Vanquis Banking Group (formerly: Provident Financial Plc)

Regulatory Filings • Jul 11, 2025

National Storage Mechanism | Additional information

RNS Number : 6368Q

Vanquis Banking Group PLC

11 July 2025

Vanquis Banking Group Reporting Changes

Vanquis re-presents 2024 results to reflect statutory reporting and simplified business model

The overall Group consolidated financial position for 2024 remains unchanged

London - 11 July 2025 - Vanquis Banking Group plc ('the Group' or 'Vanquis'), the specialist bank, today published the re-presentation of its 2024 results to reflect the following reporting changes:

1.   Removal of the reporting of the Group income statement and key metrics on an adjusted basis, with reporting on a purely statutory basis going forward.

2.    Reporting the Personal Loans portfolio as a discontinued operation.

3.    The reallocation of Treasury interest income and interest expense across products and Corporate Centre.

4.    The reallocation of operating costs across products and Corporate Centre.

There are no changes to the overall Group consolidated financial position for 2024 or legal entity reporting. The Group's income statement, certain key metrics and product segment reporting have been re-presented to reflect the above changes. 

This re-presentation is a further step in Vanquis' on-going commitment to enhance disclosures and to provide a more transparent reporting of the Group's continuing operations by product.

The Group's outlook for the business and financial guidance remains unchanged and intends to report its interim results for the six months ended 30 June 2025 on 7 August 2025.

This re-presentation document is being released now to enable the market to assess the Group's half year 2025 performance against 2024 performance on a comparable basis.

2024 re-presented Group results1

Income Statement (£m)		FY24	1H24	2H24
Interest income		549.9	276.0	273.9
Interest expense		(142.0)	(68.7)	(73.3)
Net interest income		407.9	207.3	200.6
Non-interest income		38.5	19.5	19.0
Total income		446.4	226.8	219.6
Impairment charges		(185.3)	(93.0)	(92.3)
Risk-adjusted income		261.1	133.8	127.3
Operating costs		(399.1)	(179.9)	(219.2)
Loss before tax from continuing operations		(138.0)	(46.1)	(91.9)
Tax credit		17.4	10.6	6.8
Loss after tax from continuing operations		(120.6)	(35.5)	(85.1)
Profit/(loss) after tax from discontinued operations		1.3	(0.3)	1.6
Statutory loss after tax		(119.3)	(35.8)	(83.5)
Balance Sheet (£m)		DEC24	JUN24
Gross customer interest earning balances		2,308	2,252
Average gross customer interest earning balances		2,286	2,296
Gross receivables		2,416	2,361
Net receivables		2,155	2,010
Closing tangible net asset value (TNAV)		359	378
Average tangible equity		377	387
Selected key metrics (%)		FY24	1H24	2H24
Asset yield2		22.8	23.2	22.4
Net interest margin (NIM)3		18.5	18.9	18.1
Total income margin (TIM)4		20.2	20.7	19.8
Cost of risk5		(8.4)	(8.5)	(8.3)
Risk-adjusted margin (RAM)6		11.8	12.2	11.5
Cost: income ratio7		89.4	79.3	99.8
ROTE8		(31.7)	(18.6)	(45.3)
Selected per share metrics (p)
Basic earnings per share (EPS)9		(46.7)	(14.1)	(32.6)
Dividend per share		-	-	-
TNAV per share10		140	148
Capital, liquidity and funding metrics		DEC24	JUN24
Tier 1 ratio11		18.8%	19.8%
Risk weighted assets (RWAs) (£m)		1,835	1,813
High quality liquid assets (HQLA) (£m)		947	717
Liquidity coverage ratio (LCR)		359%	557%
Retail deposits (£m)		2,399	1,912
Retail funding (% of all funding)		92.1%	86.5%

