Vanquis Banking Group plc

Annual Report and Accounts

for the year ended 31 December 2025

Delivering caring

banking so our

customers can make

themost of life’s

opportunities

Our purpose is to

deliver caring banking

so our customers can

make the most of

life’s opportunities

Making the most of life’s opportunities means different things to

different people. It might be borrowing for a car when it matters most,

improving a credit score to unlock better options, or simply feeling

more in control during tighter months. Our role is to support customers

with care and clarity at every stage of their journey.

Strategic report

1 Headlines

2 Who we are

4 Chairman’s statement

7 Chief Executive Officer’s

review

10 Market overview

14 Strategy

16 Business model

18 Key Performance Indicators

21 Sustainability

44 Financial review

47 Operating review

52 Section 172(1) statement

53 Non-financial and

sustainability information

statement

54 Risk management and

principal risks

57 Principal risks and

uncertainties

62 Viability statement

Governance

64 Chairman’s introduction

togovernance

66 Board of Directors

68 Division of responsibilities

70 Setting our strategy

71 Promoting long-term

sustainable success: Board

focus areas during 2025

73 The Board: our culture

74 Stakeholder engagement

and decision making

79 Composition, succession

and evaluation

80 Director induction and

training

81 Board Performance Review

84 Nomination and Governance

Committee Report

86 Audit Committee Report

91 Risk Committee Report

95 Directors’ Remuneration

Report

95 Annual Statement

by the Chair of

the Remuneration

Committee

98 Remuneration at

aglance

100 Vanquis Banking

Group plc Directors’

Remuneration Policy

2026 to 2029

109 Annual Report on

Remuneration

118 Additional remuneration

disclosures

123 Directors’ Report

Financial statements

129 Independent auditor’s

report

137 Consolidated income

statement

137 Consolidated statement of

comprehensive income

137 Earnings per share

137 Dividends per share

138 Balance sheets

139 Statements of changes

inequity

141 Statements of cash flows

142 Material accounting policy

information

152 Financial and capital risk

management

156 Notes to the financial

statements

196 Alternative performance

measures

Shareholder information

199 Information for

shareholders

Our purpose

Delivering

caringbanking

Customers are at the

heart of everything

we do. Caring

banking means that:

5 We care about

our customers’

needs

5 We earn our

customers’trust

5 We empower

customers to

make healthy

financialchoices

5 We support our

customers when it

matters most

Our ambition

Helping customers

on the path to

financial resilience

Striving to become

theUK’s most trusted

and inclusive specialist

bank will enable

Vanquis to unlock

financial opportunity

for underserved

customers and help

them thrive.

Our values

Our values in action

Our values and ACT

Culture (Ambitious,

Caring, Together),

guides our decision

making and how we

work with customers,

communities and

eachother.

5 We care about

people

5 We pull together

as ateam

5 We find a better

way

5 We get the right

thingsdone

Our strategy

Serve More,

ServeResponsibly,

Scale Profitably.

Our strategy guides

how we deliver on our

purpose and ambition,

balancing wider access

to credit with strong

customer outcomes,

disciplined risk

management and

sustainable returns.

Read more on page 14 Read more on page 14 Read more on page 73 Read more on page 14

Find out more on our website:

vanquis.com/investors

1 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Headlines

Customer proposition

Credit, savings and money management products

Credit Savings Money management

Credit

Cards

Vehicle

Finance

Second Charge

Mortgages

Savings Snoop

Number of customers

1,339k

FY24: 1,267k

103k

FY24: 110k

9.9k

FY24: 3.7k

81k

FY24: 57k

328k

FY24: 293k

Gross customer interest earning balances Retail deposits

£1,518m

FY24: £1,278m

£706m

FY24: £765m

£599m

FY24: £217m

£2,984m

FY24: £2,399m

In 2025, Vanquis Banking Group returned to

profitability, strengthened its balance sheet

andadvanced its strategic priorities.

Backed by strong credit quality, disciplined

costcontrol, and continued transformation,

theGroup delivered accelerated growth

ininterest-earning balances, strengthening

itsplatform for long-term value creation.

With a clear strategy, focused execution

andanexperienced leadership team,

Vanquisiscreating enduring value for

customers, colleagues and shareholders.

Cost: income

58.4%

FY24: 89.4%

Statutory ROTE

2.3%

FY24: (32.1)%

Net interest margin

16.8%

FY24: 18.5%

Common Equity Tier 1 ratio

16.5%

FY24: 18.8%

Gross customer interest-earning

balances (£m)

Retail deposits (£m)

Gross customer interest-earning balances composition (£m)

Credit Cards 54%

Vehicle Finance 25%

Second Charge Mortgages 21%

Cards 55%

Vehicle Finance 33%

Second Charge Mortgages 9%

Loans 3%

FY25

£2,824m

Secured: 46%

Unsecured: 54%

Secured: 43%

Unsecured: 57%

FY24

£2,308m

FY24

2,308

24%

22%

2,399

FY25

2,824

2,984

FY24 FY25

2025: Building

thefoundations

forsustainable,

profitablegrowth

2 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Who we are

Our business model and core propositions

We combine deep customer insight, disciplined risk management, efficient funding and modern digital capabilities

to serve customers responsibly and deliver sustainable returns.

Credit Savings Money management

How we create value:

We put our customers at the heart

of everything we do.

We create differentiated solutions

that meet customer needs.

We meet customers where

theyareon their financial journey.

We serve customers

efficientlyandconsistently.

We create sustainable value for all

our stakeholders.

Our ESG priorities

Vanquis Banking Group is a specialist bank with a strong social purpose, focused

onwidening access to credit for customers underserved by mainstream lenders

Customers Colleagues

Communities The environment

Our customers’ core needs

Help me borrow healthily Help me build a financial safety net Help me feel in control of my everyday spending

Our purpose

To deliver caring banking so our customers

can make themost of life’s opportunities.

Read more on page 16

Our ambition

To be the UK’s most trusted and inclusive

specialist bank by unlocking financial

opportunity for underserved customers and

helping them thrive.

Our strategy

Serve More,

Serve Responsibly,

ScaleProfitably.

3 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Who we are continued

Vanquis

The bank that’s got your back.

Find out more on our website:

vanquis.com

Our customer proposition

Credit Cards

We provide Credit Cards tailored to

customerneeds, offering a range of APRs

andcredit limits.

Vehicle Finance

We finance used vehicles through Conditional

Sale Agreements with fixed APRs.

Second Charge Mortgages

Through partnerships we enable homeowners

to borrow against their property.

Savings

We offer a range of competitive, easy-to-

manage savings accounts.

Snoop

Snoop leverages AI and Open Banking to help

customers save on household bills, targeting

upto £1,500 in annual savings.

The Vanquis Card helped me get

my credit score back to normal.”

Vanquis customer

An absolute game changer

for managing my finances

all in one place!”

Snoop customer

The greatest experience ever.

Theprocess was smooth and

straightforward – completely

hassle-free. You apply today

anddrive in a couple of days.

I’drecommend Moneybarn

toeveryone!”

Moneybarn customer

Brilliant app to use – great

forbudgeting. I would highly

recommend it.”

Snoop customer

I got financial support

when I most needed it.”

Vanquis customer

Excellent upgrade! The new

app isclean and modern and

makes navigating my account

details effortless.”

Vanquis customer

4 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chairman’s statement

Building a

leading bank for

customers who

need us most

Sir Peter Estlin

Chairman

Overview

Over the past two and a half years as

Chairman, I have worked closely with the

Boardand executive team to guide the business

through a period of significant change and

transformation, ensuring the Group remained

focused on its strategic priorities and stayed

true to our purpose: to deliver caring banking

soour customers can make the most of

life’sopportunities.

I am pleased to report that in 2025 the Group

returned to statutory profitability, strengthened

its balance sheet and delivered accelerated,

disciplined growth. Vanquis now serves 1.77

million customers and is building a purpose-led,

technology-enabled bank with increasing

resilience and scale. With approximately half

ofUK adults with an active credit profile

underserved, the need for fair and accessible

financial services has never been greater. This

structural market dynamic presents a compelling

long-term opportunity for Vanquis, guided by

responsible lending, prudent capital deployment

and a clear focus on improving financial

resilience across the UK.

Strategic transformation

Having built strong foundations in 2024, 2025

marked a decisive shift from stabilisation to

delivery as we embedded our customer-led,

needs-driven strategy across the Group. We

committed to reducing costs, strengthening risk

management and driving resilient returns; and

we delivered.

The Group simplified products, enhanced

affordability assessments and expanded support

for customers seeking to regain control of their

finances, helping them borrow responsibly and

manage their money with greater confidence.

Atthe same time, we progressed the Gateway

technology programme, which is already

delivering benefits and will underpin future

scale, efficiency and stronger operational

control. Collectively, these developments were

instrumental in supporting the Group’s return

tostatutory profitability.

In UK retail banking, Vanquis stands apart by

focusing on customers often excluded by high

street lenders. Unlike many mainstream banks

that compete primarily for the strongest credit

profiles, Vanquis serves customers on a journey,

helping them access credit responsibly and build

financial resilience over time. This perspective

underpins our refreshed brand, new technology

platform and mobile app, and remains central

to our ambition to be a purpose-led specialist

bank for underserved customers.

With a more efficient, resilient and customer-

focused operating model, the Group enters 2026

with growing momentum and a clear path to

long-term value creation for shareholders.

Strategic priorities

Our strategy is to build a resilient, efficient and

scalable business that delivers strong returns

while widening access to credit for the UK’s

large and structurally underserved population.

In 2025, we embedded the strategic articulation

‘Serve More, Serve Responsibly, Scale Profitably’,

providing a clear framework for disciplined

execution and capital allocation.

5 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chairman’s statement continued

Strategic priorities continued

We will continue to optimise our product mix,

maintain credit quality and harness advanced

data, Open Banking and our Gateway platform

to enhance decisioning, control and affordability

outcomes. Backed by a growing digital ecosystem,

a digital-first ambition and disciplined capital

deployment, the Group is well positioned to

grow in attractive markets where our share

remains modest.

This strategy is designed to deliver income

growth, minimal cost inflation, rising capital

generation and returns on tangible equity

consistently above our cost of capital. As the

portfolio matures and operating leverage builds,

returns will strengthen, giving the Group

flexibility to accelerate growth or increase

shareholder distributions over time.

Under Ian McLaughlin’s leadership, Vanquis

moves into the next phase of its evolution from

aposition of strength, underpinned by robust

risk management, improving returns and a clear

purpose focused on serving the UK’s underserved

population. While approximately half of UK

adults with an active credit profile face barriers

to mainstream credit, Vanquis currently serves

only a small proportion of this sizeable and

persistent market, presenting a significant

long-term opportunity.

Our priorities centre on broadening access to

credit across channels, optimising capital

deployment and gradually shifting towards

lower-risk segments such as Second Charge

Mortgages. While this will naturally moderate

net interest margin over time, the Board believes

it will deliver stronger risk-adjusted returns,

improved credit quality and a more resilient

business model.

Gateway and Snoop are transforming how we

manage risk, deepen customer relationships and

deliver better outcomes. As Gateway completes

in 2026, these capabilities will increase efficiency,

strengthen controls and support higher capital

generation, reinforcing the Group’s ability to

generate durable, long-term value.

For more information see Strategy and Market

Overview on pages 10 to 15

Commitment to customers

Our customers rely on us because they are often

not well served by high street lenders, and we

take that responsibility seriously. Their needs are

evolving and meeting them with fairness and

clarity remains central to our purpose.

That commitment is reflected in our customer

satisfaction score of 83.7, ahead of the industry

average of 81.1. This level of advocacy

strengthens the foundations on which we are

building a more scalable and resilient bank, and

we will continue to invest in enhancing customer

experience as we grow.

Industry developments

The Supreme Court’s ruling on motor finance

commission disclosures provided welcome clarity

for the industry. The FCA’s subsequent consultation

on motor finance redress (CP25/27) prompted

the Group to recognise a £3.0m provision based

on probability-weighted scenarios.

Vanquis did not operate discretionary or tied

commission arrangements, and our approach

has always been grounded in transparent

customer disclosures and responsible lending.

We engaged constructively with the FCA

throughout the consultation, emphasising the

need for a fair and proportionate approach

that differentiates between business models.

Financial inclusion

The Government’s Financial Inclusion Strategy,

published in November, reinforced what we have

long believed: that access to fair, transparent

and well-designed financial products is

fundamental to opportunity. As a bank with

purpose at its core, Vanquis is well placed to

contribute positively to this agenda, helping

people build financial confidence, access fair

credit and participate fully in the economy.

Capital management and

shareholder distributions

In 2025, we allocated capital to support profitable

growth in customer interest-earning balances. The

successful £60m issuance of Additional Tier 1 (AT1)

Notes in October further optimised our capital

structure to support growth.

With this priority, the Board has decided not to

declare a dividend for FY25 (2024: no dividend).

The Board expects to continue deploying

capitalfor growth in the near term and intends

to reset the capital allocation framework and

distribution policy following full delivery of the

strategy in 2026.

Building a strong culture

Our cultural transformation has been as

important as our technological and financial

transformation. In 2025, we introduced our ACT

Culture (Ambitious, Caring and Together) to

reinforce the Values needed for a modern,

customer-led bank. Our ACT Culture and

Valuesare now becoming firmly embedded

across the organisation, strengthening

accountability, collaboration and customer

focus. Culture is increasingly a clear enabler

ofour strategy and a critical foundation

forthenext phase of growth.

We continued to invest in our communities,

signing the Armed Forces Covenant, supporting

Bradford’s City of Culture programme and

advancing social mobility through the Vanquis

Foundation. We remain committed to a workplace

where colleagues can grow, celebrate success

and contribute to delivering caring banking.

Our remuneration framework continues to

reinforce alignment between performance,

riskand sustainable shareholder returns.

For more information see pages 95 to 122

Governance and directors

Following the Board refresh in 2024, Paul Hewitt

and Angela Knight retired from the Board in

January 2025. The composition of the Board has

remained unchanged since their departure. The

current Board brings extensive expertise across

banking, financial services, governance and risk

management, ensuring strong oversight and

constructive challenge as the Group delivers on

its strategic objectives. I would like to thank my

fellow Board members for their engagement,

challenge and insight throughout the year.

6 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chairman’s statement continued

Independent Board evaluation

An independent external evaluation

conductedin 2025 by Independent Audit

concluded that financial oversight, risk

management and stakeholder consideration

were notable Board strengths, facilitated by

astrong committee structure and approach

tocontinuous development.

There was an overarching theme of a

much-improved position, combined with an

acknowledgement that key development areas

remained, in particular for the Board to step back

from operational detail and increase its strategic

focus, within the context of the Group’s return to

profitability after a challenging period. The Board

has agreed an action plan and will monitor

progress during 2026.

For more information see pages 82 and 83

Summary

We are encouraged by the Group’s progress

in2025. Returning to profitability,strengthening

the balancesheetand deliveringstrong but

controlledgrowthreflect significant effort across

the organisation. As we move into 2026, the

Board’s confidence is grounded inclear

evidenceof progress and delivery, supported

bya modern, scalable technology platform

andeffective credit risk management.

On behalf of the Board, I thank our colleagues

for their dedication and our shareholders for

their continued confidence. Vanquis has a clear

and disciplined strategy and is well positioned

to deliver enduring growth and long-term value,

while continuing to support customers who need

us most.

Sir Peter Estlin

Chairman

25 February 2026

Capital management

Management and the Board endeavour to optimise the allocation of capital in the long-term

best interests of the Group. This near-term focus of the Board is on the following two areas:

Ensuring the Group maintains a robust capital position

above its regulatory minimum requirements*

The Group has updated its capital guidance to a Common Equity

Tier 1 (CET1) ratio following capital optimisation executed in 2025.

This included the issuance of £60m of AT1 capital in 4Q25, meaning

the Group is no longer bound by Tier 1 capital requirements.

Capital guidance has been reducing in recent years, reflecting

acleaner and more stable financial position and lower-risk mix

ofbusiness. The Group’s capital requirements were also reviewed

by the PRA in 2H25 as part of the triennial CSREP review.

This has given management and the Board confidence to

reduce the Group CET1 ratio guidance to >14.5%.

This guidance remains subject to changes in regulatory

requirements.

December 2025 CET1 ratio:

16.5%

CET1 ratio guidance:

>14.5%

Driving long-term sustainable profitable growth

Vanquis continues to build scale in the near term todeliver

itsROTE guidance of low double digits in 2026 and mid-teens

in2027, at which point the Group becomes meaningfully

capitalaccretive.

