Varengold AGM postponed as audit continues
Varengold Bank has postponed its annual general meeting (AGM) due to the ongoing audit of its operations.
The German bank – which is an investor in several fintech and peer-to-peer lending companies – was due to hold its AGM on 30 August 2023. However, with no end in sight for the company’s ongoing audit, it has opted to delay the meeting indefinitely.
The audit also means that the company’s annual report for 2022 cannot be published within the scheduled deadline of the end of June 2023.
“Due to the ongoing special audit of business operations…PwC…has not yet been able to complete the necessary audit procedures at Varengold Bank,” said Dr Bernhard Fuhrmann and Frank Otten of Varengold’s management board.
“In addition, the bank has not yet been given the prospect of a concrete end of the audit in the foreseeable future. The AGM will therefore not be able to take place on 30 August 2023 as planned.
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“The bank will keep the capital market informed about the progress of the audits and the convening of the next AGM.”
Earlier this month, it emerged that the German Federal Financial Supervisory Authority (BaFin) is investigating Varengold’s payment transaction business in its commercial banking division, due to possible compliance violations.
The violations are believed to relate to Iran-connected transactions.
As a result of the investigation, Varengold cut its profit guidance, from between €40m (£34.3m) and €50m for its fiscal year 2023, to between €10m and €15m.
For the years 2024 to 2026, the bank expects pre-tax profits to fall even lower, to €5m to €10m each year.
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