and IPF Management Unlimited Company which are tax resident in the UK.
Annual Report and Financial Statements 2025
207
14. Property, plant and equipment
Computer Fixtures and Motor
equipment fittings vehicles Total
Group
£m £m £m £m
Cost
At 1 January 2024
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 2024
80.2
22.6
0.2
103.0
Depreciation
(
71.8)
(19.7) (0.1) (91.6)
At 1 January 2024
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 2024
(
70.4)
(18.5) (0.1) (89.0)
Net book value at 31 December 2024
9.8
4.1
0.1
14.0
Computer Fixtures and Motor
equipment fittings vehicles Total
Group
£m £m £m £m
Cost
At 1 January 2025
80.2
22.6
0.2
103.0
Exchange adjustments
3.7
1.4
–
5.1
Additions
5.3
2.1
–
7.4
Disposals
(4.5) (1.2)
–
(5.7)
At 31 December 2025
84.7
24.9
0.2
109.8
Depreciation
At 1 January 2025
 (70.4) (18.5) (0.1) (89.0)
Exchange adjustments
(3.0) (1.1)
–
(4.1)
Charge to the income statement
(4.7) (1.4)
–
(6.1)
Disposals
4.6
1.1
–
5.7
At 31 December 2025
 (73.5) (19.9) (0.1) (93.5)
Net book value at 31 December 2025
11.2
5.0
0.1
16.3
The Company has property, plant and equipment with a cost of £2.4m (2024: £2.4m); depreciation of £1.6m (2024: £1.4m); and a net
book value of £0.8m (2024: £1.0m). All of these assets are computer equipment and Head Office fixtures and fittings.
Annual Report and Financial Statements 2025
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Financial
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Financial Statements continued
Notes to the Financial Statements continued
208
International Personal Finance plc
15. Right-of-use assets and lease liabilities
The movement in the right-of-use assets is as follows:
Motor vehicles Properties Group
£m £m £m
Net book value at 1 January 2024
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 2024
8.8
8.9
17.7
Motor vehicles Properties Group
£m £m £m
Net book value at 1 January 2025
8.8
8.9
17.7
Exchange adjustments
0.7
0.5
1.2
Additions
4.7
5.1
9.8
Modifications
0.2
1.5
1.7
Depreciation
(5.6)
(4.3) (9.9)
Net book value at 31 December 2025
8.8
11.7
20.5
The amounts recognised in profit and loss are as follows:
2025 2024
Group £m £m
Depreciation on right-of-use assets
9.9
10.1
Interest expense on lease liabilities
2.6
2.4
Expense relating to short term leases
1.4
1.4
13.9
13.9
The movement in the lease liability in the period is as follows:
2025 2024
£m £m
Lease liability at 1 January
19.9
23.6
Exchange adjustments
1.4
(2.2)
Additions
11.5
8.3
Interest
2.6
2.4
Lease payments
(12.8)
(12.2)
Lease liability at 31 December
22.6
19.9
Current liabilities
8.4
8.1
Non-current liabilities:
–
between one and five years
12.9
11.4
–
greater than five years
1.3
0.4
14.2 11.8
Lease liability at 31 December
22.6
19.9
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the rate implicit in the lease or,
if that rate cannot be readily determined, at the lessee’s incremental borrowing rate. The weighted average lessee’s incremental
borrowing rate applied to the lease liabilities at 31 December 2025 was 10.4% (2024: 9.9%).
The total cash outflow in the year in respect of lease contracts was £12.8m (2024: £12.2m).
The total contractual undiscounted cashflows for future lease liability payments at 31 December 2025 is £27.6m (2024: £24.4m) with
balances of £10.7m (2024: £10.5m) due within one year, £15.5m (2024: £13.0m) due between one and five years and £1.4m (2024:
0.9m) due after five years.
The Company has one lease as at 31 December 2025 (2024: one lease) in respect of the UK head office premises, with a lease liability
of £2.0m (2024: £2.4m).
Annual Report and Financial Statements 2025
209
16. Deferred tax
Deferred tax is calculated in full on temporary differences under the balance sheet liability method using the appropriate tax rate
for the jurisdiction in which the temporary difference arises. The movement in the deferred tax balance during the year can be
analysed as follows:
Group Company
2025 2024 2025 2024
£m £m £m £m
At 1 January
102.6
124.6
–
–
Exchange adjustments
7.6
(15.6)
–
–
Tax charge to the income statement
(7.2) (6.7)
–
(0.8)
Tax (charge)
/credit on other comprehensive income/(expense)
(0.1)
0.6
–
0.5
Tax credit
/(charge) direct to equity
0.4
(0.3)
–
0.3
At
31 December
103.3
102.6
–
–
The Finance Act 2021, which was substantively enacted on 24 May 2021, included an amending provision to increase the UK corporation
tax rate to 25% with effect from 1 April 2023. Accordingly, UK deferred tax assets and liabilities at 31 December 2025 have been measured
with reference to this rate.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and
liabilities on a net basis. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Group Company
2025 2024 2025 2024
£m £m £m £m
Deferred tax assets
107.4
106.7
1.2
1.1
Deferred tax liabilities
(4.1) (4.1) (1.2) (1.1)
At 31 December
103.3
102.6
–
–
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 2024
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
expense
–
–
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 2024
13.0
84.7
4.9
102.6
(1.1)
1.1
–
At 1 January 2025
13.0
84.7
4.9
102.6
(1.1)
1.1
–
Exchange adjustments
2.1
5.3
0.2
7.6
–
–
–
Tax credit
/(charge) to the income statement
16.3
(22.4)
(1.1) (7.2)
–
–
–
Tax c
harge on other comprehensive income
–
–
(0.1)
(0.1)
–
–
–
Tax credit
/(charge) on items taken directly to equity
–
–
0.4
0.4
(0.1)
0.1
–
At 31 December 2025
31.4
67.6
4.3
103.3
(1.2)
1.2
–
Deferred tax assets have been recognised in respect of tax losses and other temporary timing differences (principally relating to
recognition of revenue and impairment) to the extent that it is probable that these assets will be utilised against future taxable profits.
The recoverability of deferred tax assets is supported by the expected level of future profits in the countries concerned.
Annual Report and Financial Statements 2025
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Financial
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210
International Personal Finance plc
16. Deferred tax continued
At 31 December 2025, the Group has unused tax losses of £226.6m (2024: £158.1m) available for offset against future profits. A deferred
tax asset has been recognised in respect of £121.3m (2024: £52.5m) of these losses where profit projections indicate the existence of
sufficient taxable profits to support the recognition of the asset. The recognition for 2025 was based on the forecast profits contained in
the Group’s five-year business plan approved by the Board in December 2025. See information on Going Concern on page 33 for more
details regarding the business plan. No deferred tax has been recognised in respect of the remaining £105.3m (2024: £105.6m) as it
is not considered probable that there will be future taxable profits available against which these losses can be offset. Included in tax
losses on which no deferred tax is recognised is tax losses of £23.0m which are subject to expiry. The tax losses are due to expire in 2028.
Other tax losses may be carried forward indefinitely.
The Group has unrecognised deferred tax in respect of other deductible temporary differences of £9.3m (2024: £12.7m).
Dividends received from overseas subsidiaries are largely exempt from UK tax but may be subject to dividend withholding taxes levied
by certain overseas tax jurisdictions in which the Group’s subsidiaries operate (currently only the Czech Republic). The gross temporary
differences of those subsidiaries affected by such potential withholding taxes is approximately £nil (2024: £69.9m) and therefore no
deferred tax liability has been recognised.
17. Amounts receivable from customers
2025 2024
Group £m £m
Amounts receivable from customers comprise:
– amounts due within one year
770.2
624.4
– amounts due in more than one year
291.1
245.6
Total amounts recoverable from customers
1,061.3
870.0
All lending is in the local currency of the country in which the loan is issued. The currency profile of amounts receivable from customers
and revenue earned from receivables is as follows:
Receivables Revenue
2025 2024 2025 2024
Group £m £m £m £m
Polish zloty
235.9
191.6
105.3
110.7
Czech crown
66.7
54.1
47.6
44.6
Euro
122.2
105.6
48.7
45.6
Hungarian forint
183.4
149.2
111.8
106.3
Mexican peso
248.9
205.6
300.4
306.0
Romanian leu
140.1
111.8
95.6
89.0
Australian dollar
64.1
52.1
28.1
24.1
Total
1,061.3
870.0
737.5
726.3
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.
Annual Report and Financial Statements 2025
211
17. Amounts receivable from customers continued
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.
