Grenke (GLJ) Q3 2024 TU earnings summary

Executive summary

• Net interest income rose 5.8% to €269.3M in the first nine months of 2024 compared to the same period last year.

• Group earnings fell 11.5% year-over-year to €57.0M for Q1–Q3 2024, and dropped 50.0% to €12.0M in Q3 2024.

• Higher settlement of claims and risk provisioning, driven by rising insolvencies in France, Spain, and Germany, impacted results.

Financial highlights

• Q3 2024 net interest income increased 7.4% to €92.8M year-over-year.

• Profit from service business grew 8.4% to €37.5M, and profit from new business rose 26.7% to €13.5M in Q3 2024.

• Settlement of claims and risk provision surged 54.4% to €37.8M in Q3 2024.

• Operating result declined 45.5% to €17.9M in Q3 2024 compared to Q3 2023.

• Staff costs increased 13.8% to €49.2M in Q3 2024.

Outlook and guidance

• 2024 Group earnings forecast revised down to €68M–€76M from previous €95M–€115M.

• Guidance for new business remains at €3.0B–€3.2B for 2024.

• Average loss rate for 2024 expected to stay below 1.5%.