Varengold Bank AG: Preliminary figures for the first half of 2015

Varengold Bank AG  / Key word(s): Half Year Results/Miscellaneous

25.08.2015 15:30

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Hamburg, 25 August 2015 - The business development of Varengold Bank AG in
the first half of 2015 was characterised in particular by two key issues -
the further strengthening of the capital base and the continued development
of infrastructure.

The total assets of Varengold Bank increased according to preliminary,
unaudited financial results as at 30 June 2015 to TEUR 626,252 [TEUR =
thousand euros] (30 June 2014: TEUR 157,351); this was based on growth in
customer deposits and the consequent rise in the trading portfolio, as well
as deposits with the Bundesbank. Cash flow from operating activities
increased by a total of TEUR 147,063 to TEUR 162,955. In addition, the
company recorded a cash inflow from financing activities in the amount of
TEUR 3,539. This comes from the capital increase against cash contributions
in April 2015, when 176,963 new shares were placed with an international
investor at a price of EUR 20.00 per share.

The interest income of the company increased from TEUR 807 in the first
half of 2014 to TEUR 1,128 in the first half of 2015; this is based
primarily on business activities in the Commercial Banking division. In
addition, interest expenses increased due to customer deposits raised to
TEUR 2,296, meaning that a negative net interest income of TEUR 1,168 was
achieved. Net commission income recorded an increase from TEUR 673 to TEUR
1,524 and was primarily driven by the Capital Markets division. The income
from the trading portfolio likewise recorded another increase from TEUR
4,873 in the first half of 2014 to TEUR 23,126 in the first half of 2015.
The value recorded for the expenses in the trading portfolio for the first
half of the 2015 is TEUR 15,584 (30 June 2014: TEUR 1,959), meaning that
net income from the trading portfolio increased overall from TEUR 2,915 to
TEUR 7,542. Approx. two thirds of that are attributable to the Capital
Markets Brokerage division and the rest to the Capital Markets division.

The general administrative expenses of the company increased by TEUR 5,456
(from TEUR 4,870 to TEUR 10,327). This was attributable in particular to
the increase in personnel costs and IT costs, as well as consulting and
auditing fees. The personnel restructure carried out in the second half of
2014 had an impact here, as did the projects initiated at the end of 2014
(primarily regional expansion the Capital Markets division and IT).

In total, the result of ordinary business activity of Varengold Bank AG
amounted to TEUR -2,456 (30 June 2014: TEUR -1,333); the net loss for the
year amounted to TEUR 1,833 (30 June 2014 TEUR 906).

Overall, the Board looks forward with confidence to the second half of the
2015 financial year given the general conditions currently developing in
the market.

Varengold Bank AG will publish the half-yearly report in September 2015.

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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