The Worst Four UK Banks

There are only four UK banks that have been loss-making for each of their last 6 accounting periods. They are The Charity Bank Ltd (total pre-tax losses of £4.1 million), Islamic Bank of Britain Plc (total pre-tax losses of £28.4 million), Wesleyan Bank Ltd (total pre-tax losses of £2.1 million), and Vanquis Bank Ltd (total pre-tax losses for the 5 accounting periods since inception a whopping £51.6 million).

Vanquis Bank Ltd is owned by Provident Financial Plc. It has yet, in its 5 year history, to make a profit. Vanquis makes its money by providing the credit-unworthy with a credit card which charges an interest rate of 39.9%. Let's call that 40%. Those that use the card to take out cash pay a 49.9% interest rate. That's to say 50%. In the last year (to 31.12.07) it had to write off over £21 million. Its Directors' Report is a lesson in avoiding the question. Under "Principal Risks and Uncertainties" its Company Secretary writes, "...the company's directors believe that a discussion of the group's risks would not be appropriate..." Under "Key Performance Indicators" he writes, "...the company's directors believe that analysis using key performance indicators for the company is not necessary or appropriate..." Vanquis' chairman is, appropriately enough, a Mr Crook.