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Versabank T.VBNK

Alternate Symbol(s):  VBNK

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). The Digital Banking segment obtains its deposits and provides its loans and leases electronically via deposit and lending solutions for financial intermediaries. Its loan portfolio includes point-of-sale loans and leases, commercial real estate mortgages, commercial real estate loans and public sector and other financing. The DRTC segment develops solutions to address the volume of cyber threats challenging financial institutions, multi-national corporations and government entities. It also offers receivable purchase program (RPP) funding solution for point-of-sale finance companies.


TSX:VBNK - Post by User

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Post by BetulaKapitalon Jun 25, 2024 5:17pm
172 Views
Post# 36105893

Fantastic risk/reward

Fantastic risk/reward
Book value per common share at the last quarter (April 30) was $14.88 and with today's announcement as a result, we close at $14.81, i.e. still below own P/B. I think this risk/reward with full confirmation of the acquisition in US is a great opportunity. Remember that at the beginning of the year the CEO said that it had around a dozen interesting partners for POS in the US, which by March had grown to 30 potential interested partners.
 
The CEO has hinted at previous investor presentations and quarterly Q&A this year that he received valuations on DRT Cyber up to $100 M (CAD or USD was not disclosed) already this year. Continues to claim that the plan is to spin off the asset in the future as it is not a perfect regulatory fit to have this fantastic asset and free option in a cyber security company under the wings of a fintech/bank. The belief is also that they can grow stronger independently.
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