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:
2025
2024
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
Provident Europe
447.7
44.3
83.4
575.4
347.9
37.9
73.8
459.6
Provident Mexico
119.1
21.8
50.3
191.2
95.3
18.8
45.3
159.4
IPF Digital
276.8
12.6
5.3
294.7
234.7
10.9
5.4
251.0
Group
843.6
78.7
139.0
1,061.3
677.9
67.6
124.5
870.0
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.
2025 2024
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
987.1
147.2
405.2
1,539.5
802.0
128.9
366.6
1,297.5
Loss allowance
(143.5)
(68.5)
(266.2)
(478.2)
(124.1)
(61.3)
(242.1) (427.5)
Net receivables
843.6
78.7
139.0
1,061.3
677.9
67.6
124.5
870.0
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.
Annual Report and Financial Statements 2025
211
International Personal Finance plc
210
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements continued
212
International Personal Finance plc
17. Amounts receivable from customers continued
The following tables explain the changes for Provident Europe in the gross carrying amount, the loss allowance and net receivables
between the beginning of the year and the end of the year:
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross carrying amount – Provident Europe £m £m £m £m £m £m £m £m
Opening gross carrying amount at 1 January
412.9
72.7
216.5
702.1
393.8
97.4
279.0
770.2
Increases due to origination
764.2
–
–
764.2
662.1
–
–
662.1
Transfers due to change in credit risk:
(231.2)
53.4
177.8
–
 (194.2)
39.8
154.4
–
– From stage 1
(244.6)
102.5
142.1
–
(211.2)
90.6
120.6
–
– From stage 2
7.2
(49.9)
42.7
–
9.1
(51.8)
42.7
–
– From stage 3
6.2
0.8
(7.0)
–
7.9
1.0
(8.9)
–
Decreases due to repayments
(752.2)
(93.8) (251.1) (1,097.1) (642.7)
(101.3)
(251.8)
(995.8)
Amounts written off
Increases due to recognition of interest and
–
–
(20.3)
(20.3)
–
–
(41.7)
(41.7)
charges
274.1
42.4
86.5
403.0
240.6
43.0
97.0
380.6
FX
52.9
6.3
17.9
77.1
(46.1)
(6.2)
(17.1)
(69.4)
Other
Closing gross carrying amount at
1.9
–
(0.2)
1.7
(0.6)
–
(3.3)
(3.9)
31 December
522.6
81.0
227.1
830.7
412.9
72.7
216.5
702.1
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Loss allowance – Provident Europe £m £m £m £m £m £m £m £m
Opening loss allowance at 1 January
(65.0)
(34.8) (142.7) (242.5) (71.6)
(45.5)
(177.9)
(295.0)
Increases due to origination
(113.1)
–
–
(113.1)
 (105.3)
–
–
(105.3)
Transfers due to change in credit risk:
32.1
9.6
(41.7)
–
30.8
9.0
(39.8)
–
– From stage 1
38.5
(14.1)
(24.4)
–
39.0
(14.9)
(24.1)
–
– From stage 2
(2.8)
24.2
(21.4)
–
(3.6)
24.4
(20.8)
–
– From stage 3
(3.6)
(0.5)
4.1
–
(4.6)
(0.5)
5.1
–
Changes due to movements within and
between stages
22.5
(19.8)
(77.3) (74.6) 15.2
(17.8)
(66.9)
(69.5)
Change in credit risk parameters
1.2
1.0
6.9
9.1
7.3
1.1
(1.1)
7.3
Decreases due to repayments and write offs
50.6
9.7
120.2
180.5
54.5
14.8
127.8
197.1
FX
(5.3)
(3.0) (11.9) (20.2)
5.0
3.0
11.5
19.5
Other
2.1
0.6
2.8
5.5
(0.9)
0.6
3.7
3.4
Closing loss allowance at 31 December
(74.9)
(36.7) (143.7) (255.3) (65.0)
(34.8)
(142.7)
(242.5)
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Net receivables – Provident Europe £m £m £m £m £m £m £m £m
Opening net receivables at 1 January
347.9
37.9
73.8
459.6
322.2
51.9
101.1
475.2
Increases due to origination
651.1
–
–
651.1
556.8
–
–
556.8
Transfers due to change in credit risk:
(199.1)
63.0
136.1
–
 (163.4)
48.8
114.6
–
– From stage 1
(206.1)
88.4
117.7
–
(172.2)
75.7
96.5
–
– From stage 2
4.4
(25.7)
21.3
–
5.5
(27.4)
21.9
–
– From stage 3
2.6
0.3
(2.9)
–
3.3
0.5
(3.8)
–
Changes due to movements within and
between stages
22.5
(19.8)
(77.3) (74.6) 15.2
(17.8)
(66.9)
(69.5)
Change in credit risk parameters
1.2
1.0
6.9
9.1
7.3
1.1
(1.1)
7.3
Increases due to recognition of interest and
charges
274.1
42.4
86.5
403.0
240.6
43.0
97.0
380.6
Decreases due to repayments and write offs
(701.6)
(84.1) (151.2) (936.9) (588.2)
(86.5)
(165.7)
(840.4)
FX
47.6
3.3
6.0
56.9
(41.1)
(3.2)
(5.6)
(49.9)
Other
4.0
0.6
2.6
7.2
(1.5)
0.6
0.4
(0.5)
Closing net receivables at 31 December
447.7
44.3
83.4
575.4
347.9
37.9
73.8
459.6
Annual Report and Financial Statements 2025
213
17. Amounts receivable from customers continued
The following tables explain the changes for Provident Mexico in the gross carrying amount, the loss allowance and net receivables
between the beginning of the year and the end of the year:
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross carrying amount
– Provident Mexico
£m £m £m £m £m £m £m £m
Opening gross carrying amount at 1 January
128.1
38.1
109.4
275.6
158.2
44.4
119.6
322.2
Increases due to origination
 285.9
–
–
285.9
289.2
–
–
289.2
Transfers due to change in credit risk:
 (169.4)
28.8
140.6
– (162.3)
24.2
138.1
–
– From stage 1
(173.4)
55.7
117.7
– (165.9)
49.3
116.6
–
– From stage 2
1.3
(27.0)
25.7 –
1.2
(25.2)
24.0
–
– From stage 3
2.7
0.1
(2.8)
–
2.4
0.1
(2.5)
–
Decreases due to repayments
 (254.0) (58.9) (141.9) (454.8) (222.7) (52.6) (131.3) (406.6)
Amounts written off
Increases due to recognition of interest and
–
–
(63.6)
(63.6)
–
–
(62.5)
(62.5)
charges
144.8
33.3
68.3
246.4
125.0
29.7
64.7
219.4
FX
20.8
2.9
8.3
32.0
(60.0)
(7.8) (20.6) (88.4)
Other
Closing gross carrying amount at
3.3
0.2
0.6
4.1
0.7
0.2
1.4
2.3
31
December
159.5
44.4
121.7
325.6
128.1
38.1
109.4
275.6
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Loss allowance
– Provident Mexico
£m £m £m £m £m £m £m £m
Opening loss allowance at 1 January
 (32.8) (19.3) (64.1) (116.2) (43.8) (21.9) (69.4) (135.1)
Increases due to origination
(95.6)
–
–
(95.6) (81.8)
–
–
(81.8)
Transfers due to change in credit risk:
48.6
0.5
(49.1)
–
46.6
1.0
(47.6)
–
– From stage 1
51.0
(14.6)
(36.4) –
48.7
(12.8)
(35.9) –
– From stage 2
(0.7)
15.1
(14.4)
– (0.6)
13.8
(13.2)
–
– From stage 3
(1.7)
– 1.7 – (1.5)
–
1.5
–
Changes due to movements within and
between stages
1.8
(16.6)
(50.1) (64.9)
3.8
(14.2)
(46.5) (56.9)
Change in credit risk parameters
1.8
–
(0.4)
1.4
(1.1)
(1.0)
(2.7)
(4.8)
Decreases due to repayments and write offs
38.4
14.3
97.4
150.1
34.2
12.6
89.7
136.5
FX
 (2.5) (1.5) (4.9) (8.9)
7.6
3.9
11.9
23.4
Other
(0.1) – (0.2) (0.3)
1.7
0.3
0.5
2.5
Closing loss allowance at 31 December
 (40.4) (22.6) (71.4) (134.4) (32.8) (19.3) (64.1) (116.2)
2025
2024
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Net receivables
– Provident Mexico
£m £m £m £m £m £m £m £m
Opening net receivables at 1 January
95.3
18.8
45.3
159.4
114.4
22.5
50.2
187.1
Increases due to origination
190.3
–
–
190.3
207.4
–
–
207.4
Transfers due to change in credit risk:
 (120.8)
29.3
91.5
–
(115.7)
25.2
90.5
–
– From stage 1
(122.4)
41.1
81.3
–
(117.2)
36.5
80.7
–
– From stage 2
0.6
