Varengold Bank AG

Earnings Release • Apr 12, 2013

News Details

Corporate | 12 April 2013 13:58

Varengold Wertpapierhandelsbank AG: 2012 earnings burdened by special effects – business field Capital-Markets-Brokerage with good development

Varengold Wertpapierhandelsbank AG / Key word(s): Preliminary
Results/Development of Sales

12.04.2013 / 13:58

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Hamburg, 12th April 2013 - The business development of Varengold
Wertpapierhandelsbank AG, a German investment bank with an exclusive focus
on asset management with managed futures and capital-markets-brokerage, was
shaped by the branch-compliant outflows in Asset Management in the fiscal
year 2012. However, the profit situation in the business field
Capital-Markets-Brokerage was very satisfactory. As part of the
administrative expenses, the company had to absorb considerable special
effects for the capital increase carried out in May 2012 and the
application for and preparation of the so-called full banking license.

Varengold Wertpapierhandelsbank AG concluded the fiscal year 2012 with an
annual deficit of approximately EUR -1.5 million according to preliminary,
unaudited figures. The negative trend of the branch Asset Management led to
a decline in the earnings contribution about EUR -2.0 million in the period
under consideration. However, the business-field Capital-Markets-Brokerage
generated an increase of the profit about circa EUR 0.8 million. The
company has already responded on the general development and the
industry-wide impact of the capital markets environment and associated cost
reductions in the course of the past year. Thus, the general and
administrative expense are subsided despite extensive investment activities
in the areas of sales and marketing, and costs in terms of the capital
increase and the intended commercial banking license by EUR 0.8 million to
EUR 6.5 million (previous year: EUR 7.3 million) in 2012. Therefore, the
lower earnings in the business-field Asset Management could not be
compensated by the overall increase in revenues in
Capital-Markets-Brokerage as well as the achieved cost savings.

The already chosen path regarding restructuring, development of new growth
areas and origination of new revenue opportunities is currently actively
followed. The intended commercial banking license will enable the company
to expand the field of Capital-Markets-Brokerage significantly and
additionally to generate additional income from customer deposits and
lending. The company actually assumes grant of permission regarding the
intended license in the second or third quarter of 2013.

Varengold Wertpapierhandelsbank AG expects to publish its audited annual
financial statement in June 2013.

End of Corporate News

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Language: English
Company: Varengold Wertpapierhandelsbank AG
Große Elbstraße 27
22767 Hamburg
Germany
Phone: +49 (0)40 / 668649-0
Fax: +49 (0)40 / 668649-49
E-mail: info@varengold.de
Internet: www.varengold.de
ISIN: DE0005479307
WKN: 547930
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)

End of News DGAP News-Service

206962 12.04.2013