Vanquis Banking Group (GB:VANQ)
LSE:VANQ
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Vanquis Banking Group
(LSE:VANQ)
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Rating:53Neutral
Price Target:
112.00 p
▲(2.75% Upside)
Action:ReiteratedDate:03/04/26
The score is held back primarily by elevated balance-sheet leverage and weak technical momentum, despite a clear earnings recovery. Earnings-call guidance and capital strength provide support, but valuation (high P/E) and continued execution/credit risks limit upside confidence.
Positive Factors
Return to profitability and revenue rebound
A material revenue rebound and a return to positive net income in 2025 demonstrate the franchise can re‑generate earnings after a multi‑year trough. Sustained revenue growth and the ability to convert it to profit improve operational resilience and provide a foundation for multi‑year ROTE recovery if credit and costs remain controlled.
Negative Factors
High and rising leverage
A debt‑to‑equity ratio near 7x materially increases sensitivity to credit losses and funding stress, constraining strategic flexibility. Elevated leverage raises the capital required to support growth, amplifies upside/downside to ROTE, and increases the stakes of execution on impairment and margin assumptions over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to profitability and revenue rebound
A material revenue rebound and a return to positive net income in 2025 demonstrate the franchise can re‑generate earnings after a multi‑year trough. Sustained revenue growth and the ability to convert it to profit improve operational resilience and provide a foundation for multi‑year ROTE recovery if credit and costs remain controlled.
Read all positive factors
Vanquis Banking Group (VANQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£279.51M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)24.7
Beta (1Y)1.52
Revenue Growth0.07%
EPS GrowthN/A
CountryUK
Employees1,269
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding256,493,740
10 Day Avg. Volume1,545,119
30 Day Avg. Volume1,325,363
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.62
Price to Sales (P/S)0.50
P/FCF Ratio3.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£165.00Price Target Upside51.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.15
Revenue Forecast (FY)£514.07M
Vanquis Banking Group Business Overview & Revenue Model
Company Description
Vanquis Banking Group plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. It offers credit cards products, and unsecured personal loans products. The company also provides veh...
How the Company Makes Money
Vanquis Banking Group makes money primarily through the interest and fees charged on its credit products, such as credit cards and personal loans. The company generates revenue by extending credit to consumers who may not have access to traditiona...
Vanquis Banking Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and improving operational and financial trajectory: Vanquis returned to profitability, delivered strong balance growth, executed material transformation savings, strengthened capital and liquidity positions, and set clear multi-year guidance for higher ROTE and lower cost/income. Key weaknesses remain: Vehicle Finance is still loss-making with a high cost/income ratio, NIM will be diluted by mix shift toward lower‑margin secured lending, coverage ratios declined and ECLs fell despite receivable growth, and limited visibility remains around corporate centre/Snoop profitability and potential FCA redress mechanics. On balance the positives (profit return, growth, cost savings, capital optimisation and clear guidance) outweigh the negatives, though execution risk on Vehicle Finance and credit coverage will be important to monitor.Positive Updates
Return to Profitability
Profit before tax of GBP 8.3m in FY2025, returning to profitability after a FY2024 loss before tax of GBP 138m; profit attributable to shareholders GBP 8.2m.
Negative Updates
Vehicle Finance Remains Loss-Making and High Cost Base
Vehicle Finance reported a loss of GBP 12.7m in 2025 (although the loss reduced materially year-on-year). Balances reduced 8% as new business was managed pre-platform launch and the cost/income ratio remains elevated at 69.9% (operating costs GBP 66.9m). Profitability expected to improve only after Gateway platform completion (H2 2026) and scale.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability
Profit before tax of GBP 8.3m in FY2025, returning to profitability after a FY2024 loss before tax of GBP 138m; profit attributable to shareholders GBP 8.2m.
Read all positive updates
Company Guidance
Management guidance: statutory ROTE of low double‑digits in 2026 and mid‑teens in 2027; customer interest‑earning balances to exceed £3.3bn in 2026 and climb to >£3.7bn by end‑2027; NIM expected to decline to around 15.5% in 2026 and ~14.5% in 2027 (driven by mix into Second Charge Mortgages); risk‑adjusted margin to remain above 9.5% in 2026 and above 9.0% in 2027; cost/income ratio to fall from the high‑50s in 2025 (58.4%) to the high‑40s in 2026 and the mid‑40s in 2027; Gateway to deliver an additional £23–28m of savings in 2026 (after £28.8m delivered in 2025); CET1 guidance set at >14.5% (16.5% at FY‑25 end, ~5.2pp or £107m surplus to the 11.3% regulatory minimum); profit expected to be weighted to H2 2026; and management expects impairment (IFRS 9 provisioning) to rise with growth in 2026 while keeping cost‑of‑risk and product‑level guidance under control.Vanquis Banking Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 605.70M | 458.50M | 599.20M | 539.50M | 534.60M |
| Gross Profit | 320.80M | 222.20M | 325.00M | 480.70M | 478.70M |
| EBITDA | 174.00M | 0.00 | 159.40M | 205.40M | 0.00 |
| Net Income | 8.70M | -119.30M | -6.00M | 77.40M | -32.10M |
Balance Sheet | |||||
| Total Assets | 3.94B | 3.38B | 3.21B | 2.66B | 2.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.01B | 748.70M | 464.90M | 717.70M |
| Total Debt | 3.39B | 2.87B | 2.57B | 1.97B | 1.90B |
| Total Liabilities | 3.45B | 2.93B | 2.63B | 2.05B | 2.09B |
| Stockholders Equity | 487.30M | 441.20M | 583.10M | 614.70M | 631.20M |
Cash Flow | |||||
| Free Cash Flow | 89.70M | 438.00M | 581.40M | -237.70M | 137.00M |
| Operating Cash Flow | 93.00M | 440.20M | 584.70M | -204.90M | 163.10M |
| Investing Cash Flow | -270.30M | 2.10M | -18.80M | -32.80M | -22.30M |
| Financing Cash Flow | -21.90M | -181.30M | 527.20M | -12.50M | -345.00M |
Vanquis Banking Group Technical Analysis
Positive
109.00
Price Trends
116.75
Negative
116.68
Negative
113.71
Positive
Market Momentum
0.70
Negative
52.44
Neutral
24.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VANQ, the sentiment is Positive. The current price of 109 is below the 20-day moving average (MA) of 114.01, below the 50-day MA of 116.75, and below the 200-day MA of 113.71, indicating a neutral trend. The MACD of 0.70 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 24.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VANQ.
