VERSABANK FOURTH QUARTER RESULTS DEMONSTRATE OPERATING LEVERAGE OF BUSINESS MODEL: STRONG GROWTH IN RPP ASSETS DRIVES RECORD REVENUE
Executive Summary
- VersaBank reported record Q4 2025 revenue of C$35.1 M (up 29% YoY) and total assets of C$5.8 B (up 20% YoY), driven by strong growth in its Receivable Purchase Program (RPP).
- Adjusted net income rose 91% YoY to C$10.5 M, while adjusted earnings per share increased 65% YoY to C$0.33.
- The Bank announced a forthcoming tokenized deposit product and progress on its U.S. corporate reorganization.
Key Details
- Financial Highlights – Q4 2025 (unaudited)
- Total revenue: C$35,092 k (+11% QoQ, +29% YoY).
- Net income: C$5,204 k (‑21% YoY, ‑13% QoQ); adjusted net income: C$10,549 k (+9% YoY, +8% QoQ).
- Adjusted EPS: C$0.33 (↑65% YoY, ↑10% QoQ).
- Total assets: C$5,808,475 k (+6% QoQ, +20% YoY).
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CET1 ratio: 12.92% (‑5% QoQ, ‑15% YoY).
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Digital Banking Segment
- Credit assets: C$5.07 B (↑20% YoY, ↑6% QoQ).
- Revenue: C$32.9 M (+31% YoY, +11% QoQ).
- Net interest margin on credit assets: 2.65% (+13% YoY, ‑4% QoQ).
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Provision for credit losses: 0.11% of average credit assets (still negligible).
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RPP Growth
- U.S. RPP funding in FY 2025 reached US$310 M, exceeding target; initial US$61 M funding from ECN Capital’s Source One, later >US$90 M.
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Launched securitized financing solution for point‑of‑sale lenders; first funding completed.
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Canadian Operations
- Added two new RPP partners, including first partner under the securitized RPP offering.
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Enhanced CMHC‑insured lending program using Canadian Mortgage Bond capacity for multi‑unit residential mortgages.
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Digital Meteor & DRTC
- Pilot of Real Bank Deposit Tokens (USD‑VBs) launched in U.S.; CAD‑VB pilot refreshed.
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Collaborations with stablecoin issuers on SOC2 Type 1‑certified custody solutions.
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Reorganization Update
- In May 2025 announced plan to restructure as a Delaware‑incorporated U.S. reporting entity (“Parent”) pending shareholder and regulator approvals.
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Share exchange and asset transfers to Parent outlined; promissory note issuance for VersaHoldings US Corp. and DRTC shares.
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Share Repurchase
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Cancelled 573,251 common shares under NCIB (up to 2 M authorized, ~8.99% of float).
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Dividends
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Common share dividend paid: C$802 k (Q4) vs. C$650 k prior quarter.
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Conference Call
- Hosted on Dec 10 2025 at 9:00 a.m. ET; webcast available online; replay until Jan 10 2026.
Notable Quotes
“The fourth quarter was a very strong finish to a transformational fiscal 2025… driven by growth in both the United States and Canada.” – David Taylor, Founder & President, VersaBank
“We expect this momentum to continue throughout fiscal 2026… with the first tokenized deposit issued in both US and Canadian currencies.” – David Taylor