Vanquis Banking Group plc (‘the Group’), the specialist bank, today published its results for the six months ended 30 June 2024.
Ian McLaughlin, Chief Executive Officer, commented:
“We are making good progress on our business transformation and refreshed customer proposition presented in March. New customer volumes grew in the first half at better margins, leading to overall receivables growth in June. We continued driving operational efficiency and are on track to achieve £60m in cost savings by year-end.
As announced on 16 July, we recognised one-off items amounting to £40m in the first half, which relate to our review of Vehicle Finance Stage 3 receivables (£29m, of which £16m relates to prior periods) and management actions taken in the period (£11m). As a result our financial position is now clearer and more stable.
We have revisited our strategic plan and are making further changes to deliver an additional £15m in cost savings by the end of 2025, along with new revenue initiatives. We expect modest receivables growth in 2H24. We remain on track to deliver low single digit ROTE in 2025 and mid-teens ROTE in 2026, in line with previous guidance.
As the largest specialist finance provider for financially underserved customers, Vanquis occupies a unique role in the UK banking system. We look forward to continuing to support our customers to make the most of life’s opportunities.”