Versabank (VBNK) 2025 Q2 法說會逐字稿

Good morning ladies and gentlemen. Welcome to Versabank second quarter fiscal 2025 financial results conference call. This morning, first the bank issued a news release reporting its financial results for the second quarter ended April 30, 2025.

女士們、先生們，早安。歡迎參加 Versabank 2025 財年第二季財務業績電話會議。今天上午，該行首先發布新聞稿，報告截至2025年4月30日的第二季財務業績。

That news released along with the bank's financial statements. MD&A and supplemental financial information are available on the bank's website and the investor relations section as well on Cedar Plus and Edgar.

該消息與該銀行的財務報表同時發布。MD&A 和補充財務資訊可在該銀行網站和投資者關係部分以及 Cedar Plus 和 Edgar 上查閱。

Please note that in addition to the telephone dial-in, where the bank is webcasting this morning's conference call. The webcast is listen-only if you're listening to the webcast but wish to ask a question indicating session following Mr. Taylor's presentation. Please dial into the conference line, the details of which are included in this morning's news release and on the bank's website.

請注意，除了電話撥入之外，銀行還透過網路直播今天上午的電話會議。如果您正在收聽網路廣播，但希望在泰勒先生演講之後提出一個問題以指示會議，則網路廣播僅供收聽。請撥打會議熱線，詳情請參閱今天上午的新聞稿和銀行網站。

For those participating in today's call by telephone, the accompanying slide presentation is available on the bank's website. Also, today's call will be archived for replay both by telephone and by the internet beginning approximately one hour following completion of the call. Details on how to access the replays are available in this morning's news release.

對於參加今天電話會議的人來說，可以在銀行網站上找到隨附的幻燈片簡報。此外，今天的通話將在通話結束後約一小時後透過電話和網路存檔以供重播。有關如何觀看重播的詳細資訊請參閱今天上午的新聞稿。

I would like to remind our listeners that the statements about future events made on this call are forward-looking in nature and are based on certain assumptions and analysis made by Burbank management. Actual results could be materially from our expectations due to various material risks and uncertainties associated with Versabank 's businesses.

我想提醒我們的聽眾，本次電話會議中關於未來事件的陳述本質上是前瞻性的，並且基於伯班克管理層所做的某些假設和分析。由於與 Versabank 業務相關的各種重大風險和不確定性，實際結果可能與我們的預期有重大差異。

Please refer to Versabank 's forward-looking statement advisory in today's presentation. I would now like to turn the call over to David Taylor, President and Chief Executive Officer of Versabank . Please go-ahead Mr. Taylor.

請參閱今天簡報中的 Versabank 前瞻性聲明建議。現在我想把電話轉給 Versabank 總裁兼執行長 David Taylor。請繼續，泰勒先生。

Good morning, everyone, and thank you for joining us for today's call. With me is our Chief Financial Officer, John Asma. The second quarter of fiscal 2025 unfolded as planned with a number of positive highlights that will continue to drive momentum in our business.

大家早安，感謝大家參加今天的電話會議。和我一起的是我們的財務長約翰‧阿斯瑪 (John Asma)。2025 財年第二季按計畫展開，出現了許多積極亮點，將繼續推動我們的業務發展勢頭。

We saw the first drawdowns of our US RPP portfolio, which by the end of the quarter had surpassed USD70 million. We saw growth in our Canadian residential construction loan portfolio. We saw meaningful expansion of our net interest margin due to several factors that are trending positively.

我們首次看到美國 RPP 投資組合縮水，截至本季末已超過 7,000 萬美元。我們的加拿大住宅建築貸款組合有所成長。由於多種因素呈現正向趨勢，我們的淨利差顯著擴大。

John will go into these in more detail, and we do expect these trends to continue to support NIM around these levels for the remainder of the year. This drove record assets, record credit assets, record revenue alongside sequential improvements in banking efficiency and return on common equity based on our core earnings.

約翰將更詳細地討論這些問題，我們確實預計這些趨勢將在今年剩餘時間內繼續支持 NIM 維持在這些水平附近。這推動了創紀錄的資產、創紀錄的信貸資產、創紀錄的收入，同時銀行效率和基於核心收益的普通股權益回報率也連續提高。

And subsequent to quarter end, we initiated a structural realignment of our business to that of the standard US bank framework which, if approved by regulatory authorities and shareholders, we expect will realize additional shareholder value, reduce costs, and further mitigate risk.

在季度末之後，我們啟動了業務結構調整，以符合美國標準銀行框架，如果獲得監管機構和股東的批准，我們預計這將實現額外的股東價值，降低成本，並進一步降低風險。

Looking at the financial highlights in more detail, as I noted, record credit assets and very healthy expansion of our net interest margin drove record revenue. Credit assets on both sides of the border are expanding more or less in line with expectations this year.

更詳細地看一下財務亮點，正如我所指出的，創紀錄的信貸資產和非常健康的淨利差擴張推動了創紀錄的收入。今年以來，邊境兩邊信貸資產擴張基本上符合預期。

Net interest margin also expanded as we saw several favorable trends continue, driving 23 basis point increase in NIM on credit assets sequentially. I will note here there were two items that did slightly dampen our income. The first is some preliminary costs associated with our proposed structural realignment.

由於我們看到幾個有利趨勢的持續，淨利差也有所擴大，推動信貸資產的淨利差較上季增加 23 個基點。我要在這裡指出的是，有兩件事確實稍微減少了我們的收入。首先是與我們提議的結構調整相關的一些前期成本。

The second is the impact of foreign exchange translation of US subsidiary assets, which was atypically large and realized non-cash loss due to precipitous drop of the US versus the Canadian dollar in Q2. Including these items, earnings per share is $0.28, or excuse me, excluding these items.

二是美國子公司資產的匯兌影響，由於第二季美元兌加幣大幅下跌，美國子公司資產的匯兌影響異常巨大，並產生了非現金損失。包括這些項目在內，每股收益為 0.28 美元，或對不起，不包括這些項目。

I will take the opportunity to remind you that this is an early point in our US receivable purchase program. Although profitable, the results of our US operations continue to reflect the cost structure that will support our ramp to vastly larger revenues.

