VersaBank Reports 31% YoY Revenue Growth to CAD 36.5 M, Assets Top CAD 6.1 B
Total consolidated revenue reached a record CAD 36.5 million in Q1, up 31% year-over-year, while credit assets rose 23% to CAD 5.33 billion. Total assets topped CAD 6.1 billion, book value per share hit CAD 16.93, and the bank recorded a CAD 1.5 million reorganization charge alongside a new CFO appointment.
1. Q1 Financial Highlights
Total consolidated revenue hit a record CAD 36.5 million, up 31% year-over-year and 4% sequentially, driving adjusted net income to CAD 12.2 million, a 49% increase year-over-year. Reported net income was CAD 11.1 million, or CAD 0.35 per share, with non-interest expense of CAD 20.5 million including CAD 1.5 million of reorganization costs.
2. Asset and Capital Position
Total assets rose 24% year-over-year and 6% sequentially to over CAD 6.1 billion. Book value per share reached a record CAD 16.93, while the bank’s Common Equity Tier 1 ratio stood at 12.8% and leverage ratio at 8.2%, supported by CAD 729 million in cash and securities.
3. Corporate Realignment and Leadership
The bank incurred CAD 1.5 million in Q1 reorganization costs to align with a U.S. banking framework, with an expected CAD 4.0–4.5 million charge in Q2. Nico Ospina joined as Global CFO from U.S. investment banking, while the former CFO now leads Canadian banking operations; a cybersecurity unit sale is planned by summer.
4. U.S. Structured Receivable Program Growth
The U.S. Structured Receivable Program grew 29% year-over-year to CAD 4.4 billion, representing 83% of credit assets, with over CAD 200 million of fundings in Q1. Management targets at least CAD 1 billion in U.S. fundings for fiscal 2026 and reported a 2.64% NIM on credit assets.