grenke reaffirms full-year outlook despite earnings decline in Q1

grenke AG, a global financing partner for small and medium-sized enterprises, has confirmed its preliminary first-quarter results released on April 29 and published its full quarterly statement for Q1 2025. The company reported Group earnings of €10.2 million, down from €19.8 million in the same quarter of 2024, citing anticipated increases in claims settlement and risk provisions.

Despite the earnings dip, the company highlighted strong growth in its operating business and reaffirmed its full-year guidance.

“We are in an excellent position to not only unlock the vast growth potential of global small-ticket leasing but also to translate that growth into rising profits.”

Interest income surged by 20.9% to €159.8 million (Q1 2024: €132.1 million), driven by higher volumes and pricing. Meanwhile, interest expenses rose by €13.9 million to €60.0 million, reflecting higher refinancing costs. The result: net interest income climbed 16.0% year-over-year to €99.8 million.

Total income from operating business increased to €155.0 million, up €22.1 million from Q1 2024, buoyed by both new business and service revenues. Operating expenses grew more modestly by €10.8 million to €88.0 million, resulting in an improved cost-income ratio (CIR) of 56.8% — now below the company’s 2025 target of under 60%.

“We are confident about the rest of the year, particularly given our earnings strength, which is increasingly evident in the income statement, and are maintaining our forecast.”

However, risk costs remained elevated. The result from settlement of claims and risk provision rose to €47.6 million, up sharply from €26.7 million in Q1 2024, amid a continued high number of customer insolvencies. This led to a higher loss rate of just under 1.9% (Q1 2024: 1.1%).

As a result, the operating result fell to €14.0 million (Q1 2024: €24.9 million), with final Group earnings landing at €10.2 million.

Leasing new business grew by 10.6% to €740.6 million in the first quarter. Lease receivables rose to €6.7 billion by March 31, 2025 (December 31, 2024: €6.5 billion). grenke maintained a stable equity ratio of 16.0%, in line with its long-term target.

grenke continues to project leasing new business of €3.2 billion to €3.4 billion for the full year and expects Group earnings between €71 million and €81 million.

Despite short-term pressures on earnings from risk costs, the company remains confident in its long-term strategy and operational momentum.