我要藉此機會提醒您，這是我們美國應收帳款購買計畫的早期階段。儘管獲利，但我們美國業務的業績仍反映出支持我們大幅增加收入的成本結構。

As I noted last quarter, we tend to look at our Canadian banking operations as a proxy for where we think the efficiency and return on common equity of our US banking operations can go. And we are pleased to see both improved sequentially, excluding the two aforementioned items to 44% and 12.53%, respectively.

正如我上個季度所指出的，我們傾向於將加拿大銀行業務視為美國銀行業務效率和普通股回報率的代表。我們很高興看到這兩項數據都較上季提升，剔除上述兩項後，分別上升至 44% 和 12.53%。

And I will remind you that our Canadian banking operations bear the vast majority of our corporate overhead costs, including our public company costs. So as an indicator of true potential efficiency and return on equity of our US business is actually significantly understated.

我要提醒你們的是，我們的加拿大銀行業務承擔了我們公司絕大多數的管理費用，包括上市公司費用。因此，作為衡量我們美國業務真實潛在效率和股本回報率的指標，它實際上被嚴重低估了。

And finally, as I did last quarter, I will remind you that our EPS for the quarter reflects a significant higher number of shares outstanding in Q2 as a result of our December capital raise, most of which we are still putting to work. We deploy this CAP at around 12 times or more and we're on 2.5% spread, so it is very accretive. Now, I'd like to turn the call over to John to review the financial results in detail. John?

最後，正如我上個季度所做的那樣，我要提醒大家，由於我們 12 月份的融資，本季度的每股收益反映了第二季度流通股數量顯著增加，其中大部分資金我們仍在投入使用。我們部署這個 CAP 的次數約為 12 倍或更多，利差為 2.5%，因此增值性非常強。現在，我想把電話轉給約翰，讓他詳細回顧一下財務結果。約翰？

Thanks, David. Before I begin, I will remind you that our financial statements and MD&A for the second quarter are available on our website under the investors section, as well as on CEDAR and EDGAR. All of the following numbers are reported in CAD as per our financial statements unless otherwise noted.

謝謝，大衛。在開始之前，我要提醒您，我們的第二季財務報表和 MD&A 可在我們網站的投資者部分以及 CEDAR 和 EDGAR 上查閱。除非另有說明，以下所有數字均按照我們的財務報表以加幣報告。

Starting with the balance sheet, total assets at the end of the second quarter of fiscal 2025 grew 15% year over year and 2% sequentially to a new high of over $5 billion. Cash and securities were $445 million or 9% of total assets, down from 11% at the end of Q1, as we steadily deploy the capital we raised in December of last year.

從資產負債表開始，2025財年第二季末的總資產年增15％，季增2％，達到50多億美元的新高。由於我們穩步部署去年 12 月籌集的資金，現金和證券為 4.45 億美元，佔總資產的 9%，低於第一季末的 11%。

Book value per--book value per share increased to a record $16.25. Our CET1 ratio increased to 14.28%, and our leverage ratio was 9.61%, both remaining above our internal targets. Total consolidated revenue was a record 30.1 million, up 6% year over year and 8% sequentially.

每股帳面價值增至創紀錄的16.25美元。我們的普通股一級資本適足率增至14.28%，槓桿率為9.61%，均高於我們的內部目標。總合併收入達到創紀錄的 3,010 萬美元，較去年同期成長 6%，較上季成長 8%。

The increase was driven primarily by our continued growth in credit assets, with the sequential growth being additionally driven by solid expansion of our net interest margin. Consolidated net interest expense was $17.5 million compared to $12.2 million in Q2 of last year and $15.7 million for Q1 of this year.

這一增長主要得益於我們信貸資產的持續增長，而環比增長還得益於我們淨息差的穩步擴大。合併淨利息支出為 1,750 萬美元，而去年第二季為 1,220 萬美元，今年第一季為 1,570 萬美元。

As David discussed, Q2 NIEs included 900,000 related to the preliminary costs associated with the bank's proposed structural realignment, as well as an atypically high unrealized foreign exchange translation loss.

正如 David 所討論的，第二季 NIE 包括與銀行提議的結構調整相關的 900,000 的初步成本，以及異常高的未實現外匯折算損失。

Excluding these costs, NIEs were in line with our expectations. Otherwise, the year over year increase in net interest expenses was primarily due to the addition of Versa Bank USA. As a reminder, DRT cyber expenses were included in our consolidated net interest expenses and totaled $2.7 million for the quarter.

除去這些成本，NIE 符合我們的預期。另外，淨利息支出的年增率主要是由於 Versa Bank USA 的加入。提醒一下，DRT 網路費用已包含在我們的合併淨利息費用中，本季總計 270 萬美元。

Reported net income was $8.5 million and consolidated earnings were $0.26 per share. Excluding the preliminary costs associated with the proposed structural realignment and the impact of the foreign exchange translations, consolidated net income was $9.2 million and consolidated earnings per share was $0.28.

報告淨收入為 850 萬美元，合併收益為每股 0.26 美元。不計與擬議的結構調整相關的初步成本和外匯折算的影響，合併淨收入為 920 萬美元，合併每股收益為 0.28 美元。

Looking at the income statement on a segmented basis, the vast majority of revenue continues to be driven by our Canadian digital operations, or pardon me, our Canadian digital banking operations. And within that Canadian banking operations, as well as our US RPP program ramped up with continued incremental growth.

從分段角度來看損益表，絕大多數收入仍來自我們的加拿大數位業務，或者對不起，是我們的加拿大數位銀行業務。其中，加拿大銀行業務以及美國 RPP 計劃持續穩定成長。

Revenue for the Canadian bank banking operations was $25.6 million, up 8% sequentially from Q1. As the corporate expenses flowed through the Canadian digital banking segment, net income and net earnings per share were negatively impacted by costs associated with the structural realignment and the impact of foreign exchange translation.

