Digital-only B2B bank VersaBank Q3 revenue up 17%, profit down 32% on costs

VersaBank

04/09/2025 12:13

Overview

VersaBank Q3 revenue rises 17% yr/yr to C$31.6 mln

Net income falls 32% yr/yr due to realignment costs

Total assets increase 21% yr/yr to C$5.5 bln

Outlook

Company targets US Receivable Purchase Program (RPP) portfolio of US$290 mln by fiscal year-end

Company sees growth in Canada from resilient consumer spending

VersaBank anticipates Digital Deposit Receipts (DDRs) as a significant future opportunity

Result Drivers

RPP EXPANSION - Growth driven by expansion of RPP in US and Canada, including securitization

DIGITAL BANKING GROWTH - Canadian operations benefited from resilient consumer spending and new partnerships

REALIGNMENT COSTS - Significant non-interest expenses incurred due to planned corporate structure realignment to US bank framework

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$31.58 mln
Q3 EPS
C$0.2
Q3 Net Income
C$6.58 mln
Q3 Basic EPS
C$0.2
Q3 CET1 Capital Ratio
13.6%
Q3 Net Interest Margin (%)
2.2%


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"

Wall Street's median 12-month price target for Versabank is C$19.00, about 17.5% above its September 3 closing price of C$15.68

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nCNWsvcwYa

(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.)