Please note that this website shows an excerpt from the grenke AG Annual Report 2025. The annual report, which is also available in the “Reports & Key Figures” section of the grenke AG website, prevails.

The global macroeconomic and geopolitical environment in 2025 was characterised by ongoing and new challenges and uncertainties. The ongoing conflicts between Russia and Ukraine, as well as in the Middle East, both had numerous direct and indirect implications for economic developments. Shifts in political leadership, particularly in the United States and those triggered by it, had far-reaching impacts on both national and international economic policies. The tariff increases introduced by the United States in spring 2025 significantly disrupted transatlantic trade flows. Although the agreement reached in April 2025 removed the previously existing uncertainty regarding tariff levels, the reliability of U.S. policy is questioned by its trading partners. Discussions regarding a potential expansion of export restrictions on rare earths by China, particularly in the third quarter of 2025, placed additional strain on international trade relations. Persistent uncertainty complicates corporate planning and, as a result, dampens investment demand.

Within the euro area, a moderate economic recovery was evident, despite the challenging environment, while insolvency rates remained high.

Globally, monetary policy easing by central banks provided stimulus to economic activity. The European Central Bank (ECB) entered 2025 with a benchmark rate of 3 percent (January 2024: 4 percent). After starting to ease monetary policy in June 2024, the ECB initially continued this approach into 2025. By June 2025, following four additional interest rate cuts, the benchmark rate had been reduced to 2 percent. The ECB then paused further rate changes and maintained this level for the remainder of the year. As a result, the benchmark interest rate stood at 2 percent in December 2025, below the previous year’s level (December 2024: 3 percent).

Inflation in the euro area began 2025 at a peak of 2.5 percent in January, briefly fell below the European Central Bank’s 2 percent target to 1.9 percent in May, and then fluctuated between 2.0 and 2.2 percent in the months that followed through year-end, ultimately reaching precisely the ECB’s target of 2.0 percent in December. With an average annual rate of 2.1 percent in 2025, the ECB expects inflation to stabilise around its 2 percent target over the medium term.

In the United States, the target range for the key interest rate at the start of 2025 was 4.25 to 4.5 percent. Following three rate cuts in the second half of the year, the range stood at 3.5 to 3.75 percent in December 2025. U.S. inflation, as measured by the personal consumption expenditures (PCE) index relevant to the Fed’s inflation target, was 2.6 percent in January 2025, dipped to a temporary low of 2.3 percent in April, and rose again to 2.8 percent in November. The alternative consumer price index (CPI), for which year-end data is available, recorded an inflation rate of 3.0 percent in January 2025 and 2.7 percent in December 2025, with an annual average of 2.6 percent.

In its World Economic Outlook published on January 19, 2026, the International Monetary Fund (IMF) assessed the global economy in 2025 as resilient in the face of newly imposed tariffs and heightened political uncertainty. Overall, the global economy adjusted to the changing conditions, supported by accommodative financing conditions and gradually stabilising trade relations over the course of the year. Global trade remained relatively resilient, as the expansion of technology-related exports offset weaker momentum in other export categories. Accordingly, the IMF estimated global gross domestic product (GDP) growth in 2025 at 3.3 percent, unchanged from the previous year. While growth in the United States slowed to 2.1 percent year-on-year, the euro area recorded improved growth of 1.4 percent. Within the euro area, Germany, France, and Italy posted below-average growth, whereas Spain’s economy was significantly more dynamic. Great Britain matched the euro area, with growth also at 1.4 percent.

