Vanquis Banking Group (LSE:VANQ) confirmed it will not challenge the Financial Conduct Authority’s Motor Finance Redress Schemes and is now focused on meeting the implementation requirements. The lender noted that it has not engaged in discretionary commission models or tied selling practices, meaning key elements of the scheme are not relevant to its business.
Vanquis added that its previously announced £3.0 million provision for potential motor finance compensation remains unchanged, indicating that the overall financial impact is expected to be modest. The group reaffirmed its intention to compensate customers appropriately where losses have occurred and said it will provide a further update in its first-quarter 2026 trading statement on 6 May.
While earnings recovery is becoming more evident, the company’s outlook continues to be constrained by relatively high balance-sheet leverage and subdued technical momentum. Support comes from earnings guidance and capital resilience, but valuation concerns—particularly a high price-to-earnings ratio—alongside execution and credit risks, continue to weigh on investor confidence.
More about Vanquis Banking Group
Vanquis Banking Group is a UK-based specialist lender that focuses on customers with non-standard credit histories. Its product range includes credit cards, personal loans, and related financial services, catering to segments of the retail banking market that are often underserved by traditional lenders.
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