Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Vanquis Banking Group ( (GB:VANQ) ) just unveiled an announcement.
Vanquis Banking Group has returned to statutory profitability for 2025, posting a profit before tax of £8.3m after a £138m loss a year earlier, as stronger interest-earning balance growth, cost reductions and improved credit quality lifted performance. The bank accelerated gross customer interest-earning balances by 22% to £2.82bn, led by second charge mortgages and renewed credit card growth, while deliberately shrinking vehicle finance ahead of a new platform launch.
Capital was reinforced through an Additional Tier 1 issuance, leaving the CET1 ratio at 16.5%, providing headroom to support its growth-focused strategy. Operating costs fell by a third to £265.5m, helped by £28.8m of transformation savings and a sharp drop in complaint costs, which were further supported by lower unmerited claims after changes to the Ombudsman fee structure.
Risk-adjusted income rose 5% to £273.8m as the cost of risk eased to 7.3%, reflecting stronger underwriting, better model performance and resilient customer payment behaviour. Liquidity remained robust with an LCR of 306% and retail deposits accounting for nearly 90% of funding, underscoring the strength of Vanquis’s funding model.
The group reported limited exposure to the FCA’s proposed motor finance compensation scheme, booking only a £3m provision due to the absence of discretionary or tied commission arrangements. Management highlighted substantial progress on its “Gateway” technology transformation, which is already improving decisioning and efficiency, and positioned the bank to scale profitably while targeting underserved borrowers.
Vanquis has set a strategic framework built around “Serve More, Serve Responsibly and Scale Profitably” to guide capital allocation, risk management and operational efficiency. The 2025 turnaround and operational momentum underpin management’s confidence in delivering materially higher returns on tangible equity over the next two years, signalling a stronger outlook for shareholders and other stakeholders.
The most recent analyst rating on (GB:VANQ) stock is a Hold with a £114.00 price target. To see the full list of analyst forecasts on Vanquis Banking Group stock, see the GB:VANQ Stock Forecast page.
Spark’s Take on GB:VANQ Stock
According to Spark, TipRanks’ AI Analyst, GB:VANQ is a Neutral.
The score is held down primarily by weak financial performance (losses, falling revenue, and materially higher leverage). Technicals are a partial offset with the share price above major moving averages and positive MACD, while valuation is constrained by a negative P/E and lack of dividend support. Corporate actions to optimize capital are constructive but secondary versus the core profitability and balance-sheet risks.
To see Spark’s full report on GB:VANQ stock, click here.
More about Vanquis Banking Group
Vanquis Banking Group is a UK-based specialist bank focused on serving customers who are underserved by mainstream lenders. Its primary products include credit cards, second charge mortgages and vehicle finance, funded largely by a stable retail deposits franchise that underpins its balance growth and capital deployment strategy.
Average Trading Volume: 926,793
Technical Sentiment Signal: Sell
Current Market Cap: £314.5M
For detailed information about VANQ stock, go to TipRanks’ Stock Analysis page.