A survey of companies in the euro area published by the ECB on February 2, 2026, pointed to a continued deterioration in financing conditions in the fourth quarter of 2025 compared with the previous quarter. A greater number of surveyed companies than in the preceding quarter reported that interest rates on bank loans had risen. In addition, more companies observed a tightening of credit conditions relating to charges such as fees or commissions. Collateral requirements were perceived to be at a similarly high level as in the previous quarter.
According to estimates by Eurostat, corporate insolvencies in the European Union continued to increase. The relevant index was estimated at 195.9 points in the fourth quarter of 2025, exceeding the corresponding quarter of the previous year by 11.0 percent (fourth quarter of 2024: 176.5 points). In a country comparison, France was significantly above the aggregate value at 260.4 points (Q4 2024: 258.6 points). Spain, at 151.8 points (Q4 2024: 148.0 points), was slightly below the aggregate value, while Italy, at 115.9 points (Q4 2024: 107.2 points), performed markedly better. For Germany, for which a Eurostat index is not currently available, the German Federal Statistical Office (Destatis) reported a 15.2 percent increase in regular insolvencies in December 2025 compared with the same month of the previous year.
For full-year 2025, Allianz Trade estimates global insolvencies grew 6 percent compared to the previous year (2024: 10 percent). In the eurozone, insolvencies are forecast to rise by 7 percent (2024: 17 percent). The sharpest increase is expected in Italy, with a 35 percent rise (2024: 17 percent); there, the upswing in insolvencies began from a low base in mid-2023, but case numbers have since exceeded pre-pandemic levels, as in most other countries. In Germany +11 percent (2024: 22 percent) and France +2 percent (2024: 17 percent), Allianz Trade anticipates a further increase in insolvencies for 2025, although the pace – similar to other countries – is expected to slow somewhat. In Spain, the insolvency situation is projected to stabilise at 0 percent year-on-year (2024: 18 percent).
The euro area’s Purchasing Managers’ Index (PMI) for the manufacturing and services sectors reached 51.5 points in December 2025 (December 2024: 49.6 points), signalling expansion with a value above the 50-point threshold. The index is derived from a monthly survey of purchasing managers in the manufacturing and services sectors, assessing new orders, production, employment, deliveries received, and inventory levels. The PMI serves as a leading indicator, with values above 50 points indicating an increase in production and values below 50 points signalling a decline in production across the sectors surveyed.
The German companies surveyed by the ifo Institute were more optimistic at the end of 2025 than in the same month of the prior year. The ifo Business Climate Index, which summarises companies’ assessments of their current business situation and their expectations for the subsequent six-month period, stood at 87.6 points in December 2025 (December 2024: 84.9 points). Business expectations showed a marked improvement to 89.7 points (December 2024: 84.8 points). At 85.6 points, assessments of the current situation were also more positive year-on-year (December 2024: 85.1 points).
Despite this challenging environment, we once again succeeded in continuing our growth trajectory in leasing new business in 2025 and in achieving our new business profitability target.

A persistently high level of insolvencies resulted in an increase in the loss ratio for full-year 2025 to 1.7 percent (previous year: 1.3 percent).

The ifo Business Climate Index for the leasing sector in Germany reached 10.0 points in December 2025 (December 2024: 0.4 points). Leasing companies assessed the current business situation in December 2025 at 22.1 points, more positively than the outlook for the next six months, which stood at –1.5 points. According to the Federal Association of German Leasing Companies (BDL), this reflects a generally solid business environment despite economic headwinds, though momentum is expected to weaken. The ifo Business Climate Index is calculated as the average of the balances from surveyed companies’ assessments of the current business situation and their business expectations. In recent years, the ifo Business Climate Index and its two components have fluctuated between – 50 points and +75 points.
For full-year 2025, the BDL forecasts a 5.1 percent year-on-year increase in leasing new business based on acquisition values. Excluding big tickets – primarily in the air, rail, and water vehicle segments – growth is estimated at 3.3 percent. The object groups tracked by the BDL do not fully correspond to our portfolio. Due to the persistent reluctance to invest, as noted by the BDL, leasing new business declined in the areas of production machinery, construction equipment, and agricultural technology. Medical technology, IT, software, and cloud applications, as well as systems for generating renewable energy, all developed positively.

According to statistics from Leaseurope for the first half of 2025 (full-year figures were not yet available at the time of publication), leasing new business for equipment investments (excluding automobiles) in the European market fell 8.7 percent year-on-year (H1 2024: 0.5 percent). Our lease objects fall within the equipment investment categories published by Leaseurope, although these encompass a broader range of lease objects than our focus on lower purchase values. In Great Britain, the largest leasing market, leasing new business in equipment investments grew by 3.9 percent year-on-year, with Italy also posting an increase of 12.9 percent. Declines, on the other hand, were recorded in Germany (– 37.5 percent), Spain (–11.0 percent), and France (– 9.5 percent).

Following the interest rate cuts initiated by the European Central Bank in 2024, the interest rate environment continued to ease over the course of the year, with a key interest rate of 3 percent at the start of 2025. Interest rate developments in the euro area continued to affect our business during the reporting year. While more favourable financing conditions typically stimulate investment demand, geopolitical uncertainties tend to have a dampening effect on corporate investment. Since lease instalments are set at the time the investment is made and the contract is concluded, leasing provides our target customers with a reliable basis for financial planning in times of volatile markets and difficult-to-forecast interest rates. At the same time, leasing represents a financing option that preserves liquidity.
Total leasing new business continued to grow in the reporting year, as detailed in Chapter 2.5. This growth was likely due to companies choosing to use lease financing for their investments in replacements and expansion – particularly digitalisation initiatives and green economy objects. Unlike loans, where liquidity is provided upfront and may not necessarily be used for investments, lease contracts are typically linked to operationally essential objects, demonstrating a tangible medium- to long-term investment requirement.
The CM2 margin – the benchmark for the projected profitability of our leasing new business – reached our target of over 16.5 percent in the reporting year, amounting to 16.7 percent.

