Varengold has “satisfactory start” to 2024 as special audit continues
Varengold Bank, which finances fintechs, has said that it had a “satisfactory start” to the year, after completing a reorganisation following a special audit ordered by the German financial regulator.
The German Federal Financial Supervisory Authority (BaFin) ordered a special audit of the bank last year, which led to restrictions in its payment transaction business. The audit is still ongoing with two of three items having been completed to date.
Due to the audit, the bank had a significant loss of commission income. But, it reorganised its commercial banking division it said, with a focus on the lending business.
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The bank has now reported preliminary and unaudited earnings before taxes of €25.8m (£22.1m), down from €26.8m in 2022. Its net income, at €65.3m for the year, is around 20 per cent below the previous year’s level.
“The management board is convinced that the bank has taken the right measures to counter the effects of last year’s special audit,” it said in an announcement.
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In February, Politico revealed that the Hamburg-based bank was used by Iran to funnel money to terror organisations. The publication reported that western intelligence had flagged evidence to German financial authorities that Iran was using the bank to fund its terror affiliates. BaFin did not mention any suspected links to Iran when it announced its investigation into the bank, and only cited money laundering concerns.
Varengold denies any wrongdoing.
In the first quarter of 2024, the bank said its generated net income of €14.1m and a preliminary earnings before taxes of €5.9m.
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