Vanquis Banking Group (VANQ) AI Stock Analysis

• Market Cap: £255.15M
• Dividend Yield: 9.29%
• Average Volume (3M): 601.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 1.10%
• EPS Growth: -1831.40%
• Country: UK
• Employees: 1,269
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -0.01
• Shares Outstanding: 256,484,770
• 10 Day Avg. Volume: 530,243
• 30 Day Avg. Volume: 601,256
• PEG Ratio: -0.02
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £83.00
• Price Target Upside: -16.16% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ―

Vanquis Banking Group's stock score reflects a mixed financial performance with profitability challenges but improved cash flow. Technical indicators suggest positive momentum, albeit with caution due to overbought signals. Valuation concerns are tempered by a high dividend yield. Recent insider buying by the CFO adds a positive sentiment, indicating potential confidence in future performance.

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 vehicle finance for cars, motorbikes, and light commercial vehicles. The company was formerly known as Provident Financial plc and changed its name to Vanquis Banking Group plc in March 2023. Vanquis Banking Group plc was founded in 1880 and is headquartered in Bradford, the United Kingdom.

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 traditional banking services, charging interest on outstanding balances, and applying fees for services such as late payments or exceeding credit limits. Additionally, Vanquis benefits from partnerships with retailers and other businesses to offer co-branded credit solutions, which can drive customer acquisition and increase transaction volumes. The company also earns interest income from its savings products and may generate additional revenue through investments and financial advisory services. Key factors contributing to its earnings include effective risk management, customer retention strategies, and the ability to scale its operations to reach more customers.

Vanquis Banking Group Financial Statement Overview

Summary

Vanquis Banking Group faces challenges with declining revenues and profitability, as seen in the income statement. The reduction in debt is a positive aspect, but decreasing equity raises concerns about financial stability. Cash flow performance has improved recently, but past volatility remains a risk factor.

Income Statement

Vanquis Banking Group's income statement shows declining revenue from 2019 to 2024, with a significant drop in 2024. The gross profit margin was strong in previous years but the absence of EBIT and EBITDA in 2024 indicates operational challenges. The net profit margin is negative in recent years, reflecting ongoing profitability issues.

Balance Sheet

The balance sheet reflects a reduction in total debt by 2024, contributing to a lower debt-to-equity ratio. However, the decrease in stockholders' equity over the years is concerning. The equity ratio has decreased, indicating potential risks in financial stability.

Cash Flow

Cash flow from operations improved significantly in 2024, resulting in strong free cash flow. The free cash flow to net income ratio is favorable, suggesting effective cash management despite the net loss. However, past years showed inconsistent cash flows, indicating volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	458.50M	599.20M	417.40M	481.60M	615.40M
Gross Profit	222.20M	293.60M	120.50M	210.40M	514.80M
EBITDA	0.00	159.40M	205.40M	0.00	0.00
Net Income	-119.30M	-6.00M	77.40M	-32.10M	-83.40M
Balance Sheet
Total Assets	3.38B	3.21B	2.66B	2.73B	3.08B
Cash, Cash Equivalents and Short-Term Investments	1.01B	743.30M	464.90M	717.70M	919.70M
Total Debt	0.00	2.57B	864.70M	904.10M	589.40M
Total Liabilities	2.93B	2.63B	2.05B	2.09B	2.43B
Stockholders Equity	441.20M	583.10M	614.70M	631.20M	647.70M
Cash Flow
Free Cash Flow	438.00M	-252.80M	-237.70M	137.00M	341.70M
Operating Cash Flow	440.20M	-230.50M	-204.90M	163.10M	363.90M
Investing Cash Flow	2.10M	-18.80M	-32.80M	-22.30M	-21.50M
Financing Cash Flow	-181.30M	527.20M	-12.50M	-345.00M	225.10M

Vanquis Banking Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 99 is above the 20-day moving average (MA) of 94.05, above the 50-day MA of 83.16, and above the 200-day MA of 59.92, indicating a bullish trend. The MACD of 4.41 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.43 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUS	76 Outperform	£222.36M	12.41	7.59%	4.37%	0.15%	-29.58%
HAT	76 Outperform	£277.48M	12.47	12.03%	3.44%	20.20%	6.12%
IPF	75 Outperform	£373.69M	6.26	12.58%	6.93%	-5.41%	27.41%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
FCH	67 Neutral	£374.66M	242.75	0.13%	―	-0.80%	―
VANQ	61 Neutral	£255.15M	―	-23.29%	9.29%	1.10%	-1831.40%
ASAI		£150.00M	6.55	32.74%	1.48%	―	―

Vanquis Banking Group Corporate Events

Vanquis Banking Group Announces Share Capital Details

Vanquis Banking Group plc has announced its issued share capital as of April 30, 2025, which consists of 256,482,888 ordinary shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Spark’s Take on GB:VANQ Stock

According to Spark, TipRanks’ AI Analyst, GB:VANQ is a Neutral.

