The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gary Greenwood - Shore Capital - Analyst
: I've got a couple of questions, if I can. So the first one was just on the impairment performance. And I was just wondering whether that was sort of
broad-based across the group or whether there were any sort of specific areas that performed particularly well?
And then the second question was just in terms of sort of lending growth. And I guess the question really there is sort of how do you encourage
the agents that you have to be more active and to sort of lean into that sort of favorable credit risk environment that you've got at the moment
and grow the loan book a little bit faster.
Question: Gary Greenwood - Shore Capital - Analyst
: And then just in terms of how you encourage the agents to sort of lean into that risk and grow faster?
Question: Gary Greenwood - Shore Capital - Analyst
: And the, that's great, thanks for taking my questions.
Question: Rae Maile - Panmure Liberum - Analyst
: Yeah, hi, Marek. I'll answer the second question first or the second part of that one in terms of the small payment institution license. Yeah, I mean,
I think we've said previously in terms of that license, it basically restricts the amount of credit card activity we can do. So clearly, that has been
something that's that's to some extent impacted Poland.
Probably more so over the last, four or five months as we've come, start to come up towards the limit, that's set there. And clearly, we said in the
statement where we're ongoing with those discussions with KNS, and we're, hopeful of something coming through shortly, and that will then allow
the business to grow its credit card portfolio and in particular.
Grow the amount of lending we do to existing customers as well, because that has been restricted and clearly one of the benefits of a credit card
is that it's something that customers can use when they want it. They want to be able to use the line, we've been quite cautious with a lot of the
activity around growing it.
So yes, that full payment license when it comes through will allow us to grow. We're fully planning for that into next year. And we would expect a
pretty strong bounce back in receivables growth and customer growth next year in Poland as a result, certainly well into the double digits. And
I'm saying well into the double digits because that's what we'd expect it to do. The business has shrunk from around GBP300 million to just under
GBP200 million.
Our aim is to get it back up to that GBP300 million receivables over a period of one, two, three years. And at that point, that's when we'll be delivering
our target returns. So the real focus in Poland will be the license coming through, great management team, drive the business forward in terms of
growth.
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OCTOBER 24, 2024 / NTS, IPF.L - Q3 2024 International Personal Finance PLC Trading Statement Call
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