Profits ahead of expectations as banking group focuses on lower risk customers
Bradford-based Vanquis Banking Group says it has successfully repositioned itself in the mid-cost and near-prime segments of the market, with a focus on lower risk customers, resulting in a lower credit risk profile.
Releasing its preliminary results for the year ended 31 December 2022, the business has recorded adjusted profit before tax from continuing operations of £126.6m (FY 21: £167.8m) and group statutory profit before tax from continuing operations of £110.1m (FY 21: £142.2m).
At the end of December 2022, the group’s capital and liquidity positions remained robust, with regulatory capital of £679m (FY 21: £707m).
Malcolm Le May, chief executive officer, said: “I am pleased to report the group’s adjusted profit before tax for FY 22 is marginally ahead of market expectations.
“We have delivered a substantial amount of progress since I took over as CEO in February 2018 and 2022 was another important year of strategic development for the Group.
“We reinforced our repositioning as a leading specialist banking group in the mid-cost and near-prime parts of the credit market with a focus on lower risk customers, which has resulted in credit risk across the group reducing materially since 2019.
“The process of rebuilding the group’s loan books back to pre-pandemic levels is underway, as demonstrated by the excellent growth and momentum we delivered in the fourth quarter of 2022.”
Vanquis adds that it delivered strong loan book growth in each of its businesses, notwithstanding the tough macroeconomic backdrop, underpinned by its rigorous risk management framework and strong capital position.
It adds the positive momentum seen in quarter four 2022 has continued into early 2023, especially in its vehicle finance and personal loans businesses.
