Slide 1: Q3 2020 Conference Call Presentation
Q3 2020 Conference Call Presentation August 26, 2020
Slide 2: Advisory
2 Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents an
Slide 3: Post Conference Call Q&A
3 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (800) 898-3989 (Canada/US) Local: (416) 406-0743 Passcode: 6797031#
Slide 4: David Taylor, President & CEO
4 David Taylor President & CEO
Slide 5: Strength, Stability and Differentiation in the COVID-19 World
5 Strength, Stability and Differentiation in the COVID-19 World • Branchless, technology based model inherently mitigates impact of physical distancing protocols • All employees able to work remotely with state-of-the-art security through recently implemented VPN, developed in Conservative, prudent,
Slide 6: Q3 2020: Continued Strong Financial Results
6 Q3 2020: Continued Strong Financial Results Income Statement Balance Sheet 3 Months Ended July 31 At July 31 2020 2019 Change 2020 2019 Change Revenue $12.4 M $14.1 M -12% Total Assets $1.93 B $1.78 B +9% Cost of Funding 1.59% 1.98% -39 bps Book Value per Common $10.52 $9.77 +8% Share Net Interest
Slide 7: Industry Leading Provision for Credit Losses (PCLs)
7 Industry Leading Provision for Credit Losses (PCLs) Q3 2020: Recovery of PCLs 1.42% PCL as a % of Average Loans 0.32% 0.29% 0.35% 0.30% 0.32% 0.35% 0.08% 0.12% 0.12% 0.06% 0.02% -0.01% -0.02% -0.01% 2014 2015 2016 2017 2018 2019 Q2 2020 Q3 2020 VB PCLs CDN Big Bank Average PCLs No additional provi
Slide 8: Continued to Lower Cost of Funding
8 Continued to Lower Cost of Funding • Continued strategic shift of deposit mix to Personal Deposits lower cost deposits • Reducing higher cost personal deposits $1,203M • Increasing lower cost commercial $1,098M $1,150M $1,052M $1,041M $960M $1,079M deposits 2014 2015 2016 2017 2018 2019 Q3 2020 Q3
Slide 9: Lending Portfolio
9 Lending Portfolio Commercial Banking – Public Sector & Other Financing $296M Cash (and Liquid 15% Securities) $354M 19% $338M $910M 18% Commercial 48% Banking – Point of Sale Commercial Loans/Leases Mortgages Point of Sale Loans/Leases temporarily contracted due to reduced consumer spending amidst
Slide 10: Growth Strategy: Momentum for the Future
10 Growth Strategy: Momentum for the Future 1. 2. 3. Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term Opportunities to Leverage Scalability of to Expand Net Interest Margin and Existing Offerings Technology Platform Expand insolvency deposits: higher
Slide 11: Leveraging Point of Sale Success for Real Estate Market: Instant Mortgage
Leveraging the Success of the Point of Sale Business for the Real 11 Estate Market: Instant Mortgage Market Need: A software-based solution for home and Solution: Instant Mortgage – condo developers and A revolutionary high-volume residential sales brokerages that financing software app for home ena
Slide 12: Significant Operating Leverage
12 Significant Operating Leverage Efficiency Trend: Cost to Earn $1 of Revenue Steadily Decreasing $0.75 Cents to Earn $1 of Revenue $0.70 $0.65 $0.62 $0.51 $0.49 $0.49 2014 2015 2016 2017 2018 2019 YTD 2020 Scalability of technology platform expected to drive the efficiency trend lower over the lon
Slide 13: Leveraging Our Banking Technology DNA: DRT Cyber, Inc.
Leveraging Our Banking Technology DNA: 13 Large-Market Opportunities Beyond Our Core Business Canadian banks are leaders in cyber DRT Cyber, Inc. security and VersaBank is a cyber security leader among Canadian banks Developing innovative solutions to address the rapidly growing volume of cyber thre
Slide 14: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1(800) 898-3989 Local Dial In: (416) 406-0743 Participant Passcode: 6797031#
Slide 15: We're Just Getting Started!
15 We’re Just Getting Started!