31.03.2017
Varengold Bank AG DE0005479307
DGAP-News: Varengold Bank AG: Preliminary, unaudited figures 2016
DGAP-News: Varengold Bank AG / Key word(s): Final Results/Miscellaneous
Varengold Bank AG: Preliminary, unaudited figures 2016
31.03.2017 / 14:48
The issuer is solely responsible for the content of this announcement.
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Hamburg, 31st March 2017 - Over the past 12 months Varengold Bank AG has
continued to develop its business strategy and made adjustments to drive
forward the bank's growth and to establish a stable and lasting value for
shareholders, customers and employees. As part of these adjustments, a
decision was made in March 2016 to relinquish the Capital Markets Brokerage
segment and to instead focus on sustainably expanding the Prime Brokerage
and Commercial Banking segments. Operations processes continued to be
optimised positively throughout the year.
The interest income earned by the bank rose from TEUR 1,326 in 2015 to TEUR
4,474 in 2016, while interest expenses fell due to the fall in interest
rates, resulting in an interest surplus of TEUR 1,578. The rise in interest
income is mainly attributable to interest income from the Prime Brokerage
segment and interest income from fixed-income investment securities in the
liquidity reserve. The rise in commission income from TEUR 5,243 to TEUR
20,927 due to increased Prime Brokerage activities is accompanied by a rise
in commission expenses from TEUR 1,335 to TEUR 15,211. The net income from
the trading portfolio fell from TEUR 11,117 to TEUR 5,685. The decline is
due essentially to reduced business activities in the Capital Markets
Brokerage segment, which was closed at the end of October 2016.
In the financial year, an extraordinary result of TEUR 1,062 was accrued.
The general administration expenses of the Company decreased by TEUR 5,415
to TEUR 15,547. The decrease was significantly contributed by lower
personnel expenses and consulting costs in the Prime Brokerage segment.
Income from the ordinary business activities of Varengold Bank in the past
financial year 2016 totalled -TEUR 2,478 (previous year: -TEUR 5,818). This
resulted in a preliminary net loss for the year of TEUR 1,486 (previous
year: -TEUR 13,218).
In the Commercial Banking segment, Varengold Bank has established a solid
customer base for Trade Finance transactions over the past three years, and
in future aims to develop further as a specialist provider for business
customers with a focus on trading in the regions of Eastern Europe and the
Middle East. Varengold aims to utilise this customer potential and further
expand its current product portfolio, for example, when forfaiting of
letters of credit.
In 2016 the focus of the business activities of the Primer Brokerage segment
were on the equities asset class. Varengold expects that this asset class
will become less attractive to customers in the coming years. From the
second half of 2017 onwards, the bank will therefore gradually switch its
focus to the real estate and short term receivables asset classes to exploit
existing business opportunities there.
In recent months Varengold Bank has also been involved in potential
financing and product solutions for FinTechs and intends to exploit these
opportunities, as it anticipates substantial growth opportunities and
innovation steps through a cooperation with FinTechs.
The bank's equity position will also be further strengthened in the medium
term to exploit and flexibly respond to growth opportunities. Due to the
strategic refocussing and operational improvement measures that have been
introduced, the Management Board is viewing the 2017 fiscal year with
confidence.
Contact:
Ms. Sanja Szabo (Head of Corporate Development)
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31.03.2017 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,
Stuttgart; Open Market (Basic Board) in Frankfurt
End of News DGAP News Service
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560813 31.03.2017
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