As such, following capital deployment for growth in 2025

resulting in a 22% increase in gross customer interest-earning

balances to £2,824m, the Group is guiding to >£3.3bn of

balances in 2026 and >£3.7bn of balances in 2027.

* This includes confidential and management buffers, as appropriate.

December 2025 gross

customer interest-

earningbalances:

£2,824m

2026 guidance:

>£3.3bn

2027 guidance:

>£3.7bn

The Board intends to reset the capital allocation framework and distribution policy following

full delivery of the strategy in 2026.

7 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chief Executive Officer’s review

Introduction

2025 marked a significant milestone for Vanquis.

The Group returned to statutory profitability

andwe demonstrated that our transformation

isdelivering results, with strong but disciplined

growth in interest-earning balances, strong and

resilient credit quality, continued progress on

Gateway and tight cost control. Most importantly

we continued improving our customer experience.

This performance reflects the disciplined

execution of our strategy to build a scalable,

digital-first and customer-led bank. With strong

foundations now in place, we are focused on

sustained, profitable growth that creates

long-term value for customers, colleagues

andshareholders.

Customer proposition

In 2025, we strengthened and diversified our

customer proposition, reflecting our commitment

to help customers borrow responsibly, manage

money confidently and build financial resilience.

This sits at the heart of our ‘Serve Responsibly’

pillar, ensuring access to credit is balanced with

strong affordability, good customer outcomes

and long-term portfolio quality, while enabling

us to ‘Serve More’ customers who are

underserved elsewhere.

We continued to help customers build a

healthier relationship with credit. Credit Card

balances grew 19% to £1,518m, supported by

new product launches, higher utilisation from

existing customers and strong retention. This

growth was achieved within risk appetite,

underpinned by enhanced affordability

assessments, resilient margins and consistently

strong credit performance. Vanquis was

recognised at the 2025 Moneyfacts Consumer

Awards as Credit Builder Card Provider of the

Year and Credit Card App of the Year, reflecting

the trust customers place in our propositions

and brand.

In Vehicle Finance we reduced balances in line

with our plan ahead of the launch of our new

onboarding and servicing platform as part of the

Gateway transformation in 2026. This deliberate

moderation reflects a disciplined approach to

growth as we prepare to scale on a modernised

platform. Many of our Vehicle Finance customers

come to us for access to a reliable vehicle when

it matters most, and we continue to enhance our

credit decisioning capabilities to improve the

speed, accuracy and consistency of lending

decisions while lending responsibly.

Our Second Charge Mortgages proposition,

which our customers mainly use for debt

consolidation, continued to perform strongly.

Balances increased to £599m (December 2024:

£217m), supported by long-term origination

partnerships that deliver high-quality,

predictable growth and attractive returns.

Retail deposits remain the cornerstone of our

funding strategy. During the year we broadened

our Savings product suite with the addition of ISAs

and the Snoop-branded Easy Access account,

further strengthening our stable and cost-efficient

funding base. Vanquis was recognised at the 2025

Moneyfacts Awards as Best Notice Savings

Account Provider and received Highly Commended

in the Best Monthly Savings Account and Best

Bank Savings Provider categories, underlining

the strength of our proposition.

Snoop continues to play a vital role in our customer

ecosystem, with active users rising 12% to 328k,

including 43k Vanquis customers. The platform

deepens engagement, supports financial wellbeing

and serves as an efficient acquisition channel.

During the year, Snoop introduced Variable

Recurring Payments to make saving simpler and

more flexible and was named in the FinTech 50 as

one of the UK’s most innovative financial technology

creators for 2025. The business also received

recognition for Best Innovation in Product at

TheFinancial Services Forum Awards and was

aFinalist for Best Use of Technology in Personal

Finance at the Moneyfacts Awards.

For more information see the Operating Review

onpages 47 to 51

Ian McLaughlin

Chief Executive Officer

The foundations

for sustainable,

profitable growth

8 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chief Executive Officer’s review continued

Financial inclusion

At Vanquis, financial inclusion and opportunity go

hand in hand. Our partnership with Fair Finance,

part of our ‘not yet’ approach to credit, helps

customers who are not currently eligible for our

products access affordable loans and unclaimed

benefits. Together, we have supported 20k

people to identify £34m in entitlements and

access £307k in loans.

Ahead of the Government’s Financial Inclusion

Strategy announced in November, we launched

the Vanquis Benefits Checker, a digital tool that

helps customers find unclaimed benefits and

social tariffs. By helping customers maximise

income before borrowing, these initiatives

strengthen financial resilience and reduce

reliance on credit, reinforcing our commitment

toresponsible inclusion.

Customer feedback

Customer feedback is the clearest reflection

ofour purpose: “delivering caring banking”.

Across Vanquis, Moneybarn and Snoop,

thousands of customer reviews highlight how

wehelp people rebuild credit and access fair,

affordable finance when it matters most. In

2025, we introduced a new customer satisfaction

measure, giving us a consistent, data-driven

view of customer experience and enabling us to

track progress as we evolve our products and

services. Our satisfaction score, measured in

partnership with the Institute of Customer

Service, stands at 83.7, ahead of the industry

average of 81.1. We will continue to build on this

validation and strive to deliver even better

outcomes for our customers.

Financial performance

Gross customer interest-earning balances

increased 22% to £2,824m, ahead of our

guidance, reflecting disciplined lending with

strong credit quality. Risk-adjusted income rose

5% to £273.8m, supported by a lower cost of

riskof 7.3% (2024: 8.4%). The cost-to-income

ratio improved to 58.4% (2024: 89.4%) through

transformation savings, efficiency gains, reduced

complaint costs and the non-repeat of prior

year notable items. As a result, the Group

delivered a statutory profit before tax from

continuing operations of £8.3m (2024: loss of

£138.0m) and achieved a statutory return on

tangible equity of 2.3% (2024: (32.1)%).

For more information see the Financial Review

onpages 44 to 46

Technology, operational efficiency

and risk management

Technology and data remain central to our

strategy. During 2025, we made significant

progress on the Gateway transformation,

selecting Fiserv’s Vision Next platform to support

a scalable, cloud-based infrastructure. Our

partnership with Zoot was recognised with the

Best Technology Partnership Award, reflecting

the impact of advanced decisioning on speed,

accuracy and customer outcomes.

Building on the risk management enhancements

made in 2024, we further strengthened data

and analytics capabilities, enhancing portfolio

monitoring, credit risk decisioning and affordability

assessments. These improvements are supporting

better decision making, tighter risk control and

responsible growth at scale. Gateway is a core

enabler of this, providing the modern operating

platform required to deliver productivity,

efficiency and capital accretion over time.

During the year, over 30 billion rows of customer,

product and decisioning data were migrated

toa new IT platform as part of Gateway,

enabling improved analytics, automation and

personalisation across customer journeys.

Across operations, digital and AI-led

improvements in fraud prevention, debt sales

and complaints handling delivered measurable

efficiency gains and better outcomes for

customers. Combined with a leaner property

footprint, these initiatives contributed to £28.8m

in transformation savings during the year.

Vanquis: The bank that’s got your back

In June, we launched our refreshed brand

identity, Vanquis: The bank that’s got your back.

Developed in house and successfully tested with

customers, it brings our purpose to life and

reflects our commitment to caring banking and

the financially underserved. Together with our

technology transformation, it positions Vanquis

as a modern, customer-led specialist bank

serving the heart of working Britain.

Complaints and regulatory update

We welcomed the Financial Ombudsman

Service’s introduction of a case-fee structure

forclaims management companies (CMCs).

Thereform has had a clear and positive impact,

reducing the volume of unmerited complaints,

indicating that the reform is working as intended.

We engaged constructively with the FCA’s

consultation on motor finance redress (CP25/27),

helping to shape a fair and proportionate

approach that reflects the low risk of detriment

in our portfolio. While the final scope of the

scheme remains subject to change, we remain

comfortable with our £3.0m provision in relation

to this matter.

Our people and culture

As Peter notes, we have made good progress

with culture, and our achievements in 2025 were

made possible by the professionalism and

efforts of colleagues across the Group. Our ACT

Culture (Ambitious, Caring and Together) and

Values are now shaping how we work and

reinforcing the execution discipline required to

deliver a modern, customer-led bank.

Our progress is underscored by us achieving

Great Place to Work

certification in 2025,

reflecting the commitment we made last year to

strengthen culture across the Group. We were

also recognised by the Financial Times as one of

the UK’s Best Employers, demonstrating deeper

engagement and alignment with our purpose.

As we move into the next phase of our strategy,

we will continue to embed our values deeply,

ensuring they guide decisions and drive

sustainable growth.

Advancing our strategic priorities

In 2026, we will complete the Gateway

transformation and re-platform the business

onto a modern, cloud-based architecture.

Thiswill enable a digital-first operating model,

accelerate innovation and deliver a structurally

lower cost base.

We will broaden our offering across lending,

money management and savings, creating a

more integrated digital customer experience.

This will include new flexible credit solutions,

tailored propositions for different customer

segments and deeper personalisation.

We will further enhance credit decisioning

through improved data, analytics and

automation, strengthening our ability to lend

responsibly while improving outcomes for

customers. Gateway will provide real-time

insights and more accurate affordability

assessments across all products, including

atransformed Vehicle Finance proposition

launching in 2026. In addition, we are

introducing Agentic AI capabilities to deliver

faster, more efficient support, enhancing

servicewhile reducing cost-to-serve.

Together, these initiatives will support growth,

improve retention and drive stronger returns

across the business.

9 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Chief Executive Officer’s review continued

Summary and outlook

Disciplined delivery of our strategy in 2025

enabled us to deploy available capital to deliver

accelerated balance growth while returning to

statutory profitability. We strengthened the

balance sheet, improved credit quality and

made significant progress in our transformation,

laying the foundations for long-term scalability

and efficiency.

We enter 2026 with greater momentum, a more

predictable performance profile and a clear

pathway to higher returns as recent balance

growth seasons and translates into improved

profitability. Our focus remains on completing

the Gateway transformation, maintaining strong

credit discipline, deploying capital effectively

and improving operational efficiency.

We remain on track to deliver a double-digit

return on tangible equity in 2026, and mid-teens

return in 2027. While encouraged by our

progress, we recognise there is still more to do.

We will continue to invest in our capabilities,

drive continuous improvement and remain

mindful of the responsibility we hold to

customers, colleagues and shareholders.

I would like to thank our shareholders for their

trust and our colleagues across the Group for

their care, skill and commitment. Together, we

are building a stronger, more resilient Vanquis

with a clear purpose and a compelling future.

Ian McLaughlin

Chief Executive Officer

25 February 2026

Investment case

Our strategy is guided by a clear understanding of what sets us apart and how we will harness these strengths to deliver growth and sustainable profitability.

What sets us apart

Serving customers in a large, underserved part of the UK consumer lending market

Over half of UK adults face barriers to mainstream credit. Vanquis has a significant

opportunity to grow market share of these consumers in our core products and is digitally

evolving and expanding our product propositions to attract and retain customers.

Read more on pages 14 to 20

2027 gross customer interest

earning balance guidance

>£3.7bn

2027 ROTE guidance

‘mid-teens’

10 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

UK economy

Market overview

Operating context

Vanquis operates exclusively within the

UnitedKingdom (UK), generating all revenue

from UK customers. As a result, the Group’s

performance is closely tied to the health of

theUK economy. The Group operates within

aregulatory framework overseen by the

Financial Conduct Authority (FCA) and the

Prudential Regulation Authority (PRA), which

continues to evolve in response to economic

and policy developments.

Economic review

In 2025, UK economic growth remained

subdued, with real GDP rising by just 0.1% in

the three months to December, following small

declines in the previous two rolling quarters.

Monetary policy continued to shape financial

conditions, with the Bank of England reducing

the Bank Rate from 4.75% to 3.75% over the

course of the year through a sequence of cuts

in February, May, August and December.

Inflation continued to moderate from its

October 2022 peak of 11.1%, with the Consumer

Prices Index (CPI) easing from 3.7% in January

2025 to 3.4% in December. Labour market

conditions also softened, with unemployment

rising to 5.2% in the three months to December,

its highest level in five years. Real household

disposable income growth was uneven, with

middle income households continuing to face

pressure from rising essential costs.

Looking ahead to 2026, the economic outlook

is expected to improve gradually. Forecasters

anticipate GDP growth of around 1.4%,

supported by easing financial conditions and

stabilising consumer sentiment. Inflation is

projected to fall further, with CPI expected to

average 3.4%, helping real incomes recover

modestly. Labour market conditions are likely

to remain cooler than in recent years, with

unemployment forecast to stabilise at around

5.1%, consistent with an economy still adjusting

to slower underlying demand. Overall, the

near-term environment signals a shift towards

lower inflation, steady but modest growth,

and a labour market that is normalising after

several years of volatility.

The Vanquis Financial Wellbeing Index (VFWI)

provided further insight into consumer resilience.

Among UK workers earning up to £40,000, the

average financial buffer was 11% of monthly

income in 3Q25, down slightly from 12% in

2Q25 but up from 9% a year earlier. However,

persistently low savings rates continue to

constrain long-term financial security. These

trends underscore the importance of inclusive

banking models and financial education

initiatives that build financial confidence and

improve long-term financial capability.

Regulatory and policy environment

The UK financial services sector enters 2026

amid active regulatory and policy reform aimed

at promoting growth and competitiveness.

TheGovernment’s Financial Services Growth

and Competitiveness Strategy sets out a

10-year roadmap to modernise the sector,

including proposals to streamline regulation,

return the Financial Ombudsman Service (FOS)

to its intended role as a focused dispute

resolution service, review ring-fencing rules,

and integrate the Payment Systems Regulator

into the FCA. The quarterly Industrial Strategy

update reinforces financial services as a

priority growth sector, introducing measures

toattract investment, deepen international

collaboration, and ease regulatory burden.

The FCA’s motor finance redress consultation

highlighted the complexity of designing fair

redress frameworks that reflect diverse

customer journeys and business models.

Regulatory focus also remained strong on

operational resilience, data protection, and

Consumer Duty compliance. Consultations on

cross-cutting reforms, changes to the Senior

Managers and Certification Regime, and the

expected Fraud Strategy suggest that the

regulatory agenda will remain active through

2026 and beyond.

Vanquis response

We welcomed the revised FOS case fee structure,

which has reduced unmerited complaints

andimproved redress efficiency. We remain

committed to operational resilience and

delivering fair value under the Consumer Duty.

Vanquis supports reforms that distinguish

between business models, improve regulatory

clarity, and enable responsible growth.

Theseprinciples reinforce our belief that

streamlined regulation can unlock innovation

while maintaining high standards of

consumerprotection.

Looking ahead, we will continue to engage

constructively with policymakers and regulators

to ensure that reforms deliver benefits for

customers and the wider financial ecosystem.

11 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Market overview continued

Digital transformation

Digital transformation continues to redefine

consumer finance. Advances in Open Banking,

Artificial Intelligence, and real-time data

analytics are enabling more personalised

customer experiences and more accurate

lending decisions. Nearly half of UK consumers

now rely on mobile platforms to manage their

finances, with growing demand for tools

thatsupport budgeting, saving and wider

financial wellbeing.

Vanquis response

We are investing in digital solutions that turn

insight into action. Through Snoop and our

expanding suite of capabilities, we help

customers make informed money choices.

Real-time insights support financial planning

and build confidence. Innovation remains

central to our strategy, and we continue to

invest in technology that enhances engagement

and improves customer outcomes.

Financial inclusion

The UK’s Financial Inclusion Strategy,

published in November 2025, outlines a

cross-sector plan to improve access to

banking, savings, affordable credit, and

financial literacy. It recognises that fair and

affordable credit is essential to financial

resilience, particularly for households

managing essential costs or unexpected

expenses, and that financial education is

critical to long-term wellbeing. The

Government’s decision to make financial

education compulsory in all primary and

secondary schools from 2028 marks a

significant step forward in building a more

financially capable society.

Vanquis response

We are delivering practical solutions that help

people unlock entitlements, access credit, and

build financial confidence. Our partnership

with Fair Finance has helped 20,000 people

identify £34m in unclaimed benefits and

access £307,000 in affordable loans. In 2025,

we launched the Vanquis Benefits Checker, a

digital tool that helps customers identify

unclaimed benefits and social tariffs. These

initiatives align with the Government’s income

maximisation agenda and reflect our belief

that financial inclusion requires both access to

credit and the confidence to use it effectively.

