Vanquis Banking Group Plc · LSE:VANQ
Vanquis Banking — FY2025 Earnings Presentation
55 slides from Vanquis Banking's earnings presentation, Feb 26, 2026
Slide 1: Full Year 2025 Results
1 FULL YEAR 2025 RESULTS 26 FEBRUARY 2026 9AM
Slide 2: Agenda
Agenda Summary of FY25 Ian McLaughlin FY25 Performance Dave Watts Strategy Update Ian McLaughlin Financial Guidance Dave Watts Conclusion Ian McLaughlin 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: FY25 Financial Performance
FY25 Financial Performance Dave Watts Chief Financial Officer
Slide 9: Focused on creating long-term shareholder value
Focused on creating long-term shareholder value Driving sustainable, profitable growth 1. Returned to profitability in 2025 driven by improved operational efficiency. 2. Optimised our capital stack, with additional capital deployed to accelerate balance growth. 3. Credit quality remained strong, ref
Slide 10: FY25 Group performance
FY25 Group performance Returned to profitability alongside accelerated balance growth within risk appetite FY25 FY247 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 C
Slide 11: FY25 Group key performance metrics
FY25 Group key performance metrics Improving cost: income ratio driving low single digits ROTE FY25 FY247 % 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 promot
Slide 12: Net Interest Margin
Net Interest Margin Reduction reflects deliberate change in mix of balances by product NIM drivers (%)2 Net interest income trend (£m) 18.8% 18.9% 19.5% 19.4% 18.5% (0.2%) 0.5% 18.9% 18.1% 17.4% 16.2% (1.7%) 16.8% 7% (0.3%) 207.3 202.2 216.2 FY24 Asset yield Funding Product mix Liquidity FY25 200.6
Slide 13: Gross customer interest-earning balances
Gross customer interest-earning balances Strong growth in Credit Cards and 2CM. Proactively managing new business growth in VF Gross customer interest-earning balances movement (£m)1 • Gross customer interest-earning balances increased 22% since DEC24, of which 6% in 4Q25. 22% 2,824 • Credit Card ba
Slide 14: Impairment charges
Impairment charges Reduced gross and net charge-offs reflects customer resilience and strong risk management FY25 FY24 Change Impairment charges movement (£m) Credit Cards £m £m % (2%) Gross charge-offs (174.2) (215.8) (19)% 185.3 Recoveries 41.9 51.4 (18)% 181.1 (13.2) 3.0 6.0 Net charge-offs (132.
Slide 15: Operating costs
Operating costs Cost discipline maintained, with transformation savings ahead of plan Operating costs movement (£m) Costs by type (£m) & Full-time equivalent headcount (FTE) (#) 399.1 FY25 FY247 Change £m £m % (111.7) Cost by type (£m) (9%) Staff and outsourced people costs25 (130.6) (128.6) 2% 287.
Slide 16: Credit Cards
Credit Cards Balances returned to above 2023 levels, having improved the quality of the portfolio FY25 FY247 Change £m Gross customer interest-earning balances (£m) & risk-adjusted margin (%) £m % Interest income 370.8 365.7 1% 17.0% 15.6% Interest expense (51.6) (53.2) (3)% Net interest income 319.
