Vanquis Banking Group (VANQ) Q3 2025 TU earnings summary

Executive summary

• Gross customer interest-earning balances rose 8% quarter-on-quarter and 18% year-over-year, reaching £2,652m, with continued profitable growth and resilient product margins.

• Statutory profit delivered in Q3 and across the nine months to 30 September 2025, maintaining operational momentum.

• Credit quality remains robust, and transformation cost savings are on track, supported by technology initiatives.

Financial highlights

• Net receivables increased 8% in the quarter and 21% year-over-year to £2,510m, driven by growth in interest-earning balances and lower impairment coverage on Second Charge Mortgages.

• Year-to-date net interest margin (NIM) declined 40bps quarter-on-quarter and 170bps year-over-year to 17.0%, reflecting a shift to lower-yielding products.

• Gross customer interest-earning balances expected to exceed £2.7bn for FY25, up from previous guidance of >£2.6bn.

Outlook and guidance

• Guidance maintained for a low single-digit statutory Return on Tangible Equity (ROTE) for FY25.

• FY25 NIM now expected to be >16.5% (previously >17%), with net interest income in line with prior expectations.