(11.9)
11.3
–
0.6
(11.4)
10.8
–
– From stage 3
1.0
0.1
(1.1)
–
0.9
0.1
(1.0)
–
Changes due to movements within and
between stages
1.8
(16.6)
(50.1) (64.9)
3.8
(14.2)
(46.5) (56.9)
Change in credit risk parameters
1.8
–
(0.4)
1.4
(1.1)
(1.0) (2.7) (4.8)
Increases due to recognition of interest and
charges
144.8
33.3
68.3
246.4
125.0
29.7
64.7
219.4
Decreases due to repayments and write offs
 (215.6) (44.6) (108.1) (368.3) (188.5) (40.0) (104.1) (332.6)
FX
18.3
1.4
3.4
23.1
(52.4)
(3.9) (8.7) (65.0)
Other
3.2
0.2
0.4
3.8
2.4
0.5
1.9
4.8
Closing net receivables at 31 December
119.1
21.8
50.3
191.2
95.3
18.8
45.3
159.4
Annual Report and Financial Statements 2025
213
International Personal Finance plc
212
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements continued
214
International Personal Finance plc
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:
2025
2024
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
261.0
18.1
40.7
319.8
247.5
17.6
43.4
308.5
Increases due to origination
291.9
–
–
291.9
263.2
–
–
263.2
Transfers due to change in credit risk:
 (70.2)
8.3
61.9
–
(59.1)
7.0
52.1
–
– From stage 1
(76.1)
24.3
51.8
–
(64.5)
22.5
42.0
–
– From stage 2
5.3
(16.3)
11.0
–
5.0
(15.8)
10.8
–
– From stage 3
0.6
0.3
(0.9)
–
0.4
0.3
(0.7)
–
Decreases due to repayments
 (315.6) (15.6) (42.6) (373.8)
(279.6)
(14.7)
(36.6)
(330.9)
Amounts written off
Increases due to recognition of interest and
–
–
(26.7)
(26.7)
–
–
(28.6)
(28.6)
charges
120.6
9.7
20.1
150.4
108.6
9.4
17.3
135.3
FX
16.8
1.3
4.3
22.4
(19.7)
(1.2)
(6.0)
(26.9)
Other
Closing gross carrying amount at 31
0.5
–
(1.3)
(0.8)
0.1
–
(0.9)
(0.8)
December
305.0
21.8
56.4
383.2
261.0
18.1
40.7
319.8
2025
2024
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
 (26.3) (7.2) (35.3) (68.8)
(33.9)
(7.3)
(36.9)
(78.1)
Increases due to origination
 (21.2)
–
–
(21.2)
(20.8)
–
–
(20.8)
Transfers due to change in credit risk:
5.5
4.4
(9.9)
–
5.2
4.5
(9.7)
–
– From stage 1
7.8
(2.3)
(5.5)
–
7.4
(2.5)
(4.9) –
– From stage 2
(1.8)
6.9
(5.1)
–
(1.9)
7.2
(5.3)
–
– From stage 3
(0.5)
(0.2)
0.7
–
(0.3)
(0.2)
0.5
–
Changes due to movements within and
between stages
(10.2) (11.4) (56.1) (77.7)
(7.3)
(10.3)
(46.1)
(63.7)
Change in credit risk parameters
0.6
0.4
0.3
1.3
3.4
0.4
0.1
3.9
Decreases due to repayments and write offs
24.2
5.1
53.2
82.5
23.4
4.9
51.8
80.1
FX
 (1.8) (0.5) (3.3) (5.6)
2.2
0.6
5.5
8.3
Other
1.0
–
–
1.0
1.5
–
–
1.5
Closing loss allowance at 31 December
 (28.2) (9.2) (51.1) (88.5)
(26.3)
(7.2)
(35.3)
(68.8)
2025
2024
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
234.7
10.9
5.4
251.0
213.6
10.3
6.5
230.4
Increases due to origination
270.7
–
–
270.7
242.4
–
–
242.4
Transfers due to change in credit risk:
 (64.7)
12.7
52.0
–
(53.9)
11.5
42.4
–
– From stage 1
(68.3)
22.0
46.3
–
(57.1)
20.0
37.1
–
– From stage 2
3.5
(9.4)
5.9
–
3.1
(8.6)
5.5
–
– From stage 3
0.1
0.1
(0.2)
–
0.1
0.1
(0.2)
–
Changes due to movements within and
between stages
 (10.2) (11.4) (56.1) (77.7)
(7.3)
(10.3)
(46.1)
(63.7)
Change in credit risk parameters
0.6
0.4
0.3
1.3
3.4
0.4
0.1
3.9
Increases due to recognition of interest and
charges
120.6
9.7
20.1
150.4
108.6
9.4
17.3
135.3
Decreases due to repayments and write offs
 (291.4) (10.5) (16.1) (318.0)
(256.2)
(9.8)
(13.4)
(279.4)
FX
15.0
0.8
1.0
16.8
(17.5)
(0.6)
(0.5)
(18.6)
Other
1.5
–
(1.3)
0.2
1.6
–
(0.9)
0.7
Closing net receivables at 31 December
276.8
12.6
5.3
294.7
234.7
10.9
5.4
251.0
Annual Report and Financial Statements 2025
215
17. Amounts receivable from customers continued
Impairment as a percentage of gross carrying amount for each geographical segment is shown below:
2025 2024
Group
% %
Provident Europe
0.7
1.1
Provident Mexico
27.1
30.1
IPF Digital
11.6
8.6
The carrying value of amounts receivable from customers that would have been impaired had their terms not been renegotiated is £nil
(2024: £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 91% (2024: 99%). The average period to maturity of the amounts receivable from customers is 13.1 months
(2024: 13.5 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 2025, in the Polish business, there are £85.2m (2024: £57.1m) of undrawn granted credit card limits. The expected loss
for undrawn granted credit card limits cannot be readily separated from the expected loss for drawn card balances and therefore forms
part of the overall disclosed expected loss for credit cards.
The Company has no amounts receivable from customers (2024: £nil).
18. Cash and cash equivalents
Group Company
2025 2024 2025 2024
£m £m £m £m
Cash at bank and in hand
30.4
27.6
0.7
1.5
The currency profile of cash and cash equivalents is as follows:
Group Company
2025 2024 2025 2024
£m £m £m £m
GBP sterling
–
1.0
–
1.0
Polish zloty
3.2
2.7
0.1
–
Czech crown
0.7
0.7
–
–
Euro
3.7
5.0
0.6
0.5
Hungarian forint
2.7
1.5
–
–
Mexican peso
13.8
9.6
–
–
Romanian leu
5.9
6.6
–
–
Australian dollar
0.4
0.5
–
–
Total
30.4
27.6
0.7
1.5
19. Other receivables
Group Company
2025 2024 2025 2024
£m £m £m £m
Other receivables
5.0
13.6
–
–
Prepayments
10.5
9.3
0.5
0.8
Amounts due from Group undertakings
–
–
598.7
552.8
Total
15.5
22.9
599.2
553.6
No balance within other receivables is impaired.
Amounts due from Group undertakings are unsecured, accrue interest and are due for repayment in less than one year.
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International Personal Finance plc
20. Trade and other payables
Group Company
2025 2024 2025 2024
£m £m £m £m
Trade payables
14.4
14.4
–
0.2
Other payables including taxation and social security
58.7
60.6
–
–
Accruals
60.3
50.1
18.1
14.6
Amounts due to Group undertakings
–
–
495.5
445.5
Total
133.4
125.1
513.6
460.3
Amounts due to Group undertakings are unsecured, accrue interest and are due for repayment in less than one year.
21. Borrowing facilities and borrowings
The Group and Company’s borrowings are as follows:
Group Company
2025 2024 2025 2024
£m £m £m £m
Borrowings
Bank borrowings
141.5
82.5
13.2
–
Bonds
476.2
433.4
476.2
433.4
Total
617.7
515.9
489.4
433.4
The Group’s external bonds comprise the following:
Coupon Maturity 2025
Bond % date £m
Hungarian bond – €11.6m
11.50
2026
10.1
Polish bond – zloty 72.0m
Six-month WIBOR plus 850 basis points
2026
15.0
Retail bond – £80.0m
12.00
2027
80.0
Swedish Krona bond – 1,000.0m
Three-month STIBOR plus 575 basis points
2028
80.7
Euro bond – €341.0m
10.75
2029
297.3
483.1
Less: unamortised arrangement fees and issue discount
(6.9)
Total
476.2
The Polish zloty 72.0m (£15.0m) and Swedish Krona 1,000.0m (£80.7m) are floating rate bonds. The external bank borrowings of the
Group are at a combination of floating and fixed rates.
