IPF collections, lending increase as Covid-19 lockdowns lifted

The company on Friday said June collections reached 88% of pre-Covid expectations, with almost all of its agents resuming weekly visits to customers. April and May collections were 76% and 80%, respectively.

IPF said credit issued increased as lockdown restrictions were progressively eased across the Continent, with 37% of pre-Covid expectations lent in June, up from 30% during April and May. This was due to higher lending levels in European home credit markets despite continued significantly restricted sales in Poland where a temporary rate cap limited short term economic returns.

“We expect to progressively accelerate credit issued in the coming months with lending remaining focused on our higher quality customers,” the company said.

“Although reduced operational challenges may be partially offset by a recessionary impact on customer incomes in the second half of 2020, we expect collections effectiveness to progressively improve in the coming months.”