GRENKELEASING AG / Quarter Results
28.10.2009
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* Consolidated profit after taxes amounts to EUR 19.6 million (as compared
with EUR 24.9 million in the same nine-month period of 2008) in line with
expected development
* Strong equity and liquidity position are a good base for future growth
Baden-Baden, October 28, 2009: The flexibility of GRENKE's business model
allows the Company to adapt quickly to changes of market conditions, both
on the customer and refinancing side. In the first half year of fiscal year
2009, we based our new business on the criteria of profitability. Market
conditions have improved again noticeably, so over the course of the third
quarter we focussed more intensively on driving growth - but without
ignoring our strict consideration of risks.
At the current time, we aim to expand our net interest income by increasing
our contribution margin 2 (CM2) margins, thus partially offsetting the
negative impact from increasing claims settlement in the current recession.
We achieved a significant increase in net interest income in the nine-month
period. This is a result of higher interest income on one hand and a
smaller increase in refinancing expenses on the other, partly due to our
favourable refinancing through GRENKE BANK's customer deposits. After nine
months, net interest income increased by 6.2 % to EUR 54 million (first
nine months of 2008: EUR 51 million). In a situation in which general
economic growth rates plunge drastically in a very short space of time, the
readjustment of the margins does not take effect quickly enough to
completely offset the increase in claims in the short term.
Taking into account settlement of claims, we suffered a year-on-year
decline in net interest income after settlement of claims and risk
provisioning of 12.3 % in the nine month period to EUR 31.7 million (first
nine months of 2008: EUR 36.2 million). Even though unsatisfactory, this
increase in claims is typical for the current economic phase. However, our
current loss rate continues to be very close to our long-term average loss
rate and to date, it has also not exceeded the high point of the last
recession.
Third quarter operating expenses were reduced compared to the previous
quarter. The positive effects that we generate on the cost side when we
decrease the speed of our growth and temporarily suspend cell division are
apparent here.
The other earnings items developed as expected as a result of scaled-down
new business and the recession, which led - also impacted by the settlement
of claims - to a decrease in the net profit for the period after nine
months to EUR 19.6 million (previous year: EUR 24.9 million).
After nine months, the equity ratio increased to 17.7 % as compared with
16.9 % as at the end of 2008. Liquidity position amounts to a strong EUR
99.3 million, thus being at an above-average level. The combination of
strong equity and liquidity forms a very good base from which we start
growing new business.
These results were generated by 504 employees, as compared with 485 in the
nine-month period of 2008 (full-time employees excluding Board of
Directors).
'In fiscal year 2009, we adapted our management processes extensively to
the changed economic conditions: By increasing our CM2 margin and limiting
risks in new business, we took account of the economic decline in the
current year and the only hesitant recovery expected in the future. Our
substantial additional refinancing volume not only gives us scope for
future growth, but at the same time expands the range of instruments
available to us in the form of the highly attractive component of bank
deposits. We thus have access to a form of refinancing largely independent
of the state of the capital markets. On the whole, we have strengthened our
strategic position and increased our competitive strength so that we can
now turn towards further expanding the Group in 2010. Going forward, we can
grow at full speed, limited only by our own premises for the CM2 margin and
limiting risk in our receivables portfolio', explained Dr. Uwe Hack, Deputy
Chairman of the Executive Board of GRENKELEASING AG.
He also commented: 'We expect no major changes in business development in
the remaining months of the current fiscal year as compared with the first
nine months. Against the background of sharp decline in the European gross
national product in 2009, claims will continue to have a significant
negative impact. This is true even despite the recent economic recovery,
because insolvencies usually do not peak until the end of a recession. The
increased contribution margins from new business partially offset this
trend. At the same time, there has been a smaller increase in operating
costs because we have temporarily slowed our expansion in Europe in the
current fiscal year. Overall, in 2009 we anticipate development in line
with our previous expectations and thus earnings after taxes in the region
of EUR 25 to EUR 28 million.'
The full quarterly report as per September 30, 2009 is available for
download from www.grenke.co.uk Investor Relations - Figures.
The Executive Board
Should you have any queries, please contact:
Renate Hauss
Tel.: +49 -7221/5007-204
Fax: +49 - 7221/5007-112
E-mail: investor@grenke.de
Internet:http://www.grenke.de, http://www.grenkebank.de,
http://www.grenkefactoring.de
The GRENKE Group
The GRENKE Group is a broadly diversified provider of financial services
for small to medium-sized enterprises and for private retail clients.
The GRENKE Group comprises of companies which operate in fourteen European
countries, all being part of the consolidated GRENKELEASING corporate
group. In addition the GRENKE Group is represented in six further countries
in Europe by way of a franchise system. Including its franchise partners,
the GRENKE Group is represented at 20 locations in Germany and a total of
32 locations internationally.
The range of services offered by the GRENKELEASING Group (not including
franchise partners) covers small-ticket IT leasing and factoring and -
through GRENKE BANK AG - classic online banking services.
GRENKE BANK AG emerged from Hamburger Privatbank Hesse Newman & Co. AG (a
private Bank since 1777), which was acquired by GRENKELEASING AG in
February 2009.
The bank- and vendor-independent GRENKE Group holds a leading market
position in Europe in the field of small-ticket IT leasing for products
such as PCs, notebooks, copiers, printers or software of relatively low
asset value. Its range is rounded off by Car Leasing from one of its
franchise partners.
GRENKELEASING AG is listed on the Prime Standard of the Frankfurt
Securities Exchange and is part of the SDAX.
The shares of GRENKELEASING AG are listed on the SDAX of the Frankfurt
Securities Exchange under the identification code GLJ, ISIN DE0005865901.
Information on the GRENKE Group and its products is available for download
on the Internet, at http://www.grenke.de, http://www.grenkebank.de,
http://www.grenkefactoring.de.
28.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/a|]]]|]
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Language: English
Company: GRENKELEASING AG
Neuer Markt 2
76532 Baden-Baden
Deutschland
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-112
E-mail: investor@grenke.de
Internet: www.grenke.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-News: GRENKELEASING AG: Quarterly Financial Report as per September 30, 2009
| Source: EQS Group AG