Grenke (GLJ) investor relations material

Executive summary

• Group earnings after taxes rose 52.4% to EUR 15.5 million in Q1 2026, with return on equity after taxes improving to 4.4% from 3.1% a year earlier, despite ongoing macroeconomic and geopolitical challenges and elevated insolvency rates.

• Leasing new business grew 4.2% year-over-year to EUR 786.4 million, mainly driven by Germany, France, and Italy, with 97% of new contracts as small tickets.

• Strategic focus on profitability, risk management, and sustainable growth drove positive results, supported by improved cost discipline and operational efficiency.

• Strong liquidity position maintained through a EUR 500 million benchmark bond, EUR 200 million KfW loan, and diversified refinancing mix.

Financial highlights

• Operating income rose 10.2% to EUR 171 million, while operating result before settlement of claims and risk provision increased by nearly 21% to EUR 80.9 million.

• Net interest income increased to EUR 107 million; interest and similar income from financing business up 11.1% to EUR 177.6 million.

• Cost-income ratio improved to 52.6% from 56.8% year-over-year.

• Loss rate remained stable at 1.9% in Q1 2026, with risk provisions of EUR 57 million.

• Total assets increased 3.0% to EUR 9.4 billion; equity ratio at 15.2%.

Outlook and guidance

• Annual targets reaffirmed: group earnings EUR 74–86 million, leasing new business EUR 3.4–3.6 billion, and CM2 margin target of at least 16.5%.

• Cost-income ratio expected to remain around 55% for the year; loss rate guidance for 2026 at 1.6%–1.7%.

• Long-term ROE target of 10% by 2030, with annualized Q1 2026 ROE at 4.4%.

• Sufficient equity and capital allocation for continued growth; no capital increase planned.