Canada's VersaBank Q1 revenue jumps on US growth

VersaBank

04/03/2026 01:37

Overview

Canada digital bank's Q1 revenue grew 31% yr/yr, driven by U.S. growth

Net income for Q1 rose 36% yr/yr

Q1 adjusted net income increased 49% yr/yr

Outlook

VersaBank aims to grow U.S. SRP fundings by at least $1 bln in fiscal 2026

Company advancing RBTD™s towards commercialization amid favorable regulatory environment

Result Drivers

U.S. SRP EXPANSION - Co's U.S. Structured Receivable Program saw 55% sequential growth in Q1, driving revenue increase

LOWER COST OF FUNDS - Co's net interest margin in digital banking operations improved due to renewal of maturing deposits at lower rates

Company press release: ID:nPn2rLrXga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$36.51 mln
Q1 EPS
C$0.35
Q1 Net Income
C$11.07 mln
Q1 CET1 Capital Ratio
12.82%
Q1 Net Interest Margin (%)
2.25%


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$17.50, about 24.6% below its March 3 closing price of C$23.20

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)