Investment Case

In the UK, there are between 10 and 12 million working adults who are underserved by mainstream lenders. With our broad range of products and services, we are well positioned to be the credit provider of choice for these customers. In aggregate our addressable market is >£17bn.

Our Blueprint brings together why we exists as an organisation, framed in the context of the role our business plays in the lives of our customers. It also sets out the strategic focus and key priorities that will drive both competitive advantage and commercial success for the whole Group. From our recent colleague survey 85% of colleagues care about the future of Vanquis Banking Group.

While our customers share many similarities with mainstream credit customers, there are important differences arising from their individual circumstances. Our customers need a tailored approach and a wider range of suitable and sustainable credit solutions to best serve their needs. We aim to put the customer on the team. We have invested in a brand new IT platform that in the future will support all of our products.

Over the medium term, our plan is to become a broader banking group operating in underserved markets. To achieve this, we are working collaboratively across the Group and focusing on our customers. We have significant opportunities to take our Group forward as we look towards new markets, new products and new digital advancements and we have the financial strength to achieve this. Our Total Capital Ratio is >40%.

To support the delivery of our Purpose, we have a financial model founded on investing in customer-centric businesses with attractive returns, which aligns an appropriate capital structure with the Group’s dividend policy and future growth plans. We will operate with a progressive dividend policy and we anticipate moving towards a payout ratio of approximately 40% of adjusted earnings from 2022.