Versabank VBNK

FinancialsBanking ServicesCanada

Last close 30.82 CAD on Nov 1, 2026, +50.9% year to date

Quant rating

Quant rating B Rank 20 of 51 in Financials

Growth A 3 of 51
Valuation D 47 of 51
Quality D 36 of 51
Revisions C 32 of 51
Momentum A 3 of 51

Wall Street consensus Buy (2.00)Average target 25.50 CAD −17.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 1.0B
Enterprise value: 617M
52-week range: 15.80 – 34.00
3-year range: 10.21 – 34.00
Dividend yield: 0.32%
Beta (5 years): 0.99
Shares outstanding: 32.5M
Next earnings: Dec 8, 2026

About the company

VersaBank is a Canadian Schedule I chartered bank. It offers a receivable purchase program (RPP) funding solution for point-of-sale finance companies. It also owns DRT Cyber Inc., which provides the provision of cybersecurity services designed to address the growing volume of cyber threats challenging financial institutions, multinational corporations, and government entities. Its segment consists of Digital Banking Canada, Digital Banking USA and DRTC. Under Digital Banking Canada, the Bank employs a branchless business-to-business (partner-based) model using its financial technology to address underserved segments in the Canadian and U.S. banking markets. Under Digital Banking USA, the Bank intends to adopt a business-to-business model, to address underserved segments of the U.S. banking market. Under VersaBank USA, it plans to acquire deposits and deliver the majority of its loans and leases electronically through deposit and lending solutions tailored for financial intermediaries.

Growth and profitability fiscal year ends October 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	296	285	229	127	89.5	–
Revenue growth	3.6%	24.5%	80.8%	41.7%	3.9%	28.0%
EPS (basic, normalized)	0.90	1.49	1.57	0.79	0.96	–
EPS growth	−39.5%	−4.7%	98.3%	−17.4%	17.2%	2.1%
Gross margin	–	–	–	–	–	–
Net margin	9.6%	13.6%	18.0%	17.1%	23.2%	16.3%
ROE	6.1%	10.2%	7.6%	6.6%	7.6%	7.6%

Balance sheet, last quarter
Cash & short-term investments (mil)	–
Tier 1 risk-adjusted capital ratio	11.5%
Long-term debt (mil)	107
Net debt (mil)	–
Total equity (mil)	566
Net debt / equity	–

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			Book value per share			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	P/B	Mean est.	Growth	P/E
2025 actual	296	+3.6%	2.1x	16.67	+18.8%	1.8x	0.90	−39.6%	34.2x
2026	152	−48.6%	4.1x	16.27	−2.4%	1.9x	1.61	+78.9%	19.1x
2027	208	+37.0%	3.0x	18.51	+13.8%	1.7x	2.42	+50.5%	12.7x
2028	258	+23.8%	2.4x	23.57	+27.3%	1.3x	3.50	+44.4%	8.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	152	+4.4%	−2.6%	−0.7%	1.61	+0.6%	+25.8%	+2.1%
2027	208	+3.2%	+3.5%	+6.8%	2.42	−10.4%	+5.4%	+9.4%
2028	258	+4.2%	–	–	3.50	0.0%	–	–

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Apr 2024	Jul 2024	Oct 2024	Jan 2025	Apr 2025	Jul 2025	Oct 2025	Jan 2026	Apr 2026	Jul 2026
Sales reported (mil)	26.2	24.9	24.9	25.7	28.0	29.8	32.6	33.9	35.7	36.8
Sales mean (mil)	29.6	27.3	27.0	30.2	27.1	30.8	32.7	36.4	35.2	39.4
Surprise	−11.3%	−8.5%	−7.8%	−14.9%	+3.3%	−3.2%	−0.2%	−7.0%	+1.4%	−6.8%
EPS reported	0.45	0.36	0.20	0.28	0.26	0.20	0.17	0.35	0.23	0.31
EPS mean	0.45	0.47	0.41	0.39	0.28	0.32	0.30	0.40	0.28	0.36
Surprise	+1.1%	−23.4%	−51.6%	−27.6%	−8.8%	−36.5%	−44.3%	−11.4%	−18.8%	−13.9%

Peer comparison Banking Services

Peers in the same industry group, by market capitalization
Company	Market cap	Tier 1 ratio	Net margin	Deposits/loans	FY1 P/E	FY2 P/E	FY1 P/B	FY2 P/B
VBNK Versabank	1.0B	11.5%	9.6%	0.96x	19.1x	12.7x	1.9x	1.7x
TBBK Bancorp Inc	2.7B	11.4%	41.4%	1.16x	8.5x	6.6x	2.7x	2.4x
CASH Pathward Financial Inc	2.2B	11.7%	35.4%	1.28x	7.8x	6.9x	1.6x	1.4x
TFIN Triumph Financial, Inc.	2.1B	10.5%	5.1%	1.00x	31.8x	17.7x	1.6x	1.4x
CCB Coastal Financial Corp (EVERETT)	926M	10.9%	10.9%	1.16x	274.9x	8.0x	1.3x	1.1x
HIFS Hingham Institution For Savings	927M	14.7%	26.4%	0.66x	–	–	–	–
Mean		11.8%	21.5%	1.04x	68.4x	10.4x	1.8x	1.6x
Median		11.4%	18.7%	1.08x	19.1x	8.0x	1.6x	1.4x

