Varengold Bank missed its earnings target for 2020 as the pandemic took its toll, but revenues rose at the Germany-based institutional investor.
According to the bank’s preliminary report for 2020, the bank logged earnings before tax of approximately €1.8m (£1.56m). At the beginning of last year, it had projected earnings of €3.8m for the year.
In the first half of the year, the bank delivered a “very positive financial result, which was in line with the first half of 2019,” Varengold said.
However, the Covid-19 pandemic led the bank’s management to set aside approximately €4.9m for write-downs and value adjustments on receivables, securities and investments. It also introduced a €2.5m provision for legal risks.
Despite rising costs and macro-economic instability, Varengold’s revenues rose by 17 per cent, year-on-year.
“With the onset of the of the Covid pandemic, Varengold’s timely digitalisation measures allowed it to continuously drive its business activities forward,” the bank said in a statement to investors.
“Despite the pandemic, revenues increased significantly from €25.7m in 2019 to €30.1m in 2020.”
Varengold has been a prominent fintech investor, and has supported a number of alternative lending platforms, including EstateGuru, Assetz Capital, MarketFinance and LendInvest.
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