加拿大銀行銀行業務收入為 2,560 萬美元，較第一季季增 8%。由於公司費用流向加拿大數位銀行部門，淨收入和每股淨收益受到結構調整相關成本和外匯折算影響的負面影響。

Excluding these impacts, net income for the Canadian banking operation was $9.9 million which comes to $0.30 per share. Revenue from the US banking operations was $2.5 million, a 22% sequential increase and net income for US banking operations was $133,000, a 29% increase sequentially.

除去這些影響，加拿大銀行業務的淨收入為 990 萬美元，即每股 0.30 美元。美國銀行業務收入為 250 萬美元，季增 22%，美國銀行業務淨收入為 13.3 萬美元，季增 29%。

Within DRT cyber com, within the -- within the DRTC, the cybersecurity component generated revenue of $1.8 million, down from $2.3 million in Q2 of last year. Net loss was $652,000 impacted by higher operating expenses. Within DRTC, digital media revenue was $569,000 with net loss of $152,000.

在 DRT 網路安全部門和 DRTC 內部，網路安全組件產生的收入為 180 萬美元，低於去年第二季的 230 萬美元。受營運費用增加的影響，淨虧損為 652,000 美元。在 DRTC 內部，數位媒體收入為 569,000 美元，淨虧損為 152,000 美元。

Our credit assets grew to a record $4.52 billion at the end of Q2, driven once again by our receivable purchase program, which increased 4% -- 14% year over year and 4% sequentially to $3.5 billion. Our RPP portfolio represented 79% of our total asset portfolio at the end of Q2, consistent with the end of Q1.

在第二季末，我們的信貸資產成長至創紀錄的 45.2 億美元，這再次受到我們的應收帳款購買計劃的推動，該計劃同比增長 4% - 14%，環比增長 4%，達到 35 億美元。截至第二季末，我們的 RPP 投資組合占我們總資產投資組合的 79%，與第一季末持平。

Our multi-family residential loans and other portfolios grew 8% year over year and 3% sequentially to $958 million as we steadily drew down on CMHC insured loan commitments. As a reminder, our multi-family residential loans and other portfolio is primarily business to business mortgages and construction loans for residential properties. We have very little exposure to commercial use properties.

隨著我們穩步提取 CMHC 擔保貸款承諾，我們的多戶住宅貸款和其他投資組合同比增長 8%，環比增長 3%，達到 9.58 億美元。提醒一下，我們的多戶住宅貸款和其他投資組合主要是企業對企業抵押貸款和住宅物業建設貸款。我們很少接觸商業用途的房產。

Turning to the income statement of digital banking operations, net interest margin on credit assets, that is excluding cash and securities, was 2.59%. That was 7 basis points or that was 7 basis points or 3% higher on a year over year basis and 16 basis points or 10% higher sequentially. As David discussed, our net interest margin on credit assets is benefiting from several positive trends.

從數位銀行業務損益表來看，信貸資產（不包括現金和證券）的淨利差為2.59%。這比去年同期高出 7 個基點或 3%，比上一季高出 16 個基點或 10%。正如大衛所討論的，我們的信貸資產淨利差正受益於幾個正面的趨勢。

The yield curve is no longer inverted. Further replacement of maturing higher interest rate term deposits with lower interest rate term deposits, continued expansion of our low cost insolvency professional deposits, and a higher margin generated by our US RPP.

殖利率曲線不再倒掛。進一步以較低利率的定期存款取代到期的高利率定期存款，繼續擴大我們的低成本破產專業存款，並透過我們的美國RPP產生更高的利潤。

Net interest margin overall, including the impact of cash, securities, and other assets was 2.29%, an increase of 21 basis points sequentially, which still remained among the highest of the publicly traded financial licensed banks in Canada. Our provision for credit losses or PCL in Q2 increased slightly this quarter to 0.08% of average credit assets, compared to 0% last year and is higher than our 12 quarter average of 0.02%.

包括現金、證券及其他資產的影響在內的整體淨利差為2.29%，比上一季增加21個基點，仍維持加拿大上市金融持牌銀行中最高水準。本季度，我們的信貸損失準備金或 PCL 略有增加，達到平均信貸資產的 0.08%，而去年為 0%，且高於我們 12 個季度的平均值 0.02%。

The increase this quarter was due to changes in forward-looking information used to used in our credit risk models, mainly due to increased uncertainty and more challenging outlook for the economy. I'd now like to turn the call back to David for some closing remarks. David?

本季的成長是由於我們的信用風險模型中使用的前瞻性資訊的變化，主要是由於不確定性增加和經濟前景更具挑戰性。現在我想把電話轉回給大衛，請他做最後的總結發言。戴維？

Thanks, John. Looking ahead to the second half of the year, we expect positive trends of Q2 to continue into the third and fourth quarters, which we expect will drive steady sequential growth in core earnings, meaning excluding the investment in the structural realignment.

謝謝，約翰。展望下半年，我們預計第二季度的正面趨勢將延續到第三季和第四季度，我們預計這將推動核心獲利穩步環比成長，這意味著不包括結構調整的投資。

Credit assets should continue to steadily grow, driven by momentum in our US receivable purchase program, which we continue to expect to reach at least USD290 million by the end of the year. The US has a vastly underserved market for big ticket, point of sale financing, and we have a unique solution that offers a number of clear advantages over existing alternatives.

受美國應收帳款購買計畫的推動，信貸資產將持續穩定成長，我們預計到今年底信貸資產將達到至少 2.9 億美元。美國大額銷售點融資市場嚴重缺乏服務，我們擁有獨特的解決方案，與現有替代方案相比具有許多明顯的優勢。

We see some potential for incremental growth in Canada amidst what remains a challenging environment for consumer spending, and we expect to see an increasing contribution from our growing CMHC insured multi-family residential loan business in this opportunistic part of our Canadian business and remain on target to achieve $1 billion in commitments by the end of the year.

