Net interest income grew 27.2% year-over-year as of 2026Q2, though margin expansion remains constrained by a stagnant 0.6% net interest margin.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 |
|---|
| Net Interest Income | 132.01M | 116.17M | 102.66M | 100.05M | 76.67M | 60.16M | 54.13M | 53.9M | 51.5M | 43.98M | 38.4M | 33.97M | 27.87M | 25.66M | 19.61M | 16.93M |
| NII Growth % | 109.59% | 13.16% | 2.6% | 30.5% | 27.44% | 11.14% | 0.42% | 4.66% | 17.09% | 14.53% | 13.04% | 21.88% | 8.65% | 30.84% | 15.84% | - |
| Net Interest Margin % | 2.05% | 2% | 2.12% | 2.38% | 2.35% | 2.49% | 2.78% | 3.02% | 2.85% | 2.55% | 2.25% | 2.09% | 1.93% | 1.83% | 1.28% | 1.14% |
| Interest Income | 315.83M | 295.68M | 285.42M | 229.33M | 126.82M | 89.49M | 86.09M | 88.31M | 80.91M | 71.77M | 69.66M | 64.46M | 58.16M | 60.92M | 60.9M | 56.1M |
| Interest Expense | 183.82M | 179.51M | 182.76M | 129.28M | 50.15M | 29.33M | 31.97M | 34.41M | 29.41M | 27.78M | 31.26M | 30.48M | 30.29M | 35.27M | 41.29M | 39.17M |
| Loan Loss Provision | 3.63M | -179.51M | -182.76M | 609K | 451K | -438K | -344K | -298K | 334K | -125K | 871K | 1.54M | 919K | 524K | 461K | 309K |
| Non-Interest Income | 9.51M | -175.45M | -173.79M | 8.58M | 5.73M | 5.2M | 60K | 22K | 186K | -141K | 1.27M | 1.39M | 2.63M | 2.32M | 13.29M | 12.31M |
| Non-Interest Income % | 2.92% | -145.93% | -155.68% | 3.61% | 4.32% | 5.49% | 0.07% | 0.02% | 0.23% | -0.2% | 1.79% | 2.12% | 4.33% | 3.67% | 17.91% | 17.99% |
| Total Revenue | 325.35M | 120.23M | 111.63M | 237.92M | 132.54M | 94.69M | 86.15M | 88.33M | 81.1M | 71.62M | 70.94M | 65.85M | 60.79M | 63.24M | 74.19M | 68.41M |
| Revenue Growth % | 37.18% | 7.7% | -53.08% | 79.5% | 39.98% | 9.91% | -2.46% | 8.91% | 13.23% | 0.97% | 7.72% | 8.32% | -3.87% | -14.75% | 8.45% | - |
| Non-Interest Expense | 93.58M | 78.73M | 57.11M | 50.38M | 49.39M | 35.01M | 27.78M | 26.4M | 26.34M | 29.23M | 27.05M | 24.78M | 23.38M | 24.95M | 24.34M | 17.73M |
| Efficiency Ratio | 28.76% | 65.49% | 51.16% | 21.18% | 37.27% | 36.97% | 32.24% | 29.88% | 32.48% | 40.82% | 38.13% | 37.64% | 38.46% | 39.44% | 32.81% | 25.92% |
| Operating Income | 44.32M | 41.49M | 54.79M | 57.65M | 32.55M | 30.79M | 26.75M | 27.82M | 25.01M | 14.73M | 11.76M | 9.04M | 6.21M | 2.5M | 8.09M | 11.19M |
| Operating Margin % | 13.62% | 34.51% | 49.08% | 24.23% | 24.56% | 32.52% | 31.05% | 31.5% | 30.84% | 20.57% | 16.58% | 13.73% | 10.21% | 3.96% | 10.91% | 16.36% |
| Operating Income Growth % | - | -24.27% | -4.95% | 77.11% | 5.71% | 15.09% | -3.84% | 11.23% | 69.79% | 25.29% | 30.08% | 45.63% | 147.78% | -69.04% | -27.69% | - |
| Pretax Income | 44.32M | 41.49M | 54.79M | 57.65M | 32.55M | 30.79M | 26.75M | 27.82M | 25.01M | 14.73M | 11.76M | 9.04M | 6.21M | 2.5M | 8.09M | 11.19M |
| Pretax Margin % | 13.62% | 34.51% | 49.08% | 24.23% | 24.56% | 32.52% | 31.05% | 31.5% | 30.84% | 20.57% | 16.58% | 13.73% | 10.21% | 3.96% | 10.91% | 16.36% |
| Income Tax | 13.93M | 13.04M | 15.04M | 15.48M | 9.89M | 8.41M | 7.35M | 7.63M | 6.94M | -4.74M | 3.29M | 821K | 531K | 741K | 4.27M | 3.62M |
| Effective Tax Rate % | 31.42% | 31.41% | 27.46% | 26.86% | 30.39% | 27.31% | 27.46% | 27.41% | 27.74% | -32.17% | 27.96% | 9.08% | 8.55% | 29.58% | 52.74% | 32.35% |
| Net Income | 30.39M | 28.46M | 39.75M | 42.16M | 22.66M | 22.38M | 19.41M | 20.2M | 18.07M | 19.47M | 8.47M | 8.22M | 5.68M | 1.76M | 3.82M | 7.57M |
| Net Margin % | 9.34% | 23.67% | 35.61% | 17.72% | 17.09% | 23.64% | 22.52% | 22.87% | 22.29% | 27.19% | 11.94% | 12.48% | 9.34% | 2.79% | 5.15% | 11.07% |
| Net Income Growth % | -4.7% | -28.4% | -5.73% | 86.08% | 1.24% | 15.33% | -3.92% | 11.74% | -7.18% | 129.89% | 3.07% | 44.79% | 221.77% | -53.87% | -49.48% | - |
| Net Income (Continuing) | 30.39M | 28.46M | 39.75M | 42.16M | 22.66M | 22.38M | 19.41M | 20.2M | 18.07M | 19.47M | 8.47M | 8.22M | 5.68M | 1.76M | 3.82M | 7.57M |