We strongly support the integration of

financial education into the national

curriculum and contributed to the Department

for Education’s 2023 call for evidence. We

believe that equipping young people with

financial skills from an early age improves

resilience and decision making in adulthood.

Unlocking credit access through

Open Banking

Open Banking is transforming how lenders

assess affordability and creditworthiness.

Byenabling customers to share real-time

transaction data securely, it improves the

accuracy of lending decisions and expands

access to credit for those with thin or

impaired credit files.

Vanquis response

We are harnessing Open Banking to extend

responsible, personalised credit solutions to

more customers. We are leveraging richer

data to strengthen affordability assessments,

reduce reliance on traditional credit scoring,

and support individuals who might otherwise

be excluded from mainstream credit.

As adoption accelerates, we will ensure

OpenBanking plays a central role in

delivering fairer outcomes and widening

access to credit, helping customers build

financial confidence and resilience.

I’ve been with them for over five

years now, and I can honestly

say they’re an amazing company.

Their customer service is top-

notch – super friendly and

always ready to help.”

Vanquis customer

12 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Market overview continued

Market snapshot

Market trends Challenges Opportunities Vanquis response

Macro conditions remain subdued:

modest GDP growth in 2025; interest

rates easing; inflation moderating.

Cost-of-living pressures are increasing the

need for flexible, responsible credit solutions.

Gradual improvement in financial conditions

expected from 2026, supporting higher

demand for responsible credit.

Strengthened underwriting using Open

Banking and real-time analytics to assess

affordability more precisely.

Digital adoption accelerating,

withhalf of UK consumers managing

finances primarily via mobile.

Consumers expect integrated money

management tools, frictionless onboarding

and proactive support.

Wider reach through digital channels and

ability to engage customers more frequently

and personally.

Launch of a new integrated Vanquis app –

adigital-first, mobile-led platform that will

bring Snoop’s capabilities into a single

experience, advancing self-service at scale

andunderpinning our shift to a lower-cost,

moreefficient operating model.

Regulatory reform intensifying

across Consumer Duty, motor

finance redress, and broader

competitiveness agenda.

Operating requirements becoming more

complex; continued scrutiny on fair value,

resilience, and redress.

Streamlining of regulation and improved

clarity expected to increase innovation and

reduce operational burden.

Active engagement with FCA and

governmentconsultations; strengthened

Consumer Duty governance; operational

resilience enhancements.

Financial inclusion prioritised by

government through Financial

Inclusion Strategy and compulsory

financial education from 2028.

Millions lack access to affordable credit,

savings buffers or financial capability.

Significant market need for responsible

lending, financial tools, and income-

maximising support.

Expansion of benefits-checking tools; decline

referral partnerships; inclusive product design

to improve access and resilience.

Open Banking gaining scale

asamainstream affordability-

assessment mechanism.

Thin-file and low-score consumers remain

underserved by traditional credit scoring.

Ability to widen credit access and better

servecustomers with non-traditional

financialfootprints.

Use of real-time transaction data to

expandaccess, personalise credit limits,

andimprove outcomes.

Vanquis serves the UK’s financially underserved

population. These are consumers who face barriers to

mainstream credit because of limited credit histories,

lower incomes or lower levels of financial resilience.”

13 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Addressable market and

customeropportunity

We serve the UK’s financially underserved

population. These are consumers who face

barriers to mainstream credit because of

limited credit histories, lower incomes or lower

levels of financial resilience. This group

represents one of the largest and most

persistent structural markets in UK consumer

finance, offering significant potential for

responsible and sustainable growth.

A significant and growing

underserved population

The scale of the UK’s underserved market

highlights the depth of unmet need:

5 c.48.2 million UK adults have an active

credit profile.

5 c.24.2 million, or over one in two, are

underserved by mainstream lenders.

5 Within this group, our prudent risk

appetite extends across a large

proportion of consumers seeking

unsecured credit or Vehicle Finance.

We currently serves c.1.3 million Credit Card

customers and, via the Moneybarn brand,

serves approximately 103,000 Vehicle

Financecustomers.

This sizeable pool of potential additional

customers reinforces the structural importance

of specialist lenders that can responsibly

bridge the gap between consumer demand

and mainstream availability.

Market opportunity supports our

growth plans

Despite our established presence in the

underserved market, our penetration remains

low relative to the scale of the opportunity.

Our overall share is modest and offers room

for meaningful growth. Even modest gains in

share translate into material and sustainable

growth, particularly as some mainstream

providers continue to reduce exposure to

higher-friction customer segments. This creates

a long-term growth runway in a market where

consumers actively seek fair access, digital

simplicity and personalised support, and

where our strengths are well aligned to

evolving customer expectations.

Structural trends supporting

market growth

Demand from underserved consumers

continues to be shaped by long-term trends

that are embedded in the UK economy:

5 Financial resilience remains low and

uneven, with many households maintaining

only limited savings buffers.

5 Non-standard and flexible employment

continues to expand, creating income

profiles that traditional credit models

often struggle to assess.

5 An estimated £22.7bn in unclaimed benefits

each year highlights persistent income

vulnerability across a broad population.

5 Digital adoption is accelerating, with

around half of UK consumers now

managing their finances primarily

throughmobile channels.

These structural forces are creating a sustained

and growing need for inclusive, technology-

enabled and affordability-focused credit

solutions. They also reinforce the long-term

relevance of specialist lenders who can

navigate complexity and provide responsible

access for customers underserved elsewhere.

Positioned to capture

long-termvalue

We are well placed to meet this demand

responsibly and profitably. Our strengths

include:

5 advanced data capabilities, including

Open Banking insights, to enable

moreinclusive, precise and real-time

affordability assessments;

5 a developing digital ecosystem,

withthenew mobile app and Snoop’s

personalised financial tools to enhance

engagement and strengthen customers’

financial resilience;

5 an evolving digital Credit Card proposition,

designed to attract underserved

consumers and retain customers as

theybuild financial resilience;

5 income-maximisation and support tools,

such as the Benefits Checker and our ‘not

yet’ partnership with Fair Finance, helping

customers access entitlements and

improve financial wellbeing;

5 deep customer insight, gained from

extensive research and data analysis,

ensuring every decision, from product

development to in-life management,

delivers clear customer benefit; and

5 proven expertise in serving consumers

outside mainstream lender criteria,

underpinned by long-standing experience

and responsible lending practices.

We continue to enhance our digital platform,

combining credit, savings and personalised

money-management tools in a single unified

ecosystem. This deepens engagement, extends

our reach and supports customers as they

improve their financial confidence and resilience.

With a clear purpose and a scalable digital

platform, we are well positioned to grow our

presence in a structurally robust and societally

important market, helping more people build

financial confidence while delivering

sustainable returns for shareholders.

Market overview continued

14 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Serve More, Serve Responsibly, Scale Profitably

Serve More, Serve Responsibly, and

Scale Profitably captures the three

core pillars of our strategy:

Customer-

led

Insightful risk

management

Efficient

organisation

A great people

proposition

Digital, tech, data

and analytics

Strategy

Serve More

Widen access to healthy,

affordable credit for customers

underserved elsewhere and

deepen long-term customer

relationships.

Serve Responsibly

Ensure strong affordability,

disciplined risk management

and consistently good

customer outcomes across

credit cycles.

Scale Profitably

Build a modern, efficient

andscalable digital bank

thatconverts growth into

sustainable returns.

Together, these pillars provide a

clearstrategic framework for

decision making, capital allocation

and execution across the Group. They

sit at the heart of our customer-led

strategy, guiding how we translate

our purpose into both commercial

and societal value.

Customer-led

Our strategy is grounded in a deep and

continually evolving understanding of the lives

and needs of the customers we serve.

We help customers:

5 borrow healthily;

5 feel in control of everyday spending; and

5 build a financial safety net.

These insights underpin every element of our

strategy and reflect our purpose: to deliver

caring banking so that customers can make the

most of life’s opportunities. They inform product

design, risk management, customer journeys

and how we support customers throughout their

relationshipwith us.

Our strategic ambition

Our strategic ambition is to be the UK’s most

trusted and inclusive specialist bank by unlocking

financial opportunity for underserved customers

and helping them thrive.

This means building a resilient, efficient and

scalable business that delivers strong long-term

returns while serving one of the UK’s largest and

most persistent underserved markets.

Underpinned by a strong capital position,

modern technology and advanced data

capabilities, we are positioned to grow in a

disciplined manner while delivering improved

customer outcomes over time.

A lifesaver! Really helpful to see

everything in one place. It gives

access to my credit report, tips

onhow to improve my score, and

well-written articles explaining how

inflation and interest rates affect

us– plus advice on saving and

making money.”

Snoop customer

For more information on the strategic themes

underpinning our strategy, see page 15

15 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Strategy continued

Our five strategic themes and objectives

Strategic themes 2025 highlights Focus for 2026

Customer-led

5 Launched new credit products and expanded savings

(ISAs, Snoop Easy Access), improving financial wellbeing

and customer choice.

5 Achieved a customer satisfaction score of 83.7, above

the industry benchmark of 81.1.

5 Recognised by Moneyfacts as Credit Builder Card

Provider of the Year and Credit Card App of the Year.

5 Strengthened affordability checks and simplified

products to support responsible lending.

5 Broaden our integrated lending, money management

and savings offering, including new flexible credit

solutions tailored to underserved segments.

5 Deliver deeper personalisation using enhanced data

and Snoop ecosystem capabilities.

5 Improve end-to-end customer experience and retention

as Gateway capabilities mature.

Insightful risk

management

5 Enhanced data, analytics and modelling to improve

portfolio insight, strengthen affordability assessments

and optimise credit decisions.

5 Delivered consistently strong credit performance

acrossproducts.

5 Migrated over 30 billion rows of customer, product and

decisioning data onto a new IT platform, enabling

improved analytics, real-time risk management,

automation and personalisation.

5 Use Gateway and advanced analytics for real-time

affordability insights and sharper credit decisioning

across all products.

5 Maintain strong risk-adjusted returns while responsibly

increasing access to credit.

5 Differentiate through superior risk insight, across Credit

Cards, Vehicle Finance and Second Charge Mortgages.

Efficient

organisation

5 Delivered £28.8m of transformation savings in 2025,

exceeding the committed target of £15m.

5 Digital and AI improvements (fraud prevention, debt

sales, complaints handling) contributed to cost savings

and better customer outcomes.

5 Reduced physical footprint, modernising the operating

model and lowering structural costs.

5 Deploy Agentic AI to accelerate service delivery, reduce

cost-to-serve and improve customer experience.

5 Continue operational excellence focus on collections,

fraud and service performance.

5 Ensure costs remain well controlled relative to rising

revenues as Gateway completes.

Digital, tech,

data and

analytics

5 Advanced Gateway transformation with selection

ofFiserv’s Vision Next platform for scalable,

cloud-based infrastructure.

5 Enabled stronger analytics, automation and

personalisation through 30 billion data point migration.

5 Award-winning technology partnerships (e.g. Zoot)

which will improve accuracy and speed of decisioning.

5 Complete re-platforming onto modern cloud

architecture, enabling a digital-first operating model

and structurally lower cost base.

5 Launch our new Vehicle Finance proposition.

5 Integrate Snoop capabilities to accelerate data-driven

insight and customer engagement.

5 Drive continuous automation and innovation to support

scalable growth.

A great people

proposition

5 Achieved Great Place to Work

certification, reflecting

astronger culture and engagement.

5 Introduced our ACT Culture (Ambitious, Caring and

Together), and continued to reinforce our Values,

embedding behaviours needed for a modern,

customer-led bank.

5 Recognised by the Financial Times as one of the UK’s

Best Employers.

5 Deepen ACT Culture and Values across all teams,

strengthening accountability and collaboration as

strategic enablers of growth.

5 Enhance capability development to support digital,

analytical and customer-led transformation.

5 Continue building an inclusive culture aligned to our

purpose: caring banking.

Our 2025 strategic themes remain

thefoundations of our operating

model. From 2026, these are

broughttogether under a single,

clear strategic framework: Serve

More, Serve Responsibly, and

ScaleProfitably.

Collectively, these themes guide how we Serve

More with empathy, Serve Responsibly with

clarity and fairness, and Scale Profitably through

simplicity, efficiency and disciplined execution.

Strategic outcomes

Our strategy directly informs our business model.

By understanding customer needs deeply,

lending responsibly and scaling efficiently

through technology, we turn our strategic

priorities into a resilient model that generates

long-term value for all stakeholders.

Disciplined execution of our strategy will deliver:

5 sustainable income growth;

5 a structurally lower cost base as

Gatewaycompletes;

5 robust credit quality and

affordabilityoutcomes;

5 return on tangible equity consistently

aboveour cost of capital, driving

meaningful capital generation; and

5 flexibility to accelerate growth or

increaseshareholder distributions.

How our strategy creates value

Our strategy creates value by combining

customer insight, disciplined risk management,

operational efficiency and modern technology

to deliver responsible customer outcomes,

resilient shareholder returns, meaningful work

and opportunities for colleagues, and greater

financial inclusion across the UK.

16 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Business model

Our purpose, to deliver caring banking so customers can

makethe most of life’s opportunities, shapes every part of our

proposition. We aim to earn customers’ trust, support financial

confidence and provide solutions that are fair, accessible and

easy to use.

Customer journey

Each stage of the journey is designed to ensure we reach more

customers, support them responsibly and create a scalable,

efficient model for long-term growth.

Awareness

Reaching customers whose needs are not met by

mainstreamlenders.

Consideration

Offering a differentiated, needs-led value proposition

ratherthan a product-led approach.

Conversion and onboarding

Providing a streamlined, digital-first onboarding experience

enabled by our evolving technology capabilities.

Meeting core needs

Helping customers borrow healthily, feel in control of

everydayspending and build a financial safety net.

Support when needed

Offering empathetic, tailored support for customers

experiencing financial difficulty.

Creating value through a customer-focused business model

Our business model puts our strategy

into practice and is underpinned by

the key inputs that drive value

creation: deep customer insight,

disciplined risk management, efficient

and diversified funding, modern

digital capabilities and the experience

and commitment of our people.

Together, these inputs widen access

tocredit, support prudent growth and

enable strong, sustainable outcomes

for all stakeholders.

Everything we do begins with a clear understanding

of our customers’ needs, preferences and financial

behaviours. Through extensive research, data

analysis and insight from our digital ecosystem,

we have identified three core needs that guide

our proposition design and in-life management.

Understanding our customers

Help me borrow healthily

Customers value clear, jargon-free communication and predictable

products that help them manage borrowing over time. We support

this through transparent propositions, enhanced affordability

assessments and early engagement when circumstances change.

Help me feel in control of everyday spending

Many customers manage tight budgets or complex financial

situations. Tools such as Snoop provide personalised insights and

budgeting support, helping customers make informed day-to-day

decisions and build confidence in managing their money.

Help me build a financial safety net

A large proportion of customers have limited savings. We help them

build resilience through accessible savings products, personalised

nudges and guidance that highlights opportunities to save and

prepare for unexpected expenses.

This needs-led approach enables us to build tailored propositions,

deepen customer relationships and position Vanquis as a trusted

long-term partner for customers traditionally underserved by

mainstream lenders.

These insights shape our strategic priorities, inform product design

and enhance risk management across the Group.

Our customer proposition

These values ensure we deliver on our purpose and create positive outcomes for all stakeholders.

Our values:

We care about people We pull together as a team We find a better way We get the right things done

17 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Business model continued

Our customer proposition Our competitive strengths

Deepening relationships

Presenting relevant solutions that build long-term engagement.

Advocacy

Delivering outcomes that encourage customers to

recommendVanquis.

Our target market spans a wide income range but shares

common characteristics: lower financial resilience, limited savings

buffers and a focus on short-term financial stability. These

customers typically seek stability, predictability and peace of

mind, needs our proposition is specifically designed to meet.

Our products and ecosystem

We serve customers through a broad range of

complementaryproducts:

5 Credit Cards – under the Vanquis brand;

5 Vehicle Finance – under the Moneybarn brand;

5 Second Charge Mortgages – through

forward-flowpartnerships;

5 Savings – including fixed-term products, notice accounts,

cash ISAs and Easy Access Accounts; and

5 budgeting and money management – via Snoop,

ourfinancial wellbeing platform.

We are also expanding our marketplace capabilities by

partnering with organisations such as Fair Finance to support

customers not yet eligible for credit, andthrough white-label

partnerships where Vanquis acts as introducer rather than lender.

Together, this ecosystem enables deeper engagement,

cross-purchase opportunities and more predictable

riskoutcomes.

Our competitive strengths give us a durable advantage and

support sustainable, risk-adjusted returns.

