VersaBank Full Year 2023 Earnings: EPS Misses Expectations
VersaBank (TSE:VBNK) Full Year 2023 Results
Key Financial Results
Revenue: CA$108.0m (up 32% from FY 2022).
Net income: CA$41.2m (up 90% from FY 2022).
Profit margin: 38% (up from 26% in FY 2022). The increase in margin was driven by higher revenue.
EPS: CA$1.57 (up from CA$0.79 in FY 2022).
VBNK Banking Performance Indicators
Net interest margin (NIM): 2.68% (down from 2.70% in FY 2022).
Cost-to-income ratio: 46.4% (down from 60.0% in FY 2022).
Non-performing loans: 0.40% (up from 0.01% in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
VersaBank EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.5%.
The primary driver behind last 12 months revenue was the Digital Banking segment contributing a total revenue of CA$100.0m (93% of total revenue). The largest operating expense was General & Administrative costs, amounting to CA$50.4m (75% of total expenses). Explore how VBNK's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 5.3% growth forecast for the Banks industry in Canada.
Performance of the Canadian Banks industry.
The company's shares are up 26% from a week ago.
Balance Sheet Analysis
While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. We've done some analysis and you can see our take on VersaBank's balance sheet.
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