2024 re-presented segmental product performance

FY24 £m	Credit Cards	Vehicle Finance	Second Charge Mortgages	Corporate Centre	Total
Interest income	365.7	133.1	4.8	46.3	549.9
Interest expense	(53.2)	(31.4)	(3.4)	(54.0)	(142.0)
Net interest income	312.5	101.7	1.4	(7.7)	407.9
Non-interest income	35.0	-	-	3.5	38.5
Total income	347.5	101.7	1.4	(4.2)	446.4
Impairment charges	(123.9)	(60.4)	(0.2)	(0.8)	(185.3)
Risk-adjusted income	223.6	41.3	1.2	(5.0)	261.1
Operating costs	(193.5)	(80.1)	(0.6)	(124.9)	(399.1)
Profit/(loss) before tax from continuing operations	30.1	(38.8)	0.6	(129.9)	(138.0)

1H24 £m	Credit Cards	Vehicle Finance	Second Charge Mortgages	Corporate Centre	Total
Interest income	183.6	69.7	0.2	22.5	276.0
Interest expense	(26.9)	(15.7)	(0.3)	(25.8)	(68.7)
Net interest income	156.7	54.0	(0.1)	(3.3)	207.3
Non-interest income	18.6	-	-	0.9	19.5
Total income	175.3	54.0	(0.1)	(2.4)	226.8
Impairment charges	(63.5)	(29.5)	-	-	(93.0)
Risk-adjusted income	111.8	24.5	(0.1)	(2.4)	133.8
Operating costs	(100.5)	(42.8)	(0.2)	(36.4)	(179.9)
Profit/(loss) before tax from continuing operations	11.3	(18.3)	(0.3)	(38.8)	(46.1)

2H24 £m	Credit Cards	Vehicle Finance	Second Charge Mortgages	Corporate Centre	Total
Interest income	182.1	63.4	4.6	23.8	273.9
Interest expense	(26.3)	(15.7)	(3.1)	(28.2)	(73.3)
Net interest income	155.8	47.7	1.5	(4.4)	200.6
Non-interest income	16.4	-	-	2.6	19.0
Total income	172.2	47.7	1.5	(1.8)	219.6
Impairment charges	(60.4)	(30.9)	(0.2)	(0.8)	(92.3)
Risk-adjusted income	111.8	16.8	1.3	(2.6)	127.3
Operating costs	(93.0)	(37.3)	(0.4)	(88.5)	(219.2)
Profit/(loss) before tax from continuing operations	18.8	(20.5)	0.9	(91.1)	(91.9)

Credit Cards

£m	FY24	1H24	2H24
Total customer numbers ('000)	1,267	1,321	1,267
Gross customer interest earning balances	1,278	1,295	1,278
Average gross customer interest earning balances	1,313	1,339	1,284
Gross receivables	1,310	1,331	1,310
Net receivables	1,150	1,151	1,150
Interest income	365.7	183.6	182.1
Interest expense	(53.2)	(26.9)	(26.3)
Net interest income	312.5	156.7	155.8
Non-interest income	35.0	18.6	16.4
Total income	347.5	175.3	172.2
Impairment charges	(123.9)	(63.5)	(60.4)
Risk adjusted income	223.6	111.8	111.8
Operating costs	(193.5)	(100.5)	(93.0)
Profit before tax contribution	30.1	11.3	18.8
Asset yield (%)2	27.9	27.6	28.2
Net interest margin (%)3	23.8	23.5	24.1
Total income margin (%)4	26.5	26.3	26.7
Cost of risk (%)5	(9.4)	(9.5)	(9.4)
Risk adjusted margin (%)6	17.0	16.8	17.3
Cost: income ratio (%)7	55.7	57.3	54.0

Vehicle Finance

£m	FY24	1H24	2H24
Total customer numbers ('000)	110	110	110
Gross customer interest earning balances	765	850	765
Average gross customer interest earning balances	825	851	803
Gross receivables	832	921	832
Net receivables	735	760	735
Interest income	133.1	69.7	63.4
Interest expense	(31.4)	(15.7)	(15.7)
Net interest income	101.7	54.0	47.7
Total income	101.7	54.0	47.7
Impairment charges	(60.4)	(29.5)	(30.9)
Risk adjusted income	41.3	24.5	16.8
Operating costs	(80.1)	(42.8)	(37.3)
Loss before tax contribution	(38.8)	(18.3)	(20.5)
Asset yield (%)2	16.1	16.5	15.7
Net interest margin (%)3	12.3	12.8	11.8
Total income margin (%)4	12.3	12.8	11.8
Cost of risk (%)5	(7.3)	(7.0)	(7.7)
Risk adjusted margin (%)6	5.0	5.8	4.2
Cost: income ratio (%)7	78.8	79.3	78.2