Efficient funding

A strong retail deposit base provides lower and more stable

funding costs than many competitors, improving price

competitiveness and supporting long-term financial resilience.

Financial efficiency

We can align lower-cost deposits with lending volumes, helping

us manage the balance sheet efficiently and maintain attractive

unit economics.

Risk-based pricing and deep credit experience

We have extensive expertise serving customers with

non-mainstream credit profiles. This underpins our risk-based

pricing approach and supports disciplined, responsible lending

across credit cycles.

Broad, complementary product suite

Our diversified portfolio allows us to meet a wide range of

customer needs and creates opportunities for cross-purchase

and deeper engagement.

Snoop: a differentiated digital capability

Snoop provides personalised insights that help customers

manage money, reduce outgoings and improve financial

resilience. It also acts as an efficient engagement and

acquisition channel across the Group.

Continuous enhancement of our model

We continue to strengthen our business model through

investment in technology, data, analytics and customer

experience. The Gateway transformation will provide a modern,

scalable and cloud-based platform, enabling a digital-first

operating model, enhanced decisioning, increased automation

and structural cost efficiencies.

By combining customer insight, responsible lending,

efficientfunding and modern technology, we are building

adifferentiated and resilient business that delivers value for

customers and sustainable, long-term returns for shareholders.

These strengths enable us to Serve More customers with

confidence, Serve Responsibly across credit cycles, and Scale

Profitably as Gateway and our broader ecosystemmature.

How our business model creates value

Our business model creates value by bringing together the key

inputs that power our organisation – our people, data, digital

platforms, risk expertise and diversified funding – and

transforming them through a disciplined set of activities.

These include understanding customer needs, designing tailored

credit propositions, assessing affordability and risk, delivering

digital customer journeys and managing lending throughout

thelifecycle. Through this integrated model, we convert our

resources into access to credit for underserved customers,

stable and sustainable returns for shareholders, rewarding

careers for colleagues, and positive outcomes for wider society.

For details of how we measure the value created through our

business model, see our Key Performance Indicators on pages

18 to 20.

Underpinned by our culture:

Our ACT culture (Ambitious, Caring, Together) anchors the behaviours needed for a modern, customer-led bank.

18 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Key Performance Indicators

Strategic Pillar 1: Serve More

Widen access to credit and grow our customer base with consistently good customer outcomes.

Number of customers

(m)

1.77m

Definition

Total customers across Credit Cards,

Vehicle Finance, Second Charge

Mortgages, Savings andSnoop.

Strategic focus

Drive sustainable growth by

expanding reach in underserved

markets, deepening engagement,

and building long-term customer

relationships that support

profitability and resilience.

Principal risk

Customer risk and business

performance risk – Failure to

attract and retain customers in

target segments undermines

growth, erodes trust, and limits

strategic diversification.

FY23 FY24

FY25

Customer satisfaction

index (CSI)

83.7

Gross customer interest-

earning balances (£bn)

£2.8bn

Definition

Weighted average customer

satisfaction score across Credit

Cards, Vehicle Finance and Savings.

Strategic focus

Strengthen advocacy and

retentionthrough consistently

positive experiences.

Principal risk

Customer risk – Poorexperiences

harm retention and outcomes.

Definition

Interest-earning amounts receivable

from customers.

Strategic focus

Grow high-quality lending in target

segments to deepen financial

engagement and deliver asset

growth within prudent risk appetite.

Guidance

2026: >£3.3bn

2027: >£3.7bn

Principal risk

Market risk and credit risk

– Changes in demand, economic

conditions or underwriting quality

may reduce portfolio growth or asset

quality, impacting income and returns.

FY23 FY23FY24 FY24FY25 FY25

1.75

1.69

1.77

2.4

2.3

2.8

Key

Certain alternative performance measures (APMs) have been

used in this report.

See pages 196 to 198 for an explanation of their relevance,

definition and method of calculation. In the current year,

theupdated management team has revised its focus to

theAPMs presented below; there have been no changes

tothese APMs in the year.

Trend arrows indicate the direction of movement year on year,

not whether this is favourable or unfavourable.

FY23 and FY24 KPIs for cost of risk, net interest margin, risk-

adjusted margin and cost: income ratio have not been updated

to reflect the impact of the sale of the Personal Loans portfolio as

a discontinued operation.

FY23 and FY24 cost: income ratio and ROTE have also not been

adjusted for the move to statutory reporting in FY25 and exclude

previous adjusting items (transformation costs, exceptional costs

and amortisation of acquisition intangibles).

Customer satisfaction index

In 2025, we introduced a new customer satisfaction measure to provide a consistent, data-driven

view of customer experience across our products and services. Our priority is to use this insight to

continually raise standards and deliver improved outcomes for customers. With a current weighted

average Customer Satisfaction Index (CSI) score of 83.7 ahead of the industry average of 81.1,

wearebuilding on a strong foundation for future progress.

—

83.7

—

The Key Performance Indicators (KPIs)

represent the principal metrics reported

toGroup management on a monthly basis

tosupport the strategic decision making.

KeyPerformance Indicators have been

updatedto better align with areas of guidance.

19 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Key Performance Indicators continued

Strategic Pillar 2: Serve Responsibly

Maintain strong affordability, disciplined risk management and consistently good customer outcomes, supported by an engaged workforce and positive community impact.

Net receivables

(£bn)

£2.7bn

Definition

Gross receivables less impairment,

reflecting the net value of

customerlending.

Strategic focus

Grow and maintain high-quality

receivables to support long-term

profitability, while staying within

risk appetite.

Principal risk

Credit risk – Failure to manage

asset quality and customer

affordability increases

impairments, erodes earnings, and

limits capacity for future growth.

FY23 FY24

FY25

Colleague

engagement (%)

73%

Senior management

gender diversity (%)

33%

Community investment

(£m)

£0.9m

Definition

A metric used to gauge colleagues’

engagement, motivation and

commitment towards their work.

Strategic focus

Foster a high-performance,

values-led culture where colleagues

are motivated, supported and

empowered, driving the delivery

ofour strategy.

Principal risk

People risk – Low engagement

undermines culture, reduces

productivity, and increases attrition,

limiting our ability to deliver

strategic objectives.

Definition

The percentage of the Group’s senior

management who identify as female.

Strategic focus

Committed to the Women in Finance

Charter by achieving a 40% target

by 2026 through delivering signatory

actions to create a more equal,

inclusive and gender diverse

workplace.

Principal risk

People risk – Gender balance

improves culture and diversity of

thought, enhancing our ability to

deliver strategic objectives.

Definition

The cash cost of contributions

provided to community projects

orcharities.

Strategic focus

Investments through our Foundation

partners to address the wide range

of social and financial inclusion

issues that are relevant to our

customers and the communities

where we operate.

Principal risk

Customer risk – By investing in the

communities we serve we help to

improve our customers’ lives.

Cost of risk

(%)

7.3%

Definition

Impairment as a % of average gross

customer interest-earning balances.

Strategic focus

Maintain disciplined underwriting and

affordability standards to protect

asset quality and preserve earnings

as we grow.

Principal risk

Credit risk – Rising impairments from

poor affordability or economic stress

erode profitability, weaken capital

resilience, and constrains future

lending capacity.

2.2 2.2

2.7

7.0

8.4

7.3

1.4 1.4

0.9

FY23 FY24 FY25 FY23 FY23 FY23FY24 FY24 FY24FY25 FY25 FY25

Moneybarn made financing my car quick and easy. I was back on the road in no time!”

Moneybarn customer

20 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Key Performance Indicators continued

Net interest margin

(%)

16.8%

Definition

Interest income less interest expense

as a % of average gross customer

interest-earning balances.

Strategic focus

Drive income growth through

disciplined pricing while

balancingrisk and delivering

faircustomer outcomes.

Guidance

2026: c.15.5%

2027: c.14.5%

Principal risk

Business performance risk – Failure

to grow income sustainably limits

profitability, constrains investment

capacity, and undermines long-term

strategic objectives.

Risk-adjusted margin

(%)

11.0%

Definition

Income after impairment as a %

ofaverage gross customer

interest-earning balances.

Strategic focus

Protect earnings quality by

maintaining disciplined pricing,

managing impairments and adapting

to market conditions.

Guidance

2026: >9.5%

2027: >9.0%

Principal risk

Market risk and credit risk – Rising

impairments or margin compression

erode returns, weaken resilience,

andrestrict future growth.

Strategic Pillar 3: Scale Profitably

Drive efficiency, capital discipline and sustainable returns.

FY23 FY24 FY25

Cost: income ratio

(%)

58.4%

Definition

Operating costs as a % of

totalincome.

Strategic focus

Enhance operational efficiency to

safeguard profitability, enable

reinvestment, and maintain

competitiveness.

Guidance

2026: High 40s

2027: Mid 40s

Principal risk

Operational risk – Failure to manage

costs effectively reduces profitability,

limits investment capacity and

undermines long-term

competitiveness.

Common Equity Tier 1 (CET1)

ratio (%)

16.5%

Definition

CET1 capital as a % of risk-weighted

assets measured in accordance

withthe Capital Requirements

Regulation (CRR).

Strategic focus

Maintain strong capital resources

tosupport growth and meet

regulatory requirements.

Guidance

>14.5%

Principal risk

Capital risk – Insufficient capital

limitsgrowth capacity and

strategicflexibility.

ROTE

(%)

2.3%

Definition

Profit attributable to shareholders as

a % of average tangible equity.

Strategic focus

Deliver returns on tangible equity to

support long-term value creation,

resilience and investor confidence.

Guidance

2026: Low double digits

2027: Mid-teens

Principal risk

Business performance risk – Failure

to deliver sustainable profitability

undermines strategic investment,

resilience and long-term

valuecreation.

Liquidity coverage

ratio (%)

306%

Definition

A regulatory measure that assesses

net 30-day cash outflows as a

proportion of high quality liquid

assets (HQLA).

Strategic focus

Ensure robust liquidity to meet

obligations and enable strategic

growth within risk appetite.

Principal risk

Funding and liquidity risk

– Insufficient liquidity threatens

resilience and operational continuity.

18.6

18.4

16.8

13.6

11.7

11.0

62.6

65.9

58.4

19.9

18.8

16.5

306

359

1,263

(7.0)

FY23 FY24 FY25

FY23 FY24 FY25 FY23 FY24 FY25

FY23 FY24 FY25

When I needed to build my credit score after some money problems, Vanquis was there to help. I’ve been with them

10+ years without a problem. Their customer service is excellent – always keen to listen and help. Thank you, Vanquis.”

Vanquis customer

FY23 FY24 FY25

2.3

1.9

21 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability

Stakeholder engagement

How we listen and respond

toourstakeholders

Effective engagement with stakeholders is

fundamental to how Vanquis operates and

howwe make decisions across the business.

Itinforms not only the products and services

weprovide to customers, but also how we

respond to stakeholder expectations around

sustainability performance and ESG matters.

We define stakeholders as individuals or groups

who have an interest in, or are affected by, our

business activities. We have identified six key

stakeholders groups that we prioritise for

engagement. These are: customers, colleagues,

suppliers, investors, government and regulators,

and our communities and wider society,

including the environment.

Customers

Our customer strategy is built on a deep

understanding of our customers’ lives and

needs. This insight informs how we design

and deliver our products and services, how

we use technology, and how we meet our

strategic priorities and commitments.

Customers choose Vanquis for inclusive,

reliable products and services that help

them build confidence and make the most

of life’s opportunities.

Colleagues

Our colleagues are central to the success

ofVanquis. We focus on attracting and

retaining talented and engaged people

who can innovate and help deliver our

strategic priorities and technology-led

transformation. Inreturn, we aim to provide

meaningful career development, fair reward

and recognition, and a diverse, inclusive

and healthy working environment that

offers flexibility and choice.

Suppliers

Our suppliers play an important role in

delivering our strategy and supporting the

long-term success of our business. A strong

and resilient supply chain enables us to

provide responsible and sustainable

products and services for our customers.

Inreturn, suppliers expect fair contractual

and payment terms, robust supply chain

standards and a commitment to positive

social, environmental and ethical impacts.

Investors

Our existing and future investors provide

the capital that enables us to deliver

ourstrategy and grow sustainably.

Inreturn, they expect disciplined financial

performance, efficient operations, strong

governance and risk management,

andclear, timely and high-quality

corporate information.

Government and regulators

Government and regulators are key

stakeholders for Vanquis. Through open

and proactive dialogue, we work to ensure

policymakers understand the customers we

serve and the important role responsible,

regulated credit plays in supporting

financial inclusion.

Communities and wider society

Our work in communities and wider society

helps bring our purpose to life. By investing

and generating positive social impacts

inlong-term partnerships, supporting

colleague volunteering and considering

ourenvironmental impact we aim to create

positive and lasting social outcomes.

A range of engagement mechanisms, as set

outin the table below, are utilised by us for

eachof our key stakeholder groups and

includeopportunities for effective dialogue and

feedback from stakeholders. Further information

on how the Board monitors the effectiveness of

stakeholder engagement and ensures that it,

where appropriate, influences its decision

making is set out on page 52 of thisreport.

22 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Sustainability continued

Stakeholder Engagement approach Results of engagement

Customers

5 Customer surveys, focus groups and market research on

arange of topics.

5 Regular use of communication channels such as applications

and websites.

5 Use of review platforms (e.g. Trustpilot) and

complaintsprocesses.

5 Engagement with, and feedback from, debt and money

advice sector organisations.

5 Inclusive design sessions to inform product and

servicedevelopment.

5 New brand was launched in June.

5 Customer stories published demonstrating how Vanquis products have helped customers manage their

personal financial situations.

5 We received customer input in the design of its new app and customers were involved in the beta and

roll-out phases to capture further improvements and report any issues.

5 In conjunction with inbest.ai, we launched a benefits checker to help customers identify if they are

missing out on financial support they are entitled to. Customer research completed ensured the

calculator met real needs.

5 A roundtable session held in March brought experts, charities and customers together to share

experiences of financial inclusion and access to credit. Four key recommendations were shared with

theFinancial Inclusion Committee, which focused on financial education and numeracy, access to

benefits, early indication of financial distress, and effective decline referrals.

Colleagues

5 There are a range of colleague-led groups in place that

enable our teams to connect and network, and support the

creation of an inclusive workplace culture, including

ourColleague Forum and five diversity and inclusion

affinitygroups.

5 We use several communication channels, with regular

updates on the Company and colleague-related news

delivered via Viva Engage, digital newsletters, in-person

events and regular livestream sessions, which enable

colleagues to engage in two-way dialogue.

5 The Company was accredited as a ‘Great Place to Work

’ in November following completion of the

Colleague Survey.

5 21 colleagues celebrated as ‘culture makers’ from 143 nominations across the business.

5 ExCo Open Doors launched in August providing colleagues the opportunity to have one-to-one sessions

with ExCo members.

5 Seven live-streamed Stay Connected events were held during 2025 sharing business updates and

successes, and answering colleague questions.

5 Save As You Earn scheme offered to eligible colleagues in September 2025.

5 New colleague benefits announced in July, including workation and buy and sell holiday.

5 In February, the Financial Times UK’s Best Employer survey ranked Vanquis at seventh in the banking

and finance services sectors and within the top 50 employers nationwide.

5 Colleagues provided 302 continuous improvement ideas, 56 of which have been put into action.

5 Across the year, webinars were held on a range of different topics (from building resilience to avoiding

burnout) via the inclusion and diversity wellbeing webinars.

Investors

5 Regular trading updates are provided to investors

viaourrefreshed Company website.

5 Investor roadshows, meetings and attendance

andparticipation at investor conferences.

5 There were regular discussions and briefings for investors

and analysts.

5 FY24 and 1H25 results presentations were held online

andincluded a Q&A session.

5 New investors joined the register during the year.

5 Increased industry press coverage.

5 Familiarity with the Group’s strategy and greater understanding of the Group’s business case.

5 Increased likelihood to attract overseas investment.

23 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Sustainability continued

Stakeholder Engagement approach Results of engagement

Communities and

wider society

5 Regular meetings and calls with charity and

communitypartners.

5 Participation in seminars and conferences that relate

tokeyissues (e.g. financial inclusion).

5 Internal communication channels used to inform colleagues

and provide ways that they can get involved in the

communities we serve.

5 We signed the Armed Forces Covenant to help veterans transition into meaningful careers after their

militaryservice.

5 A roundtable session held in March brought experts, charities and customers together to share

experiences of financial inclusion and access to credit. Four key recommendations were shared with the

Financial Inclusion Committee.