The maturity of the Group and Company’s external bond and external bank borrowings is as follows:
Group
Company
2025 2024 2025 2024
£m £m £m £m
Borrowings
Repayable:
–
in less than one year
58.9
92.8
25.2
54.9
–
between one and two years
142.7
47.6
79.1
23.6
–
between two and five years
416.1
375.5
385.1
354.9
Total
617.7
515.9
489.4
433.4
Annual Report and Financial Statements 2025
217
21. Borrowing facilities and borrowings continued
The average period to maturity of the Group’s external bonds and committed external borrowing facilities is 2.6 years (2024: 3.0 years).
The currency exposure on external borrowings is as follows:
Group
Company
2025 2024 2025 2024
£m £m £m £m
Sterling
79.2
78.7
79.2
78.7
Polish zloty
45.4
20.5
15.0
14.0
Czech crown
5.3
2.3
–
–
Euro
314.5
340.7
314.5
340.7
Hungarian forint
80.9
61.4
–
–
Romanian leu
11.7
3.3
–
–
Mexican peso
–
9.0
–
–
Swedish krona
80.7
–
80.7
–
Total
617.7
515.9
489.4
433.4
Further information on changes in external borrowings is included in the funding section of the Financial review on page 32.
The maturity of the Group and Company’s external bond and external bank facilities is as follows:
Group Company
2025 2024 2025 2024
£m £m £m £m
Bond and bank facilities available
Repayable:
– on demand
46.9
35.2
9.7
8.0
–
in less than one year
97.0
135.1
25.0
71.3
–
between one and two years
157.7
78.9
80.0
23.6
–
between two and five years
448.2
407.7
417.3
387.1
Total
749.8
656.9
532.0
490.0
The undrawn external bank facilities at 31 December were as follows:
Group Company
2025 2024 2025 2024
£m £m £m £m
Expiring within one year
85.0
77.2
9.5
24.1
Expiring between one and two years
14.1
31.3
–
24.9
Expiring in more than two years
26.1
24.9
26.2
–
Total
125.2
133.4
35.7
49.0
Undrawn external facilities above do not include unamortised arrangement fees and issue discount.
22. Risks arising from financial instruments
Risk management
Treasury related risks
The Board approves treasury policies and the treasury function manages the day-to-day operations. The Board delegates certain
responsibilities to the Treasury Committee. The Treasury Committee is empowered to take decisions within that delegated authority.
Treasury activities and compliance with treasury policies are reported to the Board on a regular basis and are subject to periodic
independent reviews and audits, both internal and external. Treasury policies are designed to manage the main financial risks faced by
the Group in relation to funding and liquidity risk; interest rate risk; currency risk; and counterparty risk. This is to ensure that the Group is
properly funded; that interest rate and currency risk are managed within set limits; and that financial counterparties are of appropriate
credit quality. Policies also set out the specific instruments that can be used for risk management.
The treasury function enters into derivative transactions, principally interest rate swaps, currency swaps and forward currency
contracts. The purpose of these transactions is to manage the interest rate and currency risks arising from the Group’s underlying
business operations. No transactions of a speculative nature are undertaken and
written options may only be used when matched
by purchased options.
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218
International Personal Finance plc
22. Risks arising from financial instruments continued
Liquidity risk
The Group is subject to the risk that it will not have sufficient borrowing facilities to fund its existing business and its future plans for growth.
The short-term nature of the Group’s business means that the majority of amounts receivable from customers are receivable within twelve
months with an average period to maturity of around thirteen months. The risk of not having sufficient liquid resources is therefore low.
The treasury policy adopted by the Group serves to reduce this risk further by setting a specific policy parameter that there are sufficient
committed debt facilities to cover forecast borrowings plus an appropriate level of operational headroom on a rolling basis. Further, the
aim is to ensure that there is a balanced refinancing profile; that there is diversification of debt funding sources; that there is no over-
reliance on a single or small group of lenders; and that debt facilities and hedging capacity are sufficient for the currency requirements
of each country. At 31 December 2025, the Group’s bonds and committed borrowing facilities had an average period to maturity of
2.6 years (2024: 3.0 years).
As shown in note
21, total undrawn facilities as at 31 December 2025 were £125.2m (2024: £133.4m).
A maturity analysis of gross borrowings included in the balance sheet is presented in note 21. A maturity analysis of bonds, bank
borrowings and overdrafts outstanding at the balance sheet date by non-discounted contractual cash flow, including expected interest
payments, is shown below:
Group Company
2025 2024 2025 2024
£m £m £m £m
Not later than six months
42.9
44.5
180.7
172.7
Later than six months and not later than one year
74.1
101.7
51.4
78.6
Later than one year and not later than two years
198.9
93.3
465.4
362.2
Later than two years and not later than five years
495.0
480.5
462.4
458.5
Total
810.9
720.0
1,159.9
1,072.0
The analysis above includes the contractual cash flow for borrowings and the total amount of interest payable over the life of the loan.
Where borrowings are subject to a floating interest rate, an estimate of interest payable is taken. The rate is derived from interest rate yield
curves at the balance sheet date.
In line with paragraph 39(a) of IFRS 7, the maturity table for the Company also includes amounts payable to Group companies of
£495.5m (2024: £445.5m).
The following analysis shows the gross non-discounted contractual cash flows in respect of foreign currency contract derivative assets
and liabilities which are all designated as cash flow hedges:
2025
2024
Outflow Inflow Outflow Inflow
Group £m £m £m £m
Not later than one month
183.7
182.5
292.4
292.6
Later than one month and not later than six months
244.8
242.3
121.5
121.4
Later than six months and not later than one year
0.1
0.1
–
–
Total
428.6
424.9
413.9
414.0
There are no foreign currency contract derivative assets and liabilities for the Company.
When the amount payable or receivable is not fixed, the amount disclosed has been determined with reference to the projected interest
rates as illustrated by the interest rate yield curves existing at the balance sheet date.
Annual Report and Financial Statements 2025
219
22. Risks arising from financial instruments continued
A maturity analysis of the Group’s receivables and borrowing facilities as at 31 December is presented below:
Percentage Borrowing Percentage
Receivables of total facilities of total
Group
£m % £m %
2024
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
2025
Less than one year
770.2
72.6
143.9
19.2
Later than one year
291.1
27.4
605.9
80.8
Total
1,061.3
100.0
749.8
100.0
This demonstrates the short-term nature of the amounts receivable from customers which contrasts with the longer-term nature of the
Group’s committed funding facilities.
Amounts receivable from customers
Risk management policies in respect of amounts receivable from customers are discussed in the credit risk section within this note,
and in note 17.
Interest rate risk
The Group has an exposure to interest rate risk arising on changes in interest rates in each of its countries of operation and, therefore,
seeks to limit this net exposure. This is achieved by the use of techniques to fix interest costs, including fixed rate funding (predominantly
longer-term bond funding); forward currency contracts used for non-functional currency funding; bank borrowing loan draw-down
periods; and interest rate hedging instruments. These techniques are used to hedge the interest costs on a proportion of borrowings
over a certain period of time, up to five years.
Interest costs are a relatively low proportion of the Group’s revenue (9.7% in 2025; 9.7% in 2024) and therefore the risk of a material impact
on profitability arising from a change in interest rates is low. If interest rates across all markets increased by 200 basis points this would
have the following impact, net of existing hedging arrangements.
2025 2024
Group
£m £m
Reduction in profit before taxation
3.6
1.0
This sensitivity analysis is based on the following assumptions:
– the change in the market interest rate occurs in all countries where the Group has borrowings and/or derivative financial instruments;
– where financial liabilities are subject to fixed interest rates or have their interest rate fixed by hedging instruments it is assumed that
there is no impact from a change in interest rates; and
– changes in market interest rate affect the fair value of derivative financial instruments.
Currency risk
The Group is subject to three types of currency risk: net asset exposure; cash flow exposure; and income statement exposure.
Net asset exposure
The majority of the Group’s net assets are denominated in currencies other than sterling. The balance sheet is reported in sterling and
this means that there is a risk that a fluctuation in foreign exchange rates will have a material impact on the net assets of the Group.
The impact in 2025 is an increase in net assets of £46.9m (2024: reduction of £57.3m). The Group aims to minimise the value of net assets
denominated in each foreign currency by funding overseas receivables with borrowings in local currency, where possible.
