Versabank · TSX:VBNK
Versabank — Q3 2019 Earnings Presentation
15 slides from Versabank's earnings presentation, Aug 28, 2019
Slide 1: VersaBank Investor Presentation Q3 F2019
VersaBank Investor Presentation Q3 F2019 August 28, 2019
Slide 2: Advisory
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 and
Slide 3: Performance Review
David Taylor, President & CEO Q3 F2019 Performance Review 3
Slide 4: Q3 2019 Results Summary
Q3 2019 Results Summary Q3 results attributable to: • Strong growth in eCommerce banking; • Industry leading NIM expansion; • Low provisions for credit losses (PCL). Q3 Net Income Q3 EPS YTD Net Income YTD EPS CET1 $5.0 million $0.21 $14.8 million $0.62 12.71% 6% yoy 5% yoy 15% yoy 17% yoy 16% yoy O
Slide 5: Q3 2019 – Financial Highlights
Q3 2019 – Financial Highlights Revenue • Q/Q growth of 10.4% attributable ($CDN 000s except YTD primarily to higher interest income Q3 2018 Q2 2019 Q3 2019 • Y/Y (YTD) growth of 6.4% attributable to for EPS) 2019 higher interest income and recovery of credit losses, partially offset by higher Revenu
Slide 6: Capital & Leverage Position
Capital & Leverage Position Common Equity Tier 1 Ratio CET 1 Ratio • CET1 ratio of 12.71% +16 bps 12.71% • Q/Q increase of 54 bps • Attributable to retained +38 bps earnings growth, lower risk weighted assets and deferred tax asset recoveries Leverage Ratio 12.17% • Leverage ratio of 11.90% • Q/Q in
Slide 7: Net Interest Income and Net Income Trend
Lending Assets Net Interest Income YTD • Q/Q and Y/Y (YTD) increase of ($CDN 000s) Q3 2018 Q2 2019 Q3 2019 2019 10.3% and 6.5% respectively attributable primarily to higher Net Interest Income $12,965 $12,743 $14,059 $40,242 average earning assets and income earned on impaired assets partially Non-I
Slide 8: Risk Review
Risk Review For the Third Quarter Ended July 31, 2019
Slide 9: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) YTD Provision for Credit Losses ($CDN 000s) Q3 2018 Q2 2019 Q3 2019 2019 • Q/Q increase reflecting higher ECL on stage 3 facility, and asset growth Commercial Real Estate $164 $(207) $165 $125 in eCommerce portfolio Non-Commercial Real Estate (60) (49) (11) (931) •
Slide 10: Gross Impaired Loans
Gross Impaired Loans (GIL) Gross Impaired Loans ($CDN MMs) Q3 2018 Q2 2019 Q3 2019 • GIL ratio consistent Q/Q and up Corporate and Public Finance $0.6 $0.6 $0.6 153 bps Y/Y Commercial Real Estate - $24.9 $24.9 • Y/Y increase due to commencement of recovery Total GIL ($) $0.6 $25.5 $25.5 process on w
Slide 11: Loan Portfolio Overview
Loan Portfolio Overview Loans ($) Geographic Distribution of Loans $877MM $642MM $966MM Commercial eCommerce Banking 60% 40% $260MM $192MM $188MM $91MM Ontario Alberta B.C. Quebec Other 11
Slide 12: Volume Growth: Average Gross Loans and Funding Mix
Volume Growth Average Gross Loans Funding Mix $94MM $93MM $95MM $382MM $405MM $422MM $1,621MM $1,616MM $1,069MM $1,020MM $977MM $1,607MM Q3 '18 Q2 '19 Q3 '19 Q3 '18 Q2 '19 Q3 '19 Personal Commercial Holdbacks • Higher average loans contributed • Q/Q decrease attributable to lower funding to Q/Q incr
Slide 13: VersaVault
VersaVault VersaVault Inc. (“VV”) is a wholly owned subsidiary of the Bank and was formed to develop and provide cyber-security services to commercial entities. VersaVault has recently announced it has entered into an exclusive licence agreement with Chairmans Financial B.V. (“Chairmans”). The agree
Slide 14: CCROCE vs. P/BV for CDN Banks
CCROCE vs. P/BV for CDN Banks 2.1 1.9 RBC 1.7 TD Bank National Bank 1.5 Bank of Montreal Bank of Nova Scotia P/B 1.3 CIBC 1.1 Canadian Western 0.9 Laurentian Bank Versabank 0.7 0.5 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Annualized CCROCE - F19 14
Slide 15: VersaBank
VersaBank State-of-the-art Financial Technology Serving Lucrative Niche Markets 15