Grenkeleasing proves profitable despite higher costs

German IT equipment lessor,
Grenkeleasing AG, recorded a net profit of €16.3m for the first
half of 2008, up five per cent on the same period in 2007. Earnings
per share jumped to €1.19 from €1.14 over the same period and
earnings before interest and tax increased by a marginal €0.3m from
H1 2007 to €23.1m for H1 2008.

Although the group has experienced increasing costs, it has been
able to handle the challenge by maintaining strong growth and high
profitability in new business, which has compensated for its income
figures. Although the company said that it has not experienced
negative effects from market turmoil, it still registered a rise in
its loss ratio this year.
Grenkeleasing’s volume of new business, which includes its leasing
assets and factoring volume, grew 13 per cent to €248.1m.
The company forecasts a ten per cent annual increase in new
business and a net profit of between €30 and €33m for the
year.