Vanquis Banking Group (VANQ) AI Stock Analysis

• Market Cap: £287.62M
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.47
• Revenue Growth: -3.77%
• EPS Growth: -147.20%
• Country: UK
• Employees: 1,269
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 256,493,740
• 10 Day Avg. Volume: 1,545,119
• 30 Day Avg. Volume: 1,325,363
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 0.26
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): £514.60M

• Rating: 49 Neutral
• Price Target: 118.00p ▲(8.26% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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.

Positive Factors

Debt Reduction

Reducing debt improves financial stability and lowers interest expenses, enhancing the company's ability to invest in growth opportunities.

Improved Cash Flow

Stronger cash flow indicates effective cash management, providing the company with greater flexibility to reinvest in its business and manage liabilities.

Technology Transformation

Investing in technology transformation supports digital growth and operational efficiency, aligning with industry trends towards digital banking solutions.

Negative Factors

Declining Revenue

Consistent revenue decline suggests challenges in market competitiveness and customer retention, potentially impacting long-term growth prospects.

Decreasing Equity

Decreasing equity can indicate financial strain, reducing the company's ability to absorb losses and invest in future growth initiatives.

Profitability Challenges

Sustained profitability challenges can hinder the company's ability to generate returns for shareholders and invest in strategic initiatives.

Vanquis Banking Group Business Overview & Revenue Model

Company Description

Vanquis Banking Group (VANQ) is a UK-based financial services company specializing in providing credit products and services to underserved consumer segments. With a focus on helping individuals and small businesses improve their financial well-being, Vanquis offers a range of products including credit cards, loans, and savings accounts. The company operates primarily through its subsidiaries and aims to deliver responsible lending by leveraging its deep understanding of customer needs and its commitment to financial inclusion.

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

Overall fundamentals are pressured: a sharp 2024 revenue decline and swing to a large net loss weigh heavily, and leverage is high with debt rising while equity fell (elevated debt-to-equity and negative ROE). Strong 2024 operating/free cash flow is a key offset, but volatility and the gap versus reported losses reduce confidence.

Income Statement

Profitability has deteriorated sharply. Revenue fell materially in 2024 (-36.9% YoY) after growing in 2023, and the company swung to a large net loss in 2024 (net margin about -26%) versus near break-even in 2023 and solid profitability in 2022. While gross profit margin stayed fairly steady around the high-40% range in 2023–2024, bottom-line performance weakened significantly, indicating costs/credit losses or other below-the-line pressures are overwhelming the revenue base.

Balance Sheet

Leverage has increased meaningfully. Total debt rose to ~£2.87B in 2024 while equity declined to ~£441M, pushing debt-to-equity up to ~6.5x (from ~4.4x in 2023 and ~1.4x in 2022). Returns to shareholders are negative (ROE ~-27% in 2024), reflecting both weaker earnings and thinner capital, which reduces balance-sheet flexibility and increases sensitivity to credit/funding stress.

Cash Flow

Cash generation is currently a relative bright spot. Operating cash flow and free cash flow were strongly positive in 2024 (~£440M and ~£438M) and improved sharply versus the negative cash flow seen in 2022; 2023 was also solidly positive. That said, cash flow has been volatile across the period, and the combination of strong cash generation alongside a large net loss suggests earnings quality/working-capital or timing effects that warrant monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	453.90M	458.50M	599.20M	539.50M	534.60M	615.40M
Gross Profit	236.80M	222.20M	325.00M	480.70M	478.70M	392.00M
EBITDA	86.70M	0.00	159.40M	205.40M	0.00	0.00
Net Income	-77.90M	-119.30M	-6.00M	77.40M	-32.10M	-83.40M
Balance Sheet
Total Assets	3.45B	3.38B	3.21B	2.66B	2.73B	3.08B
Cash, Cash Equivalents and Short-Term Investments	805.30M	1.01B	748.70M	464.90M	717.70M	919.70M
Total Debt	476.00M	2.87B	2.57B	1.97B	1.90B	2.25B
Total Liabilities	3.01B	2.93B	2.63B	2.05B	2.09B	2.43B
Stockholders Equity	434.70M	441.20M	583.10M	614.70M	631.20M	647.70M
Cash Flow
Free Cash Flow	173.00M	438.00M	581.40M	-237.70M	137.00M	341.70M
Operating Cash Flow	171.60M	440.20M	584.70M	-204.90M	163.10M	363.90M
Investing Cash Flow	-110.70M	2.10M	-18.80M	-32.80M	-22.30M	-21.50M
Financing Cash Flow	-28.60M	-181.30M	527.20M	-12.50M	-345.00M	225.10M

