Grenke (GLJ) Q2 2026 earnings summary

Executive summary

• H1 2026 group earnings after tax rose 24.8% to €32.6m; after-tax ROE was 4.6%, up from 3.8%.

• Leasing new business reached €1,644.9m, up 1.4% YoY, amid weak investment activity and high insolvencies.

• Operating leverage improved as income growth outpaced costs; the cost-income ratio fell to 51.6% from 56.4%.

• Management reiterated its ambition for after-tax ROE above 10% by 2030.

Financial highlights

• H1 operating income was €352.6m, up 11.0%; net interest income rose 7.0% to €214.9m.

• Operating result before claims settlements and risk provisions increased 23.2% to €170.7m; claims settlements and risk provisions worsened 25.2% to €118.6m.

• Operating costs rose 1.5% YoY; basic and diluted earnings per share increased to €0.40 from €0.34.

• H1 earnings were affected by a 26.4% tax rate, including a one-off French tax audit expense.

Outlook and guidance

• FY 2026 group earnings guidance remains €74m–€86m; leasing new business is forecast at €3.4bn–€3.6bn, likely at the lower end.

• FY loss rate is forecast just under 2%; full-year CM2 margin is expected around 16%, 50 bps below prior forecast.

• Cost-income ratio is expected below 55% for 2026.

• After-tax ROE target remains above 10% by 2030.