German leasing giants Grenke Leasing have announced 762.7m (908.49m) in new business in the first half of 2016. In a report published today, the performance of Grenke Group’s leasing arm shows a year-on-year increase of 19.6%.
The strong showing shows Grenke Leasing is on track to achieve its growth targets of 16-20% for 2016. A drive towards international markets has fuelled this growth, with 73.6% of the business of parent company Grenke Group now coming from beyond Germany.
The leasing arm of the Group has followed this international outlook, with growth in the French and Italian markets increasing by 20.5% and 37.7% respectively. In Germany, growth was more sluggish at 7.7%. In a further bid to secure and expand its international reach, Grenke Group announced a new office in Parma, Italy.
"We were particularly pleased with the business performance in our key markets France and Italy," said Wolfgang Grenke, chairman of the board of directors of Grenke.
"[We] seized this opportunity to complete another cell division and open up a location in Parma."
However, with a larger leasing conversion rate in Germany than internationally, 49% compared to 44%, the domestic leasing market will remain important to Grenke Group’s leasing operations.
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In other branches, Grenke Group did not perform as well as expected. Grenke Factoring, though experiencing a 10.3% increase in new business, worth 160m, fell short of its target.
This has prompted a revision of the original 30-35% growth forecast, with Grenke Factoring projected an 18-23% rise in new business.
Grenke Bank saw a 23.4% increase in deposits and 38.6% in new business start-up financing. Despite the lower than expected performance of Grenke Factoring, the continued growth in all areas of Grenke Group has led to an optimistic outlook. "The Grenke Group is well on-track to reach its full year targets," said Wolfgang Grenke.
"The foundation of our business is our solid financing and excellent reputation," added Jorg Eïker, chief financial officer of Grenke AG.
These claims were bolstered by a recent credit assessment by Standard & Poor’s which maintained Grenke Group’s BBB+/A-2 rating.
As the company enters the second half of 2016, growth looks set to continue, underpinned by the strong international growth of its leasing arm in particular.