EQS-Adhoc: Varengold Bank AG corrects preliminary result for the financial year 2022 and raises earnings forecast for 2023

Hamburg, 26 October 2023 – Due to the ongoing special audit of business operations in accordance with Section 44 Paragraph 1 Sentence 2 of the German Banking Act (KWG) by the Federal Financial Supervisory Authority (BaFin), PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft has not yet been able to complete the annual audit at Varengold Bank AG for the financial year 2022 - both audits are currently ongoing.

After the original preparation of the annual financial statements 2022, positive as well as negative adjusting factors must now be considered in the finalisation of the statements, which significantly reduce the previous preliminary and not yet audited earnings before taxes (EBT*) as a key performance indicator in the amount of EUR 33.3 million to EUR 27.0 million. This mainly relates to costs in the context of the §44 audit amounting to a total of EUR 7 million, for which a provision must be created in the full (expected) amount in the financial year 2022. In addition, a provision was made for possible fines because of the §44 audit.

This consideration of essential costs in the financial year 2022, which were previously booked in the current year, will at the same time lead to an increase in the earnings forecast for the financial year 2023 with earnings before taxes from previously EUR 15-20 million to now EUR 25-30 million.

The Bank will keep the capital market informed about the progress of the audits.
 

Dr. Bernhard Fuhrmann  
Management Board

Frank Otten
Management Board

Disclaimer

This notification is a mandatory notification according to Art. 17 MAR. The assessments contained are subject to the following caveats.

Disclaimer on forward-looking statements / no duty to update

This communication contains forward-looking statements that are subject to certain risks and uncertainties. Future results may differ materially from those currently expected, namely due to various risk factors and uncertainties such as changes in the business, economic and competitive situation, fluctuations in exchange rates, uncertainties regarding legal disputes or investigations, and the availability of financial resources. The reader should therefore not over-rely on these statements, particularly in connection with contracts or investment decisions. Varengold Bank AG assumes no responsibility for updating the forward-looking statements contained in this communication.

Note

This announcement does not constitute an offer or invitation to subscribe for or purchase any securities of Varengold Bank AG in the United States of America, Germany or any other jurisdiction. This announcement does not constitute a recommendation regarding the placement of the securities described in this announcement.

1758543  26-Oct-2023 CET/CEST