Second Charge Mortgages

£m	FY24	1H24	2H24
Total customer numbers ('000)	3.7	0.6	3.7
Gross customer interest earning balances	217	30	217
Average gross customer interest earning balances	69	11	121
Gross receivables	226	32	226
Net receivables	225	32	225
Interest income	4.8	0.2	4.6
Interest expense	(3.4)	(0.3)	(3.1)
Net interest income	1.4	(0.1)	1.5
Total income	1.4	(0.1)	1.5
Impairment charges	(0.2)	-	(0.2)
Risk adjusted income	1.2	(0.1)	1.3
Operating costs	(0.6)	(0.2)	(0.4)
Profit/(loss) before tax contribution	0.6	(0.3)	0.9
Asset yield (%)2	7.0	n/m	7.6
Net interest margin (%)3	2.0	n/m	2.5
Total income margin (%)4	2.0	n/m	2.5
Cost of risk (%)5	(0.3)	n/m	(0.3)
Risk adjusted margin (%)6	1.7	n/m	2.1
Cost: income ratio (%)7	42.9	n/m	26.7

Corporate Centre

£m	FY24	1H24	2H24
Interest income	46.3	22.5	23.8
Interest expense	(54.0)	(25.8)	(28.2)
Net interest income	(7.7)	(3.3)	(4.4)
Non-interest income	3.5	0.9	2.6
Total income	(4.2)	(2.4)	(1.8)
Impairment charges	(0.8)	-	(0.8)
Risk adjusted income	(5.0)	(2.4)	(2.6)
Operating costs	(124.9)	(36.4)	(88.5)
Loss before tax contribution	(129.9)	(38.8)	(91.1)

Overview of reporting changes

Group Income Statement and key metrics on a purely statutory reported basis

·      As announced with the FY24 results, the Group has transitioned to reporting solely on a statutory basis. This follows actions taken in 2024 that resulted in a cleaner, lower-risk balance sheet and improved transparency at both Group and product levels. Adjusted performance is now expected to closely align with statutory results.

·      Accordingly, the 2024 income statement and key metrics have been re-presented on a statutory basis, removing adjustments for goodwill write-offs, transformation and other exceptional costs, and amortisation of acquisition intangibles.

Personal Loans portfolio as a discontinued operation

Following the announced sale of the Personal Loans portfolio with FY24 results - completed at the end of 1Q25 - the business has been reclassified as a discontinued operation. The 2024 results have been re-presented to reflect this change:

·      The operating costs included in the profit or loss after tax from discontinued operations reflect only those costs directly attributable to the Personal Loans business.

·      The business continued to be reported as discontinued in 1Q25 until the sale completed.

·      The 1H25 results will include the gain on sale.

Revised Group segments

·    Following the sale of the Personal Loans business, the Group now comprises four segments: the three core lending products - Credit Cards, Vehicle Finance, and Second Charge Mortgages - and the Corporate Centre. The Corporate Centre includes the residual performance of the Retail Savings business, Treasury results after product allocations, Snoop, and other immaterial or central items.

Reallocation of Treasury interest income and interest expense across products

To more accurately reflect the interest income and funding costs of each lending product, the Group has reallocated certain Treasury-related items:

Interest income reallocation

Interest income from the following non-product Treasury items has been moved from Credit Cards to the Corporate Centre:

·      Bank of England (BoE) reserve deposits and UK gilts held in the Group's Liquid Asset Buffer

·      Swaps, collateral management and securitisations

·      Non-customer lending facilities to third parties

Interest expense reallocation

To better represent the cost of funding across products:

·      Previous interest expense recharges have been replaced by funds transfer pricing (FTP), allowing for duration matching of assets and natural hedging across exposures.

·      Interest expense related to Tier 2 capital, previously reported entirely in Corporate Centre, has been partially reallocated to individual products.

·      The cost of the Vehicle Finance securitisation, previously allocated solely to Vehicle Finance, has been spread across all products, reflecting shared benefit from the funding structure.

