Varengold Bank has told its investors that it expects to see “strong growth” in earnings for the fiscal year 2021, after missing its earnings target last year.
The Germany-based bank, which is a prominent investor in peer-to-peer lending platforms, has predicted earnings before tax of €16.4m (£14.09m) for the 2021 financial year. This would represent a year-on-year earnings increase of more than 911 per cent.
“Varengold Bank is planning for strong growth in earnings in the transaction banking segment for the current fiscal year, as well as high demand for the bank’s products and services for the rest of the year,” said the bank in a statement to investors.
“On this basis, the management board today deducted an earnings forecast for the fiscal year 2021 from the current business planning.”
In 2019, the bank reported €3.6m in earnings before taxes. It had projected earnings of €3.8m for the 2020 fiscal year, before the Covid-19 pandemic forced a recalculation. According to Varengold’s preliminary report for 2020, the bank logged earnings before tax of approximately €1.8m.
Varengold has been a prominent fintech investor, and has supported a number of alternative lending platforms, including EstateGuru, Assetz Capital, MarketFinance and LendInvest.