olivLaw · European equity research
Vanquis Banking Group plc VANQ.L
United Kingdom · London Stock Exchange · ISIN GB00B1Z4ST84 · Vertical: Listed companies from United Kingdom
Vanquis Banking Group is a UK specialist bank serving customers often excluded by high street lenders, with a focus on responsible credit and digital delivery. In 2025 the group returned to statutory profitability and grew its customer balances strongly, while its share of a large underserved market remains modest, with 1.77 million customers.
At the close of 05 Nov 2026, Vanquis Banking Group plc (VANQ.L) stock was 0.46 GBP (+0.88% on the day), with market capitalisation 117.9 m GBP, P/E 14.8 on diluted EPS of 0.03 GBP over the last 12 months, dividend yield 0.00%, beta 0.59, 52-week range 0.43–1.31 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 22.5
- oversold (≤ 30)
- Bollinger (20, 2)
- 0.39 – 0.85
- in the lower half of the band · %B 0.15 · band width 73.7%
- SMA 50 / 200
- 0.70 / 1.00
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.07 / -0.05
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −33.5% | −0.6% | −32.9 pp | — |
| 3 months | −43.2% | −4.2% | −39.0 pp | — |
| 6 months | −59.6% | +4.3% | −64.0 pp | — |
| Year to date | −61.5% | +7.5% | −69.0 pp | — |
| 1 year | −58.1% | +9.9% | −68.0 pp | +5.8% |
| 3 years | −62.1% | +49.8% | −112.0 pp | +26.3% |
| 5 years | −87.0% | +42.8% | −129.9 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 1-quarter history (min 38.6, median 38.6, max 38.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 488.8 m | 446.4 m | 454.9 m |
| Revenue YoY | unavailable | −8.7% | +1.9% |
| Net income | -11.7 m | -119.3 m | 8.2 m |
| Net income YoY | unavailable | unavailable | unavailable |
| Diluted EPS | -0.05 | -0.47 | 0.03 |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | -2.4% | -26.7% | 1.8% |
| Free cash flow | 581.4 m | 450.5 m | 89.7 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 804.5 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 487.3 m GBP
- Total assets
- 3.9 bn GBP
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 1.8%
- ROA
- 0.2%
- FCF margin
- 19.7%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 488.8 m | 446.4 m | 454.9 m | esef· 04 Mar 2026verified |
| Pre-tax income | -12.0 m | -138.0 m | 8.3 m | esef· 04 Mar 2026verified |
| Income tax | -300.0 k | -17.4 m | 300.0 k | esef· 04 Mar 2026verified |
| Net income | -11.7 m | -119.3 m | 8.2 m | esef· 04 Mar 2026verified |
| Diluted EPS | -0.05 | -0.47 | 0.03 | esef· 04 Mar 2026verified |
| Dividend per share | 0.15 | 0.01 | 0.00 | esef· 04 Mar 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 743.3 m | 1.0 bn | 804.5 m | esef· 04 Mar 2026verified |
| Property, plant & equipment, net | 8.1 m | 7.1 m | 8.0 m | esef· 04 Mar 2026verified |
| Goodwill | 72.4 m | 1.2 m | 1.2 m | esef· 04 Mar 2026verified |
| Intangibles (excl. goodwill) | 74.4 m | 61.5 m | 65.0 m | esef· 04 Mar 2026verified |
| Total assets | 3.2 bn | 3.4 bn | 3.9 bn | esef· 04 Mar 2026verified |
| Total liabilities | 2.6 bn | 2.9 bn | 3.5 bn | esef· 04 Mar 2026verified |
| Equity | 569.1 m | 441.2 m | 487.3 m | esef· 04 Mar 2026verified |
| Shares outstanding at year end | 254.3 m | 255.5 m | 256.3 m | esef· 04 Mar 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 584.7 m | 452.7 m | 93.0 m | esef· 04 Mar 2026verified |
| Capex | 3.3 m | 2.2 m | 3.3 m | esef· 04 Mar 2026verified |
| Free cash flow | 581.4 m ≈ | 450.5 m ≈ | 89.7 m ≈ | esef· 04 Mar 2026derived |
| Investing cash flow | -18.8 m | -10.4 m | -270.3 m | esef· 04 Mar 2026verified |
| Financing cash flow | -288.0 m | -181.3 m | -21.9 m | esef· 04 Mar 2026verified |
| Dividends paid | 38.4 m | 2.5 m | 0 | esef· 04 Mar 2026verified |
| Share repurchases | 0 | 100.0 k | 6.3 m | esef· 04 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 41.7% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 117.9 m GBP
Key indicators
Coverage and freshness
Score by group
42% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 41.7% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 1.8% | 26 (vs peers) | 15% |
| FCF conversion · Quality | 1,093.9% | 100 (on a fixed band) | 15% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 14.8x | 50 (vs peers) | 25% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 76.1% | 100 (on a fixed band) | 20% |
| Shareholder yield (distributions) · Returns | 5.3% | 76 (on a fixed band) | 15% |
| Payout ratio (FCF) · Returns | 0.0% | 100 (on a fixed band) | 10% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality63/100 · 2/3 factors with a value
- Returns86/100 · 2/2 factors with a value
- Valuation72/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
VANQUIS BANKING GROUP PLC (VANQ.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 454.9 m GBP in 2025; YoY growth 1.9%; net margin 1.8%; ROE 1.8%.