Reallocation of operating costs across products

To better reflect the profitability of each lending product, operating costs that were not directly attributable and previously held in the Corporate Centre have been reallocated using two main approaches:

·      Business size: Based on the relative size of each business area, using a blended average of:

o  Credit risk-weighted assets (RWAs), to reflect capital consumption

o  Total income, to reflect revenue contribution

·      Service usage: Based on how much each business area uses specific services, particularly:

o  Aligning staff costs to the business areas that employees support

2024 adjusting and other one-off items

·      The 2024 adjusting items - comprising the goodwill write-off, transformation and other exceptional costs, and amortisation of acquisition intangibles - in addition to other-one off cost items, have remained within the Corporate Centre.

·      The impact of the Vehicle Finance receivables review, affecting both income and impairment, has remained within the Vehicle Finance segment.

·      These items are identified as notable items on page 11.

Balance sheet and RWAs

·    There are no changes to how the balance sheet and RWAs are reported:

o  Only customer balances that are directly attributable have been allocated to the respective lending products.

o  Credit and operational risk RWAs are allocated across products based on customer balances.

o  All other balance sheet items and RWAs have remained within the Corporate Centre.

Re-presentation and re-segmentation bridges

Group

£m	FY24 (as reported)	Removal of adjusting items	Personal Loans as a discontinued operation	FY24 (re-presented)
Interest income	565.4	-	(15.5)	549.9
Interest expense	(145.4)	-	3.4	(142.0)
Net interest income	420.0	-	(12.1)	407.9
Non-interest income	38.5	-	-	38.5
Total income	458.5	-	(12.1)	446.4
Impairment charges	(191.0)	-	5.7	(185.3)
Risk-adjusted income	267.5	-	(6.4)	261.1
Operating costs	(302.3)	(101.5)	4.7	(399.1)
Loss before tax from continuing operations	(34.8)	(101.5)	(1.7)	(138.0)
Exceptional costs	(24.1)	24.1	-	-
Amortisation of acquisition intangibles	(6.2)	6.2	-	-
Goodwill write-off	(71.2)	71.2	-	-
Statutory loss before tax from continuing operations	(136.3)	-	(1.7)	(138.0)
Tax credit	17.0	-	0.4	17.4
Loss after tax from continuing operations	(119.3)	-	(1.3)	(120.6)
Profit after tax from discontinued operations	-	-	1.3	1.3
Statutory loss after tax	(119.3)	-	-	(119.3)
Selected key metrics (%)
Asset yield	22.7			22.8
Net interest margin (NIM)	18.4			18.5
Total income margin	20.1			20.2
Cost of risk	(8.4)			(8.4)
Risk-adjusted margin (RAM)	11.7			11.8
Cost: income ratio	88.1			89.4
ROTE	(31.7)			(31.7)
Selected per share metrics
Basis earnings per share (EPS) (p)	(46.7)			(46.7)

Credit Cards

Twelve months ended (£m)	DEC24 (as reported)	Treasury income re-segmentation	Costs re-segmentation	DEC24 (re-presented)
Interest income	406.3	(40.6)	-	365.7
Interest expense	(79.6)	26.4	-	(53.2)
Net interest income	326.7	(14.2)	-	312.5
Non-interest income	35.3	(0.3)	-	35.0
Total income	362.0	(14.5)	-	347.5
Impairment charges	(123.9)	-	-	(123.9)
Risk adjusted income	238.1	(14.5)	-	223.6
Operating costs	(185.3)	-	(8.2)	(193.5)
Profit before tax contribution	52.8	(14.5)	(8.2)	30.1
Asset yield (%)	27.9			27.9
Net interest margin (%)	24.9			23.8
Total income margin (%)	27.6			26.5
Cost of risk (%)	(9.4)			(9.4)
Risk adjusted margin (%)	18.1			17.0
Cost: income ratio (%)	51.2			55.7

