Vanquis Banking Group (LON:VANQ) Issues Quarterly Earnings Results

Vanquis Banking Group (LON:VANQ) released its earnings results on Thursday. The company reported GBX 1.80 earnings per share for the quarter, Digital Look Earnings reports. Vanquis Banking Group had a return on equity of 1.89% and a net margin of 1.87%.

Here are the key takeaways from Vanquis Banking Group’s conference call:

• First-half profit before tax rose 44% year over year to £8.9 million, exceeding Vanquis’s full-year 2025 result. Gross customer interest-earning balances increased 24% to more than £3 billion, while all three lending businesses remained profitable.
• More cautious customer spending reduced existing Credit Card utilization, leaving first-half Credit Card income about £7 million below expectations. Vanquis also booked an additional £8.5 million IFRS 9 provision tied to a higher forecast U.K. unemployment peak, reducing first-half profitability by approximately £15 million versus expectations.
• Management lowered near-term guidance, now expecting 2026 statutory ROTE in the single digits, net interest margin of approximately 14.5%, and a cost-to-income ratio in the low 50s. The company still targets low-double-digit ROTE in 2027 and mid-teens ROTE in 2028, assuming current customer spending behavior persists.
• Second Charge Mortgages balances grew 34% to £800 million and are expected to continue increasing by roughly £30 million per month, while Vehicle Finance growth is expected to accelerate from 2027 after its new technology platform is completed. Transformation savings guidance was also raised to £30 million–£35 million through 2028.
• Vanquis reported strong liquidity and capital capacity, including £93 million of surplus CET1 capital and a planned reduction in its target CET1 ratio to above 12% from 2027. The board intends to reestablish a modest dividend with the full-year 2026 results, subject to no significant deterioration in the U.K. economy.

Vanquis Banking Group Stock Down 24.1%

LON:VANQ traded down GBX 27.80 during midday trading on Thursday, hitting GBX 87.40. The stock had a trading volume of 12,719,925 shares, compared to its average volume of 919,853. The stock has a 50-day moving average of GBX 113.80 and a 200 day moving average of GBX 115.13. The company has a market capitalization of £218.79 million, a price-to-earnings ratio of 28.19 and a beta of 1.23. Vanquis Banking Group has a one year low of GBX 82 and a one year high of GBX 132.

Insiders Place Their Bets

In other news, insider Dave Watts bought 45,000 shares of the stock in a transaction on Thursday, July 30th. The stock was acquired at an average cost of GBX 85 per share, for a total transaction of £38,250. Over the last three months, insiders acquired 45,394 shares of company stock worth $3,870,041. Insiders own 3.68% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts recently commented on VANQ shares. Berenberg Bank cut their price target on shares of Vanquis Banking Group from GBX 165 to GBX 145 and set a “buy” rating on the stock in a report on Thursday. Shore Capital Group restated a “buy” rating on shares of Vanquis Banking Group in a research report on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of GBX 142.50.

About Vanquis Banking Group

We’re Vanquis Banking Group plc, an FTSE All Share company and a leading specialist bank, established in 1880. We lend responsibly, providing tailored products and services to 1.75 million UK customers through Vanquis, Moneybarn, and Snoop.

https://www.vanquisbankinggroup.com/shareholder-hub/investment-case/