Technical analysis

1M−3.1%
3M+12.1%
1Y+84.8%
3Y+204.3%

Financial statements in millions of CAD

Income statement in millions of CAD, fiscal years

Income statement, Versabank, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Interest income	296	285	229	127	89.5	86.1
Total interest expense	180	183	129	50.2	29.3	32.0
Net interest income	116	103	100	76.7	60.2	54.1
Loan loss provision	4.4	−0.3	0.6	0.5	−0.4	−0.3
Net interest income after loan loss provision	112	103	99.4	76.2	60.6	54.5
Non-interest income	8.5	9.0	8.6	5.7	5.2	0.1
Non-interest expense	−78.7	−57.1	−50.4	−49.4	−35.0	−27.8
Net income before taxes	41.5	54.8	57.6	32.5	30.8	26.8
Provision for taxes	13.0	15.0	15.5	9.9	8.4	7.3
Minority interest & equity in affiliates	–	–	–	–	–	–
Other	0	0	0	0	0	0
Net income before extraordinary items	28.5	39.7	42.2	22.7	22.4	19.4
Extraordinary items	–	–	–	–	–	–
Net income	28.5	39.7	42.2	22.7	22.4	19.4
Basic weighted average shares (mil)	31.5	26.0	26.3	27.4	21.8	21.1
Diluted weighted average shares (mil)	31.5	26.0	26.3	27.4	21.8	21.1
Basic EPS excluding extraordinary items	0.90	1.49	1.57	0.79	0.96	0.82
Basic EPS, normalized	0.90	1.49	1.57	0.79	0.96	0.82

Balance sheet in millions of CAD, fiscal years

Balance sheet, Versabank, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & due from banks	582	225	132	88.6	272	258
Other earning assets	81.9	300	170	143	1.0	8.6
Net loans	5,043	4,214	3,830	2,978	2,095	1,648
Property, plant & equipment	26.4	26.6	10.0	11.0	11.9	10.4
Goodwill	12.3	12.3	5.8	5.8	5.8	–
Intangibles	10.6	12.1	2.8	3.2	3.6	–
Long-term investments	–	–	–	–	–	–
Other long-term assets	4.0	0.8	4.1	2.1	2.9	5.1
Other assets	48.7	46.9	46.7	34.9	23.5	13.7
Total assets	5,808	4,838	4,202	3,266	2,415	1,944
Liabilities
Accounts payable	12.5	10.8	9.7	7.7	6.9	4.2
Payable/accrued	–	–	–	–	–	–
Accrued expenses	–	–	–	–	–	–
Total deposits	4,861	4,145	3,533	2,658	1,853	1,568
Other bearing liabilities	–	–	–	–	–	–
Short-term borrowings	–	–	–	–	–	–
Current portion of long-term debt	0.6	0.7	0.7	0.7	–	–
Long-term debt	106	105	110	109	100	16.7
Minority interest	–	–	–	–	–	–
Other liabilities	296	178	171	141	122	100
Total liabilities	5,276	4,439	3,824	2,915	2,083	1,689
Shareholders' equity
Preferred stock	0	0	13.6	13.6	13.6	29.3
Common stock	326	216	215	226	228	153
Additional paid-in capital	2.5	2.5	2.5	1.6	0.1	0.1
Retained earnings (accumulated deficit)	204	181	146	109	90.6	73.2
Treasury stock	–	–	–	–	–	–
Other equity	0.6	−0.1	0.1	0.1	0	0
Total equity	533	399	377	351	332	255
Total liabilities & shareholders' equity	5,808	4,838	4,202	3,266	2,415	1,944

Cash flow statement in millions of CAD, fiscal years

Cash flow statement, Versabank, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	28.5	39.7	42.2	22.7	22.4	19.4
Depreciation, depletion & amortization	3.1	2.6	1.8	1.9	1.7	1.1
Deferred taxes	–	–	–	–	–	–
Non-cash items	−100	−88.8	−73.3	−56.4	−51.0	−46.8
Changes in working capital	113	319	124	−0.9	−81.4	166
Cash from operations	44.5	273	94.7	−32.7	−108	140
Investing activities
Capital expenditures	−1.0	−18.6	−0.4	−0.6	0	−0.2
Other investing cash flows	213	−139	−27.8	−141	−8.4	10.0
Cash from investing	212	−158	−28.1	−142	−8.4	9.8
Financing activities
Financing cash flow items	–	–	–	–	0	−1.7
Cash dividends paid	−3.2	−3.6	−3.6	−3.7	−3.8	−4.3
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	105	−19.7	−13.7	−2.6	135	−24.9
Cash from financing	102	−23.3	−17.3	−6.3	131	−30.9
Foreign exchange effects	−2.3	1.2	−5.6	−2.4	−0.8	–
Net change in cash	356	93.0	43.7	−183	13.9	118
Free cash flow	43.5	254	94.4	−33.2	−108	139

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.