Vehicle Finance

Twelve months ended (£m)	DEC24 (as reported)	Treasury income re-segmentation	Costs re-segmentation	DEC24 (re-presented)
Interest income	133.1	-	-	133.1
Interest expense	(38.5)	7.1	-	(31.4)
Net interest income	94.6	7.1	-	101.7
Total income	94.6	7.1	-	101.7
Impairment charges	(60.4)	-	-	(60.4)
Risk adjusted income	34.2	7.1	-	41.3
Operating costs	(42.2)	-	(37.9)	(80.1)
Loss before tax contribution	(8.0)	7.1	(37.9)	(38.8)
Asset yield (%)	16.1			16.1
Net interest margin (%)	11.5			12.3
Total income margin (%)	11.5			12.3
Cost of risk (%)	(7.3)			(7.3)
Risk adjusted margin (%)	4.1			5.0
Cost: income ratio (%)	44.6			78.8

Second Charge Mortgages

Twelve months ended (£m)	DEC24 (as reported)	Treasury income re-segmentation	Costs re-segmentation	DEC24 (re-presented)
Interest income	4.8	-	-	4.8
Interest expense	(2.9)	(0.5)	-	(3.4)
Net interest income	1.9	(0.5)	-	1.4
Total income	1.9	(0.5)	-	1.4
Impairment charges	(0.2)	-	-	(0.2)
Risk adjusted income	1.7	(0.5)	-	1.2
Operating costs	(0.2)	-	(0.4)	(0.6)
Profit before tax contribution	1.5	(0.5)	(0.4)	0.6
Asset yield (%)	7.0			7.0
Net interest margin (%)	2.8			2.0
Total income margin (%)	2.8			2.0
Cost of risk (%)	(0.3)			(0.3)
Risk adjusted margin (%)	2.5			1.7
Cost: income ratio (%)	10.5			42.9

Corporate Centre

Twelve months ended (£m)	DEC24 (as reported)	Treasury income re-segment- ation	Costs re-segment- ation	DEC24 (pre- removal of adjusting items)	Removal of adjusting items	DEC24 (re-presented)
Interest income	5.8	40.5	-	46.3	-	46.3
Interest expense	(21.0)	(33.0)	-	(54.0)	-	(54.0)
Net interest income	(15.2)	7.5	-	(7.7)	-	(7.7)
Non-interest income	3.2	0.3	-	3.5	-	3.5
Total income	(12.0)	7.8	-	(4.2)	-	(4.2)
Impairment charges	(0.8)	-	-	(0.8)	-	(0.8)
Risk adjusted income	(12.8)	7.8	-	(5.0)	-	(5.0)
Operating costs	(64.1)	-	40.7	(23.4)	(101.5)	(124.9)
Loss before tax contribution	(76.9)	7.8	40.7	(28.4)	(101.5)	(129.9)
Exceptional costs	(24.1)	-	-	(24.1)	24.1	-
Amortisation of acquisition intangibles	(6.2)	-	-	(6.2)	6.2	-
Goodwill write-off	(71.2)	-	-	(71.2)	71.2	-
Statutory loss before tax contribution	(178.4)	7.8	40.7	(129.9)	-	(129.9)

Notable items

£m	Account line	Segment	FY24	H124	H224
Goodwill write-off	Operating costs	Corporate Centre	(71.2)	-	(71.2)
Transformation and other exceptional costs	Operating costs	Corporate Centre	(24.1)	(15.5)	(8.6)
Amortisation of acquisition intangibles	Operating costs	Corporate Centre	(6.2)	(4.2)	(2.0)
Vehicle Finance receivables review	Income	Vehicle Finance	(4.5)	(3.1)	(1.4)
	Impairment	Vehicle Finance	(15.1)	(9.7)	(5.4)
Other one-off cost items	Operating costs	Corporate Centre	(10.2)	(10.2)	-
Total notable items			(131.3)	(42.7)	(88.6)

Personal Loans balances and receivables

The Group balance sheet as at 31 December 2024 and 30 June 2024 will continue to be reported including the Personal Loans receivables, despite the business being recognised as a discontinued operation.  Personal Loans balances and receivables are summarised below:

Personal Loans (£m)		DEC24	JUN24
Total customer numbers ('000)		24	33
Gross customer interest earning balances		49	77
Average gross customer interest earning balances		79	95
Gross receivables		49	78
Net receivables		44	68

