Grenke AG — Earnings Release 2013

Apr 25, 2013

News Details

Corporate | 25 April 2013 07:55

GRENKELEASING AG: Quarterly financial report: Profitability improved – net interest income up 22%

GRENKELEASING AG / Key word(s): Quarter Results

25.04.2013 / 07:55

---

Quarterly financial report: Profitability improved – net interest income up 22%

– Rise in net interest income of 22% in first quarter of 2013 to EUR 30.8 million (previous year: EUR 25.2 million)

– Consolidated net profit of EUR 11.5 million in first quarter of 2013 – up 22% year-on-year from EUR 9.4 million

– Growth secured with additional equity – equity ratio of 16.5% as per reporting date

Baden-Baden, April 25, 2013: GRENKE significantly increased its profitability in the first quarter of 2013, with a particularly noteworthy further rise in net interest income of 22% to EUR 30.8 million as against EUR 25.2 million in the first quarter of 2012. As before, this shows the high contribution margins from new business in past quarters, combined with only a marginal rise in expenses from interest on refinancing and deposit business due to the current low interest rate environment.

Expenses for the settlement of claims and risk provisioning increased disproportional by 3% in the reporting quarter. This figure amounted to EUR 10.9 million in the first quarter of 2013 as against EUR 10.6 million in the same quarter of the previous year. The loss rate was therefore slightly lower than the 2012 level.

After settlement of claims and risk provisioning, net interest income rose by 36% in the first quarter of 2013 to EUR 19.9 million after EUR 14.6 million in the same period of the previous year. However, expenses for the settlement of claims and risk provision generally tend to be volatile, particularly on a quarterly basis. There is still a high level of risk owing to the difficult overall economic situation in some European countries.

Profit from insurance business increased 19% to EUR 7.9 million in the first quarter of 2013 (previous year: EUR 6.6 million). Profit from new business rose by 21% to EUR 10.2 million after EUR 8.4 million. Profit from disposals, which is very volatile from quarter to quarter, remained below the previous year’s figure, amounting to EUR 1.0 million as against EUR 1.4 million in the first quarter of 2012. Overall, operating income therefore increased by 25% to EUR 38.9 million after EUR 31.1 million in the same period of 2012.

Expenses reflected the acquisition of companies from former franchisees in Spain, Romania and Portugal in the third quarter of 2012. Since these companies were not yet included in the comparative figures for the first quarter of 2012, this resulted in high increases in the expense items. This was particularly evident in personnel expenses due to the headcount increase of 60 employees just as a result of the acquisitions. Personnel expenses rose by 20% from EUR 10.0 million to EUR 12.1 million in the first quarter of 2013.

As part of our growing new business and our international expansion, we significantly increased distribution costs, causing selling and administrative expenses to climb 27% to EUR 8.9 million after EUR 7.0 million in the first quarter of 2012. Overall, the operating result in the first quarter of 2013 amounted to EUR 16.2 million, exceeding the previous year’s figure of EUR 13.1 million by 24%.

In February 2013, we increased the share capital of GRENKELEASING AG. By strengthening the equity base in this way, we broadened our scope for future growth. The equity ratio accordingly rose from 14.9% as at the end of the 2012 financial year to 16.5% as at the reporting date, and was thus back above our long-term target of at least 16%.

These results were achieved with 780 employees as against 630 in Q1-2012 (full-time employees not including the Board of Directors).

‘The first quarter of 2013 saw a very positive performance. We once again benefited from our high-margin new business in the past quarters, which is successively flowing in the income statement over the term of the contracts. In addition, the increase in losses was comparatively low and the other earnings components also made a positive contribution. Expenses developed in line with planning. Overall, the GRENKE Consolidated Group’s net profit climbed by 22% to EUR 11.5 million. We increased new business in the GRENKE Group by 15% to EUR 275.6 million. As such, we are in line with our planning and are reiterating our forecasts of growth in new business in the GRENKE Group of between 13% and 16% and net profit of the GRENKE Consolidated Group in a range between EUR 44 million and EUR 48 million for the 2013 financial year,’ comments Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the result.

‘As part of our expansion strategy, we will continue to work intensively on our regional coverage and the diversification of our financial solutions. Consolidating our network, tapping new markets and expanding our product range further will contribute to this. In February, we secured our growth with additional equity. In doing so, we met with a very positive response and were able to place around 1 million new shares and generate a net cash inflow of close to EUR 54 million within just a few hours. The book was oversubscribed several times over,’ explains Jörg Eicker, CFO of GRENKELEASING AG.

The full Quarterly Financial Report as per March 31, 2013 can be accessed on the Internet at www.grenke.de INVESTOR RELATIONS – Financial Reports – Financial Reports 2013.

Should you have any queries, please contact:

Renate Hauss

Tel.: +49 7221 5007-204

Fax: +49 7221 5007-4218

E-mail: investor@grenke.de

Internet: http://www.grenke.de, http://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 25 countries and employs more than 800 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

---

25.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language:	English
Company:	GRENKELEASING AG
	Neuer Markt 2
	76532 Baden-Baden
	Germany
Phone:	+49 (0)7221 50 07-204
Fax:	+49 (0)7221 50 07-4218
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

End of News	DGAP News-Service

- - -
208479  25.04.2013