Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

VersaBank T.VBNK

Alternate Symbol(s):  VBNK | T.VBNK.P.A

VersaBank is a Canada-based chartered bank. The Bank provides commercial lending and banking services in Canada and the United States, as well as cybersecurity services and banking and financial technology development services through the operations of its wholly owned subsidiary DRT Cyber Inc. (DRTC). It operates through two segments: Digital Banking and DRTC (cybersecurity services). Digital Banking segment obtains its deposits and provides its loans and leases electronically via deposit and lending solutions for financial intermediaries. DRTC segment develops solutions to address the volume of cyber threats challenging financial institutions, multi-national corporations and government entities. Its loan portfolio includes point-of-sale loans and leases, commercial real estate mortgages, commercial real estate loans and public sector and other financing. It also offers tax-free savings accounts, guaranteed investment certificates, and registered retirement savings plans.


TSX:VBNK - Post by User

Bullboard Posts
Comment by constructionsiteon Nov 01, 2017 4:27pm
124 Views
Post# 26890349

RE:RE:RE:Too Cheap To Ignore

RE:RE:RE:Too Cheap To IgnoreWell looks like they're starting with an NCIB...


lazer167 wrote: It all depends what they do with the capital but it makes sense to think they could deploy it and earn a proper return on it when NIMs are this high. At the moment the bank is over-capitalized. Their Tier 1 capital ratio is 11%. I think management will etheir inititiate a dividend or buyback some stock. I would prefer the latter as I believe it would accretive to book value by ~ 50 cents. If the comapny goes back to 10.5% Tier One Ratio, that leaves them $5M to buy back stock. It's the thing that make most sense.

As for AIRB, it is a lengthy and costly process (as you saw in the Q2 results). If I recall correctly, it had a $1.7M impact. If you look at CWB and LB (regional banks), the regulator allows them to have a lower Tier One Capital ratio so it will probably happen but anything with governement is slow. 

The good thing is that management wants to create value and regulators appear to be on their side. I mean they approved the merger in order to recap the bank. The bottom line is that this is still a very cheap stock and there is a lot of catalyst on the horizon to unlock some more value.

As an aside, I think it was picked up by a newsletter (Capital Ideas) and so the recent run up could also be a function of retail investors scrambling to buy the thing.




Bullboard Posts