在消費者支出環境仍然充滿挑戰的背景下，我們看到加拿大仍存在一些增量增長的潛力，我們預計，我們不斷增長的 CMHC 承保多戶住宅貸款業務將對我們加拿大業務中這一充滿機遇的部分做出越來越大的貢獻，並有望在年底前實現 10 億美元的承諾。

We will increasingly benefit from the operating leverage in our business model as those assets scale, especially as we deploy the capital from our equity offering last December, contributing to further improvements in efficiency and return on common equity on core earnings.

隨著這些資產的規模擴大，我們將越來越多地受益於我們業務模式中的經營槓桿，特別是當我們部署去年 12 月股票發行所得的資本時，這將進一步提高效率和核心收益的普通股回報率。

We expect to see the continuation of this favorable trend in support of our net interest margins that are in line with our expanding Q2 levels. Further replacements of insuring higher cost term deposit receipts for those of the current rates, the normalized yield curve which benefits our RPP spreads, the higher spread we generate on RPP assets in the US and the higher deposits in our low cost insolvency deposit business.

我們預計這一良好趨勢將持續下去，以支持我們的淨利差與我們不斷擴大的第二季度水準保持一致。進一步以當前利率的更高成本定期存款收據進行擔保，標準化的收益率曲線有利於我們的 RPP 利差，我們在美國 RPP 資產上產生的更高利差以及我們低成本破產存款業務中的更高存款。

Q2's insolvency balances were up another 5% sequentially and 22% year over year, and we continue to expect those deposits to grow to about a billion.

第二季的破產餘額將季增 5%，年增 22%，我們繼續預期這些存款將成長至約 10 億美元。

Finally, as discussed in our last call, we are aggressively pursuing the renewed opportunity for our proprietary digital deposit receipts as we expected with the US administration's significantly more favorable view towards digital assets, including digital currencies and stablecoins, we are starting to see the industry itself ramping up their plans.

最後，正如我們在上次電話會議中所討論的那樣，我們正在積極尋求專有數位存款收據的新機會，正如我們預期的那樣，隨著美國政府對數位資產（包括數位貨幣和穩定幣）的看法明顯更加有利，我們開始看到該行業本身正在加緊計劃。

Most notably, Wall Street Journal reported JPMorgan Chase, Citi, Wells Fargo, and BofA Bank of America, and others are all exploring the use of this technology to modernize payments. Our digital deposit receipts are a market ready solution created by a bank or banks that seamlessly integrate with existing bank software systems, while addressing the major concerns of regulators. They take the concept of stablecoin to an entirely new level.

最值得注意的是，《華爾街日報》報道稱，摩根大通、花旗銀行、富國銀行、美國銀行等都在探索使用這項技術實現支付現代化。我們的數位存款收據是由一家或多家銀行創建的市場就緒解決方案，可與現有銀行軟體系統無縫集成，同時解決監管機構的主要擔憂。他們將穩定幣的概念提升到了一個全新的水平。

In fact, next week, I'll be speaking at the Florida Bankers Association annual meeting, the title of my presentation, Introducing the Ultimate Stablecoin, the only USD digital deposit receipt. I will discuss why we believe our first of a kind stablecoin minted by a national bank sought to approve based on the highest military grade security can and we believe will play a role in changing the banking industry.

事實上，下週，我將在佛羅裡達銀行家協會年會上發表演講，我的演講主題是「介紹終極穩定幣，唯一的美元數位存款收據」。我將討論為什麼我們相信我們的第一個由國家銀行鑄造的、尋求以最高軍用級別安全為依據批准的穩定幣能夠並且我們相信它將在改變銀行業方面發揮作用。

Before we open the call to questions, a few words on the proposed structural realignment we announced last week. The details are a little convoluted and well laid out in our news release, so I won't get into those here. The purpose of this initiative is to realign our corporate structure to that of the most international banks under which there is a corporate parent entity that holds the various operating subsidiaries.

在我們開始提問之前，我們先簡單談談我們上週宣布的結構調整提案。這些細節有些複雜，而且在我們的新聞稿中已經講清楚了，所以我就不在這裡贅述了。此項措施的目的是將我們的公司結構重新調整為與大多數國際銀行一樣的結構，即由一個母公司實體持有各個營運子公司。

This is the structure with which US and international investors are most familiar. Under the proposed plan, the new parent would be domiciled in the United States and fall under the purview of the US regulators, as would our US operations.

這是美國和國際投資者最熟悉的結構。根據擬議計劃，新母公司將設在美國，並受美國監管機構的監管，我們的美國業務也將如此。

Our Canadian operations would remain domiciled in Canada and remain under the purview of the Canadian regulators. The benefits of this proposed realignment are clear. We would simplify our regulatory oversight. We would further mitigate risks, something we continuously seek to do. We would generate meaningful cost savings. Our stock should become eligible for certain indices, including the Russell 2000.

我們的加拿大業務仍將在加拿大境內開展，並繼續接受加拿大監管機構的監管。此項建議調整的好處是顯而易見的。我們將簡化監管監督。我們將進一步降低風險，這是我們一直努力追求的目標。我們將實現顯著的成本節約。我們的股票應該符合某些指數的資格，包括羅素 2000。

And looking longer term, it would provide a structure that would be favorable to further international expansion. We would expect all this to generate additional shareholder value over and above the value we expect to drive through growth of the business itself.

從長遠來看，它將提供有利於進一步國際擴張的結構。我們期望所有這些都能為股東創造額外的價值，超越我們預期透過業務本身的成長所帶來的價值。

The realignment is subject to a number of approvals, the OCC, the Fed in the US, the Minister of Finance in Canada, the Nasdaq and the Toronto Stock Exchange, of course, and our shareholders. There is significant cost to this undertaking, which is very much we view as an investment with a substantial expected return.

這項調整需要多方批准，包括美國貨幣監理署、美國聯準會、加拿大財政部、納斯達克和多倫多證券交易所，當然還有我們的股東。這項工作的成本很高，但我們認為這是一項預期回報豐厚的投資。

We estimate that to be around $8 million Canadian to be roughly divided between third and fourth quarters this year with a small amount incurred in Q2 as noted earlier. That expected $8 million investment equates to about 1.5% of our current market cap. We are confident that the combined benefits will drive incremental shareholder value far in excess of this investment.

