Vanquis Banking Group PLC on Wednesday said it swung to a yearly loss due to higher expenses and impairments, but noted a rise in income.

Shares in Vanquis rose 9.2% to 56.13 pence each in London on Wednesday morning.

The Bradford, England-based lender said it swung to a pretax loss in 2023 of £4.4 million from a profit of £110.1 million in 2022.

This is despite net interest income rising 2.3% to £442.6 million from £432.7 million, and total income rising 1.7% to £488.8 million from £480.7 million.

Impairment charges more than doubled to £166.1 million from £66.1 million, while operating costs rose 7.4% to £327.1 million from £304.5 million.

Chief Executive Officer Ian McLaughlin commented: ‘Today’s results and strategy seminar highlight the considerable challenges we are managing as we reset our business. We also describe our opportunity to grow, to deliver benefit to our customers and increase adjusted return on tangible equity from 3.2% in 2023 to the mid-teens by 2026.

‘We have a better understanding than ever before of how to serve our large and growing customer base. We will build our position as their chosen banking partner, deploying unique assets like Snoop, improving operational effectiveness and managing our capital to support our growth ambitions. We do have a period of hard work and change ahead of us. It is still early days, but we are making progress.’

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