Shares in Vanquis Banking Group PLC (LSE:VANQ) climbed 9.9% in early trading on Thursday, following news that the specialist lender had returned to profit in the first half of 2025, marking a significant milestone in its ongoing turnaround strategy.
The bank reported statutory pre-tax profits of £6.2 million for the six months ended 30 June, a notable rebound from the £46.1 million loss posted during the same period last year. This performance marks two consecutive profitable quarters for the group.
Return on tangible equity improved to 3.1%, while gross customer interest-earning balances rose by 7% to £2.46 billion, reflecting growing lending activity.
Chief Executive Ian McLaughlin said the bank is “firmly on track” with its transformation strategy, crediting the progress to sound credit quality, cost discipline, and advancements in its Gateway technology programme.
The cost-income ratio improved to 62.5%, aided by £15 million in transformation-related savings and a 36% drop in complaint-related expenses, reinforcing efforts to streamline operations and enhance service quality.
Vanquis also clarified its position regarding the UK Supreme Court ruling on motor finance, stating it did not engage in discretionary commission arrangements similar to those scrutinized in the Johnson case. The group emphasized that its commission disclosures were more transparent than those deemed unfair by the court.
The bank remains well-capitalised, boasting a liquidity coverage ratio of 366% and a Tier 1 capital ratio of 18.5%, signalling strong financial resilience as it continues executing its turnaround plan.
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