Vanquis Banking Group’s stock score reflects a mixed financial performance with profitability challenges but improved cash flow. Technical indicators suggest positive momentum, albeit with caution due to overbought signals. Valuation concerns are tempered by a high dividend yield. Recent insider buying by the CFO adds a positive sentiment, indicating potential confidence in future performance.

To see Spark’s full report on GB:VANQ stock, click here.

Vanquis Banking Group PLC Announces Share Incentive Plan Transaction

Vanquis Banking Group PLC announced a transaction involving the purchase of Ordinary Shares under its Share Incentive Plan. This transaction, conducted on behalf of Dave Watts, the Chief Financial Officer, reflects the company’s ongoing commitment to its employee share ownership schemes, potentially enhancing stakeholder alignment and long-term value creation.

Spark’s Take on GB:VANQ Stock

According to Spark, TipRanks’ AI Analyst, GB:VANQ is a Neutral.

Vanquis Banking Group’s stock score reflects a mixed financial performance with profitability challenges but improved cash flow. Technical indicators suggest positive momentum, albeit with caution due to overbought signals. Valuation concerns are tempered by a high dividend yield. Recent insider buying by the CFO adds a positive sentiment, indicating potential confidence in future performance.

To see Spark’s full report on GB:VANQ stock, click here.

Schroders Increases Stake in Vanquis Banking Group

Schroders Plc has increased its voting rights in Vanquis Banking Group PLC to 18.11% from a previous 17.04%, as of March 31, 2025. This acquisition of voting rights signifies a strengthened position for Schroders within Vanquis, potentially impacting the company’s governance and strategic decisions.

Schroders Plc Increases Stake in Vanquis Banking Group

Vanquis Banking Group PLC has announced a change in its major holdings, with Schroders Plc increasing its voting rights to 17.042531%. This change in voting rights, which was finalized on March 24, 2025, indicates a significant shift in shareholder influence within the company, potentially impacting its strategic decisions and market positioning.

Vanquis Banking Group CFO Purchases 40,000 Shares

Vanquis Banking Group announced a transaction involving the purchase of 40,000 Ordinary Shares by Dave Watts, the Chief Financial Officer. This transaction, conducted on the London Stock Exchange, highlights the involvement of key managerial personnel in the company’s stock, potentially indicating confidence in the company’s future performance.

Vanquis Banking Group CFO Participates in Share Incentive Plan

Vanquis Banking Group has announced a transaction involving the purchase of ordinary shares by the Trustee of the Share Incentive Plan on behalf of Dave Watts, the Chief Financial Officer. This transaction, part of the company’s Buy As You Earn Share Incentive Plan, highlights the ongoing commitment to aligning managerial interests with shareholder value, potentially impacting the company’s market perception and stakeholder confidence.

Vanquis Banking Group Releases 2024 Annual Report and Announces 2025 AGM

Vanquis Banking Group has announced the publication of its 2024 Annual Report and Financial Statements, alongside the notice for its 2025 Annual General Meeting (AGM). These documents will be available for inspection on the National Storage Mechanism and the company’s website. The AGM is scheduled for 14 May 2025 at Clifford Chance LLP in London, indicating the company’s commitment to transparency and stakeholder engagement.

Vanquis Banking Group’s 2024 Results: A Year of Strategic Turnaround

Vanquis Banking Group reported its financial results for 2024, highlighting a pivotal year in its turnaround strategy. Despite facing challenges, the company achieved significant cost savings and improved its credit quality, positioning itself for future growth. The Group’s technology transformation program is expected to enhance its digital capabilities, supporting its goal of achieving mid-teens return on tangible equity by 2027. While the company faced a statutory loss due to a goodwill write-off and increased complaint costs, it remains focused on moderating growth in vehicle finance and prioritizing second charge mortgages and credit cards.

Vanquis Banking Group Updates Share Capital and Voting Rights

Vanquis Banking Group announced that its issued share capital consists of 256,482,888 ordinary shares with voting rights as of February 28, 2025. This information is crucial for shareholders to determine their notification obligations under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Vanquis Banking Group Announces Share Transactions for CFO

Vanquis Banking Group has announced a transaction notification involving its Chief Financial Officer, Dave Watts, under the company’s Share Incentive Plan. The transaction details include the purchase of ordinary shares and the awarding of matching shares, reflecting the company’s ongoing employee investment initiatives and potential positive impacts on staff engagement and retention.

Norges Bank Adjusts Stake in Vanquis Banking Group

On February 5, 2025, Vanquis Banking Group PLC announced a change in major shareholdings, with Norges Bank acquiring or disposing of voting rights. The bank now holds a total of 6.015460% voting rights in Vanquis, indicating a shift from a previous position of 5.243180%. This adjustment in shareholding could impact the bank’s governance structure and influence its strategic decisions.