Slide 17: Vehicle Finance (VF)
Vehicle Finance (VF) Proactively managing new business growth, while margins improved FY25 FY247 Change £m £m % Gross customer interest-earning balances (£m) & risk-adjusted margin (%) Interest income 123.9 133.1 (7)% 7.4% Interest expense (28.2) (31.4) (10)% 5.0% Net interest income 95.7 101.7 (6)%
Slide 18: Second Charge Mortgages (2CM)
Second Charge Mortgages (2CM) Continued strong growth in a growing market FY25 FY247 Change £m Gross customer interest-earning balances (£m) & risk-adjusted margin (%) £m % Interest income 28.4 4.8 2.8% Interest expense (17.8) (3.4) 1.7% Net interest income 10.6 1.4 Non-interest income 1.0 - 176% To
Slide 19: Corporate Centre
Corporate Centre Streamlined following reallocation of funding and operating costs to products FY25 FY247 Change £m £m % • Corporate Centre includes: Interest income21 44.1 46.3 (5)% Interest expense (51.2) (54.0) (5)% • Unallocated Treasury result after product allocations Net interest income (7.1)
Slide 20: Liquidity & Funding
Liquidity & Funding Dynamically managing liquidity and funding Liquidity DEC25 DEC24 Group cost of funds22 vs benchmark interest rates (%)29 Change £m £m 5.8 5.59% 17 5.52% HQLA 998 947 5% 5.6 5.36% 5.4 5.25% 5.31% LCR18 306% 359% (53) 5.09% 5.2 5.25% 4.92% 4.97% Excess HQLA over LCR27 653 667 (2)%
Slide 21: Capital optimisation
Capital optimisation Capital stack optimised by utilising AT1 capacity and reducing Tier 2 Total capital ratio (%)30 Tier 1 ratio (%)5 CET1 ratio (%)15 19.3 16.5 2.8 (2.8) 26.1 26.1 2.8 16.5 5.7 5.2 9.5 9.5 2.9 16.6 16.6 13.6 13.6 11.3 DEC25 pre AT1 issuance Tier 2 tender DEC25 DEC25 pre capital AT1
Slide 22: CET1 capital
CET1 capital Deployed capital for growth in 2025, with continued capital strength to deliver our plans CET1 ratio (%)15 18.8 0.4 0.4 (2.8) 7.6 (0.4) 16.5 5.2 11.2 11.3 DEC24 Personal Loans Statutory profit after tax RWA increase Other incl. intangible spend DEC25 sale CET1 surplus* CET1 requirement
Slide 23: Strategy Update
Strategy Update Ian McLaughlin
Slide 24: 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 25: 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 26: A significant and growing underserved UK adult population
A significant and growing underserved UK adult population Serve More 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 mat
Slide 27: Market opportunity supports growth plans
Market opportunity supports growth plans Serve More 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.
Slide 28: Driving financial inclusion with responsible lending solutions
Driving financial inclusion with responsible lending solutions Serve Responsibly Existing products enable customers to build their financial resilience Credit Cards Vehicle Finance Second Charge Mortgages Expanded APR ranges through risk-based repricing Adjusted APRs following new credit decisioning
Slide 29: Building pathways to stronger financial health
Building pathways to stronger financial health Serve Responsibly Improving credit profiles via Snoop, ‘not yet’ partners and the Vanquis Foundation Snoop Fair Finance (‘not yet’ partner) Vanquis Foundation and other partners Snoop active users (k) Customer unclaimed benefits identified (£m) Financia
Slide 30: Leveraging our deposit franchise to drive scalable growth
Leveraging our deposit franchise to drive scalable growth Scale Profitably Banking licence provides a structural funding advantage over competitors Funding mix (£m)28 Average deposit pricing34 vs benchmark interest rates (%) 29 33% 4.8 4.75% 4.7 3,326 4.6 4.75% 4.52% 4.5 2,804 976 29% 4.4 2,499 4.25
Slide 31: Gateway is the catalyst for long-term growth & innovation
Gateway is the catalyst for long-term growth & innovation Scale Profitably 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 onboardin
Slide 32: Financial guidance
Financial guidance Dave Watts
Slide 33: 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 34: 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 35: 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 (%)15 Gross customer interest-earning balances (
Slide 36: Conclusion
QM vandquis Conclusion Tan McLaughlin
Slide 37: 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 38: Q&A
QM vandquis Q&A
Slide 39: Appendix
QM vandquis Appendix
Slide 40: Update on motor finance customer redress
Update on motor finance customer redress Limited liability on motor finance commissions Update on the FCA’s consultation on a compensation scheme • Vanquis did not participate in discretionary commission arrangements (DCAs) and did not operate tied arrangements. • The Group has a limited number of c
Slide 41: Gross and net receivables
Gross and net receivables Increase driven by interest-earning balance growth, with improved asset quality Gross receivables movement (£m) Receivables by stage (£m) 21% Gross 21% Net 2,935 25% (8) (4) 0 15 2,935 111 4% 140 5% 2,691 565 68 3% 2,570 275 9% 2,325 205 8% 2,416 2,416 161 6% 4% (49) 8% 2,1
Slide 42: Expected Credit Losses (ECL)
Expected Credit Losses (ECL) Reduced ECL despite growing receivables, reflecting responsible credit risk lending ECL movement (£m) Gross receivables and coverage ratios by stage (7%) Gross receivables Coverage ratio35 DEC25 DEC24 Proportion DEC25 DEC24 (167) Change 180 £m £m % % % 262 5 244 Total 2,
Slide 43: Complaint costs
Complaint costs Meaningfully lower in 2025, driven by lower FOS referrals Complaint costs (£m) Total complaint volumes* FOS referral volumes P&L charge Balance Sheet position (53%) (65%) (39%) (92%) 22.4 15.5 40,640 16,938 16.1 28,055 11.7 24,864 10.9 27,858 4.5 11,512 4,018 (86)% 15,232 10.5 7,193
Slide 44: Full year product contribution
Full year product contribution Cards Vehicle Finance 2CM Corporate Centre Total Asset driven products FY25 FY247 FY25 FY247 FY25 FY247 FY25 FY247 FY25 FY247 £m £m £m £m £m £m £m £m £m £m Interest income 370.8 365.7 123.9 133.1 28.4 4.8 44.1 46.3 567.2 549.9 Interest expense (51.6) (53.2) (28.2) (31.