5 Colleagues were involved in numerous events to support local charities including the donation of

Christmas presents, supporting reading skills online, painting community centres, championing improved

numeracy skills and volunteering at foodbanks – the target of >2,400 hours volunteeringachieved.

Suppliers

5 Supplier onboarding process for new suppliers.

5 Ongoing due diligence process for new and existing suppliers.

5 Regular operational supplier meetings to review KPIs, as

well as raise and resolve any issues.

5 Gold standard award under the Fair Payment Code.

5 Enhanced operational resilience framework.

5 Board-approved operational resilience self-assessment.

5 The Third-Party Risk Management Policy was updated in September 2025 approved

bytheRiskCommittee.

5 Updated Modern Slavery Statement approved in March 2025.

5 Material contracts signed.

Government and

regulators

5 Regular meetings and calls with both the FCA and PRA

andother policymakers.

5 Engagement with regulators takes place via membership

oftrade associations (e.g. UK Finance) and advisors.

5 Participation in consultation exercises that relate to

proposed regulatory changes.

5 Contributed to Consumer Credit Act consultation.

5 CEO met FCA in June to provide input in the vehicle finance commission redress scheme and the Group’s

response to the consultation submitted in December.

5 CEO participated in an FCA panel discussion on ‘Regulating for Growth’.

5 CEO is on the Board of UK Finance.

5 CSREP completed during the year.

5 The Group participated in PRA’s thematic review of UK retail unsecured credit in July.

5 Chairman attended mid/small cap bank roundtable in October.

Our purpose to deliver caring

banking so that our customers can

make the most of life’s opportunities

is supported by our sustainability

strategy, which is organised under

thefollowing five key priorities

andunderpinned by our commitment

to ensure that we will conduct our

business activities by acting with

integrity and in a responsible and

ethical manner.

24 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Delivering caring banking

Helping our customers to be financially

included through the provision of

responsible and sustainable products

andservices.

Engaging with the communities we serve

bysupporting financial and social

inclusionand improving numeracy and

employability skills.

Maintaining an inclusive workplace culture

that is safe and engaging, and provides

opportunities for growth and development.

Ensuring we pay our suppliers promptly,

and supporting and respecting human

rights in our supply chains.

Minimising our impact on the environment

and working with others to act on the issue

of climate change.

Customers Colleagues

Communities and

wider society

Suppliers

The environment

Sustainability governance

Our sustainability strategy is aligned with our

purpose to deliver caring banking and ensures

that we conduct our business responsibly and

manage our ESG priorities (see page 25). Our

Board has oversight of the Vanquis Sustainability

programme and reviews it once a year. It also

delegates responsibility for aspects of sustainability

performance monitoring (e.g., in relation to climate

change-related risk reporting) to the Audit

Committee. Our Remuneration Committee also

ensures that a range of sustainability metrics

are included in the Annual Bonus Plan for the

Group’s executives. Additional information on

our governance can be found on pages 64

to128.

Our Executive Committee plays an important

role in supporting the delivery of the Group’s

sustainability strategy and routinely discusses

sustainability activities and ESG issues that are

material to the business and its key stakeholders.

In doing so, it is supported by our Climate Risk

Committee (see page 33) and Inclusion Community

(see page 28). It also reviews and approves the

Group’s programme of activities and its budget.

The day-to-day delivery of the programme

andour response to the ESG agenda are

carried out by our in-house sustainability team,

which is supported by colleagues from across

the business. This includes the colleagues who sit

on the various working groups we have in place

and oversee the management of environmental

and community investment matters.

A clear and strong purpose is fundamental tothelong-term success of our

business. It guides ourdecision-making processes and ensures we deliver

simple, affordable and flexible products that meet customers’ needs and

support financial inclusion. It also shapes how we work with partners

inthecommunities we serve, how we create an inclusive workplace,

andhowwe seek to minimise our impact ontheenvironment.”

Ian McLaughlin

Chief Executive Officer

25 – Vanquis Banking Group plc Annual Report and Accounts 2025

Strategic report Shareholder informationFinancial statementsGovernance

Stakeholder Measure Performance in 2025 Status Focus for 2026

Customers

Level of customer

satisfaction

Customer satisfaction across all products: 83.7 5 Improve customer satisfaction levels across our products

andservices.

5 Use customer insight to continually raise standards and deliver

improved outcomes for customers.

Total number of

customer complaints

Total number of complaints: 52,919 (2024: 87,561)

5 Continue to reduce the volume of customer complaints by

improving customer outcomes.

5 Continue to reduce complaint handling costs.

Colleagues

Workplace culture and

colleague engagement

Great Place to Work

Colleague Survey participation rate: 87%

(2024: 81%)

Great Place to Work

Trust Index score: 73% (2024: 60%)

5 Maintain Great Place to Work

certification.

5 Continue to identify opportunities to improve colleague

engagement and workplace culture in line with our

commitment to create a workplace where people feel valued.

Communities

Amount invested to

support our

communities

£929,125 invested to support our Foundation (2024: £1.4m) 5 Continue to invest in the communities we serve by supporting

financial and social inclusion and improving numeracy and

employability skills.

5 Continue to engage with colleagues to support their local

communities with their skills and talents through volunteering.

Suppliers

Prompt payment

ofsuppliers

98% of suppliers paid within 30 days (2024: 97%) 5 Continue to ensure that all suppliers are paid within 30 days.

5 Review and update our supplier due diligence process to

embed new diversity and inclusion questions within the

questionnaires we use.

The environment

Absolute scope 1 and 2

GHG emissions 2025

Total scope 1 and 2 GHG emissions: 469 tCO

e (2024: 500 tCO

e),

areduction of 6%.

Total scope 1 and 2 (and associated scope 3) GHG emissions:

584tCO

e (2024: 647 tCO

e), a reduction of 10%

5 Continue to identify opportunities to improve the energy

efficiency of the Group’s operations.

5 Conduct an internal review of our ability to meet the new

expectations set by PRA supervisory statement 5/25 –

Enhancing banks’ and insurers’ approaches to managing

climate-related risks.

Sustainability continued

Key

Achieved Partially achieved Not achieved

Our 2025 sustainability performance at a glance

26 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Snoop money management app

We continue to actively promote the Snoop app

to our customer base. Snoop uses Open Banking

to analyse the spending of customers and

suggest ways to save money across a number

of areas of personal finance. This helps our

customers to improve their creditworthiness and

their borrowing and debt management. It also

tracks customers’ regular bills and flags up when

they are higher than usual, sometimes offering

up cheaper providers they can switch to.

Benefits Checker

In 2025, in recognition that over £24bn of

income-related benefits and social tariffs in

Great Britain go unclaimed every year, we

launched the Vanquis Benefits Checker. This new

digital tool is designed to help customers quickly

and easily identify benefits and social tariffs they

may be entitled to, ensuring fewer households

miss out on vital financial support. The launch of

the Vanquis Benefits Checker follows a successful

partnership with Fair Finance, which has helped

20,000 people identify and claim over £34m in

entitlements since December 2024. The tool,

which ispowered by an Artificial Intelligence

platform, makes use of a simple, guided

questionnaire to identify potential benefit

entitlements, including Universal Credit, Pension

Credit, Disability and Carer’s Allowances, and

more. This enables users to answer straightforward

questions about their household, income, and

living situation, and they are then directed to

official pages where they can apply for

relevantbenefits.

Customers

Customer satisfaction

83.7

Customer numbers by product

5 Credit Cards: 1,339k (2024: 1,267k)

5 Vehicle Finance: 103k (2024: 110k)

5 Second Charge Mortgage: 9.9k

(2024:3.7k)

5 Savings: 81k (2024: 57k)

5 Snoop: 328k (2024: 293k)

Supporting the financial

inclusion of its customers

is at the heart of what

Vanquis does.

We do this by offering a range of credit

cards that are designed to suit different

needs and saving products through our

Vanquis brand, specialist Vehicle Finance

through Moneybarn, Second Charge

Mortgages via origination partners and

freeand easy-to-use money management

support via our Snoop app. We also know

that this commitment to support the

financial inclusion of our customers extends

to being there for them should health issues,

financial instability and other life events

impact their ability to manage their finances.

Measures in this pillar

5 Level of customer satisfaction

5 Total number of customer complaints

Supporting our vulnerable customers

We have a duty to support customers if they

experience financial difficulties, and our

colleagues play a vital role in providing this

support in the first instance. As such, all our

frontline colleagues are trained to recognise

characteristics of vulnerability and respond

appropriately to customer needs. This enables

our colleagues to respond appropriately when

acustomer shares a need or shows clear signs

of vulnerability, exercise judgement to adapt

tocustomer needs and take prompt action to

prevent harm and refer customers to in-house

orthird-party specialists when necessary.

This is why a key pillar of the Vanquis Foundation

focuses on working with specialist partners to

address issues such as customer vulnerability

and financial difficulties. By supporting these

organisations, our customers can access

independent and personal financial advice and

support if they encounter financial challenges.

27 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

The Money Charity

Vanquis has partnered with The Money

Charity, a charity that provides information,

advice and guidance to people of all ages

so that they can manage their money well

and increase their financial wellbeing,

since2013.

Throughout the year, our support for The Money Charity

enabled it to deliver 200 workshop hours to over 4,300

young people. The aim of these workshops is to provide

young people with building blocks to sound money

management, helping them to develop the skills,

knowledge, attitudes and behaviours they will need so

they can make the most of their money throughout their

lives. In addition, during 2025 we provided funding to

enable The Money Charity to continue publishing The

Money Statistics Report, which is widely used by financial

services companies, third sector organisations and the

media. This report, which is published monthly, is a

round-up of financial facts and figures that relate to

consumer confidence and whether challenges, such as

cost-of-living and energy crises, high interest rates and

the economic policies of the new US administration,

have affected the lives and finances of many people

across the UK.

Sustainability continued

Customers continued

Working with StepChange and

Christians Against Poverty

While we work to collect outstanding debt,

customers sometimes enter debt agreement

plans with leading free debt and support

charities such as StepChange and Christians

Against Poverty (CAP). We continue to accept

the offers of payment when customers have

sought advice from these charities, and a

financial assessment has been made of

theircircumstances. Through the ‘fair share’

agreements we have with these charities,

wecontribute almost 12% of any payment

wereceive from a customer who has entered

adebt agreement plan with the charities.

These contributions mean our business pays

for the debt advice received by the customer.

They provide the charities with financial

support so that they can continue to provide

free, independent advice. During 2025, we paid

£198,335 (2024: £254,777) to StepChange and

CAP in ‘fair share’ contributions.

IncomeMax support

We continue to support customers who are

experiencing financial difficulties by making

referrals to IncomeMax, a community interest

company that helps people to maximise their

household income by providing them with

independent advice and support to navigate

the complex welfare system. The income

maximisation process carried out by IncomeMax

involves the organisation completing an

assessment with customers who have been

referred to it, either by our frontline colleagues

or through the IncomeMax chatbot, and using

that information to assess whether the customer

is entitled to any additional benefits, grants,

orschemes, and how these can be claimed.

IncomeMax has also developed a toolkit which

provides our customers with access to valuable,

comprehensive signposting and self-serve

support where a formal referral is necessary.

Plain Numbers

Through our work with Plain Numbers, we are

working to improve the way we communicate

and explain important financial information

toour customers, so that they can fully

understand their financial situation and are

able to make better financial decisions and

deal with the challenges that life may throw

atthem. Since we started working with

PlainNumbers in 2023, we have used our

partnership to support our customer

communications and to improve content for

educational videos to explain some of the

terms that crop up in financial communications

and are often misunderstood by consumers.

Throughout 2025, we have used our partnership

to inform the development of the new mobile

app that we are launched in January 2026.

Case study

At Vanquis, we’re proud

of our partnership with

The Money Charity,

which helps to support

people from across

theUK to build the

skills and confidence

they need to manage

their money and

improve their

financialwellbeing.”

Ian McLaughlin

Vanquis CEO

28 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Shaping our culture

We recognise that the culture at Vanquis

shouldbe positive, supportive and dynamic,

where innovation thrives, personal growth is

supported, and colleagues feel valued, safe and

motivated. By having a culture that is informed

by our purpose and values, we can ensure that

it shapes our leadership, our ways of working

and the experiences we create for all our

colleagues. Ultimately, it builds an innovative,

high-performing and inclusive community where

colleagues feel motivated, valued and elect

tostay and develop their careers.

Throughout the year, colleagues from across

ourbusiness took part in a series of workshops

to help define the culture we want to build and

how it can be embedded across Vanquis. We’ve

created a simple, memorable culture statement

to guide the future of Vanquis - summed up in

the acronym ACT (see below).

Ambitious

Be ambitious and bold in our goals and

decisions, moving with pace and curiosity,

andembracing innovation.

Caring

Care for each other and our customers, creating

an inclusive, supportive and enjoyable place to

work where people can thrive.

Together

Together as one team, built on trust,

transparency and collaboration – challenging

each other to succeed together.

Inclusion and diversity

The ambition of our Inclusion and Diversity

Policy is to build and sustain an inclusive

cultureand diverse workforce, which will help

usto respond to our diverse customer base.

Itunderlines our commitment to treating

allcolleagues with respect and dignity and

prohibiting discrimination. It reflects our

commitment to recruit, train, develop, promote

and provide conditions of employment without

regard to race, colour, creed, religion, national

origin, gender, gender identity or expression,

sexual orientation, marital status, age, disability,

or any other characteristic.

The activities that are delivered in support

ofour Inclusion and Diversity Policy continue

tobe driven by our affinity groups, which are

colleague-led and sit at the heart of Vanquis’

Inclusion Community. The affinity group’s focus

on the following themes: disability, LGBTQ+,

gender balance, ethnicity and social mobility.

Our Inclusion Community and affinity groups

celebrated their five-year anniversary in 2025.

During this time, approximately 180 colleagues

who are actively involved in these groups helped

shape a range of policies and processes,

supported mentoring and peer circles, and

enabled colleagues from across the business to

celebrate and raise awareness of specific events

and milestones. During 2025, our affinity groups

influenced the creation of new policies on carer’s

leave and neonatal care leave, helped introduce

flexible bank holidays, continued to enhance

ourReasonable Adjustments Policy, helping us

better support colleagues’ individual needs.

They also ensured that we achieved the Silver

Standard inLGBT Great’s Inclusion Index

Benchmarking Tool for three years running and

supported colleagues, through their volunteering,

to take part in initiatives that facilitate social

mobility inthe communities we serve.

Colleagues

Great Place to Work

score

73%

FY24: 60%

Key Great Place to Work

results

5 Response rate: 87% (2024: 81%)

5 Colleagues agree that Vanquis is a

GreatPlace to Work

: 77% (2024: 51%)

5 Average score across all Great Place

toWork

statements: 75% (2024: 62%)

We are committed to

being an employer of

choice and creating

a workplace where

people feel valued,

empowered and inspired

to growtogether.

We know that by creating an inclusive

workplace culture, we will be well placed

toattract and retain the best people and

create a sustainable pipeline of engaged

and diverse colleagues, capable of

innovating and developing the products

andservices for the customers we have

now,as well as address any future

challenges and opportunities.

Measures in this pillar

5 Workplace culture and

colleagueengagement

29 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Colleagues continued

Inclusion and diversity continued

We made a commitment to improve gender diversity across the Group via the HM Treasury Women

inFinance Charter in March 2019. As part of this, we set a target to have 40% female representation

in the Group’s senior management population by December 2026. As of 31 December 2025, we had

the following gender balance:

Total

No. of

women

% of

women

No. of

men

% of

men

Vanquis Banking Group plc Board 8 3 38 5 62

Executive Committee 9 3 33 6 67

Senior leadership population 89 30 34 59 66

All Vanquis colleagues 1,293 627 49 666 51

We also engage with our colleagues on an

annual basis to collect information on other

diversity and inclusion categories.

This

information is summarised below:

5 13% (2024: 16%) of colleagues informed us

that they had a disability or long-term

health condition.

5 18% (2024: 17%) of colleagues informed us

that they come from a Black, Asian, other

White or minority ethnic background.

5 7% (2024: 9%) of colleagues informed us that

they were part of the LGBTQ+ community.

5 14% (2024: 15%) of colleagues have

caringresponsibilities.

1 This data is based on colleagues’ voluntary self-declaration

via our October 2025 Great Place to Work

Colleague

Engagement Survey, which accounts for 87% of the Vanquis

Banking Group workforce.

Further diversity and inclusion information

thatrelates to the FCA’s Listing Rules 6.6.6(9)

and6.6.6(10) is set out in the Nomination and

Governance Committee Report on pages 84

and85.

