Vanquis Banking Group (VANQ) Q1 2026 TU earnings summary

Executive summary

• Gross customer interest-earning balances rose 4% quarter-on-quarter and 27% year-over-year to £2,932m, reflecting continued scale and customer growth.

• Statutory profit delivered for Q1 2026, with momentum supporting a low double-digit statutory ROTE target for the full year.

• Transformation initiatives, including the Gateway technology program, are driving efficiency and improved customer experience.

Financial highlights

• Net receivables increased 4% quarter-on-quarter and 29% year-over-year to £2,802m.

• Net interest margin (NIM) declined by 50bps sequentially and 220bps year-over-year to 15.6%, due to a shift toward lower-yield, lower-risk products.

• Risk adjusted margin (RAM) held steady at 9.4%, supported by portfolio mix and lower cost of risk.

• CET1 capital ratio decreased by 60bps in the quarter to 15.9%, reflecting capital deployment for growth.

Outlook and guidance

• All financial guidance remains unchanged, with FY26 NIM expected at approximately 15.5% and statutory ROTE in the low double digits.

• Gross customer interest-earning balances are guided to exceed £3.3bn in 2026 and £3.7bn in 2027.

• Cost:income ratio expected in the high 40s for 2026, improving to mid-40s in 2027.