Grenke (GLJ) Q4 2024 earnings summary

Executive summary

• Achieved record EUR 3.1 billion in new leasing business in 2024, marking a strategic milestone and foundation for future earnings.

• Group earnings reached EUR 70.2 million, within guidance, despite macroeconomic headwinds and increased insolvencies impacting profitability.

• Transitioned to a pure-play leasing business, divesting the factoring segment and reorganizing by regional leasing segments.

• Strategic focus on digitalization, cost management, and risk management to drive efficiency, scalability, and sustainable value.

• International growth supported by partnerships, notably with Intesa Sanpaolo in Italy.

Financial highlights

• Operating income rose by over EUR 53 million to EUR 576 million, driven by higher net interest and service income.

• Leasing new business reached EUR 3.1 billion, up 14% year-over-year, outperforming the European leasing market.

• Cost-income ratio stable at 59.2%, with operating costs rising due to staff and digitalization investments.

• Loss rate increased to 1.3% (2023: 1.0%) due to higher defaults and insolvencies.

• Earnings per share: EUR 1.44; proposed dividend: EUR 0.40 per share.

Outlook and guidance

• 2025 guidance: leasing new business EUR 3.2–3.4 billion, group earnings EUR 71–81 million, CM2 margin >16.5%, CIR <60%, loss rate ~1.6%.

• Equity ratio expected to remain around 16% in 2025.

• No equity issuance planned for 2025; AT1 instruments may be used if needed.

• Continued focus on digitalization, efficiency, and international expansion.

• Lease receivables expected to reach EUR 7.2–7.5 billion by end of 2025.