Employee engagement

We continue to measure engagement to show

how well we are doing at retaining the best

talent and to build our culture through our

annual Colleague Engagement Surveys. In 2023,

we changed the way we conducted Colleague

Engagement Surveys and started using the

Great Place to Work

model. We also set an

ambition to become certified as a Great Place to

Work

, which required us to achieve a response

rate to its core statements of 65% or more.

In2025, 87% of our colleagues responded to

ourannual Great Place to Work

survey, with

73% (2024: 60%) of colleagues rating the core

GreatPlace to Work

statements as “almost

always true” or “often true”. This means that we

have earned Great Place to Work

certification

for the first time, an achievement that reflects

our commitment to invest in leadership,

engagement and collaboration, and create a

working environment where all colleagues can

thrive and make a difference for our customers.

Great Place to Work

certification

isthe result of the effort, passion

and collaboration of colleagues

across the business, building

aculture we can be proudof.”

Elli Michaelides, Chief People Officer

Training and development

We care about our colleagues’ career journeys

and ensure that they are supported to take

ownership of their development and provided

with resources, guidance and opportunities to

develop new skills and grow. Since 2024, we

have provided all colleagues with free access

toLinkedIn Learning, a development platform

thatoffers video-based courses on a variety

oftopics including business, technology, and

people management. By having access to these

resources, our colleagues can develop new skills,

enhance their existing skills, or simply stay up

todate on the latest trends.

To support our HM Treasury Women in Finance

Charter target mentioned above, we have a

Women in Leadership programme that supports

women from across Vanquis to develop their

leadership and people management skills, and

work towards an associated Level 3 or Level 5

apprenticeship qualification. Since we launched

this programme in 2025, 21 women have

participated in this programme.

For the emerging leaders in our business,

wehave our Aspiring Leader development

programme, which enables colleagues who are

new to leadership and people management

towork towards a Level 3 Team Leader

apprenticeship qualification, and build the

skills,knowledge and confidence they need

when applying for new roles within Vanquis.

Colleague wellbeing

At Vanquis, we know that wellbeing is a key

partof our culture and supports our ambition

toattract, retain and empower the best people.

This is why we are committed to supporting our

colleagues by being flexible and empathetic,

and offering a wide range of tools and

resources tohelp them feel their best.

The wellbeing support package we have in

place includes access to digital support, which

enables colleagues to arrange convenient online

health consultations, our Employee Assistance

Programme phone line and a range of health

and wellbeing support services through the

Bank Workers Charity. We also have a network

of Mental Health First Aiders who have the skills

to spot the signs of a person experiencing poor

mental health, and the confidence to start a

conversation about how their wellbeing can be

supported. We also engage and consult with

our colleagues to create family friendly policies

that reflect our values and promote flexible

working options. In 2025, this saw us develop

and launch new policies and guidance on

neo-natal care, paid carers leave and flexible

bank holidays.

30 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Our Foundation supports initiatives and

activities across three key areas:

5 financial inclusion advice – partnering

withorganisations that provide money

advice and debt support;

5 education – backing programmes that

improve literacy, numeracy and career skills;

and

5 community – supporting social and financial

inclusion in the areas where we’rebased.

In 2025, we invested £929,125 in the communities

we serve via the Vanquis Foundation.

Supporting the numeracy agenda

At Vanquis we know how important numeracy

skills are in supporting financial wellbeing and

enabling people of all ages to use everyday

maths to help with budgeting, saving, shopping

smart, and planning for the future. This is why

we were delighted to be a lead supporter of

National Numeracy Day 2025, which focused on

the theme of money. During National Numeracy

Day on 21 May 2025, our colleagues volunteered

to support the delivery of a ‘My Maths Story

Assembly’ in several schools local to our offices,

and inspired pupils by sharing personal stories

about how numeracy has shaped their careers

and everyday lives, helping children see the

real-life value of maths. They also supported the

delivery of ‘Maths in the Real World’ classroom

sessions, which brought numeracy to life by

showing pupils how maths is used in a variety

ofjobs and day-to-day situations.

In partnership with National Numeracy, we

published our Financial Wellbeing Index, which

revealed that workers earning up to £40,000

are saving just 1% of their income, highlighting

widespread number confidence issues, low

financial resilience, and the urgent need for

improved financial capability across the UK.

Wealso partnered with the Professional Darts

Corporation’s Bullseye Maths initiative to

delivera special National Numeracy Day event.

Featuring darts player Nathan Aspinall and his

daughter Milly, the session engaged children

through fun, accessible numeracy activities that

promoted positive attitudes towards maths

andeveryday number use.

Supporting children and

youngpeople to develop

employability skills

In 2025, we have continued to work with the

Ahead Partnership, School-Home Support and

Social Mobility Business Partnership, and the

relationships we have with schools and colleges

in the communities surrounding our offices in

Bradford, Chatham, London and Petersfield, to

deliver sessions that engage with young people

who face barriers or are underrepresented within

our workforce, to build their aspirations, skills

and careers knowledge and support them to

think about what steps they could take towards

realising their future job prospects.

Communities

Cash £1,171,597

Management costs £114,549

Value of colleague time £77,271

Total £1,363,417

2024

community

investment

figures

Cash £784,125

Management costs £54,792

Value of colleague time £90,208

Total £929,125

2025

community

investment

figures

We believe that Vanquis

has a role to play in

having a positive impact

in the communities we

serve, which is why we

established the Vanquis

Foundation almost three

years ago.

Through our Foundation, we aim to improve

the lives of children and young people in

thecommunities where our customers live

and work by providing them with access

toeducation, social and financial inclusion,

and economic development opportunities.

Measures in this pillar

5 Amount invested to support

ourcommunities

31 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Communities continued

Supporting children and

youngpeople to develop

employability skills continued

During the year, over 59 colleagues supported

almost 150 schoolchildren and students by

working with our partners to deliver sessions on

the roles that exist within our sector, goal setting

and action planning, interview preparation and

practice and CV writing. This included working

with the Ahead Partnership to host a ‘Step into

Tech’ workshop at our Bradford head office on

4November 2025. During the day, 46 students

from the Co-op Academy Grange, Carlton

Keighley, and Dixons McMillan Academy took

part in workshop activities that were supported

by our colleagues and were designed to inspire

young women to explore exciting careers in

technology and digital.

Investing in Bradford’s communities

We continue to support local community groups

in Bradford to address a wide range of social

and financial inclusion issues. We do this via

theManjit Wolstenholme Fund, named after our

former Chair of the Board, which is managed on

our behalf by the Bradford District Community

Foundation. Through this fund, we provide

grants to grass roots community organisations

that work with children and young people to

increase their aspirations and empowerment,

develop confidence, resilience and life skills,

andaddress low education attainment and

inequity of opportunity. In 2025, we provided

£50,000 of grant funding to five community

organisations including:

5 Mary Magdalene – Using our grant

funding,the organisation will support

24disadvantaged young people in Bradford

to access the Duke of Edinburgh’s Award,

enabling them to develop essential skills,

confidence and resilience. The grant will fund

a dedicated Duke of Edinburgh Coordinator

and cover essential costs including camp

fees, venues, transport, equipment, training,

and resources. This project will ensure that

young people who are often excluded from

mainstream provision are given the chance

to thrive, grow, and be recognised for

theirachievements.

5 UpCycle – Through our grant funding,

UpCycle will deliver a five-day, hands-on

employability placement for 10 trainees.

Each trainee will complete 25 hours of paid

work experience in UpCycle’s Community

Bike Shop and carry out repairs, serve

customers and manage stock, while staff

willhelp them log technical and transferable

skills (such as teamwork, customer service

and mechanic skills). Trainees will be paid

the Real Living Wage for every placement

hour, recognising their contribution and

removing financial barriers to participation.

Supporting the Bradford 2025

Cityof Culture

We were proud to be a major supporter of the

Bradford district in its capacity as the UK’s City

of Culture during 2025. Through our support,

theRoyal Ballet and Opera, Opera North, and

Northern Ballet, delivered the Sing, Dance, Leap!

project. The aim of this mass participation

project was to help children to express how they

feel about themselves, and their city, through

ballet, opera, and the arts. It culminated with

more than 2,400 Bradford schoolchildren

performing a ballet and opera with professional

dancers, singers, and musicians at the newly

refurbished Bradford Live in June 2025.

Colleague volunteering

We are committed to harnessing the heart and

spirit of our colleagues to support their local

communities with their skills and talent, through

impactful and meaningful volunteering. This is

why all our colleagues can take two days off

work, fully paid, every year to volunteer for their

charity and local community causes. They can

also take time off to support Company-led

initiatives with one of our partners. As at

31December 2025, our colleagues volunteered

3,061 hours (2024: 2,586 hours) to support a

range of good causes, an 18% increase when

compared withFY24.

Throughout the year, our colleagues have

usedtheir two days, volunteering to be charity

trustees and school governors, and provide

technical support to local community initiatives.

The Company-led volunteering initiatives we

delivered during 2025 included team challenges

at community organisations near our offices, tree

planting, and other hands-on activities, as well

as online reading support for disadvantaged

children, sharing career advice with students

entering the workforce, and delivering maths-

themed assemblies to local primary schools.

Supporting children’s literacy

withonlinereading

Throughout the 2024/25 academic year, our

dedicated team of 35 volunteers has provided more

than 200 hours of one-to-one online reading

support to help children from disadvantaged

backgrounds develop a lifelong love of reading

and break the cycle of lowliteracy.

Fundraising

During the year, our colleagues went above

andbeyond to support charities and causes

close to their hearts, from running marathons

and climbing the Yorkshire three peaks, to

having cake bake sales and running a charity

golf day. At Vanquis, we are committed to

enabling them to make a difference in their

communities through their fundraising activities.

This is why we match their fundraising up to a

maximum of£500 per year, per organisation.

In2025, weprovided matched funding donations

thatamounted to £10,199 to charities such as

Alzheimer’s Research UK, the Thames Hospice,

RNLI, the Dogs Trust and many more.

It is an easy way to make

apositive impact on a

child’s life by giving up just

30 minutes per week during

term time and listening to

aninfant school pupil read

online. It is great to be able

to give something back,

especially when you see

thepositive effect you are

having when a shy child

comes out of their shell

andis happy to read

andchat to you.”

Product Development Manager

32 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

At Vanquis, we are committed to acting with

integrity and conducting our business activities

and relationships in a responsible and ethical

manner. Our aim is to create and maintain a

culture of transparency and trust, where

colleagues feel valued, safe and motivated

(seepages 28 and 29 of this report), and

whichtakes account of issues that matter to

stakeholders such as customers and suppliers,

and our impact on the environment (see pages

21 to 23 and 74 to 78 of this report).

Our Corporate Policy Statement

Our Corporate Policy Statement sets out our

commitments to operating responsibly, ethically,

legally and compliantly. It reflects our purpose

and values and encapsulates the minimum

standards of conduct and policy requirements

for all our colleagues.

For further information on this statement

andthe other policies referred to on this page

go to our website: vanquis.com.

Anti-bribery and anti-corruption

Our policy on anti-bribery and anti-corruption

sets out the Group’s zero-tolerance approach

tobribery and corruption and our commitment

to acting professionally, fairly and with integrity

in all its business dealings and relationships,

wherever it operates, and implementing and

enforcing effective systems and controls to

counter bribery and corruption. The policy

applies to all colleagues, contractors and

directors in relation to the business activities

undertaken by, or on behalf of, Vanquis.

Whistleblowing

Our Whistleblowing Policy and accompanying

programme includes an external third-party

helpline facility which enables colleagues and

third parties to confidentially report concerns.

The Vanquis Board oversees the integrity of the

Group’s arrangements on whistleblowing,

including policies and procedures.

Protecting human rights

Vanquis is committed to supporting and

respecting human rights and, as such, is

opposed to slavery and human trafficking in

both its direct operations and in the indirect

operations of its supply chains. As such, the

Company will not knowingly support or do

business with any organisation involved in

slavery or human trafficking. Our statement

onthe Modern Slavery Act 2015, along with

ourHuman Rights and Modern Slavery Policy

and Supplier Code of Conduct, can be found

onour website.

Technology, information security

anddata

Technology, information security and data

isaprincipal risk for Vanquis (see page 60)

andwe are committed to protecting our

infrastructure and assets, as well as handling

personal information responsibly, securely

andtransparently.

Our tax strategy

We are committed to ensuring that we pay

thetax we are legally required to pay in all

theterritories in which we operate, we comply

with all tax rules and regulations in those

territories and we safeguard our reputation

asaresponsible taxpayer. Our tax strategy,

which was last updated and approved by our

Board in December 2025, can be accessed on

our website.

Conduct

I’ve been with Vanquis for a

few years now and have found

them to be very good. Their

mobile app is easy to use

andmakes it simple to keep

track of your spending.”

Vanquis customer

33 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

Compliance statement

The climate-related financial disclosure, which relates to the year ended 31 December 2025, set out

inthe following section of our Annual Report complies with UK Listing Rule 6.6.6(8). It is therefore

consistent with the four pillars and 11 recommended disclosures of the Task Force on Climate-related

Financial Disclosures (TCFD). The disclosures made by Vanquis Banking Group plc also comply with

the Climate-related Financial Disclosure (CFD) Regulations 2022 and the UK Companies Act (that is,

sections 414CB(2A) (a to h)). The text and tables below and overleaf outline how these

recommendations and recommended disclosures have been addressed.

Governance

The Vanquis Banking Group plc Board has ultimate responsibility for identifying, managing and

reporting climate-related risks and opportunities and does this through an annual ESG update. It

also has overall accountability for the delivery ofthe Group’s ESG strategy and regularly reviews

performance in accordance with this strategy. TheBoard delegates elements of its responsibilities to

its committees (see below) to review and approve our climate-related disclosures and to review the

effectiveness of climate-related risks andopportunities in line with our risk management and internal

control framework (see pages 54 to 56).

Audit Committee Remuneration Committee Risk Committee

The Audit Committee supports

theBoard in reviewing the

climate-related disclosures made by

the Group annually in its Annual

Report and Financial Statements.

The Remuneration Committee assists

the Board in its oversight ofits

remuneration policies and practices

in relation to any ESG-related metrics,

including thosethat relate to the

climate change agenda.

The Risk Committee assists theBoard

by taking an active roleindefining

risk appetite and monitoring the risk

management and internal control

systems across the Group. This

includes any climate-related risks.

Executive Committee

The Group’s CEO is accountable for management oversight in relation to the progress being made

bythe Group in managing its strategic ESG objectives, including those that relate to climate change.

He is supported by the ExCo which is responsible for the day-to-day management of the business

and supports the operation of the business and informs decision making on matters not reserved for

the Board or its committees. The Executive Committee ensures climate-related matters are considered

and factored, where appropriate, into strategic decisions across the Group, which includes ensuring

the delivery of our ESG framework.

Climate Risk Committee

The Climate Risk Committee (CRC) is co-chaired by our Group Treasurer and Head of Strategic

Planning & Analysis who, along with colleagues from a range of different functions, provide guidance

and executive oversight of Vanquis’ climate risk management and reporting activities.

Internal audit

The Vanquis Internal Audit function will review the controls that are in place to manage and/or

mitigate climate-related risks as necessary. This was last done in 2023. It is anticipated that an

internal audit of our climate risk-related controls will take place over the next 12 to 18 months.

Strategy

Our strategy continues to relate to ensuring that climate-related risks are integrated into our business

strategy and decision making in areas such as operational resilience, customer service, and supply

chain management, and, where appropriate, capital allocation.

Climate-related risks are identified, assessed, managed and monitored in line with our risk

management and internal control framework, described on pages 54 to 56. When assessing

climate-related risks and opportunities, we use the time horizons set out below, which we updated

last year to better align with our budgeting and planning cycles. This enables us to continue to

consider the material climate-related risks and opportunities that relate to the current and future

products and services weprovide to our customers, as well as those that are relevant to our

operations and infrastructure (including our supply chain).

2025 climate-related financial disclosure

34 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

Strategy continued

Climate-related risks and opportunities assessment periods and time horizons

Short term Medium term Long term

0–1 year 1–5 years 5 years or more

This aligns with our annual reporting cycle and associated operationalactivities. This aligns with the financial and operational planning we use and provides

in-sight into developing risks and opportunities.

This enables us to consider the impact of changing climate-related transition and

physical risks on our business over the long term.

