Vanquis Banking Group 20 (VANQ)

Sector:

Financials

Index:

FTSE Small Cap

114.00p
   
  • Change Today:
    -2.20p
  • 52 Week High: 118.40p
  • 52 Week Low: 37.90p
  • Currency: UK Pounds
  • Shares Issued: 256.48m
  • Volume: 1,436,481
  • Market Cap: £292.39m

Vanquis Banking warns on full-year profits, shares tank

By Michele Maatouk

Date: Monday 11 Mar 2024

LONDON (ShareCast) - (Sharecast News) - Vanquis Banking Group warned on full-year profits on Monday as it continues to be redevelop its customer proposition and reset pricing, and due to costs associated with reviewing complaints mostly related to credit cards.
In an update ahead of its 2023 results on 27 March, the company - formerly Provident Financial - said that income for 2024 is expected to be "materially lower" than consensus expectations of £538.3m. This is due in part to the redevelopments of its customer proposition, which is expected to allow the group to return to modest lending growth from the start of the second quarter.

In addition, Vanquis said that although it is not a subject the Financial Conduct Authority's review of historical motor finance commission arrangements and sales, it has been experiencing "significant" levels of third party complaint submissions, mainly related to credit cards.

A spokesperson for the company said: "The majority of the claims are being generated by a single Claims Management Company. They are spread right across our business but are predominantly linked to credit cards.

"Most of them are completely unwarranted (e.g. not even a Vanquis customer), but sadly we have to investigate every single one, and each investigation has a cost associated with it."

As a result, it now expects adjusted pre-tax profit for 2024 to be "substantially" lower than market consensus of £75.1m, resulting in a low single digit adjusted return on equity.

Chief executive Ian McLaughlin said: "We have short term challenges to address but remain confident that the group's new strategy will deliver good outcomes for our customers and attractive and sustainable returns for our shareholders over the medium and longer term. I look forward to setting out our detailed plans at our strategy seminar."

At 1030 GMT, the shares were down 39% at 76.34p.

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VANQ Market Data

Currency UK Pounds
Share Price 114.00p
Change Today -2.20p
% Change -1.89 %
52 Week High 118.40p
52 Week Low 37.90p
Volume 1,436,481
Shares Issued 256.48m
Market Cap £292.39m

VANQ Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
18.27% above the market average18.27% above the market average18.27% above the market average18.27% above the market average18.27% above the market average
44.90% above the sector average44.90% above the sector average44.90% above the sector average44.90% above the sector average44.90% above the sector average
Price Trend
78.73% above the market average78.73% above the market average78.73% above the market average78.73% above the market average78.73% above the market average
80.20% above the sector average80.20% above the sector average80.20% above the sector average80.20% above the sector average80.20% above the sector average
Income Not Available
Growth
83.68% below the market average83.68% below the market average83.68% below the market average83.68% below the market average83.68% below the market average
78.49% below the sector average78.49% below the sector average78.49% below the sector average78.49% below the sector average78.49% below the sector average

VANQ Dividends

  Latest Previous
  Final Interim
Ex-Div 18-Apr-24 10-Aug-23
Paid 30-May-24 21-Sep-23
Amount 1.00p 5.00p

Trades for 29-Aug-2025

Time Volume / Share Price
16:07 348,241 @ 115.00p
16:07 151,759 @ 115.00p
16:35 92,118 @ 114.00p
16:35 85 @ 114.00p
16:35 2,676 @ 114.00p

VANQ Key Personnel

CEO Ian McLaughlin
Chair Sir Peter Estlin
CFO Dave Watts

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