Vanquis Banking Group (VANQ) investor relations material

Executive summary

• Returned to profitability in H1 2025 with profit after tax of £5.6m, three consecutive quarters of balanced growth, and ROTE of 3.1% in line with guidance.

• All product lines were profitable; customer balances grew 7% year-over-year to £2,459m.

• Cost control and technology transformation (Gateway program) are progressing, with over half of £15m targeted cost savings already delivered.

• Complaint costs fell 36% year-over-year to £16m, aided by regulatory changes and FOS fee structure.

• Customer engagement and satisfaction remain high, with Trustpilot scores rated "great" and over 80% five-star reviews.

Financial highlights

• Gross customer interest earning balances reached £2.46bn, up 7% year-over-year; net receivables up 8%.

• Net interest margin (NIM) was 17.4%, expected to remain above 17% for the full year.

• Cost/income ratio improved to 62.5%, with further improvement targeted for H2.

• Profit before tax from continuing operations was £6.2m; profit after tax £5.6m.

• Return on tangible equity (ROTE) was 3.1%, in line with low single-digit guidance.

Outlook and guidance

• Upgraded year-end guidance for customer balances to over £2.6bn; 2026 guidance c.£3.0bn.

• Full-year NIM guidance unchanged at >17%; cost/income ratio expected in the high 50s by year-end, trending to low 50s in 2026.

• ROTE guidance: low single digits for 2025, low double digits for 2026.

• Impairment expected to rise in H2 due to new originations but remain within guided ranges.

• PRA capital review expected in H2; capital ratio guidance >17.5% by year-end.