**Summary of Vanquis Banking Group PLCs Final Results for the Year Ended 31 December 2025**
**Key Highlights**
**Return to Profitability** Vanquis Banking Group reported a statutory profit before tax of £8.3 million in 2025, compared to a loss of £138.0 million in 2024, marking a successful return to profitability.
**Strategic Growth** The Group achieved a 22% increase in gross customer interest-earning balances to £2,824 million, driven by strong performance in Second Charge Mortgages and renewed growth in Credit Cards.
**Cost Discipline** Operating costs were reduced by 33% to £265.5 million, with transformation savings of £28.8 million and lower complaint costs contributing significantly.
**Technology Transformation** The Gateway technology transformation is on track for completion in 2026, already improving decisioning, speed, and consistency, and set to enhance customer experience and operational efficiency.
**Capital Strength** The Group strengthened its capital position through a successful Additional Tier 1 (AT1) issuance, with the Common Equity Tier 1 (CET1) ratio at 16.5% at year-end.
**Risk Management** Cost of risk improved to 7.3% from 8.4% in 2024, reflecting enhanced underwriting and model performance, as well as a changing portfolio mix.
**Customer Focus** The Group continued to support underserved customers, helping them borrow responsibly and build financial resilience, with initiatives like the Vanquis Benefits Checker and Fair Finance program.
**Strategic Direction** The Group established a clear strategic framework focused on serving more customers responsibly and scaling profitably, aiming for sustainable growth and attractive returns.
**Financial Performance**
**Total Income** Increased by 2% to £454.9 million, with net interest income rising by 3% to £418.4 million.
**Impairment Charges** Decreased by 2% to £181.1 million, supported by improved credit quality and portfolio mix.
**Operating Costs** Reduced by 33% to £265.5 million, driven by transformation savings and lower complaint costs.
**Profit After Tax** Statutory profit after tax was £8.7 million, compared to a loss of £119.3 million in 2024.
**ROTE** Statutory Return on Tangible Equity (ROTE) improved to 2.3% from -32.1% in 2024.
**Segment Performance**
**Credit Cards** Balances increased by 19% to £1,518 million, with total income rising by 1% to £352.5 million. Profit before tax contribution increased by 27% to £38.2 million.
**Vehicle Finance** Balances decreased by 8% to £706 million due to proactive management of new business growth. Loss before tax contribution was £12.7 million, compared to £38.8 million in 2024.
**Second Charge Mortgages** Balances grew significantly to £599 million, with profit before tax contribution of £5.4 million.
**Outlook and Guidance**
**2026 Guidance** Gross customer interest-earning balances are expected to exceed £3.3 billion, with a Net Interest Margin (NIM) of around 15.5% and a Risk-Adjusted Margin (RAM) of over 9.5%.
**2027 Guidance** Gross customer interest-earning balances are projected to surpass £3.7 billion, with NIM at around 14.5% and RAM over 9.0%.
**ROTE Targets** Low double-digit ROTE in 2026 and mid-teens in 2027.
**Capital Management** The Group aims to maintain a CET1 ratio <mark style="background-color:yellow">above</mark> 14.5%, with a focus on capital deployment for growth and a reset of the capital allocation framework in 2026.
**Conclusion**
Vanquis Banking Groups 2025 results demonstrate significant progress in its strategic transformation, with a return to profitability, strengthened capital position, and improved operational efficiency. The Group is well-positioned for sustainable growth, supported by its technology investments, risk management practices, and focus on underserved customer segments. The outlook for 2026 and beyond is positive, with clear guidance on financial metrics and a commitment to delivering attractive returns for shareholders.