Varengold Bank reports dip in earnings, maintains outlook

HAMBURG - Varengold Bank AG (FRA:VG8), a German financial institution, reported a decline in its earnings before taxes (EBT) for the first nine months of 2024 compared to the previous year. Despite a decrease in net income and EBT, the bank confirmed its expected EBT range for the full year.

The bank's net income fell to EUR 39.5 million, a 21% decrease from EUR 49.8 million during the same period last year. Earnings before taxes also dropped by 29% to EUR 14.6 million, down from EUR 20.6 million. However, Varengold Bank managed to cut administrative expenses by EUR 7.6 million, bringing them down to EUR 21.2 million. The bank attributes these reductions to a realignment of its business model, which was initiated in the third quarter.

Despite these lower figures, Varengold Bank experienced a 5% growth in its interest business and remains optimistic about its full-year performance. It expects to achieve an EBT between EUR 9 million and EUR 13 million for 2024, in line with previous forecasts.

The bank also announced its intention to focus on expanding its lending business within the Marketplace Banking segment and to adapt its business model to include financing that complies with Environmental, Social, and Governance (ESG) criteria. This strategic shift comes after the election of Mr. Dirk Auerbach as the new Chairman of the Supervisory Board and the Annual General Meeting for the 2022 financial year.

Varengold Bank, which has been operational since 1995 and received a full banking license in 2013, operates in both Marketplace Banking and Commercial Banking. The bank collaborates with European FinTech companies, particularly lending platforms, and provides trade finance transactions in its commercial banking division.

This financial update is based on a press release statement from Varengold Bank AG.

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Source: Investing.com