Vanquis Banking Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VANQ, the sentiment is Negative. The current price of 109 is below the 20-day moving average (MA) of 122.98, below the 50-day MA of 119.90, and below the 200-day MA of 110.25, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	£266.10M	13.76	8.41%	5.33%	-11.17%	6.04%
TRU	73 Outperform	£112.92M	26.15	―	―	203.09%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£543.83M	9.99	14.70%	4.39%	-7.52%	50.23%
FCH	66 Neutral	£413.43M	23.90	3.93%	―	7.90%	―
ASAI	61 Neutral	£225.00M	7.56	39.40%	4.74%	―	―
VANQ	49 Neutral	£287.62M	33.16	-16.30%	―	-3.77%	-147.20%

Vanquis Banking Group Corporate Events

Vanquis Banking Group CFO Adds to Holding Through Share Incentive Plan

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 at £1.154 each via the plan’s trustee on the London Stock Exchange and received a related monthly award of 32 matching shares at nil cost, reflecting ongoing executive participation in the group’s all-employee share plan and aligning senior management’s interests more closely with those of shareholders.

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.

Vanquis Banking Group Confirms Share Capital and Voting Rights Total

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 total share count should be used by investors as the reference denominator for determining whether they must disclose any holdings or changes in their interest in accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, providing clarity for market participants on the group’s current capital and voting structure.

The most recent analyst rating on (GB:VANQ) stock is a Hold with a £118.00 price target. To see the full list of analyst forecasts on Vanquis Banking Group stock, see the GB:VANQ Stock Forecast page.

Vanquis Banking Group CFO Participates in Share Incentive Plan

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 Watts, reflecting the company’s ongoing commitment to employee investment and engagement through its Buy As You Earn Share Incentive Plan. This move underscores the company’s strategy to align managerial interests with shareholder value, potentially enhancing stakeholder confidence.

Vanquis Banking Group Updates Share Capital and Voting Rights

Vanquis Banking Group has announced that its issued share capital consists of 256,493,758 ordinary shares with voting rights as of November 28, 2025. This update 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.

Vanquis Banking Group Appoints New Joint Corporate Brokers

Vanquis Banking Group has appointed Joh. Berenberg, Gossler & Co. KG and Panmure Liberum Limited as its joint corporate brokers. This strategic move is expected to strengthen Vanquis’s ability to execute its growth strategy and enhance its market positioning, benefiting stakeholders through sustained profitability.

Vanquis Banking Group Announces Share Incentive Plan Transaction

Vanquis Banking Group PLC 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, conducted on November 14, 2025, at the London Stock Exchange, is part of the company’s Buy As You Earn Share Incentive Plan, which aims to align managerial interests with those of shareholders.

Vanquis Banking Group Announces Director Share Transaction

Vanquis Banking Group announced a transaction involving the sale of 13,000 Ordinary Shares by Oliver Laird, a non-executive director. This transaction, conducted on the London Stock Exchange, reflects internal movements within the company’s management and may influence stakeholder perceptions regarding the company’s stock performance.

Vanquis Banking Group Reports Strong Q3 Growth and Capital Optimization

Vanquis Banking Group reported an 8% increase in gross customer interest-earning balances for the third quarter of 2025, with a year-on-year growth of 18%, reflecting strong operational momentum and profitability. The company successfully issued £60m of Additional Tier 1 Notes to optimize its capital structure, supporting future growth, and maintained robust credit quality and operational efficiency through its Gateway technology program. Despite a provision of £3.0m for potential exposure to the FCA’s motor finance redress scheme, Vanquis remains confident in its limited impact due to its non-participation in discretionary commission arrangements.

Vanquis Banking Group Announces Share Capital Structure

Vanquis Banking Group plc has announced its current share capital structure, which consists of 256,493,758 ordinary shares with voting rights as of 31 October 2025. 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.

Vanquis Banking Group Announces Share Purchase Under Incentive Plan

Vanquis Banking Group has announced a transaction involving the purchase of ordinary shares under its Share Incentive Plan. The transaction, which took place on October 14, 2025, involved the purchase of shares on behalf of Dave Watts, the Chief Financial Officer, as part of the company’s ongoing efforts to align managerial interests with shareholder value.