Shares in Vanquis Banking Group PLC (LSE:VANQ) rose 10% in early trading after the lender reported a return to profitability in the first half of 2025, signalling that its turnaround is gaining momentum.
The group delivered two consecutive quarters of profit, with statutory pre-tax earnings of £6.2 million for the six months to 30 June, compared to a loss of £46.1 million a year earlier.
Statutory return on tangible equity improved to 3.1%, while gross customer interest-earning balances grew 7% to £2.46 billion.
Chief executive Ian McLaughlin said the bank is “firmly on track” with its transformation plans, highlighting robust credit quality, tight cost discipline, and progress on its technology programme, Gateway.
The statutory cost-income ratio improved sharply to 62.5%, aided by £15 million in transformation savings and a 36% reduction in complaint costs.
Vanquis did not participate in discretionary commission arrangements linked to the recent Supreme Court ruling on motor finance, and said its commission disclosures were stronger than those found to be unfair in the Johnson case.
The group remains highly liquid, with a coverage ratio of 366% and a Tier 1 capital ratio of 18.5%.
The stock rose 10.20p to 113.20p.