DGAP-News: GRENKELEASING AG: Earnings strength rem

DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results GRENKELEASING AG: Earnings strength remains high in the third quarter - consolidated net profit increases 16% to EUR 35.1 million 24.10.2013 / 07:13 --------------------------------------------------------------------- Earnings strength remains high in the third quarter - consolidated net profit increases 16% to EUR 35.1 million - Net interest income rises 19% to EUR 96.4 million in the first nine months of 2013 (previous year: EUR 81.0 million) - Consolidated net profit amounts to EUR 35.1 million in the first nine months of 2013, corresponding to growth of 16% as compared to EUR 30.2 million in the previous year Baden-Baden, October 24, 2013: The earnings development in the first nine months is right on schedule. GRENKE increased the income from operating business by 20.4% in the first nine months of 2013. Additionally, the Group benefited from very encouraging new business in the recent quarters and the corresponding high contribution margins. Losses have also developed favourably. The sharp rise in the second quarter receded again in the third quarter so that the increase in losses for the nine-month period was below average. In the first nine months of 2013, net interest income improved 19.1% to EUR 96.4 million after EUR 81.0 million in the previous year. We continued to benefit from the attractive contribution margins in the new business of the past quarters. At the same time, overall refinancing expenses grew only marginally as a result of the current low interest rate environment. In the second quarter, refinancing expenses even declined since we were able to utilise the favourable conditions on the capital markets, among others by issuing a bond. In the first nine months of 2013, expenses for the settlement of claims and risk provision increased at the much lower rate of 13.1% and amounted to EUR 36.8 million after EUR 32.5 million in the previous year. The loss rate in the third quarter remained within our long-term target range. Net interest income after settlement of claims and risk provision rose 23.1% to EUR 59.6 million after EUR 48.4 million. The profit from insurance business improved 17.5% in the first nine months of 2013 to EUR 25.8 million (previous year: EUR 22.0 million). The profit from new business rose 24.2% to EUR 32.0 million after EUR 25.8 million in the prior year. The profit from disposals, which is volatile on a quarterly basis, declined compared to the previous year and amounted to EUR 2.0 million compared to EUR 3.1 million in the first nine months of 2012. The income from operating business expanded 20.4% over the previous year and amounted to EUR 119.5 million after EUR 99.3 million in 2012. The effects of the acquisitions of former franchise companies are still reflected in the year-over-year increase in our expenses since these companies were not included in the prior year's figures. Staff costs rose 22.1% to EUR 38.0 million after EUR 31.1 million in the previous year as a result of increased headcount. Selling and administrative expenses grew disproportionately by 33.2% to EUR 28.3 million after EUR 21.3 million in the previous year as a result of GRENKE Group's on-going expansion. GRENKE Consolidated Group's net profit increased 16.1% from EUR 30.2 million in the previous year to EUR 35.1 million. Earnings per share amounted to EUR 2.42 after EUR 2.21 in the prior year. The equity ratio of 16.8% continued to be above our long-term target of 16%. This solid equity base provides us with sufficient leeway for GRENKE Consolidated Group's future growth. These results were achieved by 808 employees compared to 656 employees in the first nine months of 2012 (full-time equivalents; not including the Board of Directors). 'Earnings development is right on schedule. In the first nine months of 2013, we increased the income from operating business by a total of 20%. Our expenses also grew: First, and as expected, as a result of the expansion the Group and second, due to the large acquisitions of former franchise companies towards the end of the third quarter of 2012 and the two smaller acquisitions in 2013. Nevertheless, in the nine-month period of 2013 we achieved 16% growth in the GRENKE Consolidated Group's net profit to EUR 35.1 million. In the fourth quarter of 2013, the base effect of the consolidations will further diminish. Thus, we are fully on track for our full year guidance of achieving consolidated net profit in the range of EUR 44 - 48 million', commented Wolfgang Grenke, GRENKELEASING AG's Chairman of the Board of Directors, with regard to the results. 'In September 2013, S&P confirmed GRENKE Group's good credit rating once again. One highlight of S&P's rating was the assessment of our risk position in particular. This assessment was raised by one notch due to our excellent track record in risk management and risk pricing even in years of crisis and also due to our outperformance versus our competitors. This is underlined by the lower-than-average increase in losses in 2013. We continue to remain within the range of our long-term target corridor', explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG. The full Financial Report for the 3rd Quarter and the First Nine Months 2013 can be accessed on the internet at www.grenke.de INVESTOR RELATIONS - Financial Reports - Financial Reports 2013. Should you have any queries, please contact: Renate Hauss Tel.: +49 7221 5007-204 Fax: +49 7221 5007-4218 E-mail: investor@grenke.de Internet: http://www.grenke.de, http://grenkeleasing.de, http://www.grenkebank.de, http://www.grenkefactoring.de The GRENKE Group The GRENKE Group is a broadly diversified provider of financial services for small and medium-sized companies and private customers. The range of services offered by the GRENKE Group covers small-ticket IT leasing and factoring and - through GRENKE Bank - traditional online banking services. The GRENKE Group is independent of vendors and banks and holds a leading market position in Europe in the field of small-ticket IT leasing for products such as PCs, notebooks, copiers, printers, or software of relatively low asset value. The GRENKE Group operates in 26 countries and employs more than 800 staff. GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN DE0005865901. Information on the GRENKE Group and its products is available on the Internet at http://www.grenke.de, http://www.grenkeleasing.de, http://www.grenkebank.de, and http://www.grenkefactoring.de. End of Corporate News --------------------------------------------------------------------- 24.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden Germany Phone: +49 (0)7221 50 07-204 Fax: +49 (0)7221 50 07-4218 E-mail: investor@grenke.de Internet: www.grenke.de ISIN: DE0005865901 WKN: 586590 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 235942 24.10.2013