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Vanquis Banking Group
(LSE:VANQ)
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Rating:52Neutral
Price Target:
79.00 p
▼(-34.06% Downside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by elevated and rising balance-sheet leverage and clear technical weakness (price far below major moving averages). Offsetting factors include improving operating performance and generally positive cash generation, plus an earnings-call picture of strong H1 execution and capital/liquidity strength, tempered by a meaningful near-term ROTE guidance downgrade and margin/credit pressure.
Positive Factors
Balance growth & product profitability
Sustained balance growth and product-level profitability provide durable revenue breadth. Gross interest-earning balances rose materially (>£3.0bn, +24% y/y) and multiple product lines delivered PBT, which supports resilient net interest income and reduces single-product dependency over the medium term.
Negative Factors
High and rising leverage
Very elevated leverage materially reduces financial flexibility and amplifies sensitivity to credit and funding shocks. With equity diminished versus earlier years, higher leverage raises refinancing and regulatory risk, constraining capital allocation and making earnings more cyclically exposed over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance growth & product profitability
Sustained balance growth and product-level profitability provide durable revenue breadth. Gross interest-earning balances rose materially (>£3.0bn, +24% y/y) and multiple product lines delivered PBT, which supports resilient net interest income and reduces single-product dependency over the medium term.
Read all positive factors
Vanquis Banking Group (VANQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£199.36M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)18.6
Beta (1Y)1.24
Revenue Growth6.21%
EPS GrowthN/A
CountryUK
Employees1,294
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.04
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
£145.00Price Target Upside21.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£489.02M
Vanquis Banking Group Business Overview & Revenue Model
Company Description
Headquartered in Bradford, UK, Vanquis Banking Group plc focuses on providing personal credit solutions to the non-prime lending sector throughout the United Kingdom and the Republic of Ireland. Its product portfolio encompasses credit cards, unse...
How the Company Makes Money
Vanquis Banking Group primarily makes money by earning interest income and fee-related income from its consumer credit products, and by managing funding and credit risk to generate a net interest margin.
Key revenue streams typically include:
- N...
Vanquis Banking Group Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 01, 2027
Earnings Call Sentiment Neutral
The call presented a mix of strong operational and strategic progress (robust balance growth, product profitability, technology transformation, efficiency gains and capital strength) alongside meaningful near-term headwinds (lower-than-expected card utilization, an additional GBP 8.5m IFRS 9 macro provision, yield compression and higher impairment/charge-offs) that have moderated near-term returns and prompted guidance updates. Management emphasized they are adapting by prioritizing new customer acquisition, completing technology platforms, and driving transformation savings to restore returns over the medium term (ROTE recovery planned for 2027–2028).Positive Updates
Profit Growth
Statutory profit before tax increased 44% year-on-year to GBP 8.9m in H1 2026, exceeding the profit delivered for the whole of 2025.
Negative Updates
Lower-Than-Expected Credit Card Utilization
Utilization by existing credit card customers trailed expectations: spend per active customer increased 10% year-on-year but fell short of planned >15% uplift; this resulted in credit card income being approximately GBP 7m lower than expected in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Profit Growth
Statutory profit before tax increased 44% year-on-year to GBP 8.9m in H1 2026, exceeding the profit delivered for the whole of 2025.
