Seems this company is having trouble regaining its money making status despite showing growth in assets.
Consolidated Net Income is way below prior year and barely dribbling higher quarter over quarter. Are they poor operators and more of this can be expected?
What are your thoughts on this investment and how much more time do you think is required until they can get it in gear?
Thanks
EPS of $0.26 beat estimates of $0.2 and revenues of $30.14M beat estimates of $23.06M. Total assets grew 15% for the year, largely driven by growth of the Digital Banking operations' credit portfolios, particularly its Receivable Purchase Program (RPP) portfolio, in both the US and Canada. Its net income grew nicely sequentially quarter-over-quarter, but it was a 36% decline against the prior year. Much of its decline in profits were due to a drop in net interest margin (NIM) and a gradual scaling of its US RPP operations. VBNK is focusing on growing and scaling for future growth. Its margin compression is reflective of expansion and integration costs, and we would expect a drag on its margins over the next few quarters. We think the name remains a solid growth operator, but considering its weak results, we would prefer to view it as a HOLD today.