DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results GRENKELEASING AG: All earnings components contribute to rise in income - consolidated net profit up 8% at EUR 30.2 million 25.10.2012 / 07:09 --------------------------------------------------------------------- All earnings components contribute to rise in income - consolidated net profit up 8% at EUR 30.2 million * Net interest income rises by 18% in first nine months of 2012 to EUR 81.0 million (previous year: EUR 68.7 million) * Consolidated net profit amounts to EUR 30.2 million in first nine months of 2012 - growth of 8% on EUR 28.1 million in the previous year * Excellent refinancing position Baden-Baden, October 25, 2012: GRENKE enhanced the profitability of the Consolidated Group in the third quarter of 2012, with all earnings components contributing to this effect. Net interest income improved by 18% in first nine months of 2012 to EUR 81.0 million after EUR 68.7 million in the previous year. As before, this shows the high contribution margins from new business in past quarters and the slow rise in expenses from interest on refinancing and deposit business. Expenses from the settlement of claims and risk provision amounted to EUR 32.5 million in this nine-month period after EUR 25.4 million in the previous year. Although claims are generally volatile from quarter to quarter, a rising trend has been observable for some time owing to the difficult overall economic situation in many European countries. Our management system focuses not on avoiding risks, but on forecasting them accurately and appropriately taking them into account in our financing conditions. Net interest income after settlement of claims and risk provision nonetheless rose by 12% to EUR 48.4 million after EUR 43.2 million in the previous year. The rising net interest income after settlement of claims and risk provision underscores the success of our management approach. The loss rate in the nine-month period thus remained within our target corridor. Including the greater profit from insurance and new business and disposals, operating income climbed by a total of 14% to EUR 99.3 million after EUR 87.1 million. The nine-month period saw growth in costs resulting from the ongoing expansion of the GRENKE Group and the preparations for the further extension of our international presence. These are targeted investments in our future market position. The higher other interest expenses again resulted from our extensive bond issues. In the third quarter, too, we took advantage of the current good condition of the refinancing markets with several different issues with a considerably lower total volume than in the previous quarter. This primarily serves to reinforce our permanent presence on the capital market; the issues would not have been necessary simply in terms of liquidity. The operating result increased by 13% to EUR 43.1 million after EUR 38.1 million in the previous year. At EUR 42.5 million, earnings before taxes were 12% higher than the previous year's figure of EUR 37.9 million. Earnings per share amounted to EUR 2.21 after EUR 2.05. At 17.8% as per September 30, 2012, the equity ratio based on our financing volume approached its level of 18.8% at the end of the 2011 financial year again. It remains well above our target of 16%. These results were achieved with 656 employees as against 578 in the first nine months of 2011 (full-time employees not including the Board of Directors). 'The high growth of recent years with healthy margins, which is now gradually being seen in the income statement, will continue to stimulate net interest income in the remainder of the year. The loss rate will increase somewhat overall, as higher claims are to be expected in international business. This has already been taken into account in our contribution margin 2 calculation for new business. We can therefore reiterate our forecast of visible growth in earnings for the GRENKE Consolidated Group. We still expect to generate a net profit of between EUR 41 million and EUR 44 million in 2012', commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the result. 'We still have an excellent refinancing position. Following the successful bond placements in the first half of the year, we carried out only relatively minor refinancing in the third quarter. In October, we took advantage of the favourable market situation and our recently upgraded good credit rating to issue another bond of EUR 125 million. This transaction represents GRENKE's largest issue since the EUR 200 million debut bond in 2003 and the most favourable interest coupon to date at 3.125%. In this way, we have once again convincingly demonstrated our consistently successful presence on the market', explained Jörg Eicker, CFO of GRENKELEASING AG. The full Quarterly Financial Report as per September 30, 2012 can be accessed on the Internet at www.grenke.de INVESTOR RELATIONS - Financial Reports - Financial Reports 2012. Should you have any queries, please contact: Renate Hauss Phone: +49 7221 5007-204 Fax: +49 7221 5007-4218 E-mail: investor@grenke.de Internet http://www.grenke.de, http://www.grenkeleasing.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 and medium-sized companies and private customers. The range of services offered by the GRENKE Group covers small-ticket IT leasing and factoring and - through GRENKE Bank - traditional online banking services. The GRENKE Group is independent of vendors and banks and 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. The GRENKE Group operates in 24 countries and employs more than 700 staff. GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN DE0005865901. Information on the GRENKE Group and its products is available on the Internet at http://www.grenke.de, http://www.grenkeleasing.de, http://www.grenkebank.de, and http://www.grenkefactoring.de. End of Corporate News --------------------------------------------------------------------- 25.10.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden Germany 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, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 190103 25.10.2012
DGAP-News: GRENKELEASING AG: All earnings components contribute to rise in income - consolidated net profit up 8% at EUR 30.2 million
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