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

Vanquis Banking Group (LON:VANQ) announced its earnings results on Thursday. The company reported GBX 5 earnings per share (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 Down 3.6%

Shares of LON:VANQ opened at GBX 119.40 on Friday. The company has a market cap of £306.25 million, a price-to-earnings ratio of -3.91 and a beta of 1.45. Vanquis Banking Group has a fifty-two week low of GBX 42.65 and a fifty-two week high of GBX 132. The firm’s 50-day simple moving average is GBX 120.04 and its 200-day simple moving average is GBX 116.30.

Analyst Upgrades and Downgrades

Separately, Shore Capital Group reissued a “house stock” rating on shares of Vanquis Banking Group in a research note on Wednesday, November 5th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Vanquis Banking Group currently has an average rating of “Buy” and an average target price 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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