Vanquis Banking Group (VANQ) H2 2025 earnings summary

Executive summary

• Returned to profitability in 2025 with profit before tax of £8.3m and statutory profit after tax of £8.7m, reversing significant losses in 2024.

• Achieved or exceeded all key commitments and guidance, including customer interest earning balances of £2.8bn, ahead of guidance.

• Significant progress on technology transformation (Gateway), driving efficiency, cost savings, and operational improvements.

• Enhanced customer proposition with new products, improved risk management, and increased engagement; customer satisfaction and Trustpilot ratings remained high.

• Maintained strong credit quality and responsible lending practices, with five consecutive quarters of book growth and four quarters of profitability.

Financial highlights

• Profit from continuing operations of £8.3m, with net interest income up 3% to £418.4m and total income up 2% to £454.9m.

• Cost-to-income ratio improved to 58.4%, down from 89.4% in FY24, in line with guidance.

• Net interest margin (NIM) at 16.8%, reflecting a shift to lower risk, secured lending.

• Customer interest earning balances grew 22% to over £2.8bn; retail deposits up 24% to £2,984m.

• Credit card balances up 19%; vehicle finance balances down 8%; second charge mortgages up to £599m.

Outlook and guidance

• Statutory ROTE guidance: low double digits for 2026, mid-teens for 2027.

• Balances expected to exceed £3.3bn in 2026 and £3.7bn in 2027.

• NIM expected to reduce to ~15.5% in 2026 and 14.5% in 2027 due to product mix shift.

• Cost-to-income ratio targeted to fall to high 40s in 2026 and mid-40s in 2027.

• CET1 ratio guidance reduced to >14.5% following capital optimisation.