Vanquis Banking Group (VANQ) investor relations material

Executive summary

• Gross customer interest-earning balances rose 5% QoQ and 21% YoY to £3.208bn; net receivables increased 5% QoQ and 23% YoY to £3.085bn.

• Late-quarter household affordability pressure drove higher Credit Card charge-offs and IFRS 9 provisions, resulting in a small quarterly loss.

• Profitability is expected to improve in 2027 and 2028; if weaker credit performance persists, statutory ROTE is expected at low single digits in 2027 and low double digits in 2028.

Financial highlights

• YTD NIM was 14.8%, down 0.2 percentage points QoQ and 2.2 points YoY; YTD RAM was 8.5%, down 0.8 points QoQ and 3.1 points YoY.

• CET1 ratio was 14.8% at 30 September 2026, down 0.8 percentage points QoQ and 2.6 points YoY.

• Higher impairment charges and modest severance costs contributed to negligible expected statutory ROTE for 2026.

Outlook and guidance

• FY26 interest-earning balances are expected at c.£3.3bn; FY27 at c.£3.4bn, replacing prior guidance of >£3.3bn and >£3.7bn, respectively.

• NIM guidance remains c.14.5% for FY26 and >13% for FY27; RAM guidance was reduced to c.8.0% and c.7.5%, respectively.

• Cost:income ratio guidance remains low 50s in 2026 and mid to high 40s in 2027; statutory ROTE is expected to be negligible in 2026.

• If late-quarter weaker credit performance persists, statutory ROTE is expected at low single digits in 2027 and low double digits in 2028, revised from low double digits and mid-teens.

• CET1 guidance for 2026 was reduced to >14.0% from >14.5%; 2027 guidance is >12.0% following Basel 3.1 and SDDT implementation.