VersaBank (VBNK.TO) a business-to-business digital banking and cybersecurity company, on Wednesday reported lower first-quarter profit and revenue that missed estimates.
Versabank said net income fell 36% to $8.1 million, or $0.28 per share, from $12.7 million, or $0.48 per share, in the prior year period. The result missed the consensus estimate of $0.41, according to FactSet.
Total revenue dipped 4% to $28 million, missing the consensus forecast of $30.4 million. The decline was due to lower overall net interest margin, and lower non-interest income.
"The first quarter of fiscal 2025 was highlighted by the first post-acquisition partnership for our US Receivable Purchase Program [RPP], immediately followed by multiple fundings," said chief executive David Taylor. "Importantly, the program is functioning as expected by both our team and our partner and we expect our funding with this partner to steadily expand throughout the year."
The company does not expect the implementation of tariffs by the U.S. or Canadian administrations to have an impact on the ramp up of our RPP in the U.S."
Versabank will pay a quarterly dividend of $0.025 per share on April 30.
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