Full Year 2025 Vanquis Banking Group PLC Earnings Call Transcript
Key Points
- Vanquis Banking Group PLC (STU:PRVA) returned to profitability in 2025 with a profit before tax of GBP8.3 million, following a loss in 2024.
- The company exceeded its customer interest earning balances goal, reaching GBP2.8 billion, surpassing the original target of greater than GBP2.6 billion.
- Net interest margin was maintained at 16.8%, with a deliberate shift towards lower risk secured lending.
- The company achieved a 33% reduction in operating costs, excluding notable items, costs were down 9%.
- Vanquis Banking Group PLC (STU:PRVA) successfully issued GBP60 million of AT1 capital, improving its Tier 1 ratio to 19.3%.
- The cost to income ratio remained high in the high 50s, indicating room for improvement in operating efficiency.
- Vehicle finance remained loss-making, with a loss of GBP12.7 million, although the loss reduced year-on-year.
- The company's return on tangible equity was only 2.3%, consistent with guidance for a low single-digit return.
- The net interest margin decreased to 16.8% due to a shift in mix to second charge mortgages and a larger liquid asset buffer.
- The company faces competitive pressure in the second charge mortgage market, with new competitors entering and creating price pressure.
Good morning everyone. Thank you for joining us for Vanquis Banking Group's full year 2025 results. I'm Ian McLaughlin, the Chief Executive Officer of Vanquis, and I'm joined this morning by our Chief Financial Officer Dave Watts. Dave, good morning.
Good morning.
I'll start with an overview of our performance in 2025. Dave will then take you through the financial results in more detail, and I will then come back to talk about the strategic priorities, and Dave will then end by covering our financial guidance through to full year 2027. After that, as usual, we'll be happy to take your questions.
If I can take you to slide 4, you can see how our full year performance compares against both the prior year and against the guidance that we set out at the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
