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July 5, 2022

Grenke posts nearly 48% YoY growth in new leasing business

German financing firm Grenke, which caters to small and medium-sized businesses, has generated a new leasing business worth €587.4m in the second quarter of 2022.

The figure represents a surge of 47.4% year-on-year (YOY).

In Q1 2022, the financing firm registered a growth of 36.5%, and in Q4 2021 it was 22.1%

In the Germany, Austria, and Switzerland (DACH) region, GRENKE’s new leasing business saw yearly growth of 26% at €139.9m.

During the same period, the business recorded a growth of 36.5% in Western Europe – excluding DACH.

In the Southern Europe region, the new business grew most by 73% on yearly basis.

In Northern and Eastern Europe, the new leasing business saw growth of 63% and the other regions achieved a rise of 56.8% in contrast to the same quarter of 2021.

During the quarter under review, Grenke received a total of 138,261 leasing inquiries, which led to the demand for leasing products.

The firm concluded 72,192 new leasing contracts in Q2 2022 with a conversion rate of 52%.

For the same period, Grenke Bank’s receivables business in the factoring area reported new business with a purchased volume of receivables of €191.5m. It represents a growth of 9.3% based on Q2 2021’s performance.

Due to Covid and sales organisation, the German factoring business fell by 25% to €42.3m (Q2 2021: €56.4m), whereas, in the international market, it rose by 25.6%.

Grenke Bank’s new lending business, which was €6.1m in Q2 2021, increased by 123% to €13.6m in Q2 2022.

During the quarter, the contribution margin 2 (CM2) increased by 29.2% to €93.2m from the previous year’s €72.1m.

For the same period, the contribution margin 1 (CM1) was €61.4m, 30.1% more than the quarterly value of the previous year (€47.2m).

Grenke CFO Sebastian Hirsch said: “Our business remains highly profitable. Firstly, because the strong increase in our new business leads to a significant increase in the contribution margin. Secondly, we will pass on the higher interest rate level to the market with a manageable time lag – as in all previous phases of interest rate increases.”

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