31.07.2018
Varengold Bank AG DE0005479307
DGAP-News: Varengold Bank AG: Preliminary figures for first half of 2018
DGAP-News: Varengold Bank AG / Key word(s): Half Year Results/Miscellaneous
Varengold Bank AG: Preliminary figures for first half of 2018
31.07.2018 / 17:21
The issuer is solely responsible for the content of this announcement.
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Hamburg, 31st July 2018 - The business development of Varengold Bank AG in
the first half of 2018 was in particular affected by the persistently low
interest rate landscape, increasing regulatory requirements and continuing
digitization in the general competition of the financial services sector. In
this situation, Varengold Bank has consequently and successfully continued
to pursue its current strategy to become a leading bank for the marketplace
lending sector.
In the first half of 2018, the total assets increased significantly from EUR
445.2 million to nearly EUR 665.5 million. Customer deposits continue to be
the dominant amount on the liabilities side with EUR 599.3 million and
therefore 90%.
The company's interest result increased due to the expanded lending volume
from TEUR 2,047 in the first half of 2017 to TEUR 3,429 in the first half of
2018. The commission result remained almost constant at TEUR 8,108 in the
first half of 2018 (30th June 2017: TEUR 5,818). The net result from trading
portfolio increased by TEUR 69 to TEUR 105. Uther operating income decreased
from TEUR 144 to TEUR 97.
The general administrative expenses of the company increased by TEUR 403
(from TEUR 6,676 to TEUR 7,079). This was due to an increase in personnel
costs from TEUR 3,620 to TEUR 3,682 and IT costs from TEUR 658 to TEUR 883.
Likewise, contributions and insurances increased from TEUR 295 to TEUR 528,
which essentially results from a provision for a one-off payment to the
Compensation Scheme of German Banks. In addition, audit and consultancy
costs fell by EUR 90 thousand, mainly due to lower consultancy costs.
Depreciation and value adjustments on receivables and certain securities as
well as additions to provisions for loans and advances increased
significantly to TEUR 3,426 (30th June 2017: TEUR 670). This provision
resulted from a general requirement due to the expanded lending volume in
marketplace lending. The reported amount is not offset by any individual
risks that have become significant percussive.
The tax expense is very high compared to the pre-tax result, as the
aforementioned provision does not represent a tax expense. Furthermore,
additions to fund investments in the amount of approx. EUR 0.89 million had
to be made in the first half of the year, which lead to a further tax
expense but do not represent income according to German accounting
standards.
In total, the result of ordinary business activities of Varengold Bank AG in
the first half of 2018 amounted to TEUR 1,208 (30th June 2017: TEUR 675)
with a net loss of TEUR 464 at the reporting date (30th June 2017: net
profit TEUR 219).
To be able to meet the requirements for regulatory capital focussing on the
planned expansion of business volume in the future, the share capital of the
company was increased from EUR 4,140,282.00 to EUR 6,210,423.00 (premium
TEUR 3,726) as part of a rights issue. The capital increase was entered in
the commercial register on 16th February 2018.
The Management Board is convinced that Varengold Bank's business model has a
solid foundation and has set the right course to meet the future
requirements and needs of financial market players.
Based on the successful implementation of the business strategy and the
increase in operational efficiency, the forecast of between EUR 1.7 million
and EUR 2.2 before taxes announced at the beginning of this year is expected
for 2018.
Varengold Bank AG will publish its half-yearly report at the end of
September 2018.
Contact:
Ms. Sanja Szabo (Head of Corporate Development)
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31.07.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Varengold Bank AG
Große Elbstraße 14
22767 Hamburg
Germany
Phone: +49 (0)40 / 668649-0
Fax: +49 (0)40 / 668649-49
E-mail: [email protected]
Internet: www.varengold.de
ISIN: DE0005479307
WKN: 547930
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Frankfurt (Basic Board), Stuttgart
End of News DGAP News Service
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709711 31.07.2018
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