The ongoing sanctions against Russia had no direct impact on our business during the reporting year. We are also not directly affected by the war in Ukraine or the conflict in the Middle East, as we do not have any locations or exposures in these countries. Indirect effects from the geopolitical conflicts and uncertainties described in Chapter 2.1, as well as from persistently high insolvency levels, were reflected to us in the form of higher payment defaults and increased expenses for the settlement of claims and risk provision. As a result, the loss rate increased compared with the previous year; see Chapter 2.6 for further details.

Other macroeconomic influences, such as the impact of changes in capital market and central bank interest rates on refinancing costs as well as geopolitical risks, are discussed in detail in Chapter 5.4.1 of the Risk report.

On January 16, 2025, we issued a new Additional Tier 1 bond (AT1) with a nominal volume of EUR 200.0 million. In connection with this new issue, previously issued AT1 bonds were repurchased in the first and third quarters of the financial year.
On January 28, 2025, grenke AG entered into a strategic partnership with Italy’s largest bank, Intesa Sanpaolo S.p.A. (ISP), for the Italian operating leasing market. Under the agreement, the parties agreed that Intesa Sanpaolo Rent Foryou S.p.A. (RFY), a subsidiary of ISP, will be contributed in full into grenke Locazione S.r.l., grenke AG’s Italian subsidiary, by the middle of the 2025 financial year. In return, ISP will receive a 17 percent equity interest in grenke Locazione. As of the end of the first quarter of 2025, the partnership was still subject to the approval of the relevant authorities. grenke’s business model remains unchanged and focuses on small-ticket leasing, with the acquisition value of contracts averaging under EUR 10k. The partnership is intended to help both companies strengthen their competitive position in this segment, accelerate growth, and expand their joint market share. On May 2, 2025, the competent antitrust authority approved the strategic partnership between grenke AG and Intesa Sanpaolo S.p.A. (ISP). As a result, all of RFY’s shares were transferred to our Italian subsidiary on May 20, 2025, as scheduled.
On April 2, 2025, grenke AG announced that the Supervisory Board had appointed Isabel Tufet Bayona as the new Chief Operating Officer (COO), effective September 1, 2025. Her responsibilities will include the entire back office operations, including the Credit Center, internal control functions such as risk controlling, compliance, anti-money laundering, information security, data protection, and human resources.
On April 2, 2025, grenke entered into an agreement with Swiss-based Teylor AG for the phased acquisition of its factoring business (“signing”). The transition of the individual local subsidiaries from grenke to Teylor (“closing”) is expected to be completed by mid-2026. On April 9, 2025, the closing for the first local subsidiary was completed. In this context, grenke AG legally transferred 100 percent of the shares in its Polish factoring subsidiary, GC Faktoring Polska Sp. z o.o. Effective August 1, 2025, the controlling influence over Teylor Polska Sp. z o.o. (formerly GC Faktoring Polska Sp. z o.o.) was transferred from grenke AG to Teylor AG following the replacement of existing refinancing arrangements. Due to the loss of controlling influence as defined in IFRS 10 Consolidated Financial Statements, the Polish factoring company was deconsolidated in the third quarter.
On April 17, 2025, the Supervisory Board of grenke AG approved the winding-down of the factoring company in Switzerland (GRENKEFACTORING AG). The Swiss factoring company is not part of the acquisition agreement with Teylor AG.
On May 7, 2025, grenke AG held its ordinary Annual General Meeting. This meeting resolved a dividend distribution of EUR 0.40 per share (previous year: EUR 0.47). The distribution was based on the dividend-entitled share capital as of the date of the Annual General Meeting.
On June 6, 2025, grenke digital GmbH completed the legal acquisition of the shares in B2F S.r.l. and Selfrent S.r.l., both based in Milan, Italy. The two service providers, B2F S.r.l. and Selfrent S.r.l., operate technology platforms specialising in the integration of payment solutions into eCommerce shops. This acquisition allows us to further advance our digitalisation strategy and offer leasing as an additional payment option directly within online shopping.
On June 20, 2025, the signing took place for the acquisition of the franchise companies in Latvia and Chile, which were already fully consolidated in the consolidated financial statements.
On August 5, 2025, grenke AG legally acquired the leasing franchise company in Chile (GC Rent Chile SpA). On August 15, 2025, the leasing franchise company in Latvia (SIA GC Leasing Baltic) was also legally acquired. Both franchise companies were already fully consolidated before the acquisition of the shares, so the legal acquisition of the shares resulted solely in a reduction of the reported non-controlling interests.
On October 9, 2025, grenke AG legally acquired the leasing franchise company GL Leasing British Columbia Inc. On November 28, 2025, the legally effective acquisition of the leasing franchise companies GC Leasing Ontario Inc. and GC Crédit-Bail Québec Inc. was completed. The acquisitions were carried out via GL Leasing British Columbia Inc. All three Canadian franchise companies had already been fully consolidated prior to the acquisition of the shares, meaning that the legally effective acquisition of the shares merely resulted in a reduction of the non-controlling interests reported.
On November 21, 2025, grenke AG acquired the factoring agency in Portugal (GWFACT-Invoice Solutions Lda.) from financial investors and its Managing Director. The company is classified as held for sale and recognised as a discontinued operation.

