Varengold Bank : Annual Report 2021
VG8.DE
Annual Report
2021
Key Figures of Varengold Bank AG
Key figures per share
31.12.2021
31.12.2020
in EUR
in EUR
Earnings per share
1.71
0.17
Market capitalization
44,390,126
36,958,295
Profit and loss statement
01.01.2021
01.01.2020
to 31.12.2021
to 31.12.2020
in TEUR
in TEUR
Interest income
6,750
7,366
Current income from shares and other non-fixed
1,243
1,036
income securities and shares in affiliated companies
Commission income
44,638
17,928
Other operating income
-725
-1,915
Administrative expenses
-22,876
-17,586
Depreciation and value adjustments
-7,627
-4,974
Income from normal business operations
21,403
1,855
Balance for the year
17,166
1,715
Balance sheet
31.12.2021
31.12.2020
in TEUR
in TEUR
Total assets
1,466,744
995,195
Net assets
55,831
38,666
2
Contents
Key Figures of Varengold Bank AG
2
01
Letter to the Shareholders
4
02
Success Story
7
03
New Work Culture
11
04
Products and Services
13
05
Shares
16
06
Supervisory Board Report
19
07
Annual Report
23
Balance sheet as of 31 December 2021
24
Profit and loss statement
26
Notes
28
1
General information
28
2
Accounting and valuation methods
28
3
Currency translation
30
4
Notes to the balance sheet
31
5
Notes to the Profit and Loss Statement
39
6
Other information
41
Management Report
44
A.
Fundamentals of the Varengold Bank
44
B.
Economic report
44
1.
Macro-economic and industry-related conditions
44
2.
Business development
46
3.
Position
47
C.
Risk, opportunity, and outlook reports
50
1.
Risk report
50
2.
Opportunity report
56
3.
Outlook report
58
Independent Auditor's Report
61
01 Letter to the Shareholders
4
Dear Shareholders,
2021 was another extraordinary year with considerable challenges, extensive changes and for us also very positive developments. At first it seemed as if the effects of the pandemic would be mitigated, however the Russian aggression in Ukraine and the threatening situation in the middle of Europe are preventing our "return to normal" so far in 2022. The value of cooperation and human connection is hereby increasingly recognized and treasured. Therefore, we would like to begin right here by thanking our employees, who have delivered outstanding performances in the face of tremendous challenges for over two years now!
We have again been able, in business year 2021, to achieve record results, increasing our net assets from EUR 27.4 million to EUR 55.6 million. In the area of risk provisioning by utilizing selected provisions, EUR
10.6 million was invested in risk coverage. After taking these preventative measures into account, our results before taxes reached EUR 21.4 million (previous year
EUR 1.9 million). As in the past, Commercial Banking was the main driver of these results. However, the strategic growth market Marketplace Banking is also experiencing a considerable increase in demand. It is so rewarding to be a part of the development of the predominantly young start-ups, to accompany them, and in the best case, to then at a later point, to be able to congratulate them on their status as unicorns. In addition to young FinTechs, we are also increasingly engaged with large established players from a wide variety of sectors who wish to extend their customer offering to include financial services. We support these companies in the refinancing of their credit portfolios, as well as with corporate loans, corporate credit cards, and consumer credit. Furthermore, with our Banking as a Service (BaaS) solutions, we are a valued partner in the area of fronting and also increasingly frequently accompany our customers in their expansion into other European countries. Embedded Finance is and remains a large growth topic.
In order to maintain our long-term competitiveness and to successfully attract employees and to bond them with the organization also in times of hybrid working models, we have focused intensively on the topic of new work. Reviewing all working methods and processes, workplaces, timekeeping models, and making our own management style more transparent, has generated many improvements and unleashed enormous potential! We identified empowerment as an essential success factor for us. Each individual team member must understand his or her contribution to the implementation of our strategy and thereby the success of the Varengold Bank. This builds identification with the organization and motivates. Our task as Management Board and executive leadership is to grant the freedom that promotes individual responsibility and personal development. This is why we continuously invest in ongoing and continuous training of our employees in areas of both technical and social competences. One milestone in 2021 was certainly the move into our new office which offers appropriate space from every perspective for the cultural transformation of the Varengold Bank. Here we can, for example, better support interdepartmental team and project work. We have in the past, already frequently profited from the results of such collaborations.
In everything we do, our actions are characterized by entrepreneurial thinking and careful consideration of opportunities and risks. Administrative expenses only increased by 30 % to EUR 22.9 million in the reporting period, despite our doubling of net income (previous year EUR 17.6 million). This is due to higher personnel (+26 %) and material expenses (+34 %), including expenses for recruiting new employees, for further training measures and for the conversion of the new office and the move. We have also digitized additional business processes, thereby further strengthening the agility and efficiency of Varengold Bank.
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Varengold Bank AG published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 21:03:05 UTC.