Vanquis Banking Group (VANQ) Q1 2025 TU earnings summary

Executive summary

• Returned to profitability in Q1 2025, building on momentum from Q4 2024.

• Gross customer interest earning balances grew, with strong credit quality and well-controlled costs.

• Technology transformation (Gateway) progressing as planned, enhancing efficiency and cost benefits.

• Complaint costs in line with expectations; reduction in unmerited FOS complaint referrals post-fee structure change.

Financial highlights

• Gross customer interest earning balances up 0.2% to £2,313m QoQ; up 2.4% excluding Personal Loan portfolio sale.

• Net receivables grew 1.0% to £2,176m QoQ; up 3.1% excluding Personal Loan portfolio sale.

• Net interest margin (NIM) flat at 17.8% QoQ.

• Tier 1 capital ratio stable at 18.8%; Personal Loan sale added c.25bps.

• Personal Loan portfolio sale completed, generating a small gain and reducing balances.

Outlook and guidance

• Committed to measured growth in 2025 via deeper customer engagement and retention.

• Gateway IT platform on track for mid-2026 launch; new mobile app and onboarding platform expected soon.

• Too early to determine full impact of FOS fee structure change on complaints.