• EBT increases by 28% compared to the previous period despite the pandemic and risk provisioning
• Commission fees are once again the main driver of increased revenues
• Management Board decides to pay out COVID-19 bonuses to employees

Hamburg, 10/11/2020 - For Varengold Bank AG, 2019 was the most successful year in its history and the first half of its 25^th anniversary year has also shown very gratifying financial results despite the pandemic. It is now apparent that the Hamburg-based bank has continued its strong performance in the third quarter of 2020.

Commission fees, which rose from EUR 9.3M to EUR 13.5M, were once again the main driver of a EUR 3.5M increase in revenues compared to the same period in the previous year. As in the first half of 2020, most of these fees were generated through lending and financial transaction services within Commercial Banking, one of Varengold Bank's two core business areas.

Given the uncertainties associated with the continuing pandemic, Varengold Bank will again use a significant share of this revenue increase for risk provisioning. Nonetheless, the EBT of EUR 2,849,205 for the first three quarters of 2020 will remain 28% higher compared to the same period in 2019 (EUR 2,232,083).

In the light of the continued earnings strength of Varengold Bank under particularly challenging conditions, the Management Board has decided to pay out a COVID-19 bonus towards the year's end. Depending on type of employment and length of service, employees will receive a payment of up to EUR 1,500. Owing to a respective provision by the Federal Ministry of Finance, this bonus will remain tax-free within Germany. Board Member Dr. Bernhard commented on the decision as follows:

"I am very proud of our team's performance during the pandemic. Working from home does not automatically mean things get any easier. Instead, many of our employees were faced with new challenges, be it in the set-up of a suitable workstation or in the reorganisation of family life. Others took it upon themselves to come into the office every day to keep essential processes running despite the greater risk to their health. At Varengold, this is what we call "going the extra mile". Now, this particular extra mile will be compensated with an extra payment."

 

Disclaimer

This release contains forward-looking statements that involve certain risks and uncertainties. Future results may differ materially from those currently anticipated due to various risk factors and uncertainties, such as changes in business, economic and competitive conditions, currency exchange rate fluctuations, litigation uncertainties or investigations, and availability of financial resources. Varengold Bank AG assumes no responsibility for updating the forward-looking statements contained in this release.

Contact:
Ms. Sanja Schultz-Szabo (Head of Corporate Development)