This week, we're looking beyond Canada's Big Six to find value and growth in the small-cap banking sector. We analyze two profitable and growing institutions that are carving out their own successful niches in a competitive industry.
Jon Brown looks at Laurentian Bank (TSX: LB), a nearly 200-year-old institution that is undergoing a major digital transformation to compete in the modern era, all while offering a stable 6% dividend. Then, Trevor Abes dives into VersaBank (TSX: VBNK), a branchless, business-to-business fintech pioneer with an impeccable credit history, which is now expanding into the US and even issuing deposits on the blockchain.
This Episode's Picks:
- Laurentian Bank of Canada (TSX: LB): A legacy Canadian bank in the midst of a digital transformation, offering a stable value and dividend play with the potential upside of a future takeover.
- VersaBank (TSX: VBNK): A highly profitable, branchless digital bank with a unique B2B model, expanding into the multi-trillion dollar US market and innovating with blockchain technology.
Topics Discussed:
- Investing in Canadian small-cap banking stocks.
- The digital transformation of traditional banks.
- Branchless and business-to-business (B2B) banking models.
- The receivables purchase market and point-of-sale financing.
- How blockchain and tokenized assets are entering the banking sector.
Further Reading & Resources:
- Laurentian Bank posts Q3 2025 profit despite revenue drop
- A small-cap bank excelling in the shadow of Canada’s Big Six
- This week’s picks: TSX:LB | TSX:VBNK
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Disclaimer: The material provided in this podcast is for information only and should not be treated as investment advice. For full disclaimer information, please visit themarketonline.ca/disclaimer.
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