Varengold Financial institution has slashed its 2024 earnings steering 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 quite a few European peer-to-peer lenders, has decreased its earnings steering for the 2024 monetary 12 months to €2.1m (£1.8m).
It attributed this to its choice 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 threat 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 consequence of attainable 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 12 months, which it decreased to a spread of €6.25m and €6.75m final month.
It mentioned this was as a consequence of extra severance funds to managing administrators who left initially of March 2025 and for administrative prices related to the particular audit.