Canada's VersaBank Q3 profit jumps on SRP portfolio growth

VersaBank

03/09/2026 12:12

Overview
Canada digital business bank's Q3 revenue rose 23% yr/yr, net income up 53%
Adjusted (core) net income grew 27% yr/yr, reflecting SRP portfolio expansion
Q3 results include $3.1 mln in non-core non-interest expenses tied to reorganization, software write-off

Outlook
VersaBank targets at least US$3 bln in new US SRP fundings in fiscal 2027
Company expects accelerated SRP growth in Canada following launch of Real-Time SRP
VersaBank expects to drive further efficiency through broader implementation of AI

Result Drivers
SRP EXPANSION - Co said continued growth in Structured Receivable Program portfolios in US and Canada drove record credit assets and revenue
REAL-TIME SRP LAUNCH - Launch of Real-Time SRP generated incremental demand from existing and new partners, especially in US
OPERATING LEVERAGE - Co said branchless, digital model and broader AI implementation are driving efficiency gains and improved risk profile

Company press release: ID:nNFC7sq4Wr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
C$38.81 mln
 
Q3 EPS
 
C$0.31
 
Q3 Net Income
 
C$10.06 mln
 
Q3 CET1 Capital Ratio
 
11.47%
 
Q3 Net Interest Margin (%)
 
2.19%
 

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$26.00, about 1.7% below its September 2 closing price of C$26.44
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Sept 2 - Bank of Canada holds key rate, says multiple hikes might be needed
Sept 1 - India preparing rollout of agentic payments on UPI, sources say
Sept 1 - Canada's Couche-Tard Q1 results beat on acquisitions, higher fuel margins

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.)