Varengold Bank AG: Capital increase by strengthening the base; preliminary, unaudited corporate figures for 2014

Varengold Bank AG  / Key word(s): Preliminary Results/Capital Increase

22.04.2015 18:50

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Hamburg, April 22, 2015 - Varengold Bank AG (WKN 547930) has approved a
bank capital increase with a resolution of its Extraordinary Shareholders
Meeting on January 20, 2015. The equity of the company was increased with
the approval of the Supervisory Board from 1,771,405.00 euros cash
investment to 1,948,368.00 euros through the issuance of up to 176,963 new
shares under exclusion of subscription rights. The shares were placed at an
issuance price of 20.00 euros per share with an international investor. The
product portfolios of the business areas Capital Markets and Commercial
Banking will be further extended with the new funds.

Varengold has invested an increased amount in the past fiscal year in order
to achieve solid growth. All business areas have contributed to an
altogether satisfactory and balanced performance for the bank, and
propelled the operating business forward. Looking back at 2014, in addition
to the activities in the individual business areas, the results were again
affected by a significant amount of administrative expenses on the overall
bank level since receiving a licence as a depository; these were necessary
to build out Varengold as a depository.

After prior, unaudited figures, Varengold Bank AG closed fiscal 2014 with a
profit in the amount of
209 thousand euros (previous year: -3,681 thousand euros) In sum, the
income from the normal business activities of the Varengold Bank AG
amounted to 530 thousand euros (previous year: -5,434 thousand euros).
Total balances showed a significant increase from 53,112 thousand euros to
353,181 thousand euros.

In addition, loans advanced to banks increased to 74,260 thousand euros,
and fund investments increased to 52,913 thousand euros. Interest income of
the Company rose from 311 thousand euros in 2013 to 1,995 thousand euros in
2014. These were primarily driven by interest income in the loans
originated in the Commercial Banking Business Unit. Furthermore, interest
expenses rose to
1,360 thousand euros due to customer deposits, so that a net interest
income of 635 thousand euros was achieved. Commission income climbed from
2,102 thousand euros to 5,640 thousand euros. Commission expenses increased
from 68 thousand euros to 4,978 thousand euros. Commission income therefore
results in an amount of 661 thousand euros. This was chiefly driven by the
Capital Markets Business Unit, which also covers the Asset Management
Business Unit. The net income from the trading portfolio increased from
7,938 thousand euros to 13,995 thousand euros.

General and administrative expenses of the Company increased by 4,037
thousand euros (from 8,741 thousand to 12,778 thousand euros). One
significant reason was the increase in consulting and auditing costs from
1,104 thousand to 2,155 thousand euros; IT costs increased from 945
thousand to 1,359 thousand euros, and staff costs increased from 4,285
thousand to 5,836 thousand euros.

The Board of Managing Directors' current assessment for the rest of this
year is that the Bank has the potential for sustained and satisfactory

Varengold Bank AG will publish audited financial statements in June 2014.

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Language:     English
Company:      Varengold Bank AG
              Große Elbstraße 27
              22767 Hamburg
Phone:        +49 (0)40 / 668649-0
Fax:          +49 (0)40 / 668649-49
ISIN:         DE0005479307
WKN:          547930
Listed:       Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;
              Open Market (Entry Standard) in Frankfurt
End of Announcement                             DGAP News-Service