Grenke AG — Earnings Release 2015

Jul 28, 2015

News Details

Corporate | 28 July 2015 07:22

GRENKELEASING AG: Consolidated Group net profit rises 23% to EUR 38.5 million – exceeds our previous expectations

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

2015-07-28 / 07:22

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Consolidated Group net profit rises 23% to EUR 38.5 million – exceeds our previous expectations

– Net interest income climbed 22.5% in the first half of 2015 to EUR 91.4 million (previous year: EUR 74.6 million).

– Consolidated Group net profit in the first half of 2015 grew 23.4% from EUR 31.2 million in the previous year to EUR 38.5 million.

– Rise in 2015 earnings forecasts: Consolidated Group net profit expected in the range of EUR 74 – 78 million (previous forecast: EUR 71 – 75 million)

Baden-Baden, July 28, 2015: The solid earnings development in the first half of 2015 was supported by the profitable new business of the past quarters and the continued positive interest rate environment. A rise in interest income from the financing business and lower interest expenses on refinancing led to a rise in net interest income of 22.5% to EUR 91.4 million (1.HY 2014: EUR 74.6 million).

Expenses for the settlement of claims and risk provision rose at a slower rate than in the first half-year increasing 16.3% to EUR 28.9 million (1.HY 2014: EUR 24.8 million). The loss rate in the first half-year remained at the previous year’s level. Net interest income after settlement of claims and risk provision increased by 25.6% from EUR 49.8 million in the previous year’s period to EUR 62.6 million.

Profit from insurance business grew 20.8% to EUR 23.6 million (1.HY 2014: EUR 19.5 million). Profit from new business was 7.1% higher at EUR 24.8 million after EUR 23.2 million in the first-half of 2014. Including gains/losses from disposals, which tend to be volatile on a quarterly basis, income from operating business increased 18.9% from EUR 93.3 million in the previous year’s period to EUR 110.9 million.

Expenses rose at a below-average rate in the first half-year. Staff costs grew 14.6% and amounted to EUR 30.4 million in the first half of 2015 compared to EUR 26.5 million in the previous year’s period. Selling and administrative expenses were 7.7% higher at EUR 24.2 million after EUR 22.4 million in the first-half of 2014.

The operating result increased by 26.0% to EUR 52.5 million after EUR 41.7 million in the first-half of 2014. In the first half of 2015, the Consolidated Group’s net profit expanded 23.4% to EUR 38.5 million (previous year: EUR 31.2 million).

We are raising our net profit forecast for the current 2015 fiscal year and now expect net profit in the range of EUR 74 – 78 million (previous forecast: EUR 71 – 75 million). This represents growth of 14 – 20% compared to the net profit of EUR 65.0 million achieved in 2014.

The Group’s equity ratio was 16.5% and thus at the previous year’s level. Therefore continues to be above our long-term target of a minimum of 16%.

Key Figures GRENKE	1.HY 2015	1.HY 2014
New business GRENKE Group Leasing	637.7	555.8
New business GRENKE Group Factoring	145.1	94.9
Business start-up financing GRENKE Bank	7.5	5.4
Contribution margin 2 (CM2) on new business GRENKE Group Leasing in %	18.8	19.0
Net profit GRENKE Consolidated Group in EURm	38.5	31.2
Economic result* in EURm	58	50
Cost / income ratio in %	53.8	56.0
Equity ratio in %	16.5	16.5
Number of new leasing contracts in units	77,121	68,763

* Net profit + change in embedded value after tax adjusted

From 2015, the method of calculation was adjusted to determine the economic result. The retained earnings are included in both the net profit for the period as well as in the embedded value at the end of the period. Therefore, they are eliminated once in the calculation of the economic result.

This result was generated by 909 employees compared to 829 employees in the first half of 2014 (on a full-time basis excluding the members of the Board of Directors and trainees).

“After expanding the GRENKE Consolidated Group’s net profit by 23 percent in the first six months of the year, we are on track to exceed our previous full-year earning’s target of EUR 71 – 75 million. Therefore, we are raising our forecast for the current year and now expect net profit in the range of EUR 74 – 78 million. After a substantial increase in net profit of 38 percent last year, net profit in the 2015 fiscal year is expected to grow accordingly by a further 14 to 20 percent. We will continue to follow our proven and successful business strategy going forward. We are prepared for further cell divisions and entries into new markets during the second half of 2015 that will include Singapore, which will also represent our entry into a new continent”, commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the results.

“We are continuously expanding our refinancing basis to refinance our new business. With the placement of the first hybrid bond (additional Tier 1) in the history of the GRENKE Consolidated Group, we successfully established a new instrument in the capital market. The total volume of this subordinated bond amounted to EUR 30 million and was issued with an interest coupon of 8.25%. The issue was well-received by the capital market. The hybrid bond is being used to further strengthen the Consolidated Group’s equity basis”, explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.

The full Financial Report for the 2nd Quarter and the First Half-Year 2015 can be accessed at www.grenke.de/financialreports

Should you have any queries, please contact:

GRENKELEASING AG

Corporate Communications / Investor Relations

Renate Hauss

Neuer Markt 2

76532 Baden-Baden, Germany

Tel.: +49 7221 5007-204

E-mail: investor@grenke.de

Internet: http://www.grenke.de

The GRENKE Group

The GRENKE Group is a broadly diversified provider of IT-based services in Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized companies. In addition, the GRENKE Bank offers its classic online services also to private customers.

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 29 countries and employs more than 900 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 on the Frankfurt Stock Exchange with the code GLJ, ISIN DE000A161N30.

Information on the GRENKE Group and its products is available at http://www.grenke.de

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2015-07-28 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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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 07-4218
E-mail:	investor@grenke.de
Internet:	www.grenke.de
ISIN:	DE000A161N30
WKN:	A161N3
Indices:	SDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart

End of News	DGAP News-Service

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