Vanquis Banking Group set to cut around 350 roles next year as part of a strategy to reduce costs

A simplified operating model has been introduced that removes duplication and reduces costs,Vanquis said.

The statement added: “Cost reductions of c.£60m are expected to be achieved within 2024, including the removal of c.350 roles. Key initiatives include greater use of outsourcing and changes to phasing of investments.”

Despite continuing macroeconomic uncertainty, the customer credit environment remained resilient, which supported lower levels of impairment and improving risk adjusted margin, the statement added.

The group expects to deliver adjusted profit before tax in the range of £25m to £30m for the full year 2023, although Vanquis said that this outturn remains subject to a range of external variables.

The statement added: “CEO Ian McLaughlin and team have taken immediate action to return the group to a path to sustainable, profitable growth.”

Mr McLaughlin said: “For all of us here at Vanquis Banking Group, helping to put our customers on a path to a better everyday life really matters. We deliver important solutions to an under-served customer base in a growing market segment.

"We have strong foundations from which to deliver value for our customers and shareholders, based on a coherent group structure and differentiated access to retail funding.

“We have worked at pace to undertake a detailed operating review of the group. We have scrutinised every cost centre and product line.

"As a result, we have taken action to stabilise our NIM, significantly reduce our cost base and put ourselves in a position to clarify guidance for our year end PBT (profit before tax).

"We have also refreshed our executive committee and have already appointed a chief technology officer, chief financial officer, chief of staff and head of investor relations, with an offer made for the post of chief customer officer.

“We have started a full strategy review that will complete by the end of January 2024. The outputs of this will enable us to become the outstanding customer champion in our target market segment and deliver sustainable, profitable growth based on our deep understanding of, and commitment to, our customer base.

"On the March 27 2024 in conjunction with our full year results, we will host a Capital Markets Day setting out our new vision for the Group.

"Sir Peter Estlin, who took over as chairman of the board on 15 September, and I share a determination to deliver operational improvements in the short term, and to build a business that delivers value for all of our stakeholders over the medium and longer term.”

Commenting on the update, analysts at Barclays said: “Vanquis's Q3 (third quarter) update highlighted the significant steps made to reset the receivables and cost profile of the business under new CEO Ian McLaughlin.”