But its earnings before interest and tax (EBIT) slipped 5.9 per
cent to €45.2m on lower income from asset sales, higher bad debts
provisions and higher operating expenses. This came in below
average analysts’ forecast of €47.1m.

Net interest income before bad debt provisions rose 1.1% to
€62.4m but higher provisions resulted in a 2.8 per cent fall in net
interest income after bad debt provisions.

Commenting on the fiscal year’s operations, Grenkeleasing in its
annual report said it was able to pass on in full, the higher
refinancing costs that resulted from the subprime crisis. It also
said that the higher claims settlement (bad debts) were expected
due to the group’s expansion into new markets.

In its guidance for 2008 earnings, Grenkeleasing said it
expected group net profit to register between €30.6m and €33m but
this depended heavily on the impact of the subprime crisis on the
real economy. Grenkeleasing also noted the uncertainty over details
of the taxation of forfeit financing deals which could have a
significant impact on its net profit.