Read all positive updates
Company Guidance
Management updated guidance assuming the more cautious Q2 spending persists: gross customer interest‑earning balances are now guided to exceed £3.3bn by end‑2026 and £3.7bn by end‑2027; net interest margin is expected to be ~14.5% in 2026 and >13% in 2027 with risk‑adjusted margin >8.5% in 2026 and ~8% in 2027; cost‑to‑income is guided to the low‑50s in 2026 and the mid‑to‑high‑40s in 2027; statutory ROTE is expected to be in single digits in 2026 (down from a prior expectation of low double digits), rising to low double digits in 2027 and mid‑teens in 2028 (the £8.5m IFRS 9 macro provision accounts for ~2.4ppt of the ROTE change). The revision follows H1 results (PBT £8.9m, +44% y/y; gross interest‑earning balances >£3.0bn, +24% y/y; H1 NIM ~15%; H1 cost‑to‑income 53.1% with operating costs −8% y/y), and reflects product metrics and mix shifts: credit card balances £1.55bn (asset yield 25.5%; new customer balances +£127m; existing customer balances −£98m), second‑charge mortgages £800m (H1 +34%; ~£30m/month; yield ~6.8%), vehicle finance £707m, group cost of risk ~7% and credit card gross charge‑off rate 13.7%; capital and liquidity guidance includes transformation savings of £30–35m to 2028, CET1 15.6% at H1 with ~£93m surplus to the disclosed minimum and a new CET1 target >12% from 2027, HQLA >£1.2bn and an LCR of 221%.Vanquis Banking Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 630.60M | 605.70M | 458.50M | 599.20M | 539.50M | 534.60M |
| Gross Profit | 357.90M | 320.80M | 222.20M | 325.00M | 480.70M | 478.70M |
| EBITDA | 182.00M | 174.00M | -113.60M | 159.40M | 205.40M | 175.70M |
| Net Income | 10.80M | 8.70M | -119.30M | -6.00M | 77.40M | -32.10M |
Balance Sheet | ||||||
| Total Assets | 4.40B | 3.94B | 3.38B | 3.21B | 2.66B | 2.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 1.06B | 1.01B | 748.70M | 464.90M | 717.70M |
| Total Debt | 3.84B | 3.39B | 2.87B | 2.57B | 1.97B | 1.90B |
| Total Liabilities | 3.90B | 3.45B | 2.93B | 2.63B | 2.05B | 2.09B |
| Stockholders Equity | 494.90M | 487.30M | 441.20M | 583.10M | 614.70M | 631.20M |
Cash Flow | ||||||
| Free Cash Flow | 171.50M | 89.70M | 438.00M | 581.40M | -237.70M | 137.00M |
| Operating Cash Flow | 174.00M | 93.00M | 440.20M | 584.70M | -204.90M | 163.10M |
| Investing Cash Flow | -307.80M | -270.30M | 2.10M | -18.80M | -32.80M | -22.30M |
| Financing Cash Flow | 188.80M | -21.90M | -181.30M | 527.20M | -12.50M | -345.00M |
Vanquis Banking Group Technical Analysis
Negative
119.80
Price Trends
107.70
Negative
109.90
Negative
113.09
Negative
Market Momentum
-9.86
Positive
19.32
Positive
14.29
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 119.8 is above the 20-day moving average (MA) of 96.98, above the 50-day MA of 107.70, and above the 200-day MA of 113.09, indicating a bearish trend. The MACD of -9.86 indicates Positive momentum. The RSI at 19.32 is Positive, neither overbought nor oversold. The STOCH value of 14.29 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £54.96M | 8.80 | 24.15% | ― | 19.95% | 146.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | £571.12M | 11.34 | 8.74% | 5.15% | 14.31% | -32.89% | |
65 Neutral | £241.19M | 10.18 | 9.68% | 5.93% | -7.08% | 32.38% | |
60 Neutral | £216.00M | 6.23 | 33.54% | 3.95% | 34.56% | 89.25% | |
58 Neutral | £675.21M | 16.49 | 21.54% | ― | 37.60% | 2766.67% | |
52 Neutral | £199.36M | 18.62 | 2.20% | ― | 6.21% | ― |
* Financial Sector Average
GB:VANQ
Vanquis Banking Group
79.90
-33.70
-29.67%
GB:IPF
International Personal Finance
250.00
64.84
35.02%
GB:SUS
S&U plc
1,985.00
238.86
13.68%
GB:FCH
Funding Circle Holdings
245.50
96.70
64.99%
GB:TRU
TruFin
100.50
20.15
25.08%
GB:ASAI
ASA International Group PLC
235.00
112.94
92.52%
Vanquis Banking Group Corporate Events
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Total Voting Rights
Neutral
Jul 31, 2026
Vanquis Banking Group plc has confirmed that as of 31 July 2026 its issued share capital comprises 256,493,758 ordinary shares, with none held in treasury, resulting in an identical total number of voting rights. This disclosure provides sharehold...
Regulatory Filings and Compliance
Vanquis CFO Boosts Stake With Market Share Purchase
Positive
Jul 30, 2026
Vanquis Banking Group plc has disclosed that its Chief Financial Officer, Dave Watts, purchased 45,000 ordinary shares in the company on 30 July 2026. The shares were acquired via a market transaction on the London Stock Exchange at a price of ...
Business Operations and StrategyDividendsFinancial Disclosures
Vanquis Banking Group lifts profits and transformation savings as cautious consumers temper near-term returns
Positive
Jul 30, 2026
Vanquis Banking Group reported strong interim results for the six months to 30 June 2026, with statutory profit before tax from continuing operations rising 44% to £8.9m, surpassing its full-year 2025 profit despite higher macroeconomic impai...
