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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 Oct 11, 2024 7:05am
197 Views
Post# 36262271

Happy but surprised

Happy but surprisedI am happy but surprised by the recent strength of VBNK. In March, the CEO said that potential partners it was discussing with POS in the US had grown to about 30. When the acquisition was complete and in connection with the latest investor presentations and Q,  the CEO said that they more or less agreed with one partner and that it would close at the end of September because it required long due diligence from both VBNK and the partner. Still, no partnerships have been made public, which may not mean anything as partners in Canada have typically not been announced to the market, unless the CEO said it would notify the investor market when it struck deals with partners in the US. In addition, a weak Q last time, where I was especially worried about DRT Cyber's development as there is an agreement that they must be sold or spun off within 2 years after the acquisition in the USA closed.
 
I'm still very LONG here given that I think it looks reasonably valued based on today's numbers in Canada and the upside that the spin off of DRT Cyber and the US acquisition could provide. However, short-term disappointed, but, I think that when the first partner in the US is announced, they will be followed by more in the near future. Especially if it turns out that the first partner is a big player, which I hope and believe.
 
Do you agree?
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