Cash flow exposure
The Group is subject to currency risk in respect of future cash flows which are denominated in foreign currency. The policy of the Group
is to hedge a large proportion of this currency risk in respect of cash flows which are expected to arise in the following 12 months. Where
forward foreign exchange contracts have been entered into, they are designated as cash flow hedges on specific future transactions.
Income statement exposure
As with net assets, the majority of the Group’s profit is denominated in currencies other than sterling but translated into sterling for
reporting purposes. The result for the period is translated into sterling at the average exchange rate. A risk therefore arises that a
fluctuation in the exchange rates in the countries in which the Group operates will have a material impact on the consolidated result
for the period.
Annual Report and Financial Statements 2025
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220
International Personal Finance plc
22. Risks arising from financial instruments continued
The following sensitivity analysis demonstrates the impact on equity of a 5% strengthening or weakening of sterling against all exchange
rates for the countries in which the Group operates:
2025 2024
Group £m £m
Change in reserves
3.8
3.7
Change in profit before taxation
5.7
5.6
This sensitivity analysis is based on the following assumptions:
– there is a 5% strengthening/weakening of sterling against all currencies in which the Group operates (Polish zloty, Czech crown, euro,
Hungarian forint, Mexican peso, Romanian leu, and Australian dollar); and
– there is no impact on retained earnings or equity arising from those items which are naturally hedged (where the currency asset is
exactly equal to the currency liability).
Counterparty risk
The Group is subject to counterparty risk in respect of the cash and cash equivalents held on deposit with banks; and foreign currency
and derivative financial instruments.
The Group only deposits cash, and only undertakes currency and derivative transactions, generally with highly rated banks and sets strict
limits in respect of the amount of exposure to any one institution. Institutions with lower credit ratings can only be used as approved, or
delegated for approval, by the Board.
No collateral or credit enhancements are held in respect of any financial assets. The maximum exposure to counterparty risk is as follows:
2025 2024
Group £m £m
Cash and cash equivalents
30.4
27.6
Derivative financial assets
1.5
2.6
Total
31.9
30.2
The table above represents a worst case scenario of the counterparty risk that the Group is exposed to at the year end. An analysis of the
cash and cash equivalents by geographical segment is presented in note 18.
Cash and cash equivalents and derivative financial instruments are neither past due nor impaired. Credit quality of these assets is good
and the cash and cash equivalents are with bank counterparties in accordance with the limits set out in our treasury policies, to ensure
the risk of loss is minimised.
Credit risk
The Group is subject to credit risk in respect of amounts receivable from customers.
Amounts receivable from customers
The Group lends small amounts over short-term periods to a large and diverse group of customers across the countries in which it
operates. Nevertheless, the Group is subject to a risk of material unexpected credit losses in respect of amounts receivable from
customers. This risk is minimised by the use of credit scoring techniques which are designed to ensure the Group lends only to those
customers who are considered to be able to afford the repayments. The amount loaned to each customer and the repayment period
agreed are dependent upon the risk category the customer is assigned to as part of the credit scoring process. The level of expected
future losses is generated on a weekly or monthly basis by business line and geographical segment. These outputs are reviewed by
management to ensure that appropriate action can be taken if results differ from management expectations.
2025 2024
Group £m £m
Amounts receivable from customers
1,061.3
870.0
The table above represents the maximum exposure to credit risk of the Group at the year end. Further analysis of the amounts receivable
from customers is presented in note 17.
Annual Report and Financial Statements 2025
221
22. Risks arising from financial instruments continued
Capital risk
The Group is subject to the risk that its capital structure will not be sufficient to support the growth of the business. The Group is not
required to hold regulatory capital.
The Group aims to maintain appropriate capital to ensure that it has a strong balance sheet but at the same time is providing a good
return on equity to its shareholders. The Group’s long-term aim is to ensure that the capital structure results in an optimal ratio of debt and
equity finance. The Financial review on page 30 includes information on the Group’s Financial model which covers the Group’s capital
structure strategy.
Capital is monitored by considering the ratio of equity to receivables and the gearing ratio. The equity of the Group and these ratios are
shown below:
2025 2024
Group
£m £m
Receivables
1,061.3
870.0
Borrowings
(617.7) (515.9)
Other net assets
102.4
112.2
Equity
546.0
466.3
Equity as % of receivables
51.4
53.6%
Gearing
1.1
1.1
The Group has a target equity to receivables rate of 40%. At 31 December 2025, the equity to receivables rate was 51.4% (2024: 53.6%).
We continue to operate with significant headroom on the Group’s debt funding covenants. Further details are included on page 33.
23. Derivative financial instruments
The Group’s derivative assets and liabilities that were measured at fair value at 31 December are as follows:
2025 2024
Group
£m £m
Assets
Foreign currency contracts
1.5
2.6
Total
1.5
2.6
2025 2024
Group
£m £m
Liabilities
Foreign currency contracts
4.0
1.6
Total
4.0
1.6
The company had no derivative assets or liabilities at 31 December 2025 (2024: no derivative assets or liabilities).
The fair value of derivative financial instruments has been calculated by discounting expected future cash flows using interest rate yield
curves and forward foreign exchange rates prevailing at 31 December.
Cash flow hedges
The Group uses foreign currency contracts (cash flow hedges) to hedge those foreign currency cash flows that are highly probable to
occur within 12 months of the balance sheet date and interest rate swaps (cash flow hedges) to hedge those interest cash flows that
are expected to occur within two years of the balance sheet date. The effect on the income statement will also be within these periods.
An amount of £0.2m has been credited to equity for the Group in the period in respect of cash flow hedges (2024: £0.4m charged to
equity), Company: £nil to equity (2024: £nil to equity).
Annual Report and Financial Statements 2025
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International Personal Finance plc
23. Derivative financial instruments continued
The following table shows the notional maturity profile of outstanding cash flow hedges:
In more than
Repayable one year but
up to less than
one year two years Total
Group £m £m £m
As at 31 December 2024
Foreign currency contracts
413.9
–
413.9
Cash flow hedges
413.9
–
413.9
As at 31 December 2025
Foreign currency contracts
428.6
–
428.6
Cash flow hedges
428.6
–
428.6
The company had no cashflow hedges as at 31 December 2025 (2024: nil).
The Group and the company had no interest rate swaps at 31 December 2025 (2024: nil).
24. Analysis of financial assets and financial liabilities
Financial assets
An analysis of Group financial assets is presented below:
2025 2024
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
1,061.3
–
1,061.3
870.0
–
870.0
Derivative financial instruments
–
1.5
1.5
–
2.6
2.6
Cash and cash equivalents
30.4
–
30.4
27.6
–
27.6
Other receivables
15.5
–
15.5
22.9
–
22.9
Total
1,107.2
1.5
1,108.7
920.5
2.6
923.1
Financial liabilities
An analysis of Group financial liabilities is presented below:
2025 2024
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
476.2
–
476.2
433.4
–
433.4
Bank borrowings
141.5
–
141.5
82.5
–
82.5
Derivative financial instruments
–
4.0
4.0
–
1.6
1.6
Trade and other payables
133.4
–
133.4
125.1
–
125.1
Provision for liabilities and charges
–
–
–
2.8
–
2.8
Total
751.1
4.0
755.1
643.8
1.6
645.4
Annual Report and Financial Statements 2025
223
25. Fair values of financial assets and liabilities
IFRS 13 requires disclosure of fair value measurements of derivative financial instruments by level of the following fair value measurement
hierarchy:
– quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
– inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (level 2); and
– inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
With the exception of derivatives, which are held at fair value, amounts receivable from customers, and bonds, the carrying value of all
other financial assets and liabilities (which are short-term in nature) is considered to be a reasonable approximation of their fair value.
Details of the significant assumptions made in determining the fair value of amounts receivable from customers and bonds are included
below, along with the fair value of other Group assets and liabilities.
