Progress made to turn around Vanquis Bank’s fortunes

Bradford-based specialist lender, Vanquis Bank, says it will have delivered £60m of gross cost savings by the end of 2024.

The business, which has today released a third quarter trading statement for the three months to 30 September 2024, adds it is also on track for a further £15m of savings by the end of 2025, and £23m to £28m of savings through its Gateway technology transformation programme.

Vanquis says its gross customer interest–earning balances for the period were stable at £2.3bn. A growth in second charge mortgage balances growth – now exceeding £100m – offset reductions in vehicle finance and personal loan balances.

Ian McLaughlin, chief executive officer, 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.

 “Overall, gross customer interest-earning balances were stable in the third quarter, and I am particularly pleased with the positive performance in Second Charge Mortgages.

“We continue to take steps across all our existing lending portfolios to position them for sustainable, profitable growth going forward. Underlying credit quality remains stable, and our customers continue to demonstrate strong financial resilience.

 “Our Gateway technology transformation is progressing according to plan. We remain on course to realise £60m 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.”

Vanquis, which was a FTSE 100 company when it was known as Provident Financial, specialises in non-standard finance, although has been moving away from Provident Financial’s sub-prime specialisms.

It offers credit cards and loans as Vanquis, vehicle finance as Moneybarn, and has a fintech brand, Snoop.