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Vanquis Banking Group
(LSE:VANQ)
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Rating:51Neutral
Price Target:
44.00 p
▼(-44.79% Downside)
Action:Reiterated
Date:10/30/26
The score is held back primarily by elevated balance-sheet leverage and a strongly bearish price trend (well below major moving averages with negative MACD). Offsetting factors include a modest P/E valuation and operational improvements discussed on the earnings call (profit growth, cost reductions, strong liquidity/capital), though guidance was cut (single-digit ROTE in 2026) due to utilization weakness, higher provisions, and margin/impairment pressures.
Positive Factors
Lending Growth
Strong balance growth across a diversified lending portfolio indicates expanding customer reach and continued demand for the group’s products. Profitability across credit cards, vehicle finance and second-charge mortgages supports recurring income generation while reducing reliance on any single lending category.
Negative Factors
High Leverage
The sharp increase in leverage leaves the group more sensitive to credit performance, funding conditions and changes in asset quality. A smaller equity cushion can restrict financial flexibility and make future earnings more vulnerable when losses or balance-sheet adjustments increase.
Read all positive and negative factors
Positive Factors
Negative Factors
Lending Growth
Strong balance growth across a diversified lending portfolio indicates expanding customer reach and continued demand for the group’s products. Profitability across credit cards, vehicle finance and second-charge mortgages supports recurring income generation while reducing reliance on any single lending category.
Read all positive factors
Vanquis Banking Group (VANQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£109.95M
Dividend Yield12.35%
Average Volume (3M)706.35K
Price to Earnings (P/E)10.1
Beta (1Y)1.08
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. Volume726,549
30 Day Avg. Volume706,351
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
£80.00Price Target Upside0.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)£483.02M
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...
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 | 181.90M | 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
Neutral
79.70
Price Trends
74.27
Negative
90.10
Negative
102.46
Negative
Market Momentum
-1.23
Negative
55.22
Neutral
61.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VANQ, the sentiment is Neutral. The current price of 79.7 is above the 20-day moving average (MA) of 69.68, above the 50-day MA of 74.27, and below the 200-day MA of 102.46, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | £54.70M | 32.95 | 3.62% | 0.43% | -45.36% | -57.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £248.00M | 4.42 | 41.54% | 2.10% | 25.27% | 69.00% | |
61 Neutral | £229.04M | 9.57 | 9.55% | 6.15% | 5.62% | 19.68% | |
61 Neutral | £587.02M | 10.21 | 26.71% | ― | 52.96% | 242.50% | |
51 Neutral | £109.95M | 10.10 | 2.20% | 12.35% | 6.21% | ― |
* Financial Sector Average
GB:VANQ
Vanquis Banking Group
43.35
-73.65
-62.95%
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Vanquis Banking Group Corporate Events
Regulatory Filings and Compliance
Vanquis CFO Adds Shares Through Employee Incentive Plan
Positive
Oct 15, 2026
Vanquis Banking Group has disclosed that its Chief Financial Officer, Dave Watts, acquired ordinary shares through the company’s Buy As You Earn Share Incentive Plan. On 14 October 2026, the plan trustee purchased partnership shares for Watt...
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Total Voting Rights Ahead of FCA Disclosures
Neutral
Sep 30, 2026
Vanquis Banking Group plc operates in the U.K. financial services sector as a listed banking group whose ordinary shares confer voting rights under the Financial Conduct Authority’s disclosure and transparency framework. Its share capital st...
Business Operations and StrategyDelistings and Listing Changes
Vanquis Banking Group to Redeem and Delist Tier 2 Notes
Positive
Sep 18, 2026
Vanquis Banking Group has announced it will redeem in full its £200,000,000 Fixed Rate Reset Subordinated Tier 2 Notes due 2032, exercising an issuer call option. The bank will repay the remaining principal amount of £41,536,000 plus acc...
Executive/Board ChangesRegulatory Filings and Compliance
Vanquis CFO receives shares under employee incentive plan
Neutral
Sep 15, 2026
Vanquis Banking Group has disclosed a routine share transaction involving Chief Financial Officer Dave Watts under its Buy As You Earn Share Incentive Plan. The trustee purchased 191 ordinary shares for Watts on 14 September 2026 at £0.7845 e...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Vanquis CEO Ian McLaughlin to Step Down; Snoop Chief Named Interim Successor
Positive
Sep 11, 2026
Vanquis Banking Group announced that Chief Executive Officer Ian McLaughlin will step down for personal reasons by no later than the end of 2026, following a period in which he led a significant operational and financial turnaround and returned th...
Executive/Board ChangesRegulatory Filings and Compliance
Vanquis CEO Receives Vested Shares Under 2020 Restricted Plan
Neutral
Sep 9, 2026
Vanquis Banking Group has disclosed that 615,092 nil-cost share options awarded to Chief Executive Officer Ian McLaughlin under the 2020 Restricted Share Plan have vested as of 8 September 2026. Of these, 289,094 shares were withheld to cover tax,...
Regulatory Filings and Compliance
Vanquis Banking Group Confirms Total Voting Rights and Share Capital
Neutral
Aug 28, 2026
Vanquis Banking Group has confirmed that, as of 28 August 2026, its issued share capital comprises 256,493,758 ordinary shares, with none held in treasury, resulting in an equal total of 256,493,758 voting rights. The disclosure clarifies the offi...
Other
Vanquis Banking Group CFO Receives Shares Under Incentive Plan
Neutral
Aug 17, 2026
Vanquis Banking Group has disclosed routine share transactions involving its Chief Financial Officer, Dave Watts, under the company’s Buy As You Earn Share Incentive Plan. The announcement details the purchase of partnership shares and the a...
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...
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.