Grenke (GLJ) Q4 2023 earnings summary

Executive summary

• FY 2023 delivered profitable leasing growth despite high interest rates; leasing new business reached €2.6bn with a 16.5% CM2 margin.

• Group earnings rose 3.0% to €86.7m, while the 2024 strategy focuses on leasing after the planned exit from factoring.

Financial highlights

• Net profit was €86.7m, up 3.0% YoY; EPS was €1.79, up 2.3%.

• Operating result rose 15.2% to €112.9m; net interest income was €338.5m, down 1.7%, and costs increased 10.9% to €309.5m.

• Leasing new business totaled €2.6bn; CM2 margin was 16.5%.

Outlook and guidance

• 2024 leasing new business is targeted at €3.0–3.2bn, with CM2 margin slightly above 16.5%, loss rate below 1.5%, and CIR below 58%.

• 2024 group earnings guidance is €95–115m and equity ratio above 16%; mid-term targets include ~12% average annual growth, CM2 margin ~17%, CIR below 55%, and double-digit earnings growth.

• Leasing new business is projected to reach €3.0–3.2bn in 2024, following €2.6bn in 2023.