The climate-related physical and transition risks and opportunities we have factored into our strategy are set out in the table below. These have been identified through our impact assessment and scenario

analysis (refer to page 35 for further information on the scenarios and financial impact analysis ranges used). The risks are categorised as physical (which include acute, extreme weather events, and chronic,

long-term climate shifts in the UK), and transition risks (which relate to regulatory changes, technological innovations and customer demand changes), and the opportunities relate to meeting the needs of our

customers as climate-related policies are implemented and continuing to improve the energy efficiency of our operations and infrastructure.

Risk/opportunity type Risk/opportunity description Business impact Time horizon(s)

Physical risk (acute) There is a risk of increased severity of extreme weather events such as heatwaves,

hurricanes and flooding that disrupts our own operations and supply chains, and those of

our customers, colleagues and communities.

These events could have an impact on infrastructure, causing damage to buildings and

other assets, leading to wide-scale disruption to service delivery. They could also impact

the secured properties of our Second Charge Mortgage customers, which could have credit

risk implications.

Short and medium term

Physical risk (chronic) There is a risk that events, such as rising sea levels, coastal changes and higher average

temperatures and rainfall, impact regions and infrastructure that are material to our own

facilities/business premises, as well as the operations of the organisations in our direct and

indirect supply chains.

Such physical risks could lead to indirect economic and social impacts through supply

chain disruptions, subsequent impacts from infrastructure damage (e.g. in relation to

transport, communication and manufacturing processes) or market shifts (such as

increases in insurance premiums). They could also have credit risk implications for the

Group’s Second Charge Mortgage customers.

Long term

Transition risk (policy/legal) There is a risk that new or additional climate-related laws, regulations or contractual

commitments (e.g. in relation to energy usage or the manufacture of internal combustion

energy (ICE) vehicles) may result in increased compliance costs, taxes on emissions,

penalties or restrictions that relate to our business models and our stakeholders.

Such transition risks could impact both our operating costs and ability to meet the

demands of our current and future customers. The introduction of taxes designed to

improve energy efficiency could also have cost-of-living implications for our customers,

which has potential to expose the business to credit risks. These could have implications

forour revenue growth opportunities.

Medium and long term

Transition risk (reputation) By failing to deliver on our public net zero commitments there is a risk that we could be

exposed to reputational damage (e.g. that arises from greenwashing allegations) and

increased scrutiny from our customers, regulators, investors and colleagues.

Damage to our reputation because of poor environmental performance, including the

failure to meet any climate-related commitments or regulatory expectations, could result in

negative media attention and may impact customer or investor demand or result in aloss

of existing talent or the inability to attract new talent. This could lead to financial impacts

on revenues and/or financial penalties, legal challenges or fraud investigations.

Short, medium and

longterm

Opportunity – products

and services

There is an opportunity to develop and introduce new products and services that meet

both the needs of our customers and the requirements of emerging climate-related policies

(e.g. in relation to the financing of battery electric vehicles (BEVs)).

This could lead to increases in our competitiveness and the offerings we deliver to

customers, resulting in increased revenue growth opportunities.

Medium and long term

Opportunity – resource

efficiency and resilience

There is an opportunity to integrate low-carbon solutions into our operations and

infrastructure to further improve energy efficiency and reduce our carbon intensity.

Such opportunities could positively impact both our operating costs and ability to meet the

demands of our current and future customers. This could have implications for our revenue

growth opportunities.

Short, medium and

longterm

35 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

The scenarios used to test our business strategy and financial planning

We continue to undertake an annual scenario analysis to test whether our business strategy is sensitive to financial impacts associated with climate-related risks and opportunities. The approach we take to

undertaking our scenario analysis is reviewed annually. We have noted no material changes during FY25 and have made no updates to the scenarios used or the analysis carried out in the current year.

By undertaking an annual scenario analysis, we are able to identify the actual and potential impacts of climate-related risks and opportunities on our business, strategy and financial planning. In doing so,

we use the Group’s financial forecasts, operational footprint, customer data, supply chain information and environmental data, to create a representation of Vanquis. We also continue to use the following

three climate scenarios developed by the Network for Greening the Financial System (NGFS): Orderly, Disorderly, and Hot House World (further details on these scenarios are set out below). These scenarios

have been used because they provide a plausible representation of future climate based on potential trajectories of future levels of greenhouse gas emissions. The NGFS scenarios also couple climate risk

assessment models with macroeconomic and financial models to enable us to determine what climate change impacts and policies mean for the real economy and the financial system.

NGFS scenarios

Orderly Disorderly Hot House World

NGFS Net Zero 2050 NGFS Fragmented World NGFS Current Policies

Description:

5 Climate policies are introduced early and become increasingly

morestringent.

5 Global temperature is limited to 1.5°C.

Description:

5 Climate policies introduced are delayed and divergent leading to high

physical and transition risks.

5 Warming can be limited to <2°C resulting in lower physical risks, but may

result in higher transition risks.

Description:

5 Some climate policies are introduced but accompanying global efforts are

not sufficient.

5 Global warming predicted to increase within a range of 3°C to 5°C.

Key scenario factors:

5 Carbon/energy taxes/levies continue to be used and increase in use during

the next five years.

5 Investment in energy efficiency measures, renewable energy and carbon,

capture and storage are significant.

5 Physical risks are relatively low, but transition risks are high.

Key scenario factors:

5 Countries without net zero targets follow current policies, while other

countries achieve them only partially (e.g. 80% of the target).

5 Investment in energy efficiency measures, renewable energy and carbon,

capture and storage is patchy.

5 Some countries may experience low physical risks.

5 Higher transition risks compared to the Orderly scenario.

Key scenario factors:

5 Climate policies currently in place not maintained.

5 Higher dependence on fossil fuel extraction and use.

5 Transition risks are initially relatively low as limited action is taken.

5 Physical risks are severe, leading to irreversible changes.

In analysing the results of our scenario analysis, we continue to use a financial impact analysis to represent the estimated loss to the Group’s revenues over the next five years assuming that no mitigating

action is taken. The methodology used, which is based on our internal risk management processes, is rated in the following way: high (a loss impacting the income statement by more than 20% and/or by

more than £20m); medium (a loss impacting the income statement by between 10% and 20% and/or between £5m and £20m); and low (a loss impacting the income statement by between 5% and 10% and/or

by between £1m and £5m).

36 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

The impact of climate-related risks and opportunities on our business, strategy and financial planning

Physical risks Acute risks Chronic risks

Scenario Orderly Disorderly Hot House World

NGFS Net Zero 2050 NGFS Fragmented World NGFS Current Policies

NGFS risk rating Low Medium High

Financial impact/

risk to Group

Low Low Medium

Time horizon Short and medium term Medium and long term Long term

Impact In this scenario, there is likely to be more instances of extreme weather

events, such as heavy rain, high wind and heatwaves. ForVanquis, the

impacts of these events are likely to be minimal.

While climate-related physical risks also increase in this scenario, the

impact caused by, for example, extreme weather patterns, is much

smaller than in the Hot House World scenario. Under this scenario, it is

likely that more vulnerable parts of the world will be exposed to the

impacts of long-term changes in climate and weather patterns. In the

UK, there is likely to be significant regional variability in flooding impacts,

with large areas of the country not materially impacted by flood risk.

However, it is anticipated that there will be more instances of extreme

weather events, such as heatwaves, heavy rainfall and high winds, which

could disrupt our work environments and routines.

The greatest impact in physical risk is seen in this scenario as thecost

ofdamage caused by inland and coastal flooding, high windsand

subsidence is expected to increase as the global mean temperature rises.

This could pose a threat to the Group’s properties and infrastructure,

which,in turn, could impact our insurance or reinsurance costs, as insurance

companies could face higher payouts due to climate-related damages.

Thisscenario could also have the greatest consequences in terms of

colleagues’ productivity as extreme weather events may disrupt work

environments and routines,which could have implications for our customers.

Mitigation

measures

Vanquis continues to adopt the following actions in order to mitigate against the physical risks described above: continuing to maintain and test business continuity plans to ensure the continuity of our operations in arange of

situations, including those where an extreme weather event occurs; implementing measures to improve energy efficiency across the Group on an ongoing basis; and shifting to more sustainable, low-impact resources and

having a series of targets to achieve this aim (for example, to ensure that we use 100% renewable energy across the Group).

In terms of Vanquis’ exposure to physical risks, although it is accepted that extreme weather events may increase in number and severity compared to the present, they are unlikely to be as severe as those expected under the

Hot House World scenario. Further, the direct financial impacts associated with these events are considered to be minimal for Vanquis because our four main offices in Bradford, Chatham, London and Petersfield are leased,

and insurance is in place to help mitigate the impacts of such physical risks. We will continue to monitor the exposure of our main offices to surface water flooding and river/sea flooding using resources made available by the

Environment Agency. According to the Agency’s National Flood Risk Assessment (NaFRA) data (updated August 2025), which uses bespoke software to integrate detailed local flood risk models into a national picture, the

long-term flood risk relating to our four main properties is as follows:

Surface water flooding River and sea flooding

Property

Yearly chance

of flooding

Yearly chance

of flooding between

2040 and 2060

Yearly chance

of flooding

Yearly chance

of flooding between

2036 and 2069

Bradford Very low Very low Very low Very low

Chatham Very low Very low Very low Very low

London Very low Very low Very low Very low

Petersfield Very low Very low Very low Very low

We will continue to monitor the Environment Agency’s NaFRA data to assess the exposure of the Group’s main premises to long-term surface water, and river and sea flood risk.

37 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

The impact of climate-related risks and opportunities on our business, strategy and financial planning continued

Physical risks Acute risks Chronic risks

Scenario Orderly Disorderly Hot House World

NGFS Net Zero 2050 NGFS Fragmented World NGFS Current Policies

Mitigation measures

continued

We have also used the NaFRA data, along with available data from the Scottish Environmental Protection Agency and Natural Resources Wales, to assess the exposure of the Group’s Second Charge Mortgage customers to

flood hazards and risks. This assessment used publicly available data to determine the flood risk of the land around the houses of our customers, not the houses themselves. It enables us to assess the susceptibility of the

secured properties of our Second Charge Mortgage customers to incidents of both surface water and river/sea flooding, which could have credit risk implications for these customers. This analysis is set out below:

Surface water flooding River and sea flooding

% of Second Charge Mortgage customers

Yearly chance

of flooding

Yearly chance

of flooding between

2040 and 2060

Yearly chance

of flooding

Yearly chance

of flooding between

2036 and 2069

High 4% 5% 1% 1%

Medium 4% 5% 1% 1%

Low 8% 9% 3% 1%

Very low 84% 81% 95% 93%

Data not available 0% 0% 0% 2%

The scores set out above are weighted by risk level and type and take account of the efficacy of any flood defences that are in place. A significant proportion of the properties of our Second Charge Mortgage customers are in

areas where there is either a very low or low risk of surface water and/or river and sea flooding. Current contractual terms at origination require properties in areas with high chance of flooding tohave specific flood insurance.

Flood risk impacts on our Second Charge Mortgage portfolio will continue to be monitored, with exploration as to how they can be reflected in the origination partnership agreements with Interbridge Mortgages andSelina Finance.

38 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

The impact of climate-related risks and opportunities on our business, strategy and financial planning continued

Transition risks Policy and legal risks

Scenario Orderly Disorderly Hot House World

NGFS Net Zero 2050 NGFS Fragmented World NGFS Current Policies

NGFS risk rating Medium High Low

Financial impact/

risk to Group

Low Low Low

Time horizon Medium and long term Long term Medium and long term

Impact This scenario assumes a decline in total global GHG emissions, with

advanced economies leading the way, met through a combination of

policy and legal interventions resulting in the rapid deployment of clean

energy technologies, energy efficiency and consumer demand reduction

for carbon-intensive products and services. In this scenario, it is

anticipated that carbon removal costs are predicted to be volatile,

which could have implications for Vanquis in terms of our ability to

achieve our net zero by 2040 ambition. As such, the uptake and costs

associated with carbon removal will continue to be monitored. Further, if

the price ofcarbon increases as expected in this scenario, there is scope

for the costs associated with our operations and travel and transport to

increase, which could have implications for the Group’s revenues.

Ourcurrent analysis (see page 39) indicates that the Group’s exposure

to this risk islow as, despite the anticipated increasing carbon price, the

costs associated with our scope 1 and 2 GHG emissions remain well

below theloss impacting the profit and low statement threshold

describedabove.

This scenario assumes delayed and divergent climate policy response

among countries globally. This sees countries with net zero targets

partially achieving them and the other countries continuing with current

policy and legal interventions. In these circumstances, carbon prices

andamounts of investment are different across geographies, with

somecountries’ ambitious efforts being undermined by limited action

insome others. At the same time, climate policies differ significantly

across sectors; the transport and buildings sectors experience carbon

prices three times as high as the rest of the economy. The combination

ofthese misaligned efforts across countries and sectors leads to higher

transition risks, which could contribute to decreasing the Group’s revenues.

However, our analysis indicates that the Group’s exposure to this risk

islow.

In this scenario, we would not see the impact of transition risks, but

wewould expect to see the impact of physical risk in the long term.

However, as discussed above, we would expect an adverse overall

economic outcome, but do not consider it possible to accurately

quantify these impacts at this stage.

Mitigation

measures

The measures we will adopt in order to mitigate against these transition risks and ensure that our strategy responds to any potential opportunities include: continuing to analyse the impact of the price of carbon on our

operations and travel and transport activities annually to determine whether there are any revenue implications; continuing to engage with our customers on the benefits of using our Vehicle Finance products to purchase

battery electric vehicles (BEVs)/hybrid vehicles, and at the same time, engaging with our stakeholders to gain further insight into the used BEV market and the current state of the charging infrastructure in the UK; and

continuing to monitor customer default rates due to increased costs (e.g. as a result of cost-of-living increases).

39 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

Carbon price analysis

By applying carbon prices from the Department for Energy Security and Net Zero’s ‘traded carbon values used for modelling purposes’ research and analysis (December 2024) in the range of £78 per tonne

of carbon (the anticipated price of carbon in 2030 in a Net Zero Strategy Aligned scenario) to £154 per tonne of carbon (the anticipated price of carbon in 2050 in a Hot House World scenario) to our 2025

scope 1, scope 2 and associated scope 3 GHG emissions of 584 tonnes of CO

e, our analysis indicates a carbon price risk of between circa £45k and £90k. This falls well below the minimum financial impact

threshold of £5m described on page 35.

Transition risks Reputational risks

Scenario Orderly Disorderly Hot House World

NGFS Net Zero 2050 NGFS Fragmented World NGFS Current Policies

NGFS risk rating Low Low Medium

Financial impact/

risk to Group

Low Low Low

Time horizon Short, medium and long term Medium and long term Medium and long term

Impact Failure to act in a proportionate way to the climate change agenda

haspotential to damage the Group’s reputation, which could impact

customer or investor demand or result in a loss of existing talent or the

inability to attract new talent. This, in turn, could result in adverse revenue

implications in the short, medium and long term. To help mitigate this risk,

the Group is committed to reaching net zero by 2040by equalising or

lessening the emissions that are emitted into the atmosphere and has

also set SBTi-approved carbon reduction targets. In addition, the Group

remains committed to sharing information on its environmental

performance generally, and the climate risk agenda specifically,

withstakeholders through its annualdisclosures and submissions to,

forexample, the CDP.

In this scenario, it is anticipated that the potential reputational damage

described in relation to the ‘Net Zero 2050’ scenario could apply leading

to negative media attention or changes in consumer, colleague, investor

and other stakeholder preferences, which could contribute to reducing

the Group’s revenue and/or market share. Assuch, the Group will

continue to deliver on its net zero by 2040 ambition and SBTi-approved

carbon reduction targets, as well as engage with its stakeholders.

In this scenario, as mentioned above, it is expected that global climate

policy ambition would be severely delayed. This could lead to negative

media attention or changes in consumer, colleague, investor and other

stakeholder preferences, which could contribute to reducing the Group’s

revenue and/or market share. However, it is anticipated that these

impacts could take longer to be realised or could be generated by

specific stakeholders or in specific locations (e.g. within the Group’s

supply chain).

Mitigation

measures

The actions the Group will adopt in order to mitigate against this transition risk and ensure that our strategy responds to any potential opportunities include: continuing our net zero target by 2040 journey by continuing to

adopt sustainable energy sources, implement energy efficiency measures and engage with our suppliers to encourage them to reduce their own carbon emissions; delivering on our SBTi-approved carbon reduction targets;

andensuring that the remuneration of the executive directors is partly linked to our progress in meeting the Group’s ESG-related goals and targets.