Other
Vanquis CFO Increases Stake Through Share Incentive Plan
Neutral
Jul 15, 2026
Vanquis Banking Group reported that its Chief Financial Officer, Dave Watts, acquired ordinary shares through the company’s Buy As You Earn Share Incentive Plan. The plan’s trustee purchased 132 partnership shares for Watts on 14 July,...
Business Operations and StrategyFinancial Disclosures
Vanquis Banking Group Sets Dates for 2026 Interim Results and Investor Presentations
Positive
Jul 6, 2026
Vanquis Banking Group will publish its 2026 interim results on 30 July 2026 at 07:00 BST, followed by a presentation for investors and analysts led by CEO Ian McLaughlin and CFO Dave Watts later that morning. The group has set up webcasts and conf...
Regulatory Filings and Compliance
Vanquis Banking Group Updates Share Capital and Voting Rights
Neutral
Jun 30, 2026
Vanquis Banking Group plc has confirmed that, as of 30 June 2026, its issued share capital comprises 256,493,758 ordinary shares, each carrying voting rights, and that it holds no shares in Treasury. This disclosure, made under the Financial Condu...
Executive/Board ChangesRegulatory Filings and Compliance
Vanquis Banking Group Discloses Routine Share Incentive Deals for CFO
Neutral
Jun 16, 2026
Vanquis Banking Group has reported routine share dealings by Chief Financial Officer Dave Watts under its Buy As You Earn Share Incentive Plan. On 15 June 2026, the plan trustee purchased 133 ordinary shares for Watts on the London Stock Exchange ...
Regulatory Filings and Compliance
Vanquis Banking Group Updates Share Capital and Voting Rights Figure
Neutral
May 29, 2026
Vanquis Banking Group has confirmed that, as of 29 May 2026, its issued share capital comprises 256,493,758 ordinary shares of 20 8/11p each, all of which carry voting rights and none of which are held in Treasury. This updated share count provide...
Business Operations and StrategyPrivate Placements and Financing
Vanquis Banking Group Completes £100m Tier 2 Notes Tender Offer
Positive
May 22, 2026
Vanquis Banking Group has completed a tender offer for part of its £200 million Fixed Rate Reset Subordinated Tier 2 Notes due 2032, a capital instrument within its funding stack. The bank focuses on managing its liability profile as it navig...
Business Operations and StrategyPrivate Placements and Financing
Vanquis Banking Group Issues £100m Subordinated Notes Due 2037
Positive
May 19, 2026
Vanquis Banking Group PLC has published an offering circular for a £100 million issue of 8.250% Fixed Rate Reset Subordinated Callable Notes due 2037. The subordinated nature and callable structure of the notes indicate the group is optimisin...
Executive/Board Changes
Vanquis CFO Adds Shares Through Buy As You Earn Incentive Plan
Neutral
May 15, 2026
Vanquis Banking Group has disclosed that its chief financial officer, Dave Watts, acquired ordinary shares under the group’s Buy As You Earn Share Incentive Plan. A trustee purchased 129 partnership shares for Watts at £1.165 each on 14...
Business Operations and StrategyPrivate Placements and Financing
Vanquis Banking Sets £100m Indicative Cap in Tier 2 Notes Tender Offer
Neutral
May 14, 2026
Vanquis Banking Group has launched a tender offer inviting holders of its £200 million Fixed Rate Reset Subordinated Tier 2 Notes due 2032 to sell their securities back to the bank for cash. The tender is linked to the issuance of new notes, ...
Business Operations and StrategyPrivate Placements and Financing
Vanquis Banking Group Launches Tier 2 Note Tender to Rebalance Capital Stack
Positive
May 14, 2026
Vanquis Banking Group has launched a tender offer to buy back a portion of its £200m Fixed Rate Reset Subordinated Tier 2 Notes due 2032 for cash, offering 101.80% of principal plus accrued interest on notes accepted. The deal is designed to ...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and FinancingShareholder Meetings
Vanquis Banking Wins Strong Shareholder Backing at 2026 AGM
Positive
May 6, 2026
Vanquis Banking Group reported that all resolutions put to shareholders at its annual general meeting on 6 May 2026 were passed by comfortable majorities. Investors backed the company’s financial statements, directors’ remuneration pol...
Business Operations and StrategyFinancial Disclosures
Vanquis Banking Group grows balances and profit as tech overhaul advances
Positive
May 6, 2026
Vanquis Banking Group reported a solid first quarter, with gross customer interest-earning balances up 4% quarter-on-quarter and 27% year-on-year to £2.93bn, and net receivables rising in line with this growth. Despite a lower net interest ma...
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.