Vanquis Banking Group Plc · LSE:VANQ
Vanquis Banking — FY2025 Earnings Presentation
28 slides from Vanquis Banking's earnings presentation, Mar 3, 2026
Slide 1: 2025 Full Year Results Investor Meet Company Presentation
2025 FULL YEAR RESULTS INVESTOR MEET COMPANY PRESENTATION 3 MARCH 2026 3PM 1
Slide 2: Agenda
Agenda Summary of FY25 and Ian McLaughlin Strategy Update Financial Guidance Dave Watts Conclusion Ian Q&A Ian & Dave 2
Slide 3: Summary of FY25
Summary of FY25 Ian McLaughlin Chief Executive Officer
Slide 4: FY25 Performance vs. Guidance
FY25 Performance vs. Guidance FY25 performance materially improved on FY24; achieving all points of guidance with accelerated balance growth FY24 FY25 FY25 Actuals Guidance Actuals Gross customer interest-earning balances1 £2,308m >£2.7bn £2,824m ✓ Net Interest Margin (NIM)2 18.5% >16.5% 16.8% ✓ Cos
Slide 5: Accelerated balance growth and returned to profitability
Accelerated balance growth and returned to profitability Deployed capital for sustainable growth, while maintaining disciplined pricing and cost control Significant progress on the strategic transformation of the bank 1. Sustainably grown interest-earning balances and optimised mix to maximise retur
Slide 6: FY25 Highlights
FY25 Highlights Improving customer proposition with enhancements to risk management Initiatives What we have delivered Key metrics • Launched 66 new Credit Card product variants – Credit Builder Gross customer interest-earning and 0% promotional products. balances1 £2,824m 22% (FY24: £2,308m) • Expa
Slide 7: FY25 Highlights
FY25 Highlights Technology transformation and operational efficiency on track Initiatives What we have delivered Key metrics • Launched our new mobile app, improving customer experience. FY Technology and Operations Technology cash investment spend transformation £26.5m 14% • Centralised c.30 billio
Slide 8: Gateway is the catalyst for long-term growth & innovation
Gateway is the catalyst for long-term growth & innovation Gateway substantively delivered and will complete in 2026 Key transformation achievements to date What we will deliver in 2026 Strategic data platform established, c.30bn rows of data New credit card origination and onboarding platform loaded
Slide 9: Strategy Update
Strategy Update Ian McLaughlin
Slide 10: Our purpose and ambition
Our purpose and ambition Serving the borrowing needs of the underserved UK adult population Our Purpose ‘To deliver caring banking so our customers can make the most of life’s opportunities’. Our Ambition ‘To be the UK’s most trusted and inclusive specialist bank by unlocking financial opportunity f
Slide 11: Our strategy
Our strategy Reaching more customers, enabling responsible borrowing and financial resilience, and scaling efficiently to create sustainable long-term value Serve More Reach more customers and deepen relationships across the underserved UK adult population. Serve Responsibly Ensure our lending is af
Slide 12: A significant and growing underserved UK adult population
A significant and growing underserved UK adult population Vanquis aims to serve the borrowing needs of underserved consumers and help them on a path to financial resilience Experian analysis concludes there are over 24 million underserved UK Independent research highlights why Vanquis matters: consu
Slide 13: Market opportunity supports growth plans
Market opportunity supports growth plans Guiding to >£3.3bn in balances by the end of 2026, growing to >£3.7bn by 2027 2025 2027 Credit Cards • Balances in all Vehicle Finance 599 2CM 21% products expected to grow. 1,518 54% • Proportion of 2CM 706 balances expected 25% >14% to increase. CAGR growth
Slide 14: Financial guidance
Financial guidance Dave Watts Chief Financial Officer
Slide 15: Financial guidance out to 2027
Financial guidance out to 2027 Committed to delivering improved and sustainable long-term value for our shareholders FY25 FY26 FY27 Actuals Guidance Guidance £2,824m >£3.3bn >£3.7bn Gross customer interest-earning balances1 (c.£3.0bn previously) 16.8% c.15.5% c.14.5% Net interest margin (NIM)2 (>16%
Slide 16: Statutory ROTE and cost: income ratio
Statutory ROTE and cost: income ratio Delivering meaningful improvement in ROTE and reduction in cost: income ratio Statutory ROTE outlook FY25-27 (%)4 Statutory ROTE trend (%)4 Mid-teens FY25 Balance growth 2.3% offset by lower NIM Low double digits Income 2.3% FY25 FY26 FY27 Impairment Cost: incom
Slide 17: Capital management
Capital management Well positioned to deliver growth as the Group returns to organic capital generation Robust capital position above regulatory minimums Capital being deployed for growth in the near term Tier 1 ratio guidance (%)5 CET1 ratio guidance (%)11 Gross customer interest-earning balances (
Slide 18: Conclusion
QM vandquis Conclusion Tan McLaughlin
Slide 19: Serve More. Serve Responsibly. Scale Profitably.
Serve More. Serve Responsibly. Scale Profitably. Our strategy is guided by a clear understanding of what sets us apart and how we will harness these strengths to deliver growth and sustainable profitability What sets us apart A large underserved market • Over half of UK adults face barriers to acces
Slide 20: Q&A
QM vandquis Q&A
Slide 21: Appendix
QM vandquis Appendix
Slide 22: FY25 Group performance
FY25 Group performance Returned to profitability alongside accelerated balance growth within risk appetite FY25 FY2412 Change Income Statement £m £m % • Net interest income increased 3%, reflecting a 13% increase in average Net interest income 418.4 407.9 3% balances offset by lower NIM from Second
Slide 23: FY25 Group key performance metrics
FY25 Group key performance metrics Improving cost: income ratio driving low single digits ROTE FY25 FY2412 % Change • Asset yield decreased 1.8% YoY, reflecting lower yield on 2CM. Credit Cards % Selected key metrics yield reduced marginally, reflecting growth in 0% balance transfers (BTs) and promo
Slide 24: Glossary
Glossary AI Artificial Intelligence LTV Loan To Value APR Annual Percentage Rate NIM Net Interest Margin AT1 Additional Tier 1 N/M Not Meaningful AVE / Ave. Average P&L Profit & Loss Account BoE Bank of England PAT Profit After Tax BT Balance Transfer PBT Profit Before Tax CSREP Capital Supervisory
Slide 25: Footnotes
Footnotes Gross customer interest-earning balances excludes post charge off assets and deferred acquisition costs, which Average gross customer interest-earning balances is based on the average of 13 months of gross customer- 1 13 are included in gross receivables. interest-earning balances. Net int
Slide 26: Disclaimers
Disclaimers Important notice The information in this presentation may include forward-looking statements. Forward looking statements, by their nature involve risk and uncertainty as they relate to future events and circumstances. Forward looking statements can be identified from the fact that they d
Slide 27: Investor Relations contact
Investor Relations contact James Cranstoun Phone: +44 7766 937 406 Email: james.cranstoun@vanquis.com Website: www.vanquis.com
Slide 28: Vanquis - The bank that's got your back
VY vandquis The bank that’s got your back