German leasing company GRENKE has reported a 21.5% year-on-year (YoY) increase in its new leasing business, reaching €790.3m ($850.5m) in Q2 2024, compared to €650.3m in Q2 2023.
For the quarter spanning from April to June 2024, the company’s contribution margin 2 (CM2), a key profitability indicator, rose 19.4% to €130.9m from €109.7m in the same quarter last year.
The CM2 margin remained stable at 16.6%, closely aligning with the target of just over 16.5%.
Grenke highlighted the substantial contribution of green economy objects to new leasing business this year, with every fifth (20.5%) leasing contract coming from this category.
Notably, water treatment systems, eBikes, and solar systems were primary contributors.
Grenke’s international sales network has also expanded, now engaging more than 37,000 resellers, an increase from 34,700.
The direct customer business maintained a consistent share of the total leasing business at 17.1%.
Southern Europe emerged as the strongest region, with 34.4% growth to €197.3m, representing a 25% share of the new leasing business.
Western Europe (excluding DACH) followed with a 15.3% increase to €197.2m, nearly matching Southern Europe’s contribution.
The DACH region, including Austria, Germany, and Switzerland, saw an 11.1% growth, while Northern / Eastern Europe’s new leasing business grew 25.3% to €164.6m.
Other regions, including the US, Canada, and Australia, recorded a 32.5% growth to €48.5m.
Demand for lease financing solutions among SMEs remains high, with Grenke registering 167,000 lease applications and concluding around 87,000 new lease contracts in Q2 2024.
The conversion rate was stable at 51.9%, and the average ticket size was €9,125.
Meanwhile, Grenke’s factoring business held for sale saw an 11.3% increase in new business volume, reaching €228.7m.
Grenke Bank’s new lending business, primarily comprising the microcredit business, totalled €9m.
As of 30 June 2024, the deposit business stood at €1.6bn, marking a 2.5% increase since the beginning of the year.
Grenke CEO Dr Sebastian Hirsch said: “This outstanding quarter, with growth in excess of 20%, is a milestone on the path to achieving our ambitious annual target of €3bn in new business.
“While this is a very important achievement, we are not resting on our laurels but will instead continue to build on record performance.”