我們估計，這筆支出約為 800 萬加元，大致分佈在今年第三季和第四季度，而如前所述，第二季將產生少量支出。預計 800 萬美元的投資相當於我們目前市值的 1.5% 左右。我們相信，綜合效益將推動股東價值的增量遠遠超過此項投資。

With that, I'd like to open up the call to questions operator.

好了，現在我想開始電話問答環節。

Thank you. And ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，我們現在開始問答環節。（操作員指示）

Joseph Yanchunis, Raymond James.

約瑟夫揚丘尼斯、雷蒙德詹姆斯。

Good morning, Joe.

早安，喬。

So in your prepared remarks, I believe you said that you expect insolvency deposits will reach $1 billion. What's the timing for that target? And in conjunction with this tailwind and the several others that you listed, do you have a sense for the magnitude of the expansion in the out quarters?

因此，我相信您在準備好的演講中說過，預計破產存款將達到 10 億美元。實現該目標的時間是什麼時候？結合這順風因素以及您列出的其他幾個因素，您是否了解外部擴張的幅度有多大？

Sure, could you repeat the second half I broke up a little bit.

當然，你能重複一下後半部嗎？我稍微分開了一下。

Yeah, it was the timing for the billion and then kind of an outlook a year term outlook for the NIM expansion.

是的，這是十億的時機，然後是 NIM 擴張的一年展望。

Well, with the billing, I'm thinking by the end of the calendar year, we should get there. As you can see, we're growing at 22% year over year and unfortunately for Canada, we're almost a record low for consumer sentiment and insolvency.

好吧，根據帳單情況，我想到今年年底我們應該能實現這個目標。正如您所看到的，我們的年增長率為 22%，但不幸的是，對於加拿大來說，我們的消費者信心和破產率幾乎處於歷史最低水平。

So, while it's a tough time for most Canadians, it's a good time for the insolvency business and it should, it supplies us with some economically priced deposits. So I think by around the continue the balances continue to grow at the present rate by the end of the calendar years hit about a billion.

因此，雖然對大多數加拿大人來說這是一個艱難的時期，但對於破產業務來說卻是一個好時機，它應該為我們提供一些經濟實惠的存款。因此我認為，到本年年底，餘額將以目前的速度繼續增長，達到約 10 億。

Now, with respect to NIM expansion, very pleased to see the 29 basis points, sequentially in the credit assets. There's a little bit of a dampening effect right now happening in Canada, even though we have about 700 million in GICs maturing in the next few months at about 1% less than and the replacement GSC is about 1% less.

現在，關於淨利差擴張，很高興看到信貸資產連續成長 29 個基點。目前，加拿大出現了一些抑制效應，儘管我們有大約 7 億的 GIC 在未來幾個月內到期，利率比現在低 1%，而替代的 GSC 利率也低 1% 左右。

So that's all very favorable for us but the yield curve is still pretty flat and might have a little tiny inversion in in the short end. That puts a bit of damper on it, so it hasn't quite swung back up as it normally is. And the marginal government can bonds, that our GICs have over the last while, are high too. It's about 80 odd basis points, usually around 50.

這對我們來說都非常有利，但殖利率曲線仍然相當平坦，短期內可能會出現輕微的反轉。這給它帶來了一些阻礙，所以它還沒有像平常那樣回升。並且，我們的 GIC 過去一段時間持有的政府公債邊際利率也很高。大概是80多個基點，一般在50左右。

So, right now I'm thinking it will stay where it is and probably start edging up again when some of this noise gets out of the system.

所以，現在我認為它會保持原樣，並且當一些噪音從系統中消失後，可能會再次開始上升。

Got it. I appreciate that and then, kind of moving over to expenses. So excluding the realignment costs, how should we think about, non-expenses kind of trending from here and then what are the expected annual savings from redomiciling in the US?

知道了。我對此表示感謝，然後我們來談談費用問題。那麼，在排除重新調整成本後，我們應該如何考慮非費用趨勢，以及在美國重新註冊預計每年可以節省多少？

Well, with excluding the those one-time expenditures with respect to reorganizing is probably a little bit more in NIE in the states, we've got maybe one more hire to do and other that it should stabilize. So maybe a slight increase in in the US banks expenses going forward is unstable and with respect to the savings, you could probably pencil in around $2 million, $3 million a year, once we've got the reorganization done.

好吧，排除那些與重組有關的一次性支出，美國的 NIE 可能會多一點，我們可能還需要再招募一個人，其他的就應該穩定下來。因此，未來美國銀行的支出可能會略有增加，這並不穩定，就節省而言，一旦我們完成重組，每年大概可以節省 200 萬到 300 萬美元。

Yeah, I appreciate that. Then this last one from me with respect to capital and perhaps I missed this in the materials, but didn't look like you utilize your recent share repurchase authorization. How should we think about your appetite for repurchases in the out quarters?

是的，我很感激。然後，這是我關於資本的最後一點，也許我在材料中遺漏了這一點，但看起來你並沒有利用你最近的股票回購授權。我們該如何看待您對外部季度回購的興趣？

Well, we're keen to buyers talk back less than book value, and it looks like it's less than book value, maybe say it has been in the last. So, we are keen to buy it back at that price. I personally, I don't expect you to stay down there that long, but, if it is, we've got, loads of capital and that probably the best place to deploy our capital is buying back our stock less and book.

好吧，我們熱衷於買家回應低於帳面價值的價格，而且看起來它確實低於帳面價值，也許可以說它在過去一直如此。因此，我們渴望以該價格回購它。就我個人而言，我並不指望你會在那裡待那麼久，但是，如果是這樣的話，我們已經有大量的資本，而部署我們資本的最佳地點可能是以較少的金額回購我們的股票和賬面價值。

Excellent. Thank you for doing my questions.

出色的。謝謝你回答我的問題。

Thank you, Joe. Look forward to seeing you in Florida.

謝謝你，喬。期待在佛羅裡達見到你。

Tim Switzer, Keefe, Bruyette & Woods Inc.

