VersaBank (VB) Investor presentation summary

Track record of innovation and digital banking leadership

• Over 30 years of technological innovation, including the world's first digital financial institution and digital vault.

• Pioneered blockchain-enabled deposit tokens as a nationally licensed bank in both the US and Canada.

• Highly efficient, fully digital, branchless B2B banking model with strong earnings growth and risk-mitigated operations.

• No material loan losses over three decades, with a focus on underserved markets and technology-driven solutions.

• Planned divestiture of cybersecurity subsidiary to unlock additional value.

Financial performance and growth outlook

• Significant operating leverage in core digital banking, with efficiency ratio targets below 25% and ROCE above 35%.

• Total credit assets projected to exceed C$10B and US$7.2B in coming years.

• Strong net income growth, with adjusted net income targets rising annually.

• US Receivables Purchase Program ramping up, targeting a multi-trillion dollar market.

• Current valuation near book value, well below US peers, with further value expected from corporate realignment.

Digital asset revolution and market opportunity

• Digital assets and stablecoins are transforming financial services, with stablecoin transfer volumes surpassing Visa and Mastercard combined in 2024.

• Less than 50% of Gen Z have traditional bank accounts; over 50% rely on non-traditional providers.

• Major banks and payment providers are developing digital asset strategies amid favorable regulatory trends.

• Stablecoins now represent two-thirds of recent cryptocurrency transactions.

• Bank-led initiatives are creating regulated, interoperable digital asset platforms.