Vanquis Banking Group returns to profit as turnaround gains momentum

Published 07/08/2025, 09:38
© Reuters.

Investing.com -- Shares in Vanquis Banking Group PLC (LON:VANQ) rose 9.9% in early Thursday trading after the lender reported a return to profitability in the first half of 2025.

The company delivered two consecutive quarters of profit, posting statutory pre-tax earnings of £6.2 million for the six months to June 30.

This marks a significant improvement from the £46.1 million loss recorded in the same period last year.

The statutory return on tangible equity improved to 3.1%, while gross customer interest-earning balances grew 7% to £2.46 billion.

Chief executive Ian McLaughlin said the bank is "firmly on track" with its transformation plans, pointing to robust credit quality, tight cost discipline, and progress on its technology programme called Gateway.

The company’s statutory cost-income ratio improved to 62.5%, helped by £15 million in transformation savings and a 36% reduction in complaint costs.

Vanquis noted it did not participate in discretionary commission arrangements linked to the recent Supreme Court ruling on motor finance. The company stated its commission disclosures were stronger than those found to be unfair in the Johnson case.

The banking group maintains a strong liquidity position with a coverage ratio of 366% and a Tier 1 capital ratio of 18.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.