Vanquis Banking Group PLC on Tuesday lowered its yearly guidance, following write-downs after a balance sheet review.

Shares in the company were 8.9% lower at 48.30 pence each in London on Tuesday afternoon.

The firm hailed a ‘now clearer and more stable’ financial footing, however, despite a ‘disappointing’ hit from one-off items.

The lender, formerly called Provident Financial, warned of impairments ahead of its interim results for the six months to June 30.

It said a review found a £29 million downward revaluation of stage 3 balances and charged off assets in the Vehicle Finance portfolio. It reported a further £11 million related to the write-down of development costs for a ‘now redundant’ mobile app, as well as property dilapidations.

It does not expect to meet full-year guidance of a low single digit return on tangible equity, nor its target tier 1 ratio range of 19.5% to 20.5% - though the firm says it will remain ‘well above’ its regulatory capital requirement.

‘The group’s financial position is now clearer and more stable, with focus now on deploying capital for profitable receivables growth,’ Vanquis said.

Its net interest margin at June 30 was 18.8%, rising from a restated 18.6% at the end of December. The December NIM was initially reported at 19.0%.

The firm will update further on August 1 alongside its interim results.

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