| EPS (Diluted) | 1.29 | 0.90 | 1.49 | 1.57 | 0.79 | 0.96 | 0.82 | 0.85 | 0.86 | 0.83 | 0.32 | 0.33 | 0.29 | 0.11 | 0.24 | 0.48 |
| EPS Growth % | -14.55% | -39.6% | -5.1% | 98.73% | -17.71% | 17.07% | -3.53% | -1.16% | 3.61% | 159.38% | -3.03% | 13.79% | 163.64% | -54.17% | -50% | - |
| EPS (Basic) | - | 0.90 | 1.49 | 1.53 | 0.79 | 0.96 | 0.82 | 0.85 | 0.86 | 0.83 | 0.32 | 0.33 | 0.29 | 0.11 | 0.24 | 0.48 |
| Diluted Shares Outstanding | 23.61M | 31.51M | 25.96M | 26.27M | 27.43M | 21.75M | 21.12M | 21.12M | 21.12M | 20.86M | 19.86M | 19.44M | 19.44M | 16.57M | 15.82M | 15.82M |
Commercial real estate exposure
According to recent financial disclosures, VersaBank achieved a 27.2% year-over-year increase in net interest income by 2026Q2, demonstrating the efficacy of its branchless deposit-gathering model in capturing liquidity despite a competitive rate environment that has pressured many traditional regional banking peers across the Canadian financial landscape.
The consistent expansion in NII suggests that the bank's proprietary electronic network is successfully sourcing low-cost deposits to fund its POS financing portfolio. Investors should monitor whether this growth trajectory remains sustainable as the bank attempts to export its digital-first model into the United States market.
As reported in quarterly filings, VersaBank maintained an efficiency ratio of 32.1% in 2026Q2, reflecting the inherent operating leverage of a branchless model that avoids the high fixed-cost burdens typically associated with maintaining physical retail footprints in the highly consolidated Canadian banking sector for regional competitors.
The fluctuation in the efficiency ratio over the last ten quarters appears to correlate with strategic investments in technology and the scaling of the DRT Cyber subsidiary. This suggests that while the core banking platform is highly scalable, the bank's overall cost structure remains sensitive to non-banking business development costs.
Based on reported figures, the provision for credit losses reached $427.9K in 2026Q2, a figure that remains relatively contained when viewed against the bank's total loan book, largely due to the structural first-loss protection provided by the POS financing holdback mechanism inherent in their underwriting framework.
The bank's ability to keep provision expenses low suggests that its niche lending strategy effectively offloads initial credit risk to the merchant partners. However, investors should remain cautious, as any significant downturn in the Canadian condominium or commercial real estate sectors could test the adequacy of these buffers.
Financial statements indicate that the net interest margin has remained stagnant at 0.6% over the past several quarters, suggesting that the bank faces significant headwinds in expanding its spread as broker-sourced deposit costs rise in tandem with the yields earned on its fixed-rate POS loan receivables.
This persistent margin compression warrants further investigation into the bank's ability to pass on higher funding costs to its POS financing clients. The reliance on broker-sourced liquidity may leave the bank vulnerable to rapid shifts in central bank policy, potentially limiting future earnings growth if spreads continue to narrow.
Quick answers to the most common questions about buying VBNK stock.
VersaBank (VBNK) is profitable, generating $28.5M in net income for the fiscal year ending 2025 with a net profit margin of 23.7%.
VersaBank (VBNK) reported an operating income of $41.5M, resulting in an operating profit margin of 34.5%. This margin reflects the operational efficiency of the business before interest and taxes.
VersaBank (VBNK) generated $120.2M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.