Investment case

Our investment case is based on five fundamental areas:

1

Market leader in a specialist and substantial market

  • Specialist lender for the 1 in 5 UK adults not well served by the mainstream
  • Market leader with 2.3m customers across the Group
2

A purpose-driven Blueprint for sustainable growth

  • New Blueprint supports sustainable market leadership
  • Successfully managing through tougher regulation
3

A customer-centric and responsible culture

  • Clear strategic focus to deliver our Vision for the Future
4

Financial resilience and a strong capital base

  • Medium-term direction to evolve Vanquis Bank to become a broader bank for the underserved
  • Resilient customers and business with counter cyclical opportunity
  • Substantial opportunities to take the Group forward:
    • Markets, products and digital
    • Costs, funding and capital
5

Medium-term targets for attractive, sustainable growth

  • Receivables growth 5–10% p.a. (2019: £2.2bn)
  • ROE 20–25% (2019: 18%)
  • Cost income ratio 38% (2019: 44%)
  • Dividend cover ≥ 1.4x (2019: 1.9x)