Banking group set to shed 350 jobs

Bradford-headquartered Vanquis Banking Group, formerly Provident Financial, says it will cut about 350 jobs next year as it fights to cut costs.

The group adds it has returned to profit during the three months to 30 September 2023 and expects to deliver adjusted profit before tax in the range of £25m-30m for the full year of 2023.

In a management plan action summary, Vanquis states: “A simplified operating model has been introduced that removes duplication and reduces costs.

“Cost reductions of about £60m are expected to be achieved within 2024, including the removal of around 350 roles. Key initiatives include greater use of outsourcing and changes to phasing of investments.”

Vanquis says despite continuing macroeconomic uncertainty, the customer credit environment has remained resilient.

Ian McLaughlin, chief executive officer, said: “We have worked at pace to undertake a detailed operating review of the group.

“We have scrutinised every cost centre and product line. As a result, we have taken action to stabilise our net interest margin, significantly reduce our cost base and put ourselves in a position to clarify guidance for our year end pre-tax profits.

“We have started a full strategy review that will complete by the end of January 2024.

“The outputs of this will enable us to become the outstanding customer champion in our target market segment and deliver sustainable, profitable growth based on our deep understanding of, and commitment to, our customer base.”