On March 13, 2025, with the release of the Annual Report 2024, we refined our guidance for leasing new business and Group earnings for the 2025 financial year.
The Board of Directors had expected leasing new business of between EUR 3.2 billion and EUR 3.4 billion and Group earnings after taxes of EUR 71 million to EUR 81 million for the 2025 financial year. For the CM2 margin, the Board communicated that it expected a margin of over 16.5 percent for 2025. The guidance for the 2025 Group earnings was based on the assumption that the loss rate would be around 1.6 percent. Under this earnings outlook, the cost-income ratio (CIR) was projected to remain below 60 percent. For the 2025 financial year, the Board of Directors assumed that no capital measures would be required for the foreseeable future and that maintaining an unchanged benchmark of approximately 16 percent for the balance sheet equity ratio would be more than adequate.
On the occasion of the publication of the third quarter report on November 13, 2025, the Board stated in its guidance assessment that the achievement of Group earnings within the projected target range would likely be influenced by risk provisions and if the loss rate remained close to the 1.8 percent of the first three quarters, the 2025 Group earnings would likely come in at the lower end of the guidance range.
In the 2025 financial year, grenke generated leasing new business of EUR 3.3 billion, achieving the midpoint of its guidance range for the year of EUR 3.2 billion to EUR 3.4 billion. Compared to the previous year, this represented an increase of 7.8 percent. The CM2 margin reached 16.7 percent (2024: 17.0 percent), meeting the set target of over 16.5 percent.
In the 2025 financial year, grenke generated Group earnings after taxes of EUR 71.8 million, thereby reaching the lower end of the guidance range of EUR 71 million to EUR 81 million.

In the 2025 financial year, the loss rate was 1.7 percent, exceeding the long-term average of 1.5 percent. The cost-income ratio came in at 55.2 percent, below the target threshold of 60 percent.
As announced, no capital increase was carried out. As a result of our growth, the balance sheet equity ratio decreased as expected to 15.6 percent at year-end, remaining in line with the long-term benchmark value of 16 percent.

1  Adjustment in accordance with IAS 8 (see Note 2.3 of the notes to the consolidated financial statements)
2  With the publication of the Quarterly Statement Q3 on November 13, 2025, the Board of Directors stated that with a loss rate of just under 1.8 percent (Q1– Q3 2025), the lower end of the guidance range for Group earnings would likely be achieved.

We are particularly pleased that we could achieve this growth with an essentially unchanged margin. The contribution margin 1 (CM1) of our leasing new business rose by 13.5 percent in the 2025 financial year to EUR 389.6 million (previous year: EUR 343.2 million). The CM1 margin for the reporting year equalled 11.8 percent, exceeding the previous year’s level of 11.2 percent. This was primarily due to the fact that the terms and conditions of leasing contracts were adjusted to a lesser extent than the decline in refinancing costs during the reporting period. Contribution margin 2 (CM2) of leasing new business – which, due to our business model, is higher than CM1 as it incorporates risk costs as well as additional income components from services and subsequent business – increased by 6.1 percent to EUR 550.2 million in the 2025 financial year (previous year: EUR 518.5 million). The CM2 margin, which already reflects the sharply increased projected risk costs in 2025, decreased slightly from 17.0 percent in the previous year to 16.7 percent, thereby remaining slightly above our annual target of over 16.5 percent.

