London · Delayed Price · Currency is GBP · Price in GBX Vanquis Banking Group Earnings Call Transcripts
Fiscal Year 2025
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Profitability returned in 2025 with £8.3m profit, strong balance growth, and improved cost efficiency. Guidance targets mid-teens ROTE by 2027, with continued investment in technology and disciplined growth across all segments.
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A major capital optimization was completed, issuing GBP 60 million in AT1 securities and tendering Tier 2 capital, increasing lending capacity and supporting growth. Strong performance in mortgages and credit cards continues, with Snoop integration enhancing technology and deposits. Capital policy updates are expected in early 2026.
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Profitability returned in H1 2025 with all product lines profitable and customer balances up 7%. Cost control, technology transformation, and improved credit quality drove results, while complaint costs and external risks are receding. Guidance for 2025 is reaffirmed with upgraded balance growth expectations.
Fiscal Year 2024
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2024 was a transformative year, with operational and financial restructuring leading to a cleaner, lower-risk business. Despite a statutory loss, cost savings exceeded targets, retail funding grew, and technology transformation advanced. Guidance points to resumed growth, improved profitability, and lower risk ahead.
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H1 2024 saw a statutory loss of £35.8m, driven by legacy one-off items and a major vehicle finance receivables review, but underlying business performance is stabilizing. Cost-saving initiatives and growth in second charge mortgages support a return to profitability targets for 2025-26. Operational and regulatory risks remain, but capital and liquidity are strong.