Vanquis Banking Group PLC (CHIX:VANQl)

Half Year 2026 Vanquis Banking Group PLC Earnings Call Transcript

Jul 30, 2026 / 07:30 AM GMT

Release Date Price: £0.863 (-24.56%)

Transcript

Key Points

Positve

Statutory profit before tax increased by 44% year-on-year to £8.9 million, exceeding the profit for the whole of 2025.
Gross customer interest earning balances grew by 24% year-on-year to over £3 billion, driven by growth in second charge mortgages and credit cards.
Successfully migrated all credit card customers to a new in-house mobile banking app, improving customer engagement and reducing cost to serve.
Second charge mortgages delivered strong growth, with balances increasing by 34% in the first half to £800 million, contributing to increased profitability.
The Board intends to re-establish a modest dividend with full-year 2026 results, signaling confidence in the medium-term outlook.

Negative

Lower-than-expected credit card utilization by existing customers reduced first-half income by approximately £7 million.
An additional IFRS 9 impairment provision of £8.5 million was taken due to a forecast increase in UK unemployment to 5.7%.
Net interest margin (NIM) guidance was revised downward to approximately 14.5% for 2026, reflecting a shift towards lower-yielding new customer balances.
Statutory return on tangible equity (ROTE) is now expected to be in single digits for 2026, down from the previous low double-digit forecast.
Vehicle finance balance growth has been delayed until 2027 as the company focuses on completing a new technology platform, with current cost-income ratio remaining high at 59%.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VANQ.L - Vanquis Banking Group PLC
Half Year 2026 Vanquis Banking Group PLC Earnings Call
Jul 30, 2026 / 07:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everyone. Thanks for joining us for our 2026 half year results webcast and conference call. I'm Ian McLaughlin, the Chief Executive Officer of Vanquis and I'm joined as usual. Our Chief Financial Officer, Dave Watts. Dave, good morning and welcome. Good morning, Ian.

I'll start with an overview of our performance and the updates to our outlook that we've announced this morning.

Dave will then take you through some more detail on our numbers and guidance and I'll come back to summarize and then, of course, we'll be happy to take your questions.

So if I can take you straight to slide 4, the first half of 2026 represented another period of significant progress for Vanquis. We

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