Following the change in segment reporting in the 2024 financial year, the Other segment includes the lending business of grenke Bank AG as well as the factoring business held for sale.
In the 2025 financial year, factoring generated new business with a purchased receivables volume of EUR 789.1 million (previous year: EUR 910.4 million). The decline is mainly attributable to the discontinuation of the factoring business in Poland, which was included in the figures only until July 31, 2025. Of this amount, 17.1 percent is related to receivables management (without a financing function). At the same time, this receivables volume, with an average duration from purchase to maturity of approximately 46 days – translates into a theoretical turnover rate of 7.9 times per year (365 days/46 days). As a result, the factoring business, with a balance sheet receivables volume of EUR 57.3 million, continued to account for only an immaterial portion of the consolidated balance sheet.
The ratio of income to net acquisition values determines the gross margin of the factoring business. Due to the revolving purchase of receivables and the resulting lower volume, the refinancing requirement is lower than for refinancing leasing new business. The gross margin in the reporting year remained unchanged year-over-year at 1.5 percent (previous year: 1.5 percent).

The new lending business of grenke Bank primarily comprised loans issued under the “Mikrokreditfonds Deutschland” (Microcredit Fund Germany) programme. Through this programme, grenke Bank offers government-sponsored microfinancing of between EUR 1,000 and EUR 25,000. The total lending business of grenke Bank increased in the reporting year by 7.5 percent to EUR 40.6 million (previous year: EUR 37.8 million).

The loss rate (expenses for the settlement of claims and risk provision in relation to the volume of leased assets on the respective reporting date) increased to 1.7 percent in the 2025 financial year (previous year: 1.3 percent). The loss rate was thereby above its average value since 2020 of 1.5 percent. The volume of leased assets (sum of the net acquisition values of all current leasing contracts) increased by 12.9 percent as of December 31, 2025 due to higher new business volume and reached EUR 11,432 million (December 31, 2024:
EUR 10,122 million).
There was no goodwill impairment in the reporting year. In the previous year, EUR 4.4 million in goodwill impairment was attributable to the cash-generating unit related to the leasing business in Spain. This impairment was due to deteriorating return prospects, which among other factors, was attributable to an increase in losses.
Other operating result improved to EUR – 2.6 million (previous year: EUR – 9.6 million). This includes other operating expenses, which increased by 9.8 percent in the reporting year to EUR 19.2 million (previous year: EUR 17.5 million). This increase was primarily attributable to currency translation differences of EUR 2.0 million related to the British pound (GBP), EUR 1.6 million to the Australian dollar (AUD), EUR 1.2 million to Chilean pesos (CLP), EUR 1.1 million to Arab dirhams (AED) and EUR 1.1 million to Polish zloty (PLN). These differences mainly arose from derivative hedging transactions, which balance out economically over the full period. This was partially offset by currency translation recognised directly in equity through other comprehensive income. As this mainly relates to the translation of lease receivables in foreign currency countries, this effect is shown in a different line item than the aforementioned translation effects from derivatives. In addition, lease receivables are translated at the exchange rate on the reporting date, whereas derivatives are measured at fair value based on the forward exchange rates applicable on the reporting date. This difference and the resulting valuation effect balance each other out over the term of the hedging relationships. Other operating income increased in the 2025 financial year to EUR 16.6 million (previous year: EUR 7.9 million), primarily due to the reversal of other provisions as well as prior-period and extraordinary income, which includes, among other items, the deconsolidation result of the Polish factoring company.
The operating result increased by 8.5 percent in the 2025 financial year to EUR 97.7 million (previous year: EUR 90.0 million).
The net of other interest income and interest expenses declined to EUR –1.6 million (previous year: EUR 2.9 million), largely due to lower balances held at central banks as well as the general development of interest rate levels.
Group earnings before taxes grew 4.5 percent in 2025 to EUR 93.4 million (previous year: EUR 89.4 million). The tax rate also increased to 23.2 percent (previous year: 21.5 percent).
Group earnings increased accordingly by 2.3 percent to EUR 71.8 million (previous year: EUR 70.2 million).
The transfer of 17 percent of the shares in Grenke Italia S.p.A., the acquisition of the Italian company Intesa Sanpaolo Rent Foryou S.p.A. and the acquisition of the franchise companies, including the associated increase in the result from non-controlling interests, resulted in a decline in earnings per share to EUR 1.29 in the reporting year (previous year: EUR 1.44).

