GRENKE AG Beats 2023 Profit Expectations and Sets Ambitious Goals for 2024

GRENKE AG, a financing partner for small and medium-sized enterprises, reported a net profit of EUR 86.7 million for the financial year 2023, surpassing its own forecast and marking an increase from EUR 84.2 million in 2022. The company has set its sights on achieving a new leasing business volume of over EUR 3 billion in 2024. GRENKE also intends to propose a dividend of EUR 0.47 per share, up from EUR 0.45 in the previous year.

In 2023, GRENKE saw its new leasing business reach EUR 2.6 billion, compared to EUR 2.3 billion in 2022. The company attributes its success to overcoming the challenges posed by the coronavirus pandemic, interest rate hikes, and inflation. A significant digitalization initiative launched last year is expected to further drive growth. With over 1 million active lease contracts, the leasing portfolio reached a volume of EUR 9.4 billion by the end of 2023.

The firm's financial resilience is reflected in its ability to navigate through interest rate increases, resulting in a robust business model that boasts increased profitability. GRENKE's net interest income after settlement of claims and risk provision rose by 10.5% to EUR 247.7 million. The company has also confirmed its forecast for 2024, targeting a new leasing business range of EUR 3.0 to 3.2 billion and expecting a consolidated group net profit of EUR 95 to 115 million.

GRENKE plans to maintain a sustainable growth trajectory, with forecasts for 2024 including a modest rise in the CM2 margin and a continued strong equity ratio above the company's target of 16 percent. These projections underline GRENKE's confident outlook and strategic focus on long-term profitability and growth.