Varengold Bank achieved all of its operational and financial goals for its 2019 financial year and saw a 28 per cent year-on-year rise in pre-tax profits over the first nine months of 2020.
The German bank, which has funding agreements with a number of peer-to-peer lending platforms, said that 2019 was its best financial year to date. It achieved its operational targets, including an increased digitalisation ratio, new customer acquisition in core business areas and staff expansion.
It also said it beat its profit guidance for the year, which ranged between €2.8m (£2.5m) and €3.2m.
The results were announced at Varengold’s annual general meeting (AGM), which was held virtually this year due to the pandemic.
Board member Bernhard Fuhrmann, who was leading the presentation, also highlighted a strong performance in the current financial year, with a 28 per cent year-on-year rise in pre-tax profits for the first three quarters of 2020.
Fuhrmann put this down to the firm’s continued expansion of customer acquisition within commercial banking, which saw net results in this area rise by 38 per cent year-on-year.
During the pandemic, Varengold was approved by Germany’s state-owned development bank KfW to offer government-backed loans to businesses and partnered with Kapilendo AG to provide loans under the emergency support scheme.
Furthermore, in its core business area of marketplace banking, the bank expanded its fronting services offering as planned and continued its new work and sustainability initiatives.
Looking forward, Fuhrmann said Varengold will focus on increasing digitalisation and optimising internal processes.
Within marketplace banking, the bank will focus on expanding both its credit portfolio and fronting services offering, while trade finance will be a key area within commercial banking.
“The second wave of the Covid-19 pandemic has left its mark on our society and our economy,” said Fuhrmann.
“Varengold Bank’s development to date, including the new business we have generated, proves once more that our business model is future proof.
“We are full of optimism and have the operational resources available to not only master the current crisis but to come out of it stronger than we were before.”