Segment reporting comprises the five reportable segments: DACH, Western Europe (without DACH), Southern Europe, Northern/Eastern Europe, and Other. For further details, please refer to Note 8 Segment Reporting in the Notes to the consolidated financial statements.
The external operating income of the leasing companies, as a whole, developed positively, driven primarily by interest income from the growing new business of past years, as well as improved profit from service business, profit from new business, and gain/losses from disposals.
External operating income from the leasing business increased by EUR 83.7 million to EUR 646.1 million in the 2025 financial year (previous year: EUR 562.4 million), primarily due to the continued positive development of new business and the resulting increase in interest income. A particularly strong increase in absolute figures was recorded in the Southern Europe segment (up 22.5 percent) and in Western Europe (without DACH) (up 11.3 percent). Italy (Southern Europe) and France (Western Europe, without DACH) contributed to this development in particular, with positive performance in net interest income, gains and losses from disposals and the profit from service business. The increase in Italy is attributable to strong growth and the acquisition of the existing portfolio of the Italian company Intesa Sanpaolo Rent Foryou S.p.A., which was included in the scope of consolidation of the grenke Group with effect from June 1, 2025 and merged into Grenke Italia S.p.A. with effect from October 1, 2025.
The segment’s operating selling expenses, consisting of staff costs, selling and administrative expenses, and depreciation and amortisation, increased by 7.5 percent to EUR 344.4 million (previous year: EUR 320.3 million). These expenses are allocated to the segments based on internal cost accounting. An increase was recorded across all segments, with the largest increase in absolute terms attributable to the Southern Europe and Western Europe (without DACH) segments, each up 8.2 percent. The rise is a result of stronger sales activities and, in Italy, to the integration of Intesa Sanpaolo Rent Foryou S.p.A.
The result from settlement of claims and risk provision of the leasing companies deteriorated by 43.0 percent to EUR –196.1 million (previous year: EUR –137.1 million). This development was observed in all segments. The DACH, Southern Europe and Western Europe (without DACH) segments, notably Germany, Italy and France, experienced a deterioration due to persistent macroeconomic challenges, the continued high number of payment defaults and insolvencies, and the risk provisioning associated with increasing new business volumes.

The following table presents the performance of the individual regions:

At 15.6 percent, the equity ratio remains within our expected range. Our diversified refinancing mix gives us a solid liquidity position. Increasing lease receivables reflect the consistently strong new business growth.

At the grenke Group, we place a particular focus on maintaining an adequate level of liquidity to give us the flexibility to respond to market conditions. Regulatory requirements also require the Consolidated Group to maintain a liquidity buffer.
On the liabilities side of the balance sheet, the rise in total assets was largely attributable to the increase of EUR 772.0 million in financial liabilities to a total of EUR 7.3 billion (December 31, 2024: EUR 6.5 billion), Current and non-current liabilities from refinancing continued to account for the largest share of our financial liabilities, increasing to EUR 5.0 billion compared to the end of 2024 (December 31, 2024: EUR 4.3 billion). Current and non-current liabilities from grenke Bank’s deposit business also increased by EUR 86.2 million to EUR 2.3 billion (December 31, 2024: EUR 2.2 billion).


Current and non-current derivative financial instruments with a negative market value increased to EUR 36.4 million in the 2025 financial year (December 31, 2024: EUR 26.2 million).

As of December 31, 2025, equity recorded a moderate rise to EUR 1.4 billion (December 31, 2024: EUR 1.3 billion). Group earnings generated during the reporting period of EUR 71.8 million was primarily offset by the acquisition of franchise companies in Latvia, Chile and Canada, as well as the deconsolidation of the Polish factoring company (totalling EUR 35.6 million), the payment of a dividend (EUR 17.7 million), the interest payment on hybrid capital (EUR 17.6 million) and costs of EUR 0.6 million related to the issuance of AT1 bonds. These were countered by lower effects from the mark-to-market valuation of hedging instruments under hedge accounting (EUR 4.0 million) and currency translation differences recognised directly in equity (EUR 0.6 million). The transaction with Intesa Sanpaolo S.p.A. (non-controlling shareholder) is also reflected in equity, resulting in a positive effect of EUR 83.0 million from the transfer of 17 percent of the shares in Grenke Italia S.p.A. in exchange for the acquisition of Intesa Sanpaolo Rent Foryou S.p.A. (see Note 6.1.1 in the notes to the consolidated financial statements). As part of the related earn-out agreement, a further EUR 6.0 million was recognised for the delivery of a fixed number of equity instruments upon achievement of the agreed targets. The repayment and reissuance of AT1 bonds in the same amount did not result in any material change in equity.
Due to the stronger rise in total assets relative to equity, the equity ratio decreased to 15.6 percent as of December 31, 2025 (December 31, 2024: 16.2 percent).

