Vanquis Banking Group PLC (LSE:VANQ) shares tumbled 15% early on Friday after the lender posted a heavy annual loss, weighed down by surging impairment charges.
The bank reported a £119.3m loss for 2024, a sharp increase from £11.7m the year before. Loan impairment charges soared to £191m, while net interest income fell 5% to £420m.
Vanquis also took a £71.2m hit from writing off goodwill linked to its car finance arm, Moneybarn.
Stripping out exceptional items, the bank swung to a pre-tax loss of £34.8m from a £17.3m profit the year before.
No dividend was declared, following a 6p per share payout in 2023.
CEO Ian McLaughlin called 2024 a “pivotal” year, insisting the bank remains on track to deliver low single-digit returns in 2025, with double-digit profitability expected by 2026.
Vanquis said it had already achieved £643m in cost savings and was on course to cut another £15m by the end of 2025.
The stock fell 8.25p to 46.65p.