斯威策，Keefe, Bruyette & Woods Inc.

Hey, good morning. Thank you for taking my questions.

嘿，早安。感謝您回答我的問題。

Good morning, Tim.

早安，提姆。

Great, can you update us on the expectations you have on the cell DRTC cyber and the timeline there?

太好了，您能否向我們介紹一下您對蜂窩 DRTC 網路的期望以及時間表？

Well, we're In the sort of the final stages of engaging a firm to look after that sale and I would expect by the end of this fiscal year, we'll have a deal done. It's I think a very popular business unfortunately, but terrible comment on humanity that cybersecurity attacks just seem to be relentless, and DRT cybers seem to be a world leader in particularly in the penetration testing.

嗯，我們正處於聘請一家公司來負責這筆銷售的最後階段，我預計到本財年結束時，我們將完成交易。不幸的是，我認為這是一項非常受歡迎的業務，但對人類來說卻是可怕的評論，網路安全攻擊似乎無情，而 DRT 網路似乎在滲透測試方面處於世界領先地位。

So we're actively in the sale process now, and as I say, we expect fairly soon to engage a firm to look after that for us.

因此，我們現在正積極參與銷售流程，正如我所說，我們希望很快就能聘請一家公司來為我們處理此事。

Okay great that's good to hear and can you provide an update on how like conversations with new partners in the US are going maybe how many new programs you expect to be fully launched by the end of the year?

好的，很高興聽到這個消息，您能否介紹一下與美國新合作夥伴的對話進展如何，或者您預計到今年年底將全面推出多少個新項目？

Well, the conversation's going quite well, and of course it's a very attractive product, but the onboarding process is a little longer than I would like. We've got three signed up now, and by the end of the year, so we have another three signed up.

嗯，談話進行得很順利，當然這是一個非常有吸引力的產品，但入職流程比我想要的要長一些。目前我們已經簽了三家，到今年年底，我們還會再簽三家。

I'm hoping for a lot more than that, but it is taking a while to onboard the legal work is different in the states versus what, we have in Canada, not that much different, but it is, there are nuances to it. So three now, maybe another three, and if the guys pleasantly surprised me, maybe another three on top of that.

我希望的遠不止這些，但需要一段時間才能讓美國的法律工作與加拿大有所不同，雖然差別不大，但確實存在細微差別。所以現在是三個，也許再有三個，如果這些傢伙給我驚喜，也許再加三個。

Okay. That sounds good and the last question I have is can you just provide some commentary on the credit trends you're seeing in the CRE book where we we've seen some reserve released over the last few quarters but I've had also had some charge offs just would love to hear what you guys are seeing there.

好的。這聽起來不錯，我的最後一個問題是，您能否對您在 CRE 書中看到的信貸趨勢提供一些評論，我們看到過去幾個季度釋放了一些儲備，但我也有一些沖銷，我很想聽聽你們在那裡看到了什麼。

Well, the charge offs actually are sort of an academic charge off and that they're part of the US portfolio that we purchased, when we purchased that US bank, so they're not in the Canadian real estate area. We have no charge offs, no real charge-offs at all in our book.

嗯，這些沖銷實際上是一種學術性的沖銷，它們是我們在收購那家美國銀行時購買的美國投資組合的一部分，所以它們不在加拿大房地產領域。我們的帳簿上沒有任何沖銷，根本沒有任何真正的沖銷。

But we purchased the portfolio to by the bank and along with it, we purchased their expected loss provision that's been charged against it. The Canadian real estate market, it is in a bit of a turmoil. So it's a really a heads-up game lending in that area. We've been at it for, I guess in my case, 48 years.

但是我們購買了銀行的投資組合，同時，我們也購買了他們已計入的預期損失準備金。加拿大房地產市場有點動盪。因此，在這個領域貸款確實是一場需要謹慎的遊戲。我想，就我而言，我們已經堅持了 48 年。

So this is one of those periods of time where you have to be really careful. Hence our focus on the government's insured CMHC mortgages, and we intend to keep that focus, and we tend to lend to our clients that we've lend to for decades, around the London Ontario area.

因此，這是一個你必須非常小心的時期之一。因此，我們專注於政府擔保的 CMHC 抵押貸款，我們打算保持這一重點，並且我們傾向於向安大略省倫敦地區數十年來一直為我們提供貸款的客戶提供貸款。

So, yeah, if like you and our real estate developer clients are, for the most part, sitting on a lot of cash, sort of waiting until things smooth out a bit, yeah, in the economy.

所以，是的，如果像您和我們的房地產開發商客戶一樣，大部分都坐擁大量現金，等待經濟狀況稍微平穩一些。

Great appreciate you answering all the questions, David.

非常感謝您回答所有問題，大衛。

No problem, Tim, but maybe I'll say New York. I'm heading in there next week sometime.

沒問題，提姆，但也許我會說紐約。我下周某個時候會去那裡。

Okay, yeah, we'll be in touch.

好的，是的，我們會保持聯繫。

(Operator Instructions)

（操作員指示）

Andrew Scutt, ROTH Capital Partners LLC

羅仕資本合夥有限責任公司 Andrew Scutt

Hey, good morning and thank you for taking my questions. So my first one here is a little bit of a two parts. You guys had nice growth in the RPP portfolio, so kind of breaking it out by geography, with the softness in the Canadian economy, can you just kind of talk about what verticals you did see strength in and then maybe within the active US portfolio, is there anything you've kind of learned that surprised you, thus far?

嘿，早上好，感謝您回答我的問題。所以我的第一個作品分成兩個部分。你們的 RPP 投資組合取得了不錯的成長，因此按地理劃分，考慮到加拿大經濟的疲軟，您能否談談您認為哪些垂直領域表現強勁？然後也許在主動美國投資組合中，到目前為止，您是否了解到了令您感到驚訝的事情？

Well, it actually, Andrew, it surprised me the Canadian, portfolio grew in that, all the stats in Canada are pretty negative, like a consumer sentiment at an all-time low, insolvencies at an all-time high. So I was surprised to see any growth in Canada. I think the last quarter, I said that, but the vertical really is home improvement.