Cash flow from operating activities decreased in the 2025 financial year to EUR – 220.7 million (previous year: EUR 394.0 million). This comprises cash flow from new business, cash flow from existing business and other cash flows from operating activities.
Cash flow from new business includes investments in new lease receivables. These include the net acquisition values of newly acquired lease objects and the costs directly associated with the conclusion of the contract. Due to the higher new business volume, investments in new lease receivables increased in the 2025 financial year to EUR 3,358.4 million (previous year: EUR 3,148.1 million). These were offset by the proceeds from increased refinancing totalling EUR 3,790.6 million compared to EUR 3,505.2 million in the prior year. Additionally, grenke Bank AG’s net deposit business declined to EUR 86.2 million, down from EUR 611.4 million in the prior year. Overall, cash flow from new business decreased to EUR 518.4 million (previous year: EUR 968.5 million).
Cash flow from existing business amounted to EUR – 665.1 million (previous year: EUR – 631.1 million). This was driven by cash inflows from payments made by lessees totalling EUR 2,828.3 million in the 2025 financial year (previous year: EUR 2,583.2 million). These were offset by repayments to refinancing providers of EUR 3,493.4 million (previous year: EUR 3,214.3 million).
Other cash flows from operating activities amounted to EUR – 74.0 million (previous year: EUR 56.5 million).
Cash flow from investing activities totalled EUR – 29.1 million in the 2025 financial year (previous year: EUR – 12.1 million). This includes purchase price payments of EUR 57.2 million for the acquisition of subsidiaries (previous year: EUR 3.6 million). The amount was paid for the acquisition of the companies B2F S.r.l., Selfrent S.r.l., GC Leasing Norway AS, GC Rent Chile SpA, SIA GC Leasing Baltic, GC Crédit-Bail Québec Inc., GC Leasing Ontario Inc., GL Leasing British Columbia Inc. and GWFACT – Invoice Solutions, Lda. These were partially offset by cash inflows of EUR 46.8 million from the acquisition of subsidiaries (previous year: EUR 0.0 million), resulting from the assumption of existing cash balances. Payments for the acquisition of property, plant, and equipment and intangible assets totalled EUR 18.8 million (previous year: EUR 8.6 million). The increase was primarily attributable to the purchase of an investment property. Additionally, this item included proceeds of EUR 0.1 million from the sale of property, plant, and equipment and intangible assets (previous year: EUR 0.1 million).
Cash flow from financing activities amounted to EUR – 50.3 million in the 2025 financial year (previous year: EUR –105.5 million), representing an increase of EUR 55.2 million. Unlike the previous year, no treasury shares were repurchased in financial year 2025 (previous year: EUR 55.6 million). The dividend payment for the 2025 financial year amounted to EUR 17.7 million, compared to EUR 21.6 million in the previous year. Interest payments on hybrid capital amounted to EUR 17.6 million (previous year: EUR 15.0 million). Additionally, the repayment of lease liabilities resulted in a cash outflow of EUR 13.8 million (previous year: EUR 13.3 million). A net cash outflow of EUR 1.2 million also arose in connection with the new issue of an AT1 bond and the repurchase of previously issued AT1 bonds (previous year: EUR 0 million).
As a result, total cash flows in the 2025 financial year amounted to EUR – 300.1 million (previous year: EUR 276.4 million). After the consideration of currency translation differences of EUR 0.7 million (previous year: EUR 0.1 million), cash and cash equivalents as of December 31, 2025 decreased to EUR 674.0 million, compared with EUR 973.4 million at the end of the previous year.

Thanks to our diversified refinancing structure, we met our payment obligations at all times during the past financial year.

In the third quarter of 2025, a fourth pillar, “External Bank Funding”, was introduced to enhance transparency and clarity as a result of its growing importance. Debt financing is thus essentially based on four pillars: senior unsecured instruments, which primarily rely on our rating, such as bonds and commercial paper; the deposit business of grenke Bank AG; receivables-based financing, primarily asset-backed commercial paper (ABCP) programmes; and external bank funding, which mainly comprises debt instruments (promissory notes, revolving facilities, money market transactions and current accounts). To the greatest extent possible, we finance ourselves on a maturity-matched basis at portfolio level, thereby minimising interest rate risk, refinancing risk and maturity transformation at portfolio level. Thanks to our broad refinancing mix, we can utilise the individual pillars in a targeted manner and expand or reduce the share depending on requirements and the market situation. At the same time, we want to be active in all four pillars for strategic reasons.

