Canada's VersaBank Q1 revenue jumps on US growth
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.
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