LONDON (ShareCast) - (Sharecast News) - Vanquis Banking incurred in a raft of impairment charges in a year that management dubbed as "pivotal" for its turnaround.
However, according to chief executive officer, Ian McLaughlin, Vanquis remained on track to deliver a low single-digit return on tangible equity in 2025, thanks to the foundations laid down during the past year.

"The headwinds we have faced mean we now expect to achieve our goal of sustainable mid-teens ROTE in 2027, with double-digits ROTE delivered in 2026," he added.

"I am proud of the hard work put in by all our colleagues over this challenging period. While the transformation continues, I am confident that 2024 will be remembered as the year we repositioned Vanquis for success."

The lender's red ink swelled to £119.3m in 2024, up from £11.7m one year before.

That was chiefly the result of £191.0m of impairment charges, while net interest income fell 5% to £420.0m.

Vanquis also wrote off £71.2m of goodwill related to Moneybarn.

Risk-adjusted income meanwhile was down by 17% at £302.3m.

On an adjusted basis and before taxes the lender swung to a loss of £34.8m from £17.3m.

Management noted that it achieved £64.3m of transformation cost savings during the period and that it was on track for a further £15m of committed savings by the end of 2025.

No dividend was declared in respect of 2024, against the 6.0p per share that it paid out in 2023.

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