The refinancing mix describes the utilisation of the grenke Group’s refinancing pillars and was distributed as follows:
 

The increase of EUR 760.1 million in refinancing volumes to EUR 7,340.0 million (December 31, 2024: EUR 6,579.9 million) was mainly attributable to higher new business and the resulting increased refinancing requirements for our leasing business. This was largely funded by our issue of two new benchmark bonds of EUR 500 million each in the second and third quarters.
Refinancing via customer deposits at grenke Bank AG amounted to EUR 2,288.2 million as of December 31, 2025, compared to EUR 2,200.9 million at the end of 2024, representing a rise of 4.0 percent.
During the reporting period, two new EUR benchmark bonds were issued and, for the first time, an AUD bond with a nominal volume of AUD 125 million was placed, underlining our focus on Australia as one of our future core markets. In addition, two existing bonds were increased by an aggregate total of EUR 125.0 million. Alongside the scheduled bond repayments made during the reporting year, a voluntary early partial redemption of bonds with a total nominal volume of EUR 11.5 million was also carried out. Further information on the debt securities is provided in Note 5.12 of the notes to the consolidated financial statements and is available on our website at www.grenke.com/en/investor-relations/debt-capital/issued-bonds/.
As part of the integration of Rent Foryou S.p.A. into the Consolidated Group, four new loans with a total nominal volume of EUR 212.1 million were added. In addition, a syndicated loan of EUR 50.0 million was issued. The promissory notes were repaid as scheduled during the reporting year.
A syndicated revolving credit facility with a volume of EUR 400,000k also remains in place (drawdowns can be partially made in Swiss francs and British pounds). The credit facility is subject to a term of three years with an extension option of a further two years.
Further information on the refinancing instruments and the refinancing measures implemented during the reporting period is provided in the notes to the consolidated financial statements under Note 5.12  Current and non-current financial liabilities.
The Consolidated Group’s unutilised credit lines (i.e. bank lines plus available bond volumes) amounted to EUR 2,931.3 million, HUF 500.0 million and PLN 10.0 million as of the reporting date (December 31, 2024: EUR 3,323.1 million, HUF 540.0 million and PLN 40.0 million).
We use various refinancing instruments and stagger their maturities over several periods. This allows the Consolidated Group to react flexibly to changes in the refinancing markets. The table below shows the expected cash outflows resulting from the contractual obligations existing as of December 31, 2025. Of the total financial debt of EUR 1.4 billion due in 2025, EUR 507.1 million is attributable to liabilities from ABCP programmes and EUR 871.8 million to bonds, debentures and private placements. Details of the maturities of the individual instruments are provided in the notes to the consolidated financial statements under Note  5.12 Current and non-current financial liabilities.
The grenke Group’s off-balance sheet obligations totalled EUR 1,075.9 million as of December 31, 2025 (previous year: EUR 1,030.1 million). In addition to the usual purchase obligations in the course of ordinary business activities, these include irrevocable loan commitments and obligations from pending transactions. Leasing and rental agreements are only off-balance sheet to the extent that a lease liability does not have to be recognised in accordance with IFRS 16. Further details on off-balance-sheet obligations are provided in the notes to the consolidated financial statements under Note 9.2 Contingent liabilities and other financial obligations.

1  The obligations include those payment obligations that the Consolidated Group cannot avoid even if it exercises contractual termination options. Legally binding obligation to accept goods and services and trade payables.

Compared to the end of the 2024 financial year, our total assets increased 10.9 percent to EUR 9.1 billion as of December 31, 2025 (December 31, 2024: EUR 8.2 billion).

The increase in our total assets as of December 31, 2025 was mainly attributable to the increase in current and non-current lease receivables. The steady positive new business drove lease receivables, our largest balance sheet item, higher by EUR 825.7 million to EUR 7.3 billion compared to the end of the 2024 financial year (December 31, 2024: EUR 6.5 billion). For further details on the development of lease receivables in the 2025 financial year, please refer to Note 5.2 Lease receivables in the notes to the consolidated financial statements.

Cash and cash equivalents totalled EUR 674.1 million as at December 31, 2025 (December 31, 2024: EUR 974.6 million), representing a planned decrease while remaining at a solid level. Of this amount, EUR 549.2 million (December 31, 2024: EUR 790.7 million) was held in accounts with the Deutsche Bundesbank as at December 31, 2025.
The increase in other current and non-current financial assets to EUR 223.0 million (December 31, 2024: EUR 181.8 million) is primarily attributable to higher loans to companies in connection with the sale of factoring companies and an increase in receivables from refinancing providers.
Within non-current assets, property, plant and equipment increased by EUR 135.5 million to EUR 233.9 million (December 31, 2024: EUR 98.4 million). This was mainly driven by the acquisition of the existing business and the associated leased assets from operating lease contracts of Intesa Sanpaolo Rent Foryou S.p.A. Other intangible assets increased to EUR 38.2 million (December 31, 2024: EUR 9.8 million) as a result of the capitalisation of assets in connection with the purchase price allocation for the acquired companies Selfrent S.r.l., B2F S.r.l. and Rent Foryou S.p.A. Goodwill also increased significantly as a result of the acquisitions to EUR 115.2 million (December 31, 2024: EUR 30.0 million). For further