London · Delayed Price · Currency is GBP · Price in GBX Vanquis Banking Group Earnings Call Transcripts
Fiscal Year 2025
-
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.
-
A major capital optimization was completed, increasing lending capacity and supporting growth in key products like second-charge mortgages and credit cards. The focus remains on profitable growth, with capital distribution policy updates expected in early 2026.
-
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
-
2024 was a transformative year, with significant cost savings, a cleaner balance sheet, and a shift to sustainable growth. Losses were driven by one-off items and complaint costs, but the business is now positioned for profitable expansion, with strong liquidity and updated guidance for improved returns by 2027.
-
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.