Versabank · TSX:VBNK
Versabank — Q1 2024 Earnings Presentation
19 slides from Versabank's earnings presentation, Mar 6, 2024
Slide 1: Q1 2024 Conference Call Presentation
Q1 2024 Conference Call Presentation March 6, 2024 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
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 & Chief Executive Officer
4 David Taylor President & Chief Executive Officer
Slide 5: Q1 2024 Highlights
5 Q1 2024 Highlights 22% YoY growth in total Realizing significant & increasing assets to record $4.3 B operating leverage in efficient Digital Banking model 28% YoY growth in Digital Banking efficiency ratio POS Financing portfolio improved to a record 40% 35% YoY growth in ROCE improved to 13.41%
Slide 6: Q1 2024 Key Metrics & Highlights: Record Results
6 Q1 2024 Key Metrics & Highlights: Record Results Consolidated Digital Banking: Strong loan portfolio growth YoY Sequential driving total assets to a record: $4.3 B Total Revenue 11% 1% Net Income 35% 2% Record quarterly Net Income and EPS EPS 41% 2% Digital Banking Efficiency Ratio (ex. DRTC): 40%
Slide 7: Acquisition of OCC-Chartered, National US Bank: Transformational Next Step
Acquisition of OCC-Chartered, National US Bank: 7 Transformational Next Step in Long-Term Growth Strategy June 2022: Definitive • Provides access to US deposits to fuel growth of the US Agreement to Acquire Receivable Purchase Program business (launched in US Minnesota-based Stearns following succes
Slide 8: John Asma, Chief Financial Officer
8 John Asma Chief Financial Officer
Slide 9: Q1 2024: Continued Strong Financial Performance
9 Q1 2024: Continued Strong Financial Performance Balance Sheet • Total loan portfolio expanded to another record balance At January 31 2024 2023 YoY Sequential • Book Value per Share Change Change increased as a function of Total Assets $4.31 B $3.53 B 22% 3% higher retained earnings (from Loan Por
Slide 10: Q1 2024: Consolidated Income Statement
Q1 2024: Continued Strong Financial Performance 10 Consolidated Consolidated Income Statement • YoY revenue growth driven by 3 Months Ended January 31 higher NII from Digital Banking operations due mainly to robust POS YoY Sequential (000’s) 2024 2023 Change Change portfolio growth Revenue 28,851 25
Slide 11: Digital Banking Operations – Record Loan Portfolio: $3.98 B
Q1 2024: Continued Strong Financial Performance 11 Digital Banking Operations – Record Loan Portfolio: $3.98 B Q4 2023 Q1 2024 Total: $3.85 B Total: $3.98 B Point-of-Sale Point-of-Sale Loans/ Leases Loans/ Leases $2.9B Public Sector/ $3.1B Public Sector/ 75% Other Financing 78% Other Financing $55M
Slide 12: Digital Banking Operations Income Statement
Q1 2024: Continued Strong Financial Performance 12 Digital Banking Operations Digital Banking Operations: Income Statement • NIM decrease due primarily to: 3 Months Ended • Strong growth of the POS January 31 portfolio (composed of lower-risk weighted, lower yielding but 2024 2023 YoY Change Seq Cha
Slide 13: Cost of Funds
13 Cost of Funds Q1 2024 cost of funds: 3.99% Wealth Management (Personal Deposits) • Increased 104 bps (35%) vs Q1 2023 • Increased 13 bps (3%) vs Q4 2023 $2,914 $2,997 Cost of funds was impacted by: $2,059 • Lower relative proportion of lower cost $1,108 $1,203 $1,150 $1,052 $1,041 $960 $1,059 $1,
Slide 14: PCL as a % of Average Loans
14 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans 0.00% PCL as a % of Average Loans 0.12% (Trailing 12-Quarters) 0.08% 0.06% 0.02% 0.02% 0.02% (0.01%) (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 15: DRTC Cybersecurity Services Income Statement
Q1 2024: Continued Strong Financial Performance 15 DRTC Cybersecurity Services (DBG): Income Statement • Revenue changes are a function 3 Months Ended of engagement activity relative January 31 to comparable periods YoY Seq 2024 2023 • YoY increase in gross profit Change Change Revenue 2.9 2.3 24% -
Slide 16: David Taylor, President & Chief Executive Officer
16 David Taylor President & Chief Executive Officer
Slide 17: Next Milestones: >$5 B, >$6 B
Capitalizing on the Significant Operating Leverage 17 in Our Core Digital Banking Operations Period of Investment in Future Growth Next Milestones 62% 55% 50% 49% 52% 13.41% Total Assets 11.75% 47% >$5B >$6B 43% 10.29% 40% 8.50% 8.89% 8.45% 6.61% $4.20 $4.31 7.89% $3.85 $3.98 Efficiency Ratio <40% <
Slide 18: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659
Slide 19: Our Time Has Arrived!
19 Our Time Has Arrived! Follow us