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Vanquis Banking Group PLC on Wednesday retained guidance as it reported increased interest earnings balances but at lower margins. The Bradford, England-based bank said gross customer interest-earning balances jumped 27% to £2.93 billion in the quarter to March from £2.31 billion the year prior. Net receivables were 29% higher at £2.80 billion from £2.18 billion. Net interest margin declined to 15.6% from 17.8%, reflecting a portfolio mix shift towards loweryield, lowerrisk second charge mortgages, with risk adjusted margin of 9.4%, down on-year from 13.2%. The CET1 capital ratio fell to 15.9% from 19.0%, reflecting the ‘continued deployment of capital for growth.’ Vanquis said margins remain ‘resilient’ despite the drop and credit quality ‘strong.’ Credit card balances increased for the fourth consecutive quarter, vehicle finance balances were in line with expectations and second charge mortgage balances continued to grow at a steady rate, the firm added. Full-year guidance for 2026 and 2027 remains unchanged. Vanquis expects low double digits return on tangible equity in 2026 and mid-teens ROTE in 2027. Gross customer interest-earning balances are projected of more than £3.3 billion in 2026 and more than £3.7 billion in 2027. Shares in Vanquis Banking were 3.9% lower at 114.00 pence in London on Wednesday around noon. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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