Grenke has reported a 10.6% increase in its leasing new business for the first quarter (Q1) of 2025, bringing the total to €740.6m ($821.91m).
The company’s profitability indicator, Contribution Margin 2 (CM2), saw a rise of 15.6%, reaching €130.3m, compared with the previous year.
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The largest category in terms of lease objects was IT equipment, which constituted 29.3% of the concluded contracts. This category primarily includes laptops, IT equipment, and software.
Grenke’s direct sales channel contributed 17.3% to the total leasing new business, up from 15.5% in Q1 2024, driven by new business volumes in the DACH region.
The company processed approximately 171,000 lease applications, resulting in around 76,000 new lease contracts.
The conversion rate stood at 44.5%, with an average ticket size of €9,734.
In terms of regional performance, Western Europe (excluding DACH) led with a 7.2% growth to € 200.9m, accounting for 27.1% of the leasing new business, with France contributing the largest share.
Southern Europe followed with a 5.7% increase to €176.8m, with Italy leading the region.
The DACH region experienced a 20.6% rise to €167.2m, with Germany being the largest market.
Northern/Eastern Europe saw a 7.4% increase to €145.0m while other regions, including the US, Canada, and Australia, grew by 22.5% to €50.8m.
Grenke CEO Sebastian Hirsch said: “Our new business is progressing according to plan. The current figures reaffirm our focus on margins and, consequently, profitability – an approach that will benefit our future earnings.”
As of 31 March 2025, Grenke’s deposit business amounted to €2.37bn, marking a 6.6% increase since the end of last year.
Grenke Bank’s lending new business, primarily in microcredit, reached €11.3m during the reporting period.
Grenke has also agreed to transfer its factoring business to Swiss company Teylor AG in a phased process.
The transfer of individual local subsidiaries is set to begin next week and is expected to conclude by mid-2026.
Based on the present situation, any impact on Grenke Group’s 2025 income statement is expected to be minimal.
The factoring division, currently classified as held for sale, generated a new business volume of €194.7m in Q1 of 2025, compared with €212.9m during the same period in 2024.
Hirsch added: “Completing the negotiations for the sale of the factoring business marks a strategically significant step, allowing us to concentrate fully on further strengthening our market leadership in international small-ticket leasing. It was also important to us that our employees in the factoring business have new compelling prospects for the future.”