嗯，實際上，安德魯，加拿大的投資組合成長讓我感到驚訝，加拿大的所有統計數據都相當負面，例如消費者信心處於歷史最低點，破產率處於歷史最高水平。因此，我對加拿大的成長感到很驚訝。我想上個季度我說過，但垂直確實是家居裝修。

And I suppose, that's, that maybe that's to be expected. Canadians are buying new furnaces and energy efficient furnaces and hot water heaters and that sort of things they're saving them ultimately in the monthly, and monthly expenses.

我想，這也許是意料之中的事。加拿大人正在購買新的爐子、節能爐和熱水器等東西，最終他們每月可以節省開支。

So that's where we see the growth in Canada still, strangely enough, and it's probably going to continue right through the end of the year. So you may very well see about a 10% increase year over year in the RPP in Canada and of course on the other side of that, we're seeing 22% growth year over year in the insolvency deposits which are helping drive the expansion of our margin.

奇怪的是，我們看到加拿大仍然在成長，而且這種成長可能會持續到今年年底。因此，您很可能會看到加拿大的 RPP 年成長約 10%，當然另一方面，我們看到破產存款年增 22%，這有助於推動我們利潤率的擴大。

In the United States, the, I suppose the lesson is that the alternate source of financing is securitization, and the credit spreads in that area have been pretty narrow. So even though, firstly everybody we talked to in the states wants to sign up for our program as a sort of a continuous steady reliable source of capital to fund their loans.

在美國，我認為教訓是替代融資來源是證券化，而該地區的信貸利差一直相當窄。因此，儘管如此，首先，我們在美國交談過的每個人都希望註冊我們的計劃，作為一種持續、穩定、可靠的資金來源來為他們的貸款提供資金。

The market is giving money pretty cheap right now. So, it means that we're maybe not the top priority, with that would be otherwise if credit spreads are really wide. So that's, the American, point of sale customers tend to be a lot larger than the Canadian ones.

目前市場資金價格相當便宜。所以，這意味著我們可能不是首要任務，如果信用利差真的很大的話情況就會不同。因此，美國的銷售點客戶往往比加拿大的客戶大得多。

But the Can ones don't have their size don't have really access to the securitization programs but the American ones do cause they're so much larger and so their appetite for our program is sort of modified by the credit spreads.

但是，加拿大的銀行規模不夠大，無法真正參與證券化計劃，而美國的銀行則可以，因為它們的規模大得多，所以它們對我們計劃的興趣在某種程度上受到了信用利差的影響。

Really appreciate the detail there, and second one for me if I may you guys added an additional deposit broker in the quarter noted this could potentially be a tailwind to NIM. So can you kind of talk us through how that could be a benefit you guys and if you're interested to further expand your network.

非常感謝你提供的細節，如果可以的話，第二個問題對我來說是，你們在本季度增加了一個存款經紀人，這可能會對 NIM 產生順風作用。那麼，您能否向我們講一下這對您有什麼好處，以及您是否有興趣進一步擴展您的人脈。

Well, absolutely right, we're fortunate that Bank of Montreal, put us on their board, in my early career, I started off with Bank of Montreal, so it was just, it was justice that they should have us on their Board. Bank of Montreal is a huge channel for distributing our deposits. So, that is the tailwind on that that would be contributing to our net interest margin expansion and the diversity of our deposit base.

嗯，完全正確，我們很幸運，蒙特利爾銀行將我們納入他們的董事會，在我早期的職業生涯中，我就是在蒙特利爾銀行開始的，所以他們應該讓我們進入他們的董事會，這是公正的。蒙特利爾銀行是我們存款分配的一個巨大管道。因此，這將成為推動我們淨利差擴大和存款基礎多樣化的順風。

So we're thankful that that Bank of Montreal added us. I think maybe one large bank left in Canada to put us on their Board, and again that helps with the diversity and the expansion and just to spell it out, the more channels we have, that distribute our deposits.

因此，我們很感謝蒙特利爾銀行接納了我們。我認為也許加拿大有一家大銀行會把我們納入他們的董事會，這又有助於多元化和擴張，簡而言之，我們擁有的管道越多，我們分配存款的管道就越多。

The less we have to pay for our deposits, and that we don't overwhelm one particular channel cause it we're so well distributed all across the entire country of Canada. So that's helpful.

我們支付的押金越少，而且由於我們的業務在加拿大全國範圍內分佈很廣，因此不會壓垮某個特定的管道。這很有幫助。

And like I said, there may be one more bank that in the very early days of, I was just conceiving this model was actually a supplier, and then the market changed a bit, the industry changed. So we should really sign them up too, and then we have the entire country.

就像我說的，可能還有一家銀行，在早期我只是設想這種模式其實是一家供應商，然後市場發生了一些變化，產業發生了變化。所以我們也應該讓他們簽約，這樣我們就有整個國家了。

Great I really appreciate the call and thanks for taking my questions.

太好了，我非常感謝您的來電，也感謝您回答我的問題。

Well, thank you, Andrew. See you in New York soon.

好吧，謝謝你，安德魯。很快在紐約見。

Yeah, that'd be great.

是的，那太好了。

Jack Wagman, Raymond James.

傑克·瓦格曼、雷蒙德·詹姆斯。

Hey, good morning, David and John.

嘿，早上好，大衛和約翰。

Good morning.

早安.

It's been a while.

已經有一段時間了。

Are you in Saint Petersburg. Are you being you in the baking hot Saint Petersburg right now?

你在聖彼得堡嗎？您現在還在炎熱的聖彼得堡嗎？

No, I'm in, actually, getting warmer Toronto.

不，實際上，我在越來越溫暖的多倫多。

0h, no kidding, sorry, you said yeah. Thought you were down in the headquarters.

0h，不是開玩笑，對不起，你說的是的。我以為你在總部。

No, I hope to be in London sometime through the summer. And but anyway, just a general question. Given the political climate and, the expansion and wisely, I think the concentration of the business to the United States, are you experiencing or hearing of any possible pushback given the political environment regarding foreigners in the US?

