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GRENKE accelerates growth: another strong growth in the new leasing business

07/05/2022 / 07:00
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GRENKE accelerates growth: another strong growth in the new leasing business

  • The new leasing business grows by 47.4% to EUR 587.4 million in Q2 2022 (Q2 2021: EUR 398.6 million)
  • Contribution margin 2 (CM2) increases by 29.2% to EUR 93.2 million (Q2 2021: EUR 72.1 million)

Baden-Baden, 5 July 2022: GRENKE AG, a global financial partner for small and
mid-sized companies, which in Q2 2022 achieved new leasing in the amount of EUR 587.4 million and exceeded the previous year’s level by 47.4% (Q2 2021: EUR 398.6 million). Thus, GRENKE for the third time in a row accelerated the quarterly growth of new leasing activities compared to the previous year. The increase was 22.1% in the fourth quarter of 2021 and 36.5% in the first quarter of this year.

This result confirms our expectations that we are returning to the path of stable, sustainable growth – comments Michael Bücker, CEO of GRENKE AG. Dr. Sebastian Hirsch, Chief Financial Officer of GRENKE AG, adds: Our business continues to be highly profitable. Firstly, because the strong growth of our new business leads to a significant increase in the contribution margin. Second, as in all previous stages of interest rate increases, we will transfer the higher level of interest rates to the market with a reasonable delay.

Regional development of new leasing activities

In the region, DACH GRENKE generated a new leasing business of EUR 139.9 million in Q2 2022, which was 26.0% higher from the previous year (Q2 2021: EUR 111.1 million). In Western Europe, excluding DACH, there was a 36.5% increase in the same period. At 73.0%, the number of new transactions increased the most in the Southern Europe region compared to the same period last year. In Northern and Eastern Europe, GRENKE saw its new leasing business grow by 63.0%. The remaining regions grew by 56.8% compared to the same quarter of the previous year.


Development of leasing applications

With a total of 138,261 leasing inquiries, GRENKE received significantly more inquiries in the reporting quarter than in the corresponding quarter of the previous year (Q2 2021: 117,387). As a result, the demand for leasing products has increased even in the current uncertain economic environment. In total, GRENKE concluded 72,192 new lease agreements in the reporting period, which corresponds to a conversion of 52%. In the second quarter of 2021, 56,078 lease agreements were concluded with a conversion at the level of 48%.

New factoring and credit activity of GRENKE Bank

The receivables factoring business, which represents 1.3% of the balance sheet total (as of March 31, 2022), recorded new business in the quarter with purchased receivables amounting to EUR 191.5 million. This corresponds to an increase of 9.3% compared to the corresponding period of the previous year (Q2 2021: EUR 175.2 million). The average payment date for these receivables is six weeks. While the new factoring business in Germany fell by 25.0% to EUR 42.3 million (Q2 2021: EUR 56.4 million) due to Corona special effects and sales reorganization, it grew by 25% in international markets, 6% to EUR 149.2 million after EUR 118.8 million in the same quarter of the previous year. The new lending activity of GRENKE Bank increased by 123.0% to EUR 13.6 million in Q2 2022 (Q2 2021: EUR 6.1 million).

Development of the contribution margin in the new leasing business

Thanks to the strong new leasing business, contribution margins were well above the level of the previous year. Contribution margin 2 (CM2) in Q2 2022 increased by 29.2% compared to the same quarter of the previous year (72.1 million EUR) to now 93.2 million EUR. Contribution margin 1 (CM1) was EUR 61.4 million in Q2 2022, 30.1% above the quarterly value of the previous year (EUR 47.2 million).

CM2 margin reached 15.9% in Q2 2022. For the new business to which CM2 relates, two-thirds of the interest rate increase in the second quarter has already been offset, so that CM2’s margin is only one percentage point below the target of 17.0%. In the coming months, this adjustment process will be consistently continued in new businesses. Since the passing-on of interest rate increases in individual markets is a process that usually takes a quarter, the CM2 margin is only temporarily lagged. The same applies to the CM1 margin, which at 10.4% in Q2 2022 was lower than in the previous year (Q2 2021: 11.8%).

In the same quarter last year, CM2’s margin was exceptionally high at 18.1% as new business was limited to the customer segments with the highest margins thanks to Corona and for prudence reasons. In 2019, the year before the Corona crisis, the CM2 margin was 17.0%. The existing business has matched maturities and is therefore refinanced at an earlier, lower interest rate.

New business development at a glance (in million EUR)

2nd Quarter 2022 2nd Quarter 2021 in % Q1-Q2
2022
Q1-Q2
2021
in %
Leasing for new companies 587.4 398.6 47.4 1.086.7 764.5 42.2
– including international 447.5 287.6 55.6 828.7 549.1 50.9
– of which ROOF * 139.9 111.1 26.0 257.9 215.4 19.8
west Europewithout a roof * 149.6 109.6 36.5 281.4 208.0 35.3
Southern Europe * 157.9 91.3 73.0 289.9 174.7 65.9
Northern / Eastern Europe * 107.2 65.8 63.0 198.0 123.0 61.0
Other regions * 32.7 20.9 56.8 59.5 43.3 37.3
New business factoring 191.5 175.2 9.3 366.6 330.6 10.9
– including Germany 42.3 56.4 -25.0 85.3 107.3 -20.5
– including international 149.2 118.8 25.6 281.3 223.4 25.9
GRENKE Bank
new loan business 13.6 6.1 123.0 29.4 20.9 41.2

Premium margin 2 (DB2) z
leasing of new companies 93.2 72.1 29.2 176.4 143.6 22.8
– including international 76.2 57.9 31.7 144.0 114.5 25.7
– of which ROOF * 17.0 14.3 19.1 32.5 29.1 11.5
Western Europe without ROOF * 25.4 21.0 20.7 49.1 42.4 15.9
Southern Europe * 25.5 18.8 35.4 47.5 36.8 29.2
Northern / Eastern Europe * 19.3 13.0 48.2 36.0 24.9 44.6
Other regions * 6.0 5.0 20.4 11.4 10.5 8.6

* Regions: DACH: Germany, Austria, Switzerland
Western Europe without ROOF: Belgium, France, Luxembourg, the Netherlands

Southern Europe: Italy, Croatia, Malta, Portugal, Slovenia, Spain

North | Eastern Europe: Denmark, Finland, Great Britain, Ireland, Latvia, Norway, Sweden | Poland, Romania, Slovakia, Czech Republic, Hungary

Other Regions: Australia, Brazil, Canada, Chile, Singapore, Turkey, USA, UAE

Half-yearly financial statements will be published on August 11, 2022.

For more information, please visit:

GRENKE AG
Investor Relations Team
new market 2
76532 Baden-Baden
Telephone: +49 7221 5007-204
E-mail: investor@grenke.de
Internet: www.grenke.de
press contact
Stefan Wichmann
new market 2
76532 Baden-Baden
Tel: +49 (0) 171 20 20 300
E-mail: presse@grenke.de

ABOUT GRENKE

The GRENKE Group (GRENKE) is a global financial partner for small and medium-sized companies. Customers get everything from a single source: from flexible leasing for small tickets to tailor-made banking products and hands-on factoring. The emphasis is on quick and easy processing and personal contact with customers and partners.

Founded in Baden-Baden in 1978, the group is now active in 33 countries around the world with more than 1,800 employees (measured in full-time equivalents). GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN: DE000A161N30).


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