Vanquis Banking reiterates FY financial guidance
By Iain Gilbert
Date: Thursday 07 Nov 2024
(Sharecast News) - Sub-prime lender Vanquis Banking Group reiterated its full-year financial guidance on Thursday as it said turnaround efforts were "progressing".
Vanquis said gross customer interest earnings balances were flat in Q3 at £2.25bn, while net receivables were up 4% at £2.08bn and year-to-date net interest margins contracted 0.2 percentage points to 18.6%.
Credit Card balances were "marginally down", as growth from recent originations was offset by continued paydowns and outward balance transfers.
The London-listed group also highlighted that it expects to have delivered £60.0m of gross cost savings by the end of 2024, and was on track for a further £15.0m of savings by the end of 2025, and £23.0m-28.0m of savings through its Gateway technology transformation programme.
Chief executive Ian McLaughlin said: "Since we laid out our strategy in March, we have made progress in the turnaround of this business. Though not without challenges, we continue to position the business for future success.
"We remain on course to realise £60.0m of gross cost savings by year-end and have plans in place to deliver the additional cost reductions for 2025 and 2026, as previously announced. Complaint costs remained broadly in line with expectations, though they continue to be elevated, and we are engaging with regulators to address the associated issues."
As of 1205 GMT, Vanquis Banking shares were up 1.82% at 41.80p.
Reporting by Iain Gilbert at Sharecast.com
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