P2P backer Varengold reveals earnings boost
Peer-to-peer lending backer Varengold Bank has said it does not believe Russian sanctions will impact its business but it is monitoring the long-term consequences.
The German bank, headquartered in Hamburg (pictured), said in a first-quarter update that it is currently hard to estimate the potential impact of supply chain shortages or a recessions caused by the Russian invasion of Ukraine.
“Varengold Bank assumes that the sanctions imposed on Russia will not have a significant direct impact on its business activities,” the update said.
“Long-term indirect effects such as resource shortages and a possible resulting stagflation or even recession cannot be estimated at present.”
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The update showed Varengold Bank’s pre-tax earnings were up 90 per cent annually to €7.8m (£5.8m) and net income was up 60 per cent to €15.7m.
As of 31 March 2022, 113 people were employed at Varengold Bank, up from 93 last year.
Read more: P2P backer Varengold Bank doubled its earnings in Q3
“It is a pleasure to see that our work and investments over the last few years are paying off,” Frank Otten, a member of the management board of Varengold Bank, said.
“In transaction banking and marketplace banking, we have developed positions that enable sustainable growth.
“In marketplace banking in particular, we benefit from the consistent digitalisation of our business processes, which allows us to make quick decisions.
“Fintechs perceive us as an agile and technology-driven partner.”
Varengold Bank has funding agreements with a number of alternative lending platforms including EstateGuru, Assetz Capital, MarketFinance and LendInvest.
Read more: P2P backer Varengold predicts 911pc earnings growth for 2021