Vanquis Banking Group (LON:VANQ) Announces Quarterly Earnings Results

Vanquis Banking Group (LON:VANQ) announced its quarterly earnings results on Thursday. The company reported GBX 5 EPS for the quarter, Digital Look Earnings reports. Vanquis Banking Group had a negative return on equity of 5.64% and a negative net margin of 6.88%.

Here are the key takeaways from Vanquis Banking Group’s conference call:

• Returned to profitability: Vanquis reported a profit before tax of £8.3m in 2025 and a ROTE of 2.3%, meeting or beating its key 2025 commitments after the 2024 turnaround.
• Stronger capital position and growth guidance: A £60m AT1 issue lifted Tier 1 to 19.3% and CET1 to 16.5%, management now comfortable with a >14.5% CET1 target and plans balance growth to >£3.3bn in 2026 and >£3.7bn by end-2027 with ROTE guidance of low double-digits (2026) and mid-teens (2027).
• Product mix shifting to lower-risk lending: Deliberate allocation into second charge (secured) mortgages reduced headline NIM to 16.8% (guidance ~15.5% in 2026, ~14.5% in 2027), while NIM excluding those mortgages rose 50bps to 19.4%, reflecting a trade-off between margin and risk profile.
• Gateway and cost discipline driving efficiency: The technology transformation delivered £28.8m of savings (above target), complaint costs fell 44% and fraud losses 25%, and management expects cost-to-income to fall from the high‑50s (2025) to the high‑40s (2026) and mid‑40s (2027).
• Vehicle finance remains a drag: Vehicle finance was loss-making in 2025 (loss £12.7m) and, despite repricing and improving metrics, profitability is contingent on the Gateway vehicle platform rollout and scale-up into the back half of 2026 and beyond.

Vanquis Banking Group Stock Performance

VANQ stock traded down GBX 2.40 during midday trading on Thursday, reaching GBX 123.80. The company’s stock had a trading volume of 4,038,180 shares, compared to its average volume of 974,731. The stock has a fifty day simple moving average of GBX 119.89 and a two-hundred day simple moving average of GBX 116.21. Vanquis Banking Group has a 1 year low of GBX 42.65 and a 1 year high of GBX 132. The firm has a market capitalization of £317.54 million, a price-to-earnings ratio of -4.06 and a beta of 1.45.

Analyst Upgrades and Downgrades

Separately, Shore Capital Group restated a “house stock” rating on shares of Vanquis Banking Group in a research report on Wednesday, November 5th. Two investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of GBX 111.50.

About Vanquis Banking Group

We’re Vanquis Banking Group plc, an FTSE All Share company and a leading specialist bank, established in 1880. We lend responsibly, providing tailored products and services to 1.75 million UK customers through Vanquis, Moneybarn, and Snoop.

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