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

Varengold Bank AG, Hamburg

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

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 growth.

Varengold Bank AG will publish audited financial statements in June 2014