The fair value and carrying value of the financial assets and liabilities of the Group are set out below:
Fair values
Carrying Total fair
value Level 1 Level 2 Level 3 value
At 31 December
2024
£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
Fair values
Carrying Total fair
value Level 1 Level 2 Level 3 value
At 31 December
2025
£m £m £m £m £m
Financial assets
Amounts receivable from customers
1,061.3
–
–
1,373.9
1,373.9
Derivative financial instruments
1.5
–
1.5
–
1.5
Cash and cash equivalents
30.4
30.4
–
–
30.4
Other receivables
15.5
–
–
15.5
15.5
1,108.7
30.4
1.5
1,389.4
1,421.3
Financial liabilities
Bonds
476.2
511.4
–
–
511.4
Bank borrowings
141.5
141.5
–
–
141.5
Derivative financial instruments
4.0
–
4.0
–
4.0
Trade and other payables
133.4
–
–
133.4
133.4
755.1
652.9
4.0
133.4
790.3
Annual Report and Financial Statements 2025
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Statements
Financial Statements continued
Notes to the Financial Statements continued
224
International Personal Finance plc
25. Fair values of financial assets and liabilities continued
The fair value and carrying value of the financial assets and liabilities of the Company are set out below:
Fair values
Carrying Total fair
value Level 1 Level 2 Level 3 value
At 31 December 2024 £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
Fair values
Carrying Total fair
value Level 1 Level 2 Level 3 value
At 31 December 2025 £m £m £m £m £m
Financial assets
Cash and cash equivalents
0.7
0.7
–
–
0.7
Other receivables
599.2
–
–
599.2
599.2
599.9
0.7
–
599.2
599.9
Financial liabilities
Bonds
476.2
511.4
–
–
511.4
Bank borrowings
13.2
13.2
–
–
13.2
Trade and other payables
513.6
–
–
513.6
513.6
1,003.0
524.6
–
513.6
1,038.2
The fair value of amounts receivable from customers has been derived by discounting expected future cash flows (as used to
calculate the carrying value of amounts due from customers), net of repayment costs, at the Group’s weighted average cost of capital
which is estimated to be 12% (2024: 12%) which is assumed to be a proxy for the discount rate that a market participant would use to
price the asset.
Under IFRS 13 ‘Fair value measurement’, receivables are classed as level 3 as their fair value is calculated using future cash flows that are
unobservable inputs.
The fair value of the bonds has been calculated by reference to their market value where market prices are available.
The carrying value of bank borrowings is deemed to be a good approximation of their fair value. Bank borrowings can be repaid within
six months if the Group decides not to roll over for further periods up to the contractual repayment date. The impact of discounting would
therefore be negligible.
Derivative financial instruments are held at fair value which is equal to the expected future cash flows arising as a result of the
derivative transaction.
For other financial assets and liabilities, which are all short-term in nature, the carrying value is a reasonable approximation of their
fair value.
26. Provisions
As at 31 December 2024, the Group had £2.8m payable to employees outstanding relating to a restructure exercise undertaken in 2024.
This provision was fully utilised in 2025.
Annual Report and Financial Statements 2025
225
27. Retirement benefit asset/obligation
Pension schemes – defined benefit
With effect from 1 March 2010, the Group’s defined benefit pension scheme was closed to further accrual of defined benefit obligations.
The scheme includes benefits due under final salary and cash balance arrangements and scheme governance is maintained by
an independent board of trustees. Scheme assets are invested in line with the strategy set out in the scheme’s financial statements.
The primary objectives are to ensure the scheme’s obligations to its beneficiaries can be met, and that the scheme achieves an asset
return higher than the return from bonds over the longer term, whilst recognising the need to balance risk and control return generation.
The scheme is exposed to credit risk i.e. the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation and market risk i.e. the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk for the scheme comprises of currency risk, interest rate risk, inflation risk and other price risk.
Credit risk is mitigated by the underlying exposures on an aggregate basis being predominantly investment grade credit securities and
by holding a diverse portfolio of investments with exposure to a range of issues and issuers, through the higher yield available on these
investments which compensates on an aggregate basis for the risk taken and through the use of active fund managers who through
careful stock selection aim to reduce the impact of defaults and downgrades.
Scheme market risks:
– currency risk: mitigated by all pooled investment vehicles held by the scheme being GBP denominated;
– interest rate risk: the scheme is subject to interest rate risk as some of the scheme's investments are held in leveraged gilts through
pooled vehicles, and cash, as part of the LDI investment strategy (hedging component). Under this strategy, if interest rates fall, the
value of LDI investments will rise to help match the increase in actuarial liabilities arising from a fall in the discount rate. Similarly, if
interest rates rise, the LDI investments will fall in value, as will the actuarial liabilities because of an increase in the discount rate;
– inflation risk: the scheme is also subject to inflation risk because some of the scheme’s investments are held in inflation-linked bonds
(through pooled vehicles). Under this strategy, if inflation rises, the value of the inflation-linked bond assets will also rise to help match
the increase in the actuarial liabilities. Similarly, if inflation falls, the inflation-linked bond assets will also fall in value, as will the actuarial
liabilities; and
– other price risk: arises principally in relation to the scheme’s return seeking portfolio (diversified growth funds) which includes a range of
strategies. This exposure to overall price movements is managed by constructing a diverse portfolio of investments across various markets.
Scheme assets are stated at fair value as at 31 December 2025. The major assumptions used by the actuary were:
2025 2024
Group and Company
% %
Price inflation (‘CPI’)
2.6
2.7
Rate of increase to pensions in payment
2.9
3.1
Discount rate
5.7
5.6
The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current
investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date.
Expected returns on equity investments reflect long-term real rates of return experienced in the respective markets.
The mortality assumptions are based on standard tables which allow for future mortality improvements. Different assumptions are used
for different groups of members. Most members have not yet retired. On average, we expect a male retiring in the future at age 65 to live
for a further 23 years. On average, we expect a female retiring in the future at age 65 to live for a further 25 years. If life expectancies had
been assumed to be one year greater for all members, the defined benefit asset would reduce by approximately £0.6m.
If the discount rate was 50 basis points higher/(lower), the defined benefit asset would increase by £1.3m/(decrease by £1.5m).
If the price inflation rate was 25 basis points higher/(lower), the defined benefit asset would decrease by £0.4m/(increase by £0.4m).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit asset, as it is unlikely that
the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
The amounts recognised in the balance sheet are as follows:
2025 2024
Group and Company
£m £m
Diversified growth funds
4.0
3.1
Corporate bonds
7.4
8.4
Equities
3.2
3.5
Liability driven investments
11.8
10.7
Other
0.5
0.6
Total fair value of scheme assets
26.9
26.3
Present value of funded defined benefit obligations
(21.9) (21.9)
Net asset recognised in the balance sheet
5.0
4.4
All pension scheme assets held are not quoted or traded on an exchange and are designated as “unquoted pooled funds”.
Annual Report and Financial Statements 2025
225
International Personal Finance plc
224
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements continued
226
International Personal Finance plc
27. Retirement benefit asset/obligation continued
The movement in the asset recognised in the balance sheet is principally due to changes in the benefit obligations based on a
projection of the results of the triennial statutory funding valuation, including updates to census, mortality and other data information.
The amounts recognised in the income statement are as follows:
2025 2024
Group and Company £m £m
Interest cost
1.2
1.1
Expected return on scheme assets
(1.4)
(1.4)
Net credit recognised in the income statement
(0.2)
(0.3)
The net credit is included within administrative expenses.
Movements in the fair value of scheme assets were as follows:
2025 2024
Group and Company £m £m
Fair value of scheme assets at 1 January
26.3
30.4
Expected return on scheme assets
1.4
1.4
Actuarial gain/(loss) on scheme assets
0.1
(
4.3)
Net benefits paid out
(0.9)
(
1.2)
Fair value of scheme assets at 31 December
26.9
26.3
Movements in the present value of the defined benefit obligation were as follows:
2025 2024
Group and Company £m £m
Defined benefit obligation at 1 January
(21.9)
(
24.3)
Interest cost
(1.2)
(1.1)
Actuarial gain on scheme liabilities
0.3
2.3
Net benefits paid out
0.9
1.2
Defined benefit obligation at 31 December
(21.9)
(
21.9)
The weighted average duration of the defined benefit obligation is 14 years (2024: 14 years).
The actual return on scheme assets compared to the expected return is as follows:
2025 2024
Group and Company £m £m
Expected return on scheme assets
1.4
1.4
Actuarial gain/(loss) on scheme assets
0.1
(
4.3)
Actual gain/(loss) on scheme assets
1.5
(
2.9)
Actuarial gains and losses have been recognised through the statement of comprehensive income (‘SOCI’) in the period in which they occur.
An analysis of the amounts recognised in the SOCI is as follows:
2025 2024
Group and Company £m £m
Actuarial gain/(loss) on scheme assets
0.1
(
4.3)
Actuarial gain on scheme liabilities
0.3
2.3
Total gain/(loss) recognised in the SOCI in the year
0.4
(
2.0)
Cumulative amount of losses recognised in the SOCI
(18.2)
(
18.6)
The history of experience adjustments are as follows:
Group and Company
2025
2024
2023
*
2022*
2021*
Actuarial gains/(losses) on scheme assets:
–
amount (£m)
0.1
(4.3)
(0.5)
(21.3) (1.6)
–
percentage of scheme assets (%)
0.4
(16.3)
(1.6)
(68.9) (3.1)
Experience (losses)/gains on scheme liabilities:
–
amount (£m)
(0.1)
–
3.4
(2.4)
1.7
–
percentage of scheme liabilities (%)
(0.5)
–
14.2
(8.3)
3.7
* As required under IAS 19.
