Stock Analysis Report

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Executive Summary

VersaBank, a schedule I chartered bank, provides banking products and services in Canada. More Details

Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has VersaBank's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: VB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VB's weekly volatility (4%) has been stable over the past year.

Market Performance

7 Day Return




CA Banks


CA Market

1 Year Return




CA Banks


CA Market

Return vs Industry: VB exceeded the Canadian Banks industry which returned -3.9% over the past year.

Return vs Market: VB underperformed the Canadian Market which returned 1.3% over the past year.

Shareholder returns

7 Day-0.7%-0.5%0.3%
30 Day13.1%14.7%9.7%
90 Day3.8%11.8%8.7%
1 Year1.6%0%2.3%-2.8%5.5%1.8%
3 Year28.7%24.7%9.3%-4.3%13.3%2.2%
5 Yearn/a61.5%30.4%53.9%30.3%

Long-Term Price Volatility Vs. Market

How volatile is VersaBank's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is VersaBank undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VB (CA$7.42) is trading below our estimate of fair value (CA$8.72)

Significantly Below Fair Value: VB is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: VB is good value based on its PE Ratio (9.1x) compared to the CA Banks industry average (12.8x).

PE vs Market: VB is good value based on its PE Ratio (9.1x) compared to the Canadian market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VB's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: VB is good value based on its PB Ratio (0.7x) compared to the CA Banks industry average (1.3x).

Next Steps

Future Growth

How is VersaBank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?


Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VersaBank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Next Steps

Past Performance

How has VersaBank performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VB has a high level of non-cash earnings.

Growing Profit Margin: VB's current net profit margins (31.6%) are lower than last year (33.2%).

Past Earnings Growth Analysis

Earnings Trend: VB's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: VB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VB had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Banks industry average (-14.8%).

Return on Equity

High ROE: VB's Return on Equity (7.6%) is considered low.

Next Steps

Financial Health

How is VersaBank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: VB's Assets to Equity ratio (7.6x) is low.

Allowance for Bad Loans: VB has a low allowance for bad loans (37%).

Low Risk Liabilities: 92% of VB's liabilities are made up of primarily low risk sources of funding.

Loan Level: VB has an appropriate level of Loans to Assets ratio (85%).

Low Risk Deposits: VB's Loans to Deposits ratio (106%) is appropriate.

Level of Bad Loans: VB has an appropriate level of bad loans (0.4%).

Next Steps


What is VersaBank current dividend yield, its reliability and sustainability?


Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: VB's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: VB's dividend (1.35%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VB has been paying a dividend for less than 10 years.

Growing Dividend: VB's dividend payments have increased, but the company has only paid a dividend for 3 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.3%), VB's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


David Taylor (67 yo)





Mr. David Roy Taylor, BSc (Hons), MBA, FICB, PPL has been the President and Chief Executive Officer at VersaBank since January 18, 1993. Mr. Taylor has been the Chief Executive Officer of VersaBank since ...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.45M) is above average for companies of similar size in the Canadian market ($USD166.09K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.

Leadership Team

David Taylor
CA$ 7.6m
R. Clarke
CFO & Corporate Secretary3.92yrsCA$636.19k0.033%
CA$ 51.9k
Jonathan Francis Taylor
Senior VP of Deposits & Chief Human Resources Officerno dataCA$522.38k0.082%
CA$ 129.3k
Nikola Kristo
Chief Credit Officerno dataCA$498.07k0.021%
CA$ 33.4k
Michael Dixon
Senior Vice President of eCommerce3.75yrsCA$500.41k0.029%
CA$ 46.2k
Terri Wilson
Vice President of Investment & Risk Control0.083yrno datano data
David Thoms
Vice President of Structured & Corporate Finance4.75yrsno data0.025%
CA$ 39.4k
Wooi Koay
Chief Information Officer0.33yrno data0.013%
CA$ 19.9k
Wade MacBain
Director of Investor Relationsno datano datano data
Barbara Hale
Chief Compliance Officer & Chief Anti-Money Laundering Officer0.92yrno data0.0052%
CA$ 8.2k
Brent Hodge
General Counsel & Corporate Secretaryno datano data0.041%
CA$ 64.6k
Telemaco Matrundola
Chief Strategist3.75yrsno datano data


Average Tenure


Average Age

Experienced Management: VB's management team is considered experienced (3.8 years average tenure).

Board Members

David Taylor
CA$ 7.6m
Robbert-Jan Brabander
Independent Director11.08yrsCA$98.05k0.24%
CA$ 379.2k
David Bratton
Independent Director27.25yrsCA$68.62k0.14%
CA$ 217.2k
Thomas Hockin
Independent Chairman of the Board6.33yrsCA$153.91k0.13%
CA$ 208.5k
Paul Oliver
Independent Director15.5yrsCA$94.18k0.24%
CA$ 379.0k
Colin Litton
Independent Director10.5yrsCA$108.44k0.25%
CA$ 396.8k
Susan McGovern
Independent Director9.58yrsCA$64.47k0.13%
CA$ 200.3k
Richard Carter
Independent Director6yrsCA$92.51k0.16%
CA$ 244.9k
Gabrielle Bochynek
Independent Director1.67yrsCA$33.43k0.014%
CA$ 22.3k
Art Linton
Independent Director0.67yrno data0.015%
CA$ 23.0k


Average Tenure


Average Age

Experienced Board: VB's board of directors are seasoned and experienced ( 10 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: VB insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

VersaBank's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: VersaBank
  • Ticker: VB
  • Exchange: TSX
  • Founded: 1979
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CA$156.737m
  • Shares outstanding: 21.12m
  • Website: https://www.versabank.com

Number of Employees


  • VersaBank
  • 140 Fullarton Street
  • Suite 2002
  • London
  • Ontario
  • N6A 5P2
  • Canada


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VB.PRATSX (The Toronto Stock Exchange)7% 5YR PFD SER 1CACADOct 2014
VB.PRBTSX (The Toronto Stock Exchange)PFD SER 3CACADFeb 2015
VEWDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2017
VBTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2017
VRRK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2017


VersaBank, a schedule I chartered bank, provides banking products and services in Canada. The company offers deposit products, such as guaranteed investment certificates, registered retirement savings plan...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 23:43
End of Day Share Price2020/12/03 00:00
Annual Earnings2020/10/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.