Versabank · TSX:VBNK
Versabank — Q1 2021 Earnings Presentation
15 slides from Versabank's earnings presentation, Feb 24, 2021
Slide 1: Q1 2021 Conference Call Presentation
Q1 2021 Conference Call Presentation February 24, 2021 Follow us
Slide 2: Post Conference Call Q&A
2 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 (888) 664-6392 (Canada/US) Local: (416) 764-8659 Passcode: 51182981#
Slide 3: Advisory
3 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 4: David Taylor, President & CEO
4 David Taylor President & CEO
Slide 5: Q1 2021 Highlights
5 Digital banking operations delivered a number of record results Q1 2021 Near record net income Highlights Fastest loan growth in VersaBank history First financial contribution from Digital Boundary Group
Slide 6: Q1 2021: Continued Strong Financial Performance
6 Q1 2021: Continued Strong Financial Performance Income Statement Strong sequential improvement in all key 3 Months Ended metrics as the Bank continued to deploy January 31 cash to its lending portfolios 2021 2020 Change Revenue $15.4 M $13.6 M +14% vs Q4/20 Cost of Funding 1.42% 1.88% -46 bps Net
Slide 7: Q1 2021: Continued Strong Financial Performance
7 Q1 2021: Continued Strong Financial Performance Balance Sheet Cash balance at end of Q1/21 At January 31 2021 2020 Change decreased to $212 M from $258 M Total Assets $2.04 B $1.85 B +10% at the end of Q4/20 Book Value per $10.90 $10.17 +7% Common Share Cash balance at end of Q1/21 was CET1 Ratio
Slide 8: Industry Leading Provision for Credit Losses (PCLs)
8 Industry Leading Provision for Credit Losses (PCLs) Q1 2021: Continued Low PCLs as a % of Average Loans 1.42% PCL as a % of Average 0.60% Loans 0.32% 0.29% 0.35% 0.30% 0.32% 0.35% 0.40% 0.08% 0.12% 0.06% 0.12% 0.02% 0.01% -0.01% -0.02% -0.01% -0.14% 2014 2015 2016 2017 2018 2019 Q2'20 Q3'20 Q4'20
Slide 9: Continued to Lower Cost of Funding
9 Continued to Lower Cost of Funding • Continued strategic shift of deposit mix to Personal Deposits lower cost deposits • Reducing higher cost personal deposits • Increasing lower cost commercial $1,203M deposits $1,098M $1,150M $1,052M $1,041M $960M $1,059M $1,141M 2014 2015 2016 2017 2018 2019 20
Slide 10: Record Loan Sequential Growth: +$139 M
10 Record Loan Sequential Growth: +$139 M Q4 2020 Q1 2021 Total: $1.65 B Total: $1.79 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Leases Public Public Sector Sector / / Other $1.0B $981M Other 56% Financing Financing 59% $38M $37M $981M 2% 2% Commercial Commercial 51% Banking – $606M Banking
Slide 11: Acquisition of Digital Boundary Group: Complements DRT Cyber's Comprehensive Suite of Security Solutions
Acquisition of Digital Boundary Group: Complements 11 DRT Cyber’s Comprehensive Suite of Security Solutions DBG: One of North America’s premiere IT security assurance services firms • Suite of services: • External network, web and mobile app penetration testing • Physical social engineering engageme
Slide 12: VCAD: The World's FIRST Bank-Issued, Deposit-Based Digital Currency
VCAD: The World’s FIRST Bank-Issued, 12 Deposit-Based Digital Currency • Represented one-to-one by Canadian-dollar deposits VCAD • Highest level of stability and security amongst all digital currencies • Based on VersaBank’s proprietary banking software and using VersaVault technology • Commercial l
Slide 13: Momentum for the Future with Two High-Growth Opportunities
Momentum for the Future with Two 13 High-Growth Opportunities Digital banking operations setting new records • Continue to deploy cash to meet demand in the Commercial Real Estate portfolio and the Point-of-Sale Finance portfolio • Launch instant mortgage for the $200 billion Canadian home financing
Slide 14: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 51182981#
Slide 15: We're Just Getting Started!
15 We’re Just Getting Started! Follow us