Canada's VersaBank Q4 revenue up 29% on RPP growth

VersaBank

10/12/2025 12:15

Overview

Canada digital bank's Q4 revenue grew 29% yr/yr, driven by RPP asset growth

Adjusted net income for Q4 rose 91% yr/yr despite reorganization costs

Company purchased and cancelled 573,251 shares under NCIB program

Outlook

VersaBank expects continued growth in RPP portfolio in fiscal 2026

Company anticipates strong U.S. and Canadian growth

VersaBank plans to launch tokenized deposits in U.S. and Canadian currencies

Result Drivers

RPP GROWTH - Strong growth in the Receivable Purchase Program (RPP) assets, particularly in the US, drove a 29% increase in revenue

NET INTEREST MARGIN - Improved net interest margin due to lower cost of funds and renewal of maturing deposits at lower rates

REORGANIZATION COSTS - Net income impacted by one-time reorganization costs and higher tax provision

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
C$35.09 mln
Q4 Net Income
C$5.20 mln
Q4 CET1 Capital Ratio
12.92%
Q4 Net Interest Margin (%)
2.29%


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$19.00, about 10.1% above its December 9 closing price of C$17.26

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNWwQ7jca

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