• Group earnings 2024 reach EUR 70.2 million (2023: EUR 86.7 million)
• Proposed dividend of EUR 0.40 per share (2023: EUR 0.47)
• Guidance for 2025: Leasing new business between EUR 3.2 and EUR 3.4 billion and Group earnings in the range of EUR 71 to 81 million

Baden-Baden, March 13, 2025: grenke AG, a global financing partner for small and medium-sized enterprises, achieved Group earnings of EUR 70.2 million in the 2024 financial year (2023: EUR 86.7 million), meeting the adjusted expectation of EUR 68 to 76 million published in October 2024 (previous expectation: EUR 95 to 115 million). The resulting earnings per share equalled EUR 1.44 (2023: EUR 1.79). In 2024, leasing new business exceeded the EUR 3 billion threshold for the first time, reaching nearly EUR 3.1 billion (2023: EUR 2.6 billion).

Dr Sebastian Hirsch, CEO of grenke AG: "For us, this past year was marked by contrasts – record new business with strong contribution margins but also increased risk provisioning. As a result, we should expect that the increase in corporate insolvencies will still be felt primarily in the first half of 2025. Overall, the risk level is expected to stabilise at the customary level we are familiar with. For the full year 2025, we expect earnings to grow as we anticipate higher income from our leasing business. This will mark the beginning of when our strong new business growth will start to pay off. The year 2025 will remain a year of transition – but we are and will remain on course!”

Dr Martin Paal, CFO of grenke AG: "We are very satisfied with the development of our new business. In 2025, the strong new business and the accompanying good margins from the prior year will positively impact our net interest income. Our refinancing mix, based on the three pillars – bonds, the deposit business, and ABCP programmes – has once again proved to be effective last year in supporting our ambitious growth targets. In 2024, we successfully placed two new benchmark bonds. In the current 2025 financial year, we plan to approach the capital market again on a similar scale and expect further improvements in our refinancing conditions due to interest rate developments."

Leasing portfolio

At the end of the 2024 financial year, grenke had over 1 million active lease contracts with a volume of EUR 10.1 billion (2023: EUR 9.4 billion). The CM2 margin for the 2024 financial year was 17.0% (2023: 16.5%), significantly exceeding the guidance of slightly above 16.5%.

Growing operating income accompanied by higher expenses for settlement of claims and risk provision

With the publication of the Annual Report 2024, grenke revised the presentation of its income statement to provide greater transparency regarding business development. In 2024, interest income increased 22.9% year-on-year to EUR 574.3 million (2023: EUR 467.4 million). This increase was driven by the sustained strong growth in new business in recent quarters and the improvements in the CM2 margin. At the same time, the strong growth in new business increased the need for refinancing amid persistently high interest rates. This resulted in a rise in interest expenses to EUR 217.6 million (2023: EUR 128.9 million). The net interest income – defined as the difference between interest income and interest expenses – amounted to EUR 356.7 million (2023: EUR 338.5 million), representing an increase of 5.4%.

The substantial growth in profit from new business and profit from service business drove operating income 10.2% higher to EUR 576.0 million (2023: EUR 522.8 million). Operating expenses amounted to EUR 341.0 million (2023: EUR 308.9 million), with staff costs representing the largest cost item at EUR 198.2 million (2023: EUR 176.0 million). The average number of employees at the grenke Group (measured in full-time equivalents) increased as planned by 6.2% to 2,196 (2023: 2,068 employees). The cost-income ratio (CIR) for the 2024 financial year equalled 59.2%, which was slightly above the forecast of below 58%.

As a result of the growth in operating income, the operating result before settlement of claims and risk provision increased 9.9% in the 2024 financial year to EUR 235.0 million (2023: EUR 213.9 million).

Due to a significant increase in the number of insolvencies, particularly in the core markets of France, Spain, and Germany, expenses for settlement of claims and risk provision rose to EUR 131.0 million in the 2024 financial year (2023: EUR 90.8 million). The loss rate – defined as the ratio of settlement of claims and risk provision to leasing volume – amounted to 1.3% for the full year (2023: 1.0%). Accordingly, grenke achieved an operating result in 2024 of EUR 90.0 million (2023: EUR 112.9 million) and Group earnings of EUR 70.2 million (2023: EUR 86.7 million).

Maturity-matched refinancing and a solid equity base

Driven by the growth in new business, lease receivables rose to EUR 6.5 billion as of the end of 2024, significantly exceeding the previous year's figure of EUR 5.7 billion. In 2024, liabilities largely matched refinanced receivables in terms of amount and maturity. As of the December 31, 2024 reporting date, non-current lease receivables of EUR 3.9 billion (2023: EUR 3.6 billion) compared to long-term financial liabilities of EUR 3.3 billion (2023: EUR 3.6 billion). Current lease receivables amounted to EUR 2.6 billion (2023: EUR 2.1 billion), while current financial liabilities totalled EUR 3.2 billion (2023: EUR 1.8 billion).

As of the 31 December 2024 reporting date, the liquidity position totalled EUR 974.6 million (2023: EUR 697.2 million). The equity ratio equalled 16.1% (2023: 19.1%), in line with the self-set target of a minimum of 16%.

Outlook
For the 2025 financial year, grenke expects double-digit growth in leasing new business, a projected new business volume between EUR 3.2 and EUR 3.4 billion, and Group earnings of EUR 71 to 81 million. The expectations for new business and Group earnings are based on the assumptions of a loss rate of around 1.6%, a CM2 margin of more than 16.5%, and a CIR of below 60%. Based on the anticipated development of Group earnings, grenke expects an equity ratio of around 16%.

Analyst conference

The Board of Directors of grenke AG will report on the 2024 business performance today during an analyst conference. This event will take place at 10:00 a.m. CET. The link to register for this event is provided here.

Annual General Meeting on May 7, 2025 in Baden-Baden

grenke AG will hold its ordinary Annual General Meeting in person in Baden-Baden on May 7, 2025. This event will also be broadcast live online. The Supervisory Board and Board of Directors will propose to the Annual General Meeting the distribution of a dividend of EUR 0.40 per dividend-entitled share (2023: EUR 0.47). This amount corresponds to a payout ratio of approximately 25% of Group earnings, in line with the Consolidated Group’s long-term dividend policy.

The grenke Group's annual report for the 2024 financial year is available on the Company website under Reports & Presentations. A digital version of the annual report is also available here.

Key figures at a glance 

Note: Rounding differences may occur between individual values and the actual figures achieved in euros.