Vanquis Banking Group (LON:VANQ) Issues Earnings Results

Vanquis Banking Group (LON:VANQ) posted its quarterly earnings data on Thursday. The company reported GBX 5 earnings per share for the quarter, Digital Look Earnings reports. Vanquis Banking Group had a negative net margin of 6.88% and a negative return on equity of 5.64%.

Here are the key takeaways from Vanquis Banking Group’s conference call:

• Returned to profitability: Vanquis reported a profit before tax of £8.3m in 2025 and a ROTE of 2.3%, meeting or beating its key 2025 commitments after the 2024 turnaround.
• Stronger capital position and growth guidance: A £60m AT1 issue lifted Tier 1 to 19.3% and CET1 to 16.5%, management now comfortable with a >14.5% CET1 target and plans balance growth to >£3.3bn in 2026 and >£3.7bn by end-2027 with ROTE guidance of low double-digits (2026) and mid-teens (2027).
• Product mix shifting to lower-risk lending: Deliberate allocation into second charge (secured) mortgages reduced headline NIM to 16.8% (guidance ~15.5% in 2026, ~14.5% in 2027), while NIM excluding those mortgages rose 50bps to 19.4%, reflecting a trade-off between margin and risk profile.
• Gateway and cost discipline driving efficiency: The technology transformation delivered £28.8m of savings (above target), complaint costs fell 44% and fraud losses 25%, and management expects cost-to-income to fall from the high‑50s (2025) to the high‑40s (2026) and mid‑40s (2027).
• Vehicle finance remains a drag: Vehicle finance was loss-making in 2025 (loss £12.7m) and, despite repricing and improving metrics, profitability is contingent on the Gateway vehicle platform rollout and scale-up into the back half of 2026 and beyond.

Vanquis Banking Group Stock Performance

Shares of LON:VANQ traded down GBX 2.40 during midday trading on Thursday, hitting GBX 123.80. 4,038,180 shares of the stock were exchanged, compared to its average volume of 974,731. The company has a market capitalization of £317.54 million, a PE ratio of -4.06 and a beta of 1.45. Vanquis Banking Group has a 52-week low of GBX 42.65 and a 52-week high of GBX 132. The business’s fifty day simple moving average is GBX 119.89 and its two-hundred day simple moving average is GBX 116.21.

Analyst Ratings Changes

Separately, Shore Capital Group reissued a “house stock” rating on shares of Vanquis Banking Group in a research note on Wednesday, November 5th. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of GBX 111.50.

About Vanquis Banking Group

We’re Vanquis Banking Group plc, an FTSE All Share company and a leading specialist bank, established in 1880. We lend responsibly, providing tailored products and services to 1.75 million UK customers through Vanquis, Moneybarn, and Snoop.

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