Hamburg, 4 March 2021 - At the beginning of the 2020 financial year, Varengold Bank AG (symbol: VG8) looked back on the previous year with great comfort, as it was the most successful year in the company's history. As a result, the bank's business plan for 2020, set out at the beginning of last year, projected earnings before tax of EUR 3.8 million.

In the first half of 2020, the Hamburg-based bank delivered a very positive financial result, which was in line with the first half of 2019. The strong performance was then maintained during the second half of the year. With the onset of the of the Covid pandemic, Varengold's timely digitalisation measures allowed it to continuously drive its business activities forward. Despite the pandemic, revenues increased significantly from EUR 25.7 million in 2019 to EUR 30.1 million in 2020. The changed macroeconomic environment, however, also increased risks which, in the view of the Management Board, require adequate risk provisioning. Meaning that an amount of around EUR 4.9 million was booked for write-downs and value adjustments on receivables, securities and investments. In addition, a provision for legal risks to the amount of EUR 2.5 million was also made.

In the context of the current year-end activities, earnings before tax of EUR 1.8 million are emerging as the central financial performance indicator.

The result is preliminary and unaudited. The bank will publish audited annual financial statements in June 2021.

Dr. Bernhard Fuhrmann Frank Otten
Management Board Management Board

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