Annual Report and Financial Statements 2025
227
27. Retirement benefit asset/obligation continued
The Group expects to make a contribution of £nil (2024: £nil) to the deferred benefit pension scheme in the year ending 31 December
2025. The Group has now completed all payments pursuant to a recovery plan agreed with the scheme Trustee.
Pension schemes – defined contribution
The defined benefit pension scheme is no longer open to further accrual. All eligible UK employees are invited to join stakeholder pension
schemes into which the Group contributes between 8% and 12% of members’ pensionable earnings, provided the employee contributes
a minimum of 5%. The assets of the scheme are held separately from those of the Group. The pension charge in the income statement
represents contributions payable by the Group in respect of the scheme and amounted to £1.2m for the year ended 31 December 2025
(2024: £1.1m), Company £0.6m (2024: £0.6m). £nil contributions were payable to the scheme at the year end (2024: £nil).
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, SAYE scheme or the Discretionary Award Plan in 2025.
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 2025 was £2.1m (2024: charge of £1.7m).
The fair value per award granted and the assumptions used in the calculation of the share-based payment charge are as follows:
Deferred Restricted
Group and Company
Share Plan Share Plan*
Grant date
24/04/2025
24/04/2025
Share price at award date
1.39
1.39
Base price for TSR
n/a
n/a
Exercise price
n/a
n/a
Vesting period (years)
3
3
Expected volatility
n/a
34%
Award life (years)
n/a
3
Expected life (years)
n/a
3
Risk
-free rate
n/a
4.02%
Expected dividends expressed as a dividend yield
n/a
7.60%
Deferred portion
n/a
n/a
TSR threshold
n/a
n/a
TSR maximum target
n/a
n/a
EPS threshold
n/a
n/a
EPS maximum target
n/a
n/a
Net revenue threshold
n/a
n/a
Net revenue maximum target
n/a
n/a
Fair value per award (£)
n/a
1.11
* The vesting of awards will be determined by the committee and adherence to its progressive dividend policy.
Annual Report and Financial Statements 2025
227
International Personal Finance plc
226
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements continued
228
International Personal Finance plc
28. Share-based payments continued
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.
The movements in awards during the year for the Group are outlined in the table below:
SAYE Deferred Performance Restricted Discretionary
schemes CSOPs Share Plans Share Plans 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 2024
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 2024
1,037,900
0.85
2,408
2.93
3,406,335 – 4,021,627 –
4,059,193
–
–
–
Outstanding at
1 January 2025
1,037,900
0.85
2,408
2.93
3,406,335
–
4,021,627 –
4,059,193
–
–
–
Granted
–
–
–
–
719,211
–
– –
2,258,875
–
–
–
Expired/lapsed
(11,923)
1.17
–
–
(3,877) – (1,224,466) – (106,313) –
–
–
Exercised
(681,683)
0.75
–
–
(626,746) – (1,168,455) – – –
–
–
Outstanding at
31 December 2025
344,294
1.03
2,408
2.93
3,494,923
–
1,628,706
–
6,211,755
–
–
–
Share awards outstanding at 31 December 2025 had exercise prices of £0.75– £2.93 (2024: £0.75 – £2.93) and a weighted average
remaining contractual life of 7.8 years (2024: 8.0 years).
The movements in awards during the year for the Company are outlined in the table below:
SAYE Deferred Performance Restricted Discretionary
schemes CSOPs Share Plans Share Plans 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 2024
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 2024
634,401
0.84
646
2.93
2,014,946
–
2,095,311
–
2,331,225
–
–
–
Outstanding at
1 January 2025
634,401
0.84
646
2.93
2,014,946
–
2,095,311
–
2,331,225
–
–
–
Granted
–
–
–
–
483,799
–
–
–
1,119,760
–
–
–
Expired/
lapsed
(9,923)
1.26
–
–
–
–
(1,115,802) – (82,277) –
–
–
Exercised
(411,242)
0.76
–
–
(179,327) – (104,272) –
–
–
–
–
Outstanding at
31 December 2025
213,236
0.96
646
2.93
2,319,418
–
875,237
–
3,368,708
–
–
–
Share awards outstanding at 31 December 2025 had exercise prices of £0.75 – £2.93 (2024: £0.75 – £2.93) and a weighted average
remaining contractual life of 7.8 years (2024: 8.1 years).
Annual Report and Financial Statements 2025
229
29. Share capital
2025 2024
Company
£m £m
At 1 January
22.5
23.4
Own shares acquired
–
(0.9)
At 31 December
22.5
22.5
Share capital consists of 224,610,034 authorised, issued and fully-paid up shares (2024: 224,610,034 authorised, issued and fully-paid up
shares) at a nominal value of 10 pence.
The Company has one class of ordinary shares which carry no right to fixed income.
The own share reserve represents the cost of shares in the Company purchased from the market, which can be used to satisfy options
under the Group’s share options schemes (see note 28). The number of ordinary shares held in treasury and by the employee trust at
31 December 2025 was 5,254,091 (2024: 7,730,975). During 2025, the employee trust acquired nil shares at an average price of £nil
(2024: 1,245,160 acquired at an average price of £1.09) and the treasury trust acquired nil shares (2024: nil shares).
30. Reconciliation of profit/(loss) after taxation to cash generated from
operating activities
Group
Company
2025 2024 2025 2024
£m £m £m £m
Profit/(loss) after taxation from operations
54.2
60.9
(41.3)
(4.4)
Adjusted for:
–
tax charge
31.1
12.4
2.8
3.4
–
finance costs
73.3
71.7
81.0
91.1
–
finance income (2.0) (1.3) (50.2) (63.9)
–
dividends received from subsidiaries
–
–
(3.5)
–
–
share-based payment charge (note 28)
2.1
1.7
1.3
1.0
–
depreciation of property, plant and equipment (note 14)
6.1
6.8
0.2
0.1
–
amortisation of intangible assets (note 12)
12.8
12.4
–
–
–
depreciation of right-of-use assets (note 15)
9.9
10.1
0.3
0.3
–
 short-term and low value lease costs (note 15)
1.4
1.4
–
–
Changes in operating assets and liabilities:
–
increase in amounts receivable from customers
(127.3)
(58.8)
–
–
–
decrease/(increase) in other receivables
8.2
(10.4)
 (44.9) (33.4)
–
(decrease)/increase in trade and other payables
(0.7)
7.6
52.8
66.7
–
change in provisions
(2.8)
2.8
–
–
–
 change in retirement benefit asset (0.2) (0.3) (0.2) (0.3)
–
increase/(decrease) in derivative financial instrument liabilities
3.7
(2.9)
–
–
Cash generated from operating activities
69.8
114.1
(1.7)
60.6
31. Capital commitments
2025 2024
Group
£m £m
Capital expenditure commitments contracted with third parties but not provided for at 31 December
7.6
5.5
The Company has no commitments as at 31 December 2025 (2024: £nil).
Annual Report and Financial Statements 2025
229
International Personal Finance plc
228
Responsible
Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Notes to the Financial Statements continued
230
International Personal Finance plc
32. Contingent liabilities
Treatment of the Group’s finance company
In December 2020, HMRC initiated a 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 the benefits of the Group Financing Exemption which it has claimed in its historic
tax returns. IPF believes that all conditions have been complied with and have sought legal advice with regard to the interpretation of the
relevant legislative condition. The legal advice confirmed IPF's view and assessed that, in the event that HMRC were to take the matter to
Tribunal, it is more likely than not that the company would succeed in defending its position. In the unexpected event that HMRC were to
conclude that the company is not in compliance with the conditions and to pursue the matter in Tribunal, and won, the amount of tax at
stake for all open years is £8.8m. It is of note that although HMRC issued a protective Discovery Assessment with respect to 2016, so far no
actual challenge has been made to the company's filing position and HMRC have simply requested information.
Other legal actions and regulatory matters
In addition, in the course of its business the Group is subject to other complaints and threatened or actual legal proceedings
(including class or group action claims) brought by or on behalf of current or former employees, customer representatives, customers,
investors or other third parties. This extends to legal and regulatory challenges and investigations (including relevant consumer bodies)
combined with tax authorities taking a view that is different to the view the Group has taken on the tax treatment in its tax returns. Where
material, such matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine
the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will
be made, a provision is established based on management’s best estimate of the amount required at the relevant balance sheet date.
