German leasing and factoring provider Grenke’s results for the first six months of 2018 have shown a profit increase of 23.1% to €63.4m (£56.3m), compared to the same period last year.
New leasing business at Grenke over the period was €1.16bn, with net profit for the company reaching €63.4m. Grenke’s division dedicated to new SME business lending accounted for €18.7m of the profit.
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The results follow from Standard & Poor’s confirming Grenke’s BBB+ rating.
The half-year results have prompted Grenke to raise its growth target for new business in the leasing segment to 18-22%.
Antje Leminsky, chair of the board of directors, who took over from 40-year industry veteran Wolfgang Grenke in February, said: “Our tried and true business model is and remains highly profitable – and future proof.
“We are applying it to an ever-growing number of new product and service offers and deepening our international market penetration. Further digitisation along the entire value chain opens up additional opportunities for us.”
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By GlobalDataThe sum of interest and similar income from financing business increased by 14.0%, against a rise in expenses from interest on refinancing of 11.3%. Net interest income after the settlement of claims and risk provision increased 13.4% to €94.4m compared to €83.3m in the same period of the prior year.
Staff costs were 19.8% higher than the previous year’s level. The company’s second major expense item, selling and administrative expenses, increased by 19.9%.
In related news, Michael Koehler has left his position of ten years as Grenke’s vice-president for south Europe. He had been with Grenke since 2005, as president for Italy, one of Grenke’s core and fastest-growing markets.
In April the European Investment Bank supplied Grenke with a long-term, low-interest credit facility for up to €100m.
