Varengold Bank AG: Preliminary, unaudited figures 2015

Varengold Bank AG  / Key word(s): Preliminary Results/Miscellaneous31.03.2016 17:39Dissemination of a Corporate News, transmitted by DGAP - a service of EQSGroup AG.The issuer / publisher is solely responsible for the content of this announcement.---------------------------------------------------------------------------Hamburg, 31st March 2016 - For Varengold Bank AG (WKN 547930), the focus infiscal year 2015 was on the restructuring of the bank, concentration onexisting business areas and the associated development of long-termcustomer relationships, and the continuing operational optimisation ofinternal processes. In particular, the high losses are largely due to thedelayed development of the Prime Brokerage business segment because of thehigh administrative expenses and the associated lack of use of customerdeposits.The interest income earned by the bank fell from TEUR 1,995 in 2014 to TEUR1,326 in 2015, while interest expenses rose due to newly acquired customerdeposits, resulting in a negative interest surplus of -TEUR 2,408. The fallis primarily due to the change in the recognition of the result fromcurrency conversion and the decline in interest earned from fixed-yieldinvestment securities as a result of reduced holdings. Commission incomeremained stable year-on-year, yielding an amount of TEUR 5,243, whilecommission expenses doubled from TEUR 662 to TEUR 1,345. The net incomefrom the trading portfolio raised from TEUR 8,670 to TEUR 11,117. Theincrease result in roughly equal parts from business activities in theCapital Markets Brokerage and Prime Brokerage segments.Extraordinary expenses in the amount of TEUR 7,407 were incurred in thefiscal year, which also include an amount of EUR 4 million paid to threeformer members of the bank's Board of Directors for the early terminationof their employment contracts. The general administration expenses of thecompany rose by TEUR 8,234 to TEUR 21,012. The increase was significantlycontributed by higher personnel expenses and consulting costs in the PrimeBrokerage. Income from the ordinary business activities of Varengold BankAG in the past financial year 2015 totalled -TEUR 5,868 (previous year:TEUR 530). This temporarily results in a net loss for the year of TEUR13,267 (previous year: annual net profit of TEUR 209).The company has reinforced investment in the growth of the bank in the pastin order to build a solid foundation in the long term. The cash inflowsfrom the most recently implemented capital increases will be used inparticular to further diversify the product portfolios of the two corebusiness areas of Commercial Banking and Prime Brokerage.The bank will gradually shift its current focus in the Prime Brokeragesegment from equity strategies to the other asset classes such as realestate and short-term receivables. In addition, the products in theCommercial Banking division will be expanded to include forfaiting. Letterof credit business and the associated issue of bank guarantees will also befurther expanded, as will the Treasury.In the medium to long term, the aim continues to be to increase thecompany's equity through the retention of profits and the integration ofadditional investors. After a period of intense upheaval, the company nowfeels strategically and operationally well positioned to achieve stabledevelopment of Varengold Bank, which can continue to operate successfullywith less risk in a marked environment characterised by challenges andvolatility.Varengold Bank AG will publish its audited financial statements in June2016.31.03.2016 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      Varengold Bank AG              Große Elbstraße 27              22767 Hamburg              GermanyPhone:        +49 (0)40 / 668649-0Fax:          +49 (0)40 / 668649-49E-mail:       info@varengold.deInternet:     www.varengold.deISIN:         DE0005479307WKN:          547930Listed:       Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;              Open Market (Entry Standard) in Frankfurt End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------