The estimated value range is 0.35–0.54 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 0.45 GBP, the price of 0.46 GBP leaves a potential of -2.8% (value / price − 1) and a margin of safety of -2.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 41.7% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 1,093.9%
- FCF yield: 76.1%
- Shareholder yield (distributions): 5.3%
- Payout ratio (FCF): 0.0%
What contradicts it
- Net margin: 1.8%
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| VANQ.LVanquis Banking Group PLC | 117.9 m | 14.8 | 1.8% | 1.8% | +1.9% | −59% / −59% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for VANQ.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 0.27 Total return -41% · Per year -41% | 0.48 Total return 5% · Per year 5% | 0.73 Total return 59% · Per year 59% |
| 3 years | 0.25 Total return -45% · Per year -18% | 0.50 Total return 9% · Per year 3% | 0.83 Total return 81% · Per year 22% |
| 5 years | 0.23 Total return -50% · Per year -13% | 0.52 Total return 13% · Per year 3% | 0.95 Total return 107% · Per year 16% |
- Exit P/E± 0.13
- Net margin± 0.09
- Annual revenue growth± 0.07
- Annual dilution± 0.01
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Vanquis Banking Group is a UK specialist bank serving customers often excluded by high street lenders, with a focus on responsible credit and digital delivery. In 2025 the group returned to statutory profitability and grew its customer balances strongly, while its share of a large underserved market remains modest, with 1.77 million customers 1.
SWOT
Strengths
- Long experience serving customers with non-mainstream credit profiles, risk-based pricing and a diversified product portfolio 1.
- Return to statutory profitability in 2025 and a capital position that management describes as robust 1.
- The Snoop platform and a high customer satisfaction score, which support retention and customer acquisition 1.
Weaknesses
- Transformation costs and dependence on completing the Gateway programme could slow operational benefits 1.
- Return on tangible equity remained low in 2025, and the group did not declare a dividend for that year 1.
- The portfolio is exposed to higher-risk credit segments, and the cost of risk remains significant 1.
Opportunities
- The market of underserved UK customers is considerable and the group's current share is modest, which could allow growth 1.
- Second charge mortgages and other lower-risk segments could improve risk-adjusted returns if growth continues 1.
- The government's Financial Inclusion Strategy could favour providers offering fair and transparent credit 1.
Risks
- Credit riskhigh
A deterioration in customer affordability or underwriting quality could increase losses and affect profitability 1.
- Regulatory riskmedium
The motor finance redress scheme is still being finalised, and its final scope could exceed the existing provision 1.
- Gateway execution riskmedium
Completing the migration to the new platform in 2026 could encounter delays or additional costs 1.
- Capital and funding riskmedium
Rapid balance growth could consume capital, and the distribution policy remains subject to completing the strategy 1.
- Margin risklow
A shift towards lower-risk segments could moderate net interest margin and affect near-term income 1.
Investment thesis
What would need to be true (bull case)
- If the group sustains balance growth and credit quality, the return to profitability could become durable and support higher returns in the coming years 1.
- The underserved customer market remains large, and Vanquis's positioning in it could allow faster growth if the digital platform performs well 1.
