Vanquis Banking Group shares plunge as 2024 losses widen

Investing.com -- Shares in Vanquis Banking Group, a U.K. consumer-finance company, saw a significant drop after the company announced that its pretax losses had increased in 2024.

The company also postponed its returns guidance by one year.

During the European morning trade, the stock price fell over 20%.

On Friday, the London-listed group reported a pretax loss of £136.3 million for the year ending Dec. 31, 2024. This was a significant increase compared to the £12.0 million loss recorded in the previous year.

The company attributed the widened loss to a balance sheet review and one-off expenses.

In terms of adjusted figures, the group shifted to a pretax loss of £34.8 million in 2024, compared to a restated pretax profit of £17.3 million in 2023.

The company also reported a 6% year-on-year decrease in total income for the period, which amounted to £458.5 million.

Looking ahead to 2025, Vanquis Banking Group stated that it is on course to achieve a return on tangible equity, an important profitability metric, in the low single-digit percentage.

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