Slide 45: Half year product contribution
Half year product contribution Cards Vehicle Finance 2CM Corporate Centre Total Asset driven products 2H25 1H25 2H25 1H25 2H25 1H25 2H25 1H25 2H25 1H25 £m £m £m £m £m £m £m £m £m £m Interest income 191.8 179.0 61.0 62.9 17.4 11.0 22.1 22.0 292.3 274.9 Interest expense (26.9) (24.7) (13.9) (14.3) (11
Slide 46: Receivables Reconciliation
Receivables Reconciliation Loans Cards Vehicle Finance 2CM (discontinued Total Asset driven products operations) DEC25 DEC24 DEC25 DEC24 DEC25 DEC24 DEC25 DEC24 DEC25 DEC24 £m £m £m £m £m £m £m £m £m £m Gross customer interest-earning balances1 1,518 1,278 706 765 599 217 - 49 2,824 2,308 Adjustment
Slide 47: ROTE, EPS, TNAV Calculation
ROTE, EPS, TNAV Calculation FY25 FY24 ROTE & EPS £m £m • Balance sheet item averages are based on average month end balances Statutory profit/(loss) attributable to shareholders for the 13 months ending 31 December, using a 13-point average. 8.2 (119.3) (A) Ave. equity as per balance sheet 451 530 •
Slide 48: Summary Balance Sheet
Summary Balance Sheet DEC25 DEC24 £m £m • Cash includes the Liquid Asset Buffer held at the Bank of England. Assets • Amounts receivables from customers represent net receivables (see slide Cash and cash equivalents 805 1,004 14). Investment securities 255 - Amounts receivables from customers38 2,69
Slide 49: Capital Composition
Capital Composition DEC25 DEC24 £m £m • CET1 requirement is 11.3% of RWAs, being 56.25% of the Group's Total Total equity 487 441 Capital Requirement (TCR) plus combined buffers of 4.5%, but excluding any confidential or management buffers, as applicable. Pension asset (6) (28) Deferred tax on retir
Slide 50: Glossary
Glossary AI Artificial Intelligence ISA Individual Savings Account APR Annual Percentage Rate KPI Key Performance Indicator AT1 Additional Tier 1 LCR Liquidity Coverage Ratio AVE / Ave. Average LTV Loan To Value BoE Bank of England NIM Net Interest Margin BT Balance Transfer N/M Not Meaningful CSREP
Slide 51: Footnotes
Footnotes Gross customer interest-earning balances excludes post charge off assets and deferred acquisition costs, which Risk-weighted assets are calculated by assigning a degree of risk expressed as a percentage (risk weight) to 1 are included in gross receivables. the on and off-balance sheet asse
Slide 52: Footnotes
Footnotes 31 Based on Experian Ascend credit bureau data as at 30 September 2025. Customers who do not meet any of the below criteria are considered well-served by mainstream 32 lenders. Customers are classified as underserved if any of the following apply: • Credit Risk Screening Score (CRS) below
Slide 53: 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 54: Investor Relations contact
Investor Relations contact James Cranstoun Phone: +44 7766 937 406 Email: james.cranstoun@vanquis.com Website: www.vanquis.com
Slide 55: Vanquis - The bank that's got your back
VY vandquis The bank that’s got your back