The bank’s revenue rose 23% to 38.8 million Canadian dollars for the quarter ended July 31, though the figure fell short of the 40.3 million anticipated by analysts. While net income reached 0.31 Canadian dollars per share, adjusted earnings of 0.38 Canadian dollars also missed consensus expectations of 0.44 Canadian dollars.
In section Market Quotes
VersaBank Profit Climbs on U.S. Digital Lending Expansion
A surge in U.S. digital lending activity pushed VersaBank’s third-quarter profit to 10.1 million Canadian dollars, marking a significant climb from the 6.6 million reported during the same period last year. The Canadian business-to-business bank continues to leverage its Structured Receivable program to capture cross-border growth.
Growth remains anchored in the firm's flagship U.S. lending operations, which now hold 793 million U.S. dollars in assets. Despite this expansion, the net interest margin tightened by 6 basis points to 2.19%, a decline attributed to rising deposit costs and shifts in the bank's asset mix. Credit quality remains a strong point for the institution, with provisions for credit losses holding steady at a negligible 0.02% of average credit assets.
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