40 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related

financial disclosure

continued

Analysis of climate-related

opportunities

We continue to review opportunities that will

enable us to introduce new products to our

customers that accommodate their needs and

meet emerging climate-related policy and

regulatory changes. This includes opportunities

that relates to enabling our Vehicle Finance

customers to use their loans to purchase battery

electric vehicles (BEVs) or hybrid electric vehicles.

However, the affordability of BEVs continues to

be the main barrier to ownership for the Group’s

Vehicle Finance customers. The average loan

amount for our Vehicle Finance customers stood

at £8,924 in 2025. This compares to the average

price of a used BEV which, in August 2025, was

£22,162 (source: Marketcheck – UK Automotive

Sales Data).

Of the 103,036 ‘live’ customers that are currently

served by our Vehicle Finance business, 3.4% of

these have used their loan to purchase a BEV

car or light commercial vehicle (see tables below

for further information).

Further, the lack of access to private charging at

home continues to be a barrier and contributes

to a two-tier society when it comes to the cost of

EV charging. According to Zapmap, the average

price of the slower public charging options in

January 2026 was 17p per mile compared to the

7p per mile average for at-home charging.

New/used vehicle

% of Vehicle

Finance customers

New vehicle 0.59% (2024: 0.66%)

Used vehicle 99.41% (2024: 99.34%)

Total 100%

Fuel type

% of Vehicle

Finance customers

Diesel 55.76% (2024: 58.19%)

Petrol 37.88% (2024: 37.47%)

BEV 3.40% (2024: 1.09%)

Hybrid electric 0.67% (2024: 2.33%)

Electric diesel 2.07% (2024: 0.14%)

Gas bi-fuel 0.19% (2024: 0.03%)

ND 0.03% (2024: 0.75%)

Total 100%

We are now also continuing to report on the

carbon intensity of the vehicles that we finance

through our finance products (see table below).

classification of vehicles

(kg of CO

per mile)

% of Vehicle

Finance customers

0 = > x < 50 5.62% (2024: 4.09%)

50 > = x < 100 8.20% (2024: 9.77%)

100 > = x < 110 12.35% (2024: 13.38%)

110 > = x < 120 15.36% (2024: 15.86%)

120 > = x < 130 14.53% (2024: 14.87%)

130 > = x < 140 12.79% (2024: 12.73%)

140 > = x < 150 8.33% (2024: 8.09%)

150 > = x < 200 19.28% (2024: 18.07%)

> 200 3.35% (2024: 2.89%)

ND 0.20% (2024: 0.25%)

Total 100%

The resilience of our strategy,

takinginto consideration different

climate-related scenarios, including

a 2°C or lower scenario

Through our scenario analysis we consider our

business to be resilient to the risks we have

identified. This assessment is supported by the

mitigating actions described on pages 36 to 39.

In preparing the Group’s financial statements

(see pages 137 to 198), we have considered the

impact of the results of our scenario analysis

and climate-related risks on our financial

performance, and while the effects of climate

change represent a source of uncertainty, there

has not been a material impact on our financial

judgements and estimates due to the physical

and transition climate-related risks in the short

to medium term.

Risk management

The process for identifying, assessing and

managing climate-related risks is performed at

a Group level and follows our risk management

and internal control framework described on

pages 54 to 56.

Identifying and assessing

climate-related risks

Our risk management and internal control

framework allows for the ongoing identification,

assessment and reporting of the climate-related

risks and opportunities we face as a business.

Wecontinue to use this framework to identify

potential exposure to climate-related risks

viatheassociated physical risks and transition

risks. Indoing so, we use the time horizons

described above to classify the climate-related

opportunities and risks, aligned to our strategy

and business plans.

As with all the principal risks, and any Level 1

risks, this framework sets out the high-level policy

requirements and control principles that are in

place and those responsible for managing both

the overall risk and the relevant mitigating controls

for further information. The effectiveness of the

framework is underpinned by four key attributes:

a strong risk culture, clearly defined risk appetite,

robust risk governance, anda three lines of

defence approach to risk management

(seepage 56 for more information).

Climate risk isa Level 1 risk within the Group’s

risk taxonomy and is included within the

regulatory principal risk (P2) (see page 57 for

further detail). All risks are subject to ongoing

monitoring and annual review to identify

changes that may affect the Group’s risk profile.

Monitoring and managing

climate-related risks

To ensure the climate-related risks referenced

above and their potential financial impact on

our business are monitored and managed on

anongoing basis throughout the year we use

several processes. These include: monthly risk

appetite reporting using metrics that relate

tocarbon pricing; customer default rates;

operational impacts associated with extreme

weather events and the progress being made

inrelation to our net zero target; and a Risk and

Control Self-Assessment (RCSA) process for

climate risk, which enables us to identify, analyse

and understand the related controls that are in

place, and to evaluate these against our risk

appetite and the desired risk levels, to determine

whether any improvements need to be made.

Regular updates are also provided to the

Board’s Risk Committee on the progress made

interms of delivering mitigating activities that

relate to the Group’s climate risk.

The CRC supports the embedding of the

riskmanagement approach for identifying

andassessing climate-related risks and

mitigating controls. Based on the monitoring

thathas been undertaken during 2025, the

CRCcontinues to recommend that a ‘risk

cautious’ appetite for exposure to climate risk

isadopted and supports the implementation of

acontrol framework that prevents significant

customer orstakeholder detriment, regulatory

non-compliance and/or reputational damage

asa result of climate change.

41 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related

financial disclosure

continued

Integrating climate-related risks

into our risk management policies

and processes

The climate-related risks and opportunities we

have integrated within our risk management

and internal control framework are continually

monitored. This enables us to evaluate the

significance of our risks based on their likelihood

and impact, and to prioritise their management

on an ongoing basis. Through this framework,

we also monitor the environment for new and

emerging risks and keep up to date with any

evolving regulatory requirements. For example,

through the CRC meetings that took place

during 2025, we have been able to monitor and

discuss developments regarding the draft UK

Sustainability Reporting Standards (UK SRS) that

were published for comment by the UK

Government’s Department for Business and

Trade in June 2025.

Metrics and targets

The following section summarises the metrics we use to manage climate-related risks and to realise the climate-related opportunities described above,

and to measure our scope1, scope 2 and scope 3 GHG emissions, as well as to track overall progress including against our ambitions and initiatives.

These metrics are associated with a specific risk and opportunity category and ensure that any progress made towards mitigating a risk or realising an

opportunity is recorded and reported.

Risk/opportunity

category Aspect Metric Target Progress/explanation

Physical risk Extreme weather Disruptions due to extreme weather

events: Number of insurance claims

Keep insurance claims at 0. 0 (2024: 0).

Transition risk –

policy/legal

Net zero challenge Reduce scope 1, 2 and 3 GHG

emissionsreporting

Net zero by 2040 (relating to the Scope 1,

2 and 3 emissions that arise from

ouroperations).

See GHG emissions table on page 42

and the ESG data table on the Group’s

website.

Science-based targets Carbon reduction Reduce scope 1 and 2 GHG emissions by

39.9% by 2028 from a 2021 base year.

78% of suppliers by spend covering

purchased goods and services will have

science-based targets by 2027.

Our scope 1 and scope 2 GHG emissions

have reduced by 62% from a 2021

baseyear.

Currently, c. 45% of our suppliers by

spend have set science-based targets.

Energy usage Renewable energy use Continue to use 100% renewable

electricity across our business premises.

We continue to use 100% renewable

electricity across the business premises

where we have full control of utility

usage.

Transition risk –

reputation

Supplier engagement Monitor suppliers in line with the Group’s

ESG commitments

See SBTi-approved target above. All materially significant suppliers continue

to be engaged on the climate risk agenda

via our due diligence process.

Investor Relations Investor sentiment and perception

regarding the Group’s ESG performance

Continue to participate in the CDP,

FTSE4Good Index andS&P Global

Corporate Sustainability Assessment.

During the year, we engaged with the

CDP, FTSE4Good Index and S&P Global

Corporate Sustainability Assessment.

Transition opportunity

– marketopportunities

Customer

engagement

Customer sentiment andperception

regarding their ability to transition to

alow-carbon economy as well as the

Group’s ESGperformance

Number of Group customers using our

Vehicle Finance products to purchase

BEVs andhybrid electric vehicles.

3.4% of the 103,036 ‘live’ customers

currently served by our Vehicle Finance

business have used their loan to

purchase a BEV car or LCV.

Customer attitudes and perceptions

towards buyingBEVs.

See page 40.

Engagement with policymakers to

support the uptake of BEVs by consumers

in the mid-cost and near-prime parts of

the consumer credit market.

We have continued to monitor

developments in the BEV market

regarding their affordability and access

to at-home charging points.

42 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

GHG emissions inventory (SECRreporting)

We report our GHG emissions and energy usage data in accordance with the UK SECR Policythat has

been implemented through the Companies (Directors’ Report) and Limited Liability Partnership

(Energy and Carbon Report) Regulations 2018. The table below covers the Group’s performance for

2024 and 2025. The scope 1 and scope 2 GHG emissions, and energy use figures relate to the UK.

Year FY2025 FY2024

Scope 1 GHG emissions (tonnes of CO

e) 196 111

Gas use 53 107

Diesel and petrol use 0.5 4

Fugitive emissions from air conditioning systems

142 —

Scope 2 GHG emissions (tonnes of CO

Electricity use (market-based emissions)

59 371

Electricity use (location-based emissions) 273 388

Scope 3 GHG emissions (tonnes of CO

Scope 3 associated category 3 ‘well-to-tank’ emissions 115 275

Scope 3 category 1 – purchased goods and services

3, 4

31,333 23,440

Scope 3 category 3 – fuel and energy-related activities

(notincludedinscope 1 and 2) 325 147

Scope 3 category 5 – waste generated in operations 2 2

Scope 3 category 6 – business travel 1,050 1,080

Scope 3 category 7 – employee commuting

952 1,124

Scope 3 category 15 – investments

114,272 262,417

Total energy consumed (kilowatt hours) 1,544,320 1,877,843

Scope 1 and 2 (and associated scope 3 GHG emissions intensity ratio

(kgof CO

e per customer) 0.33 0.43

1 The fugitive GHG emissions that arise from the use and maintenance of the air conditioning systems and units in our offices are

reported for the first time in FY25. This is why there is no comparable data for FY24.

2 The market-based emission factor from one of our two electricity suppliers, which provides electricity to our London office, are in CO

and not CO

e (i.e. do not include non-CO

emissions). The emission factor used in the market-based method for this supplier covers

the period 1st April 2024–31st March 2025 only. The electricity provided to our other offices in Bradford, Chatham and Petersfield is

100% renewable and therefore has a market-based emission factor of 0.

3 When calculating the suppliers’ carbon emissions using the spend-based method, we have used the US Environmental Protection

Agency Economically Extended Input-Output methodology which uses the North American Industry Classification System (NAICS)

emission factors. These emission factors were published in 2023 and provide kg of carbon dioxide equivalents per 2022 USdollar

(USD). As such, our supplier spend figures have been converted into USDusing an exchange rate of GBP1 to USD1.34. In addition,

an inflation rate of £1.15 has been implemented to ensure accuracy and transparency. Specific GHG emission factors that relate to

specific NAICS code categories have been applied to 80% of the Group’s suppliers by spend, with a NAICS code average emission

factor applied to the remaining 20% of suppliers by spend.

4 In the absence of wastewater treatment volume data for some offices, we have assumed that the wastewater treatment volume

figures are the same as the water supply volume figures; this approach results in an overestimate of the total water treatment volumes.

5 Employee commuting to work GHG emissions are calculated using feedback from our 2025 colleague travel survey.

6 The GHG emissions from the vehicles that are financed by the Group are based on the number of live vehicle finance agreements

forthe 2025 reporting period. The methodology used to calculate these emissions aligns with the PCAF Standard which relates to

measuring and reporting scope 3 category 15 emissions. In calculating these emissions, we have assumed an average mileage of

7,100 miles per annum (2024: 12,000 per annum) based on the UK Government’s Department for Transport National Travel Survey

(August 2025) and used real-world category average emission factors published by Department for Energy Security and Net Zero.

Year on year changes in GHG emissions

The increase in the scope 1 GHG emissions we have reported is due to our reporting of fugitive

emissions from the air conditioning systems and units in our business premises for the first time in

2025. The reduction in our scope 2 emissions is due to the energy efficiency measure we continued

tointroduce in our offices during 2025. Finally, our use of the more accurate US Environmental

Protection Agency Economically Extended Input-Output methodology and Partnership for

CarbonAccounting Financials (PCAF) standard has resulted in our reported scope 3 category 1 and

scope 3 category 15 GHG emission increasing and reducing respectively.

Energy efficiency measures

Initiatives undertaken during 2025 to improve energy efficiency include the relocation of the

Bradfordhead office into smaller premises in September 2025, which has reduced energy consumption

and resource use; amending the heating and cooling parameters in all other offices in line with

accommodation rates; and reducing the business travel to our outsource partners in South Africa.

Data dependencies and limitations

Calculating our scope 3 upstream GHGemissions

Our scope 3 upstream emissions for category 1 (purchased goods and services) are calculated

usinga spend-based methodology, which involves estimating these emissions based on the value

ofthe goods and services that we purchase from our suppliers. This has been done this year by

calculating the economic value of the goods and services we procure and multiplying this figure by

the Economically Extended Input-Output (EEIO) emission factors that have been published by the US

Environmental Protection Agency (EPA). The most up-to-date US EPA EEIO emission factors were

published in 2023. As a result, an inflation rate has been added to our economic value figure. While

these factors are more granular and regularly updated than the ones previously used, they can lead

to some volatility in the scope 3 category 1 GHG emissions data that is reported because of its

reliance on estimates and average emission factors. Also, our ability to identify, analyse, and monitor

GHG emissions reduction efforts related to purchased goods and services is restricted when the

spend-based method is employed. This is because the main way to reduce GHG emissions when a

spend-based method is used is to reduce spending, which is not a viable option and may not align

with our wider businessgoals.

Calculating our scope 3 downstreamemissions

Our scope 3 category 15 GHG emissions, which relate to the vehicles financed by the Group are

calculated using a methodology that is aligned with the GHG Protocol and PCAF standard. This

methodology: considers only vehicles with outstanding loans that appear on the year-end balance

sheet; calculates an attribution factor (%) for each vehicle based on outstanding loan amount at

year end divided by the value of the vehicle at origination and is applied to the estimated annual

emissions of that vehicle to calculate the emissions that should be reported by the Group; anduses

an average mileage per year assumption of 7,100 miles which is based on the most recent National

Travel Survey carried out by the UK Government’s Department for Transport.

43 – Vanquis Banking Group plc Annual Report and Accounts 2025

Governance Financial statementsStrategic report Shareholder information

Sustainability continued

2025 climate-related financial disclosure continued

Data dependencies and limitations

continued

Limitations of climate scenarioanalysis

An important aspect of our climate-related

financial disclosure involves undertaking an

analysis using prescribed scenarios. It should be

noted that these scenarios are not forecasts and

do not seek to predict future outcomes. Rather,

they are forward-looking projections of risk

outcomes that focus on: identifying physical and

transition risk scenarios; linking the impacts of

these scenarios to financial risks; assessing any

sensitivities to those risks; and extrapolating the

impacts of those sensitivities to calculate an

aggregate measure of exposure and potential

losses. They do not and cannot reflect all

potential future pathways. Furthermore, the

NGFS scenarios that are used in our analysis

may overestimate or underestimate systemic

climate-related risks.

Cautionary statement

This disclosure is presented for information and

reference purposes only and should not be

treatedas giving any form of advice. Its

preparation is based on reviews and analysis

ofour internal data, which is from management

systems separate from those that form part of our

financial reporting internal controls framework.

Whilststatements made within the disclosure

arepresented in good faith and based upon

sources expected to be reliable, their accuracy

isnot guaranteed. For certain information within

the disclosure, preparation has included various

key judgements, assumptions, and estimates,

some of which aresummarised above. Where

information is presented from a public or

third-party source, ithas not been assured in

accordance with the International Standard on

Assurance Engagement (ISAE) 3000 (Assurance

Engagements other than Audits or Reviews of

Historical Financial Information) and the relevant

subject matter specific ISAE standard for GHG

data (ISAE 3410, Assurance Engagements on

Greenhouse Gas Statements). Any third-party

opinion or views disclosed in this report are

those of the third parties themselves, and not of

Vanquis Banking Group. The Group recognises

that climate-related reporting is not yet subject

to the same standardised disclosure framework

as traditional financial reporting which has

potential to result in non-comparable

information or measures between companies

and between reporting periods as disclosure

frameworks continue to evolve.