Varengold sharpens focus on fintechs after latest earnings jump
Peer-to-peer backer Varengold Bank has pledged to continue partnering with fintechs after its latest financial statement revealed that it had increased its market capitalisation and earnings.
The German bank raised its net income from €13m (£10.94m) in the first half of 2020, to €23.8m for the first six months of 2021.
It saw its market capitalisation rise by 27 per cent during the first six months of 2021, from approximately €36.96m at the end of 2020, to approximately €47m by 30 June 2021.
In the company’s latest interim report, fintech lending was highlighted as a successful part of Varengold’s investment strategy. The bank has been an avid backer of P2P and alternative lending platforms, including EstateGuru, Assetz Capital, MarketFinance and LendInvest.
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In July 2021, the bank founded a subsidiary “to develop future equity participation and to further sharpen its own profile as a partner of fintechs and to strengthen customer retention”.
“We continue to operate cautiously and are maintaining a conservative risk provision in light of the unclear economic and social consequences of the pandemic,” said Varengold Bank board members Dr. Bernhard Fuhrmann and Frank Otten.
“Nevertheless, we have good reasons to look optimistically toward the future! Our business model has proven itself to be sustainable, even in a challenging market environment.
“In July 2021 we founded the subsidiary company Elbe2021 Incubator GmbH, to enter into equity participation and further sharpen our profile as a partner for fintechs. Participating interest in customers in the marketplace banking business area are planned, as well as non-banking customers with fintech lending background. In this way we strengthen our connection to our customers and create access to additional revenue and income streams.
Between January and June 2021, Varengold Bank reported profits of just over €7m, reducing its net loss since inception from approximately €16.1m to approximately €9m.
Earnings per share grew from €0.11 on 30 June 2020, to €0.71 the following year.
Since the interim report was compiled, Varengold Bank has announced that it doubled its earnings in the third quarter of 2021, year-on-year.
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