Canada's VersaBank Q2 revenue rises on US growth

VersaBank

03/06/2026 12:10

Overview
Canada digital B2B bank's fiscal Q2 revenue grew 27% yr/yr, driven by US SRP expansion
Adjusted net income for fiscal Q2 rose 45% yr/yr, while reported net income declined
Company incurred $6.7 mln in non-core expenses related to reorganization and asset write-down

Outlook
VersaBank targets at least C$1 bln in additional US SRP fundings for fiscal 2026
Company expects launch of AI-enabled real-time SRP to expand addressable market in US and Canada
VersaBank expects incremental revenue from stablecoin custody services as commercialization advances

Result Drivers
US SRP GROWTH - Strong expansion of Structured Receivable Program portfolio in the US drove revenue and credit asset growth
LOWER COST OF FUNDS - Net interest margin improved due to renewal of maturing deposits at lower rates and normalization of the yield curve
OPERATING LEVERAGE - Adjusted net income growth outpaced credit asset growth as the bank benefited from operating leverage in its business model

Company press release: ID:nCNW55jbpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
C$0.23
 
Q2 Net Income
 
C$7.53 mln
 
Q2 Net Interest Margin (%)
 
2.33%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Versabank is C$23.00, about 8.3% below its June 2 closing price of C$25.08
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)