P2P backer Varengold raises profit forecast by 50pc
Varengold Bank has raised its profit forecast by 50 per cent for the 2022 financial year, after a better than expected performance during the first half of the year.
Earlier this month, the German bank said that it expected that its full-year profit guidance would be “significantly exceeded” thanks to a bumper first half.
Read more: Varengold to ‘significantly exceed’ full-year guidance
The bank had initially estimated annual earnings of €19.8m (£16.67m) for 2022. However, in the six months ending 30 June 2022, the bank reported preliminary earnings before taxes of €18.2m. By comparison, in the first six months of 2021 this figure was €8.1m.
As a result, the bank has prepared a new forecast or the 2022 financial year. Annual earnings before tax are now expected to reach between €28m and €32m – at least 50 per cent higher than the initial estimate.
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The bank has also set aside €10m for risk provisioning, due to the “still unclear economic and social effects of the pandemic and the Russian aggression in Ukraine.”
“In the past, we have built strong positions in transaction banking as well as in marketplace banking,” said Dr Bernhard Fuhrmann, member of the board of managing directors of Varengold Bank.
“This has enabled us to remain on course for growth even in times of pandemic and war in Ukraine and the associated uncertainties.
“We are convinced that we have established the appropriate structures and processes in recent years to
sustainably participate in these market segments by creating real added value for our customers.”
Varengold Bank has funding agreements with a number of alternative lending platforms across the UK and Europe, including EstateGuru, Assetz Capital, MarketFinance and LendInvest.
Read more: Raising growth funding