Varengold Financial institution has slashed its 2024 earnings steerage for the second consecutive month, after creating an extra reserve buffer to cowl potential dangers from the regulator’s particular audit of the troubled financial institution.
The Hamburg-based financial institution, which has invested in plenty of European peer-to-peer lenders, has diminished its earnings steerage for the 2024 monetary yr to €2.1m (£1.8m).
It attributed this to its resolution to allocate an extra €4m to its contingency reserve to cowl potential dangers arising from historic dividend arbitrage points, its ongoing particular audit by the German regulator, and to create an extra danger buffer for its “ongoing transformation course of”.
Learn extra: Varengold has “passable begin” to 2024 as particular audit continues
The German Federal Monetary Supervisory Authority ordered a particular audit of the financial institution in 2023 as a result of doable compliance violations, which led to restrictions in its cost transaction enterprise.
Varengold had beforehand forecast pre-tax earnings of €11.3m for the 2024 monetary yr, which it diminished to a spread of €6.25m and €6.75m final month.
It mentioned this was as a result of further severance funds to managing administrators who left at the start of March 2025 and for administrative prices related to the particular audit.