Enquiries

Investors and analysts

James Cranstoun, Head of Investor Relations

james.cranstoun@vanquis.com

+44 (0) 7766 937 406

Media

Scott Mowbray, Head of External Communications

scott.mowbray@vanquis.com

+44 (0) 7834 843 384

Victoria Ainsworth, Senior Director (Hawthorn Advisors)

vanquis@hawthornadvisors.com

+44 (0) 7894 995 886

Footnotes

1.     The presentation of the income statement in this report is consistent with that in the Annual Report and Accounts for 31 December 2024, with the exception of the impact of the sale of the Personal Loans portfolio, which is now recognised as a discontinued operation and the re-segmentation of interest income, interest expense and operating costs by product .  The information included in this announcement has not been subject to audit by the Group's external auditor.

2.     Asset yield is calculated as interest income received from customers for the period as a percentage of average gross customer interest earning balances for the 6 and 12 months ended 30 June and 31 December using 7 and 13 point month end averages.  Group asset yield excludes Personal Loans average gross customer interest earning balances.

3.     Net interest margin is calculated as interest income less interest expense for the period as a percentage of average gross customer interest earning balances for the 6 and 12 months ended 30 June or 31 December using 7 and 13 point month end averages.  Group net interest margin excludes Personal Loans average gross customer interest earning balances.

4.     Total income margin is calculated as total income for the period as a percentage of average gross customer interest earning balances for the 6 and 12 months ended 30 June or 31 December using 7 and 13 point month end averages.  Group total income margin excludes Personal Loans average gross customer interest earning balances.

5.     Cost of risk is calculated as impairment charges for the period as a percentage of average gross customer interest earning balances for the 6 and 12 months ended 30 June or 31 December using 7 and 13 point month end averages.  Group cost of risk excludes Personal Loans average gross customer interest earning balances.

6.     Risk-adjusted margin is defined as risk-adjusted income for the period as a percentage of average gross customer interest earning balances for the 6 and 12 months ended 30 June or 31 December using 7 and 13 point month end averages.  Group risk-adjusted margin excludes Personal Loans average gross customer interest earning balances.

7.     Cost: income ratio is calculated as operating costs as a percentage of total income for the 6 and 12 months ended 30 June or 31 December.

8.     ROTE is calculated as statutory profit after tax net of fair value gains for the 6 and 12 months ended 30 June or 31 December as a percentage of average adjusted tangible equity for the 6 and 12 months ended 30 June or 31 December. Adjusted tangible equity is stated as equity after deducting the Group's pension asset, net of deferred tax, the fair value of derivative financial instruments, net of deferred tax, less intangible assets and goodwill.

9.     Basic earnings per share is calculated as statutory profit after tax for the 6 and 12 months ended 30 June or 31 December, divided by the weighted average number of shares in issue.

10.  TNAV per share is calculated as closing adjusted tangible net asset value, divided by the period end number of shares in issue.  Adjusted tangible net asset value is stated as equity after deducting the Group's pension asset, net of deferred tax, the fair value of derivative financial instruments, net of deferred tax, less intangible assets and goodwill.

11.  The Tier 1 ratio is calculated as the ratio of the Group's Tier 1 capital as a percentage of the Group's risk-weighted assets measured in accordance with the CRR.

Forward looking statements

This report may contain certain "forward looking statements" regarding the financial position, business strategy or plans for future operations of Vanquis Banking Group. All statements other than statements of historical fact included in this document may be forward looking statements. Forward looking statements also often use words such as "believe", "expect", "estimate", "intend", "anticipate" and words of a similar meaning. By their nature, forward looking statements involve risk and uncertainty that could cause actual results to differ from those suggested by them. Much of the risk and uncertainty relates to factors that are beyond Vanquis Banking Group's ability to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements which speak only as at the date of this report. Vanquis Banking Group does not assume any obligation to, and does not intend to, revise or update these forward-looking statements, except as required pursuant to applicable law or regulation. No statement in this announcement is intended as a profit forecast or estimate for any period. No statement in this announcement should be interpreted to indicate a particular level of profit and, as a consequence, it should not be possible to derive a profit figure for any future period from this report.

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