GrenkeLeasing improved its profitability in the first quarter of 2013, with net profit increases offsetting expenses from acquisitions and distribution costs.

The German lender announced consolidated net profit for the quarter was €11.5m, a rise of 22% compared to €9.4m over the same period in 2012. This was derived from operating income of €38.9m, up 25% from €31.1m in 2012.

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The group made €10.2m profit from new business in the three months to March, a 21% year on year rise, while disposals accounted for another €0.9m, dropping 34% from the previous first quarter 2012.

Grenke said "acquisitions of companies from former franchises in Spain, Romania and Portugal in the third quarter of 2012" had led to higher expenses. Personnel costs in particular rose 20% to €12.1m, with 60 employees from acquired companies being added to the payroll.

The group also saw increased distribution costs, with selling and administrative expenses growing 27% to €8.9m.

Wolfgang Grenke, chairman of GrenkeLeasing, said: "The first quarter of 2013 saw a very positive performance. We once again benefited from our high-margin new business in the past quarters, which is successively flowing in the income statement over the term of the contracts. In addition, the increase in losses was comparatively low and the other earnings components also made a positive contribution."

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"We are in line with our planning and are reiterating our forecasts of growth in new business in the Grenke Group of between 13% and 16% and net profit of the Grenke Consolidated Group in a range between EUR 44 million and EUR 48 million for the 2013 financial year".