- Completing the Gateway programme could reduce costs and improve credit decisions, contributing to better operational efficiency 1.
What would break the thesis
- If credit losses rose, profitability could again be affected, given that return on tangible equity remained low in 2025 1.
- Regulatory changes and motor finance costs could exceed current provisions and reduce profitability 1.
- Delays in the Gateway programme could postpone cost benefits and prolong the period in which market share remains modest 1.
What to watch
- Delivery of guided gross customer interest-earning balances above £3.3bn2026
- Completion of the Gateway programme and launch of the new vehicle finance platform2026
- Trend in cost of risk and portfolio quality in credit cardsnext 10-K
- Final FCA decision on the motor finance redress scheme2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Vanquis is a UK specialist bank focused on customers with non-mainstream credit profiles whom high street lenders often leave out. The group offers credit cards, vehicle finance through Moneybarn, second charge mortgages, savings and the Snoop money management platform 1. The business model relies on risk-based pricing, long experience in this segment and stable retail deposit funding 1.
In 2025 the group ended the year with 1.77 million customers and gross customer interest-earning balances of £2,824m, up 22% 1. The statutory profit before tax from continuing operations was £8.3m, compared with a loss in 2024 1. The Gateway transformation programme, including migration to a Fiserv cloud platform, is still in progress and is due to complete in 2026 1.
Management aims to broaden access to credit and gradually shift towards lower-risk segments, for example by growing second charge mortgages. This shift could moderate net interest margin over time, but the board believes it could deliver stronger risk-adjusted returns and a more resilient model 1.
Segments
Credit cards
Credit card balances grew 19% to £1,518m in 2025, supported by new product launches and higher utilisation by existing customers 1. The growth was described as achieved within the group's risk appetite 1.
Market context
Management estimates that about half of UK adults with an active credit profile are underserved, a large structural market in which Vanquis's share remains modest 1. The government published its Financial Inclusion Strategy in November, which underlines the role of fair and transparent financial products 1. Vanquis could benefit from this framework, though the impact depends on how regulation and credit demand evolve 1.
On regulation, the FCA consulted on motor finance redress (CP25/27), and the group recognised a £3.0m provision for this risk 1. Changes to the regime could affect costs and volumes, and their direction remains uncertain 1.
Trends
- Financial inclusion and government strategytailwind
The government's Financial Inclusion Strategy published in November supports access to fair and transparent credit, which fits the positioning of Vanquis 1. The effect depends on implementation and on how obligations for providers are defined 1.
- Motor finance redressheadwind
The Supreme Court ruling on motor finance commission disclosures and the FCA consultation have created uncertainty for the sector. The group says it did not operate discretionary commission arrangements, but it could bear costs if the final scheme is broader 1.
- Digitalisation and the Gateway platformmixed
Migration to a cloud platform and the use of advanced data for credit decisions could reduce costs and improve risk control if the Gateway programme completes successfully in 2026 1. Delays could postpone these benefits 1.
- Pressure on net interest marginmixed
The shift towards lower-risk segments could moderate net interest margin over the longer term, while management expects better risk-adjusted returns 1. The trade-off between income and portfolio quality remains central 1.
Competitive position
Vanquis competes with UK specialist banks and credit providers targeting non-mainstream customers, as well as with high street banks expanding their card and savings offers 1. The group differentiates itself by focusing on customers turned away by competitors and through its Snoop digital platform 1.
Stated competitive strengths include experience in non-mainstream credit, a diversified product range and a customer satisfaction score of 83.7, ahead of the industry average of 81.1 1. Whether these advantages persist depends on execution of the transformation programme and on lending quality 1.
- UK high street banks
Traditional banks competing for customers with stronger credit profiles, which Vanquis partly regards as outside its target 1.
- Specialist non-mainstream credit providers
UK companies offering credit to customers with weaker credit histories, the same segment targeted by Vanquis 1.
- Credit-builder card providers
Card issuers offering products to rebuild credit profiles, competing directly with Vanquis products in this niche 1.
- Digital savings and money management platforms
Apps and neobanks offering savings and budgeting tools, competing with the Snoop platform 1.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202504 Mar 2026
- Annual report 202418 Mar 2025
- Annual report 202404 Mar 2026
- Annual report 202318 Mar 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Vanquis Banking Group plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.