Vanquis Banking Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £128.58M | 4.79 | 16.60% | ― | 19.95% | 146.39% | |
68 Neutral | £212.00M | 2.13 | 33.54% | 4.74% | 34.56% | 89.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £544.57M | 5.55 | 10.35% | 4.39% | 1.54% | -9.18% | |
60 Neutral | £238.15M | 5.94 | 9.68% | 5.33% | -7.08% | 32.38% | |
55 Neutral | £404.94M | 2.38 | 21.54% | ― | 37.60% | 2766.67% | |
53 Neutral | £279.51M | 24.71 | 1.89% | ― | 0.07% | ― |
* Financial Sector Average
GB:VANQ
Vanquis Banking Group
118.60
52.00
78.08%
GB:IPF
International Personal Finance
247.50
107.34
76.59%
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GB:FCH
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130.20
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11.66%
GB:TRU
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137.00
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83.89%
GB:ASAI
ASA International Group PLC
214.00
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112.60%
Vanquis Banking Group Corporate Events
Regulatory Filings and Compliance
Vanquis CFO Dave Watts Buys 30,000 Shares in Insider Deal
Positive
Mar 4, 2026
Vanquis Banking Group has disclosed that its chief financial officer, Dave Watts, has purchased 30,000 ordinary shares in the company on the London Stock Exchange. The transaction, executed on 3 March 2026 at a price of £1.08996 per share, re...
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Current Share Capital and Voting Rights
Neutral
Feb 27, 2026
Vanquis Banking Group has confirmed that, as of 27 February 2026, its issued share capital comprises 256,493,758 ordinary shares, each carrying voting rights, and that it holds no ordinary shares in treasury. The company highlighted that this tota...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Vanquis Banking Group swings back to profit as growth and cost cuts take hold
Positive
Feb 26, 2026
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 lift...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Vanquis Banking Group Files 2025 Report and Sets Date for 2026 AGM
Neutral
Feb 26, 2026
Vanquis Banking Group has published its 2025 Annual Report and Financial Statements along with the formal notice of its 2026 Annual General Meeting, making both documents available via the UK Financial Conduct Authority’s National Storage Me...
Regulatory Filings and Compliance
Vanquis Banking Group CFO Reports Routine Share Incentive Plan Dealings
Neutral
Feb 17, 2026
Vanquis Banking Group has disclosed routine share transactions involving Chief Financial Officer Dave Watts under its Buy As You Earn Share Incentive Plan. The trustee purchased 118 ordinary shares on his behalf on 16 February at £1.27 each v...
Business Operations and StrategyFinancial Disclosures
Vanquis Banking Group Sets Date for 2025 Full-Year Results and Investor Briefings
Neutral
Feb 4, 2026
Vanquis Banking Group has announced that it will publish its 2025 full-year results on 26 February 2026 at 07:00 GMT, followed by a presentation for investors and analysts led by CEO Ian McLaughlin and CFO Dave Watts later that morning. The bank i...
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Voting Share Capital of 256.5 Million Shares
Neutral
Jan 30, 2026
Vanquis Banking Group plc, a UK-focused consumer banking and credit provider, operates within the financial services industry offering banking and related financial products to retail clients. The group has announced that, as of 30 January 2026, i...
Other
Vanquis Banking Group CFO Adds to Holding Through Share Incentive Plan
Positive
Jan 15, 2026
Vanquis Banking Group has disclosed that its Chief Financial Officer, Dave Watts, acquired ordinary shares in the company on 14 January 2026 through its Buy As You Earn Share Incentive Plan. Under the scheme, Watts purchased 130 partnership shares...
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Share Capital and Voting Rights Total
Neutral
Dec 31, 2025
Vanquis Banking Group plc has confirmed that, as of 31 December 2025, its issued share capital comprises 256,493,758 ordinary shares of 20 8/11p each, all carrying voting rights, with no shares held in Treasury. The company highlighted that this t...
Business Operations and Strategy
Vanquis Banking Group CFO Participates in Share Incentive Plan
Positive
Dec 16, 2025
Vanquis Banking Group announced a transaction involving its Chief Financial Officer, Dave Watts, who participated in the company’s Share Incentive Plan. On December 15, 2025, the Trustee of the plan purchased ordinary shares on behalf of Wat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.