In some cases, it may not be possible to form a view, for example because the facts are unclear or because further time is needed to
assess properly the merits of the case, and no provisions are held in relation to such matters. In these circumstances, specific disclosure
in relation to a contingent liability will be made where material. However, the Group does not currently expect the final outcome of any
such case to have a material adverse effect on its financial position, operations or cash flows.
33. Related party transactions
The company has various transactions with other companies in the Group. Details of these transactions along with any balances
outstanding are shown below:
2025 2024
Recharge Interest Outstanding Recharge Interest Outstanding
of costs charge balance of costs charge balance
Company £m £m £m £m £m £m
Europe
0.5
–
45.3
0.1
–
46.8
Mexico
0.4
19.6
196.0
2.4
14.4
114.5
Other UK companies
9.3
3.4
(138.1)
12.3
5.6
(54.0)
10.2
23.0
103.2
14.8
20.0
107.3
The outstanding balance represents the net intercompany balance receivable by the Company. Amounts due to and from the
Company by Group subsidiaries are unsecured, accrue interest and are due for repayment in less than one year.
34. Post balance sheet event
On 24 December 2025, the boards of IPF Parent Holdings Limited (“BasePoint”), a newly formed company in the same group as BasePoint
Capital LLC, and IPF announced that they had reached agreement on the terms of a recommended cash offer to be made by
BasePoint for the entire issued and to be issued ordinary share capital of IPF, to be implemented by way of a court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006.
On 15 January 2026, IPF published a Scheme Document which, amongst other things, sets out the full terms and conditions of the
acquisition. The acquisition remains conditional on the satisfaction (or waiver, where applicable) of various conditions, including the
receipt of certain financial regulatory, antitrust and foreign investment clearances, the approval by the requisite majorities of IPF
shareholders and the sanction by the High Court in the UK.
In order to approve the terms of the acquisition, the required majority of Scheme Shareholders will need to vote in favour of the resolution
to be proposed at the Court Meeting and the required majority of IPF Shareholders will need to vote in favour of the resolution to be
proposed at the General Meeting. As announced on 11 February 2026, the Court Meeting and the General Meeting are expected to be
held on 11 March 2026.
Subject to the satisfaction (or waiver, where applicable) of the various conditions, the acquisition is expected to complete during the
third quarter of 2026.
Alternative performance measures
231
International Personal Finance plc
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 2025
231
International Personal Finance plc
230
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Business
Directors’
Report
Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Alternative performance measures continued
232
International Personal Finance plc
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).
Return on equity (RoE) (%)
None
Not applicable
Profit after tax divided by the average of 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 payment 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 regulatory 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.
Annual Report and Financial Statements 2025
233
Constant exchange rate reconciliations
The year-on-year change in profit and loss accounts is calculated by retranslating the 2024 profit and loss account at the average actual
exchange rates used in the current year.
2025
£m
Provident
Europe
Provident
Mexico IPF Digital Central costs Group
Customers (000)
738 705 286 – 1,729
Average gross receivables
757.6 295.9 352.4 – 1,405.9
Closing receivables
575.4 191.2 294.7 – 1,061.3
Customer lending
764.2 285.9 291.9 – 1,342.0
Revenue
339.7 247.1 150.7 – 737.5
Impairment
(5.5)
(80.3)
(41.0)
– (126.8)
Net revenue
334.2 166.8 109.7 – 610.7
Interest expense
(39.2)
(13.6)
(18.4)
(0.1)
(71.3)
Costs
(231.8)
(126.6)
(77.2)
(15.2)
(450.8)
Profit/(loss) before tax
63.2 26.6 14.1 (15.3)
88.6
2024 performance at 2024 average foreign exchange rates
£m
Provident
Europe
Provident
Mexico 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
Foreign exchange movements
£m
Provident
Europe
Provident
Mexico IPF Digital Central costs Group
Average gross receivables
9.9 (24.2)
(5.2)
– (19.5)
Closing receivables
37.2 12.1 12.8 – 62.1
Customer lending
12.7 (23.2)
(3.9)
– (14.4)
Revenue
4.8 (20.2)
(2.9)
– (18.3)
Impairment
(0.1)
6.2 1.5 – 7.6
Net revenue
4.7 (14.0)
(1.4)
– (10.7)
Interest expense
(0.5)
0.9 0.4 – 0.8
Costs
(3.7)
10.1 0.6 – 7.0
0.5 (3.0)
(0.4)
– (2.9)
2024 performance at 2025 average exchange rates
£m
Provident
Europe
Provident
Mexico IPF Digital Central costs Group
Average gross receivables
715.9 282.7 309.4 – 1,308.0
Closing receivables
496.8
171.5
263.8
–
932.1
Customer lending
674.8 266.0 259.3 – 1,200.1
Revenue
333.0 243.6 131.4 – 708.0
Impairment
(8.2)
(86.2)
(25.5)
– (119.9)
Net revenue
324.8 157.4 105.9 – 588.1
Interest expense
(38.1)
(13.5)
(17.9)
(0.1)
(69.6)
Costs
(228.8)
(120.9)
(71.4)
(15.1)
(436.2)
Annual Report and Financial Statements 2025
233
International Personal Finance plc
232
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Business
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Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Financial Statements continued
Alternative performance measures continued
234
International Personal Finance plc
Year-on-year movement at constant exchange rates
Provident
Europe
Provident
Mexico IPF Digital
Central costs Group
Average gross receivables 5.8% 4.7% 13.9% – 7.5%
Closing receivables 15.8% 11.5% 11.7% – 13.9%
Customer lending 13.2% 7.5% 12.6% – 11.8%
Revenue 2.0% 1.4% 14.7% – 4.2%
Impairment 32.9% 6.8%
(60.8%)
–
(5.8%)
Net revenue 2.9% 6.0% 3.6% – 3.8%
Interest expense
(2.9%)
(0.7%)
(2.8%)
–
(2.4%)
Other costs
(1.3%)
(4.7%)
(8.1%)
(0.7%)
(3.3%)
Return on equity (RoE)
RoE is calculated as profit after tax divided by average equity:
2025
£m
2024
£m
2023
£m
Equity (net assets) 546.0 466.3 501.9
Average equity 506.2 484.1
Profit after tax 54.2 60.9
RoE 10.7% 12.6%
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:
2025
European
home credit
£m
Mexico
home credit
£m
IPF Digital
£m
Group
£m
Closing net receivables 2025 575.4 191.2 294.7 1,061.3
Closing net receivables 2024 459.6 159.4 251.0 870.0
Average net receivables 517.5 175.3 272.9 965.7
Equity (net assets) at 40% 207.0 70.1 109.2 386.3
Pre-exceptional profit before tax 63.2 26.6 14.1 88.6
Tax at 35.1% (22.2)
(9.3)
(4.9)
(31.1)
Pre-exceptional profit after tax 41.0 17.3 9.2 57.5
Pre-exceptional RoRE 19.8% 24.7% 8.4% 14.9%
2024
European
home credit
£m
Mexico
home credit
£m
IPF Digital
£m
Group
£m
Closing net receivables 2024 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 35.0% (
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%
Annual Report and Financial Statements 2025
235
Average gross receivables
2025
£m
2024
£m
Provident Europe
757.6 706.0
Provident Mexico
295.9 306.9
IPF Digital
352.4 314.6
Group
1,405.9 1,327.5
Impairment coverage ratio
Impairment coverage ratio is calculated as loss allowance divided by closing gross receivables:
2025
£m
2024
£m
Closing gross receivables
1,539.5 1,297.5
Loss allowance
(478.2)
(427.5)
Closing net receivables
1,061.3 870.0
Impairment coverage ratio
31.1% 32.9%
Annual Report and Financial Statements 2025
235
International Personal Finance plc
234
Responsible
Business
Directors’
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Financial
Statements
Supplementary
Information
Strategic
Report
Financial
Statements
Supplementary information
Financial calendar for 2026
25 February 2026 Announcement of 2025 full-year results
26 March 2026 Ex-dividend date for final dividend
27 March 2026 Record date for final dividend
10 April 2026 DRIP cut-off date
30 April 2026 AGM
8 May 2026 Payment of 2025 final dividend
29 July 2026 Announcement of 2026 half-year results
27 August 2026 Ex-dividend date of interim dividend
28 August 2026 Record date for interim dividend
4 September 2026 DRIP cut-off date
25 September 2026 Payment of 2026 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
2025 3.8 28/08/2025 26/09/2025 Interim
2024 8.0 10/04/2025 12/05/2025 Final
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 MUFG'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.
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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.
Shareholder Information
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International Personal Finance plc
236
International Personal Finance plc Annual Report and Financial Statements 2025
International Personal Finance plc
26 Whitehall Road
Leeds
LS12 1BE
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