Varengold restricts payment transactions amid restructuring
Varengold Bank has restricted payment transactions with some of its international corporate customers while it plans restructuring measures in its payment transaction business.
This follows the result of a special audit of the bank’s business operations, which was ordered by the German Federal Financial Supervisory Authority (BaFin). The audit “intensively examined” the bank’s payment transaction business in the commercial banking division.
“An initial interim result of the auditors involved led to a hearing…from BaFin due to possible compliance violations,” a spokesperson for Varengold Bank said in a statement to the market.
“The examination has not yet been completed.
“Varengold Bank is reviewing the individual issues and will take appropriate restructuring measures in the payment transaction business or adjust the existing payment transaction processes in the short term.”
Read more: PeerBerry hits 70,000 investor milestone after bumper May
Pending final clarification of the issues, Varengold has chosen to restrict some payment transactions, telling shareholders that “this will lead to a significant loss of commission income.”
“The effects on the issuing of the 2022 annual financial statement and a concrete correction of the earnings forecast for 2023 cannot yet be adequately assessed,” the spokesperson added.
The Hamburg-based bank has funding agreements with a number of peer-to-peer lending platforms across Europe.
In October 2022, Varengold reported a 47 per cent year-on-year rise in net income to €56.2m (£49.3m) and confirmed that its full-year results would be at the upper end of guidance.
Read more: P2P backer Varengold raises profit forecast by 50pc
