Grenke AG — Earnings Release 2012

Jul 26, 2012

News Details

Corporate | 26 July 2012 07:15

GRENKELEASING AG: : Earnings power of the GRENKE Group enhanced again – Quarterly Financial Report as per June 30, 2012

GRENKELEASING AG / Key word(s): Half Year Results

26.07.2012 / 07:15

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Earnings power of the GRENKE Group enhanced again - Quarterly Financial
Report as per June 30, 2012

* Strong rise in net interest income in the first half of 2012, up by 17%
to EUR 52.2 million (previous year EUR 44.6 million)
* Consolidated net profit amounts to EUR 19.6 million in the first half of
2012 - growth of 9% on EUR 18.1 million in the previous year
* Equity ratio based on our financing volume of 17.8% - remains well above
our target of 16%

Baden-Baden, July 26, 2012. In the first half of 2012, all earnings
components contributed towards the rise in income in the GRENKE
Consolidated Group. In the first half of the year, net interest income
improved by 17% to EUR 52.2 million after EUR 44.6 million in the previous
year. This shows the high contribution margins from new business in past
quarters and the slow rise in expenses from interest on refinancing and
deposit business.

Owing to the difficult overall economic situation in many European
countries, we have posted an increase in settlement of claims, although
claims are generally volatile from quarter to quarter. In the first half of
2012, expenses from the settlement of claims and risk provision increased
34% to EUR 21.5 million after EUR 16.0 million in the previous year. As
expected, the loss rate in the second quarter of 2012 remained at the level
of the first quarter. Our management system focuses not on avoiding risks,
but on forecasting them accurately and appropriately taking them into
account in our financing conditions. That we have been successful in this
in new business in the past, which is now gradually being seen in the
income statement, is documented by the rising net interest income after
settlement of claims and risk provision. Net interest income after
settlement of claims and risk provision rose by 7% to EUR 30.7 million
after EUR 28.6 million.

Profit from insurance business increased 17% to EUR 13.9 million in the
first half of 2012 (previous year: EUR 11.9 million). Profit from new
business rose by 16% to EUR 17.7 million (previous year EUR 15.3 million).
Profit from disposals, which tends to fluctuate from quarter to quarter,
was EUR 2.2 million in the first half of 2012 (previous year: EUR 1.7
million). Operating income therefore increased overall by 12% to EUR 64.5
million after EUR 57.5 million.

There was growth in expenses resulting from the ongoing expansion of the
GRENKE Group and the preparations for the further extension of our
international presence. The higher other interest expenses again resulted
from our very cautious financing strategy and maintaining a high level of
liquidity. We took advantage of the current good condition of the
refinancing markets to issue another bond, even though the issues were not
necessary at this time in terms of liquidity. The operating result
increased strongly by 15% to EUR 27.7 million after EUR 24.2 million in the
previous year. At EUR 27.2 million, earnings before taxes were 13% higher
than the previous year's figure of EUR 24.1 million.

At 17.8% as per June 30, 2012, the equity ratio based on our financing
volume was slightly below the level at the end of the 2011 financial year
of 18.8%, particularly as a result of the dividend distribution in the
second quarter, but it still significantly surpassed our target of 16%.

This result was generated by 639 employees as opposed to 567 in the first
half of 2011 (on a full-time basis, not including Board of Directors).

'As in previous quarters, we are currently generating very attractive
margins in new business, which more than cover the risks of our business.
As a result, we are still posting increases in net interest income after
settlement of claims and risk provision despite the difficult overall
economic developments in many European countries. And we are assuming that
this will remain the case in future. In the first half of 2012, all
earnings components contributed towards the rise in income in the GRENKE
Consolidated Group. Net expense items increased relatively slowly, with the
result that the net profit rose to EUR 19.6 million. We can therefore
confirm our forecast of a further considerable improvement in the GRENKE
Consolidated Group's net profit in the current financial year to between
EUR 41 and EUR 44 million,' commented Wolfgang Grenke, Chairman of the
Board of Directors of GRENKELEASING AG, on the result.

'To finance growth, we have continued to make use of our broad range of
refinancing instruments, and furthermore, have again secured extensive
refinancing funds at attractive conditions over the first half of 2012. We
are therefore positioned to continue expanding our market share as one of
Europe's leading financial service providers for small and medium-sized
enterprises in the long term beyond a successful 2012 financial year. We
benefit in particular from our ability to measure and evaluate risks
precisely, especially in periods of more difficult economic circumstances,'
explained Dr. Uwe Hack, Deputy Chairman of the Board of Directors of
GRENKELEASING AG.

The full Quarterly Financial Report as per June 30, 2012 can be accessed on
the Internet at www.grenke.de/en - INVESTOR RELATIONS - Financial Reports -
Financial Reports 2012.

Should you have any queries, please contact:

Renate Hauss
Phone: +49 7221 5007-204Fax: +49 7221 5007-4218
E-mail: investor@grenke.de
Internet http://www.grenke.de; http://www.grenkeleasing.de,
http://www.grenkebank.de, http://www.grenkefactoring.de

The GRENKE Group

The GRENKE Group is a broadly diversified provider of financial services
for small and medium-sized companies and private customers.

The range of services offered by the GRENKE Group covers small-ticket IT
leasing and factoring and - through GRENKE Bank - traditional online
banking services.

The GRENKE Group is independent of vendors and banks and holds a leading
market position in Europe in the field of small-ticket IT leasing for
products such as PCs, notebooks, copiers, printers, or software of
relatively low asset value. The GRENKE Group operates in 24 countries and
employs more than 700 staff.

GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock
Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in
the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN
DE0005865901.

Information on the GRENKE Group and its products is available on the
Internet at http://www.grenke.de, http://www.grenkeleasing.de,
http://www.grenkebank.de, and http://www.grenkefactoring.de.

End of Corporate News

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Language: English
Company: GRENKELEASING AG
Neuer Markt 2
76532 Baden-Baden
Germany
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-112
E-mail: investor@grenke.de
Internet: www.grenke.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart

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179187 26.07.2012