Vanquis Banking H1 losses widen amid transformation efforts

1st Aug 2024 09:34

(Sharecast News) - Sub-prime lender Vanquis Banking said on Thursday that interim losses had widened even as it made "good progress" on its transformation efforts.

Vanquis said adjusted pre-tax losses had widened from £21.9m to £46.5m in the six months ended 30 June, while total income fell 1.3% to £234.0m.

Operating costs rose 7.9% to £179.2m, with impairment charges up 8.9% to £101.3m, while net interest margins were stable at 18.8%.

Chief executive Ian McLaughlin said: "We are making good progress on our business transformation and refreshed customer proposition presented in March. New customer volumes grew in the first half at better margins, leading to overall receivables growth in June.

"As the largest specialist finance provider for financially underserved customers, Vanquis occupies a unique role in the UK banking system. We look forward to continuing to support our customers to make the most of life's opportunities."

As of 0930 BST, Vanquis shares were up 4.56% at 57.30p.

Reporting by Iain Gilbert at Sharecast.com