Varengold Bank AG: Preliminary figures for the first half of 2016

DGAP-News: Varengold Bank AG / Key word(s): Half Year Results/Miscellaneous2016-08-23 / 13:00The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Hamburg, 23rd August 2016 - In the first half of 2016, business developmentat Varengold Bank AG was characterised by a refocusing of the two keybusiness areas, Prime Brokerage and Commercial Banking, as well as theassociated expansion of the target customer group to include a widelydiversified base of institutional customers. This meant it was possible toincrease the operational efficiency of individual areas appreciably duringthe first half of the year.According to preliminary, unaudited figures as at 30 June 2016, VarengoldBank total assets rose to EUR 634.1 million (30 June 2015: EUR 626.3million) and thus remained more or less constant. At around 95%, customerdeposits continued to represent the dominant item on the liabilities side.The capital increase against cash contributions in February 2016, in which974,184 new shares were placed at a price of EUR 13.00 per share, was alsosignificant.The Company's interest income rose from TEUR - 1,168 in the first half of2015 to TEUR 893 in the same period in 2016 and was due essentially toPrime Brokerage business activities, and on the expense side due to thecontinued falling interest rate.Net commission recorded a significant increase to TEUR 5,720 in the firsthalf of 2016, driven particularly by the strong expansion of PrimeBrokerage activities (30 June 2015: TEUR 1,524).The net result for the trading portfolio fell significantly by TEUR 3,606to TEUR 3,936. This was due in particular to the reduced activities in theCapital Markets Brokerage division that is set to close. Other operationalincome rose from TEUR 396 in the first half of 2015 to TEUR 926 in thefirst half of 2016.The Company's general administration expenses fell by TEUR 1,967 (from TEUR10,327 to TEUR 8,359). The particular reasons for this were the reductionin personnel costs, IT costs along with legal and consulting fees.In total, income from the normal business activities of Varengold Bank AGamounted to TEUR 1,847 in the first half of the year (30 June 2015: TEUR -2,426) with an annual profit of TEUR 1,651, which, compared with the firsthalf of 2015, contrasted with an annual loss of TEUR 1,833.Overall, due to the strategic refocusing and operational improvementmeasures that have been introduced, the Management Board is viewing thesecond half of 2016 with confidence.Varengold Bank AG will publish its half-yearly report at the end ofSeptember 2016.---------------------------------------------------------------------------2016-08-23 Dissemination of a Corporate News, transmitted by DGAP - aservice 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---------------------------------------------------------------------------     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:      info@varengold.de                                          Internet:    www.varengold.de                                           ISIN:        DE0005479307                                               WKN:         547930                                                     Listed:      Regulated Unofficial Market in Berlin, Dusseldorf,                      Stuttgart; Open Market (Entry Standard) in Frankfurt             End of News    DGAP News Service