不，我希望今年夏天能去倫敦。但無論如何，這只是一個一般性的問題。考慮到當前的政治氣氛、業務擴張以及明智的做法，我認為將業務集中到美國，考慮到美國針對外國人的政治環境，您是否遇到或聽說過任何可能的阻力？

No, not yet, but, we've heard sort of statements earlier on about cane bags in general, and it hasn't affected us negatively. In fact, on the balance, the current US administrations propensity for digital commerce, has helped us a lot.

不，還沒有，但是，我們之前聽說過一些關於藤袋的一般說法，它並沒有給我們帶來負面影響。事實上，總的來說，美國現任政府對數位商務的傾向對我們幫助很大。

As we have, the world's first digital deposit receipt, we pioneered it in Canada under the regulatory environment, and now it seems that it's absolutely perfect for what the US administration is talking about. So, other than that, a little bit of rhetoric about Canadian banks, the overwhelming positive thing is the endorsement of digital commerce and our digital deposit receipt, of course, is at least two years ahead of the game.

正如我們所擁有的，世界上第一張數位存款收據，是在監管環境下在加拿大率先推出的，現在看來，它完全符合美國政府所談論的內容。因此，除此之外，關於加拿大銀行的一些言論，壓倒性的積極因素是對數位商務的認可，當然，我們的數位存款收據至少領先於該行業兩年。

We not only pioneered it in the regulatory environment, but we also obtained a sock type two audit, which is you can only get by having it actually be functional. So everybody else is dreaming of doing this, they got a few years to go. And we got the thing, ready to roll in the United States. So if anything on the balance, it's positive to be in the United States.

我們不僅在監管環境中率先採用了這項技術，而且還獲得了襪子二類審計，這是只有透過實際發揮作用才能獲得的。所以其他人都夢想著這樣做，他們還需要幾年的時間。我們已經做好了準備，準備在美國推出。因此，如果從總體上看，留在美國是件好事。

Alright, so I'll, propose they're talking about tax increases on foreigners investing in the states and the increase in withholding taxes for, on dividends and that sort of thing, but, I don't know about business operations yet. I haven't heard anything about that.

好吧，我建議他們討論對在美國投資的外國人增加稅收，以及增加股息預扣稅和諸如此類的事情，但是，我還不知道商業運營的情況。我沒有聽說過這件事。

Yeah, and, a good portion of our shareholders are US, other than our major, holding company, it's 80% US shareholders.

是的，我們的股東很大一部分是美國人，除了我們的主要控股公司之外，80% 的股東都是美國股東。

But it won't impact your business as a, as an operational thing, will it?

但它不會影響您的業務運營，對嗎？

No. I mean, I don't see it, but we're part of the, part of this restructuring will give us insights into how we can efficiently structure ourselves to minimize our tax burdens and foreign exchange translations that we saw us get hit with this quarter.

不。我的意思是，我沒有看到這一點，但我們參與了這次重組，這將使我們了解如何有效地構建自身結構，以最大限度地減少本季度我們受到的稅收負擔和外匯折算的影響。

So that's all underway. Also, obviously, with us adopting the same holding companies’ structure that the other international US banks have, that minimizes the risk that there might be some sort of aversion to Canadian banks in the United States. We'll have a holding company structure identical to that of say JPMorgan. So that minimizes all the, all that stuff.

一切正在進行中。此外，顯然，我們採用與其他美國國際銀行相同的控股公司結構，這最大限度地降低了美國可能對加拿大銀行產生某種厭惡情緒的風險。我們將擁有與摩根大通相同的控股公司結構。這樣就把這些東西都最小化了。

Okay, I'll give you a shout and hopefully when you guys are in London, I'll make a plan to come down and see you.

好的，我會打電話給你們，希望當你們在倫敦時，我會安排時間去看你們。

Yeah, well, I'm in London right now. I'm right at the Versabank's Innovations Center of Excellence here and, but at last I'm without an airplane, so I can't find the island to visit with you. I got a --

是的，我現在在倫敦。我現在就在 Versabank 創新卓越中心，但是我沒有飛機，所以我找不到可以和你一起參觀的島嶼。我得到了一個--

I'm in Toronto, Jeff.

我在多倫多，傑夫。

It's yeah, I know. Well, island airport, of course.

是的，我知道。嗯，當然是島上機場。

Oh, the island, I forgot about that.

哦，那個島，我忘了。

Yeah, that's a 30, that's a 35 minute flight for me out of London airport here where we're located, but I've got a new set of garment instruments going in and seems to take forever like a lot of things in life nowadays everything seems to take a lot longer.

是的，從我們所在的倫敦機場出發，飛行時間為 30 到 35 分鐘，但我有一套新的服裝儀器要送去，這似乎要花很長時間，就像現在生活中的很多事情一樣，一切似乎都要花更長的時間。

That's right. Well I'm tied up this month. We got our kids in from overseas, so, it'll be July or August, hopefully July it'll be sometime in July, but I'll message you and John and see if we can yeah.

這是正確的。嗯，這個月我忙不過來了。我們的孩子從海外回來，所以，時間會是七月或八月，希望是七月，大概是七月的某個時候，但我會給你和約翰發訊息，看看我們是否可以。

I'm in LD. I regularly once I got the got my wings back.

我在 LD。一旦我拿回了我的翅膀，我就會定期檢查。

Yeah, I'm sure alright well thanks again. Thanks very much

是的，我確定，好的，再次感謝。非常感謝

Okay, thank you. Bye.

好的，謝謝。再見。

And we have no further questions at this time. I would like to turn it back to David Taylor for closing remarks.

目前我們沒有其他問題。我想請戴維泰勒作最後發言。

Well, I'd like to thank everyone for joining us today and I look forward to speaking to you at the time of our third quarter results.

好吧，我想感謝大家今天的參加，我期待在我們發布第三季業績時與大家交談。

Thank you presenters and ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.

感謝各位演講者、女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。