DGAP-News: GRENKELEASING AG: Consolidated Group net profit

DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results GRENKELEASING AG: Consolidated Group net profit rises 27% to EUR 18.4 million - high profitability of the past year continues in the first quarter 29.04.2015 / 07:15 --------------------------------------------------------------------- Consolidated Group net profit rises 27% to EUR 18.4 million - high profitability of the past year continues in the first quarter - Net interest income grew 22.8% to EUR 44.5 million (previous year: EUR 36.2 million) in the first three months of 2015 - Consolidated Group net profit in the first three months of 2015 climbed 26.9% to EUR 18.4 million compared to EUR 14.5 million in the previous year - Equity ratio at 17.0% as per the reporting date Baden-Baden, April 29, 2015: The high, profitable growth experienced in recent quarters successfully continued in the first three months of 2015. The ongoing favourable interest rate environment is reflected in our net interest income. Higher interest income from the financing business and lower interest expenses from refinancing led to a 22.8% rise in net interest income to EUR 44.5 million (Q1-2014: EUR 36.2 million). Expenses for the settlement of claims and risk provision grew 26.1% in line with the usual quarterly range of fluctuation and totalled EUR 14.9 million (previous year: EUR 11.8 million). For the first three months, the loss rate, which is usually volatile on a quarterly basis, was slightly above the level of 2014. Net interest income after settlement of claims and risk provisions exceeded the level in the same period of the previous year by 21.2% and grew from EUR 24.4 million to EUR 29.5 million. Profit from insurance business increased 19.6% to EUR 11.3 million (Q1-2014: EUR 9.4 million). Profit from new business grew 6.4% to EUR 11.8 million in the first three months of 2015 from EUR 11.1 million in the first three months of 2014. Gains from disposals, which are of less significance for the GRENKE Consolidated Group due to their volume and vary widely on a quarter basis, totalled EUR 0.7 million after EUR 0.4 million in the first three months 2014. The total income from operating business rose significantly by 17.9% to EUR 53.3 million from EUR 45.3 million in the comparable period of the previous year. Expenses grew at a slower rate. Staff costs were driven 14.9% higher in the first three months of 2015 a result of the Company's growth and higher variable compensation related to the Company's economic success. Staff costs amounted to EUR 15.0 million compared to EUR 13.1 million in the same period of the previous year. Selling and administrative expenses increased 1.1% to EUR 11.0 million from EUR 10.9 million in the first three months of 2014. The operating result increased 29.8% to EUR 25.2 million after EUR 19.4 million in the first three months of 2014. The Consolidated Group's net profit for the three-month period of 2015 expanded 26.9% to EUR 18.4 million (previous year: EUR 14.5 million). The Consolidated Group's equity ratio improved slightly to 17.0% from 16.9% as per December 31, 2014 and was above our long-term target of a minimum of 16%. <pre> Key Figures GRENKE Q1-2015 Q1-2014 New business GRENKE Group Leasing 304.8 264.4 New business GRENKE Group Factoring 65.6 43.5 Business start-up financing GRENKE Bank 4.0 2.9 Contribution margin 2 (CM2) on new business GRENKE 19.3 18.7 Group Leasing in % Net profit GRENKE Consolidated Group in EURm 18.4 14.5 Economic result* in EURm 25 23 Cost / income ratio in % 53.8 58.0 Equity ratio in % 17.0 16.9 Number of new leasing contracts in units 37,321 33,229 </pre> * Net profit + change in embedded value after tax adjusted The calculation method was adjusted to determine the economic result. The retained earnings are included in both the net profit for the period as well as in the embedded value at the end of the period. Therefore, they are eliminated once in the calculation of the economic result. The economic result in the first quarter of 2015 totalled EUR 25 million (Q1-2014: EUR 23 million). When we change our calculation methods, we also make adjustments to the corresponding previous year figures for reasons of comparability. This result was generated by 895 employees compared to 820 employees in the first three months of 2014 (on a full-time basis excluding the members of the Management Board and trainees). "The first quarter got off to a positive start. We continue to actively manage our margins in a risk-oriented manner. The high contribution margins from the new business generated in the past quarters are accruing to us as those contracts progress. The total income from operating business grew 17.9% compared to the previous year. We continue to profit from the favourable environment on the capital markets, which offers a high number of refinancing instruments and low interest rates. Because the costs related to our future expansion had a lower-than-average rise in the first quarter, our operating result climbed almost 30% and our net profit increased 27%. This puts us fully on track to achieve our annual forecast for 2015 of a net profit in the range of EUR 71 million to EUR 75 million", commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the results. "In addition to our regional growth, we are continually diversifying our product range and offers for financial solutions. GRENKE Bank's offers are of great importance to us. GRENKE Bank's deposits are an important pillar of our refinancing strategy along with our financing of business start-ups and the provision of development funds for business investments financed through leasing, which we are offering together with a growing number of development banks. As part of this strategy, with WeltSparen, GRENKE Bank was able to secure an exclusive distribution partner for attractive fixed-term deposits for our private customers. This makes it even easier to obtain our impressive fixed-term deposit products online", explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG. The full Financial Report for the 1st Quarter 2015 can be accessed at www.grenke.de/financialreports Should you have any queries, please contact: GRENKELEASING AG Corporate Communications / Investor Relations Renate Hauss Neuer Markt 2 76532 Baden-Baden, Germany Tel.: +49 7221 5007-204 E-mail: investor@grenke.de Internet: http://www.grenke.de The GRENKE Group The GRENKE Group is a broadly diversified provider of IT-based services in Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized companies. In addition, the GRENKE Bank offers its classic online services also to private customers. 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 29 countries and employs more than 900 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 at http://www.grenke.de --------------------------------------------------------------------- 29.04.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 350103 29.04.2015