VersaBank Reports Rise in Earnings for Latest Quarter
VersaBank, a Canadian bank specializing in business-to-business digital banking, has seen a surge in its shares following an increase in earnings for the latest quarter. The rise in earnings can be attributed to higher net interest income, strong loan growth, and a recovery of credit losses.
Financial Performance
VersaBank's net income for the fourth quarter reached 12.5 million Canadian dollars ($9.2 million), or C$0.47 per share, compared to C$6.43 million, or C$0.23 per share, during the same period last year. This marks a significant improvement in the bank's financial performance.
Furthermore, revenue for the three months ending October 31st increased by 20% to C$29.2 million. Net interest income also saw a notable rise, reaching C$26.2 million, a 17% increase from the previous year.
Credit Losses Recovery
VersaBank reported a recovery of credit losses for the quarter, amounting to C$184,000. This is a positive development as it is in contrast to the provision for credit losses of C$171,000 in the previous quarter and C$205,000 in the same period of fiscal 2022.
Moreover, VersaBank's allowance for expected credit losses stood at C$2.5 million at the end of October, compared to C$2.7 million in the previous fiscal quarter and C$1.9 million a year ago.
Market Performance
Following the positive earnings report, VersaBank's shares experienced a 4.6% increase at the opening bell on Wednesday. This brings the year-to-date advance to nearly 16%, showcasing the market's favorable response to the bank's performance.
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