GRENKE has reported a consolidated group net profit of €86.7m in 2023, an increase of 3% over €84.2m a year ago.
The Germany leasing company’s new leasing business reached €2.6bn, up from €2.3bn the previous year.
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As of 31 December 2023, the company’s portfolio of active lease contracts exceeded one million, amounting to a total volume of €9.4bn.
Interest income increased by €53.9m to €467.4m from €413.5m in the year-ago period.
This development was supported by new business growth and an improved margin situation throughout last year, the leasing company said.
However, the surge in new business also heightened GRENKE’s need for refinancing, particularly as capital market interest rates experienced a sharp increase last year.
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By GlobalDataAs a result, interest expenses soared by 86.8% to €128.9m from €69m in 2022.
Despite these higher costs, the company benefited from the “consistently good payment behaviour” of customers, which led to a reduction in expenses for settlement of claims and risk provision by nearly a quarter to €90.8m from €120.4m.
The loss rate for the financial year stood at 1%, remaining below the forecasted 1.5%.
At the end of 12 months under review, the company’s total assets were €7.09bn, up 10.7% from €6.41bn in 2022.
GRENKE has maintained its forecast for new leasing business in the range of €3bn to €3.2bn and anticipates a consolidated group net profit of €95m to €115m for the 2024 financial year.
The supervisory board and board of directors will recommend to the annual general meeting a dividend distribution of €0.47 per share.
GRENKE CEO Sebastian Hirsch said: “We have achieved the turnaround. The coronavirus slump is behind us, and we have the rise in interest rates and inflation under control.
“By consolidating and focusing on our core business of leasing, we are now in an ideal position to crack the milestone for this year of €3 bn for the first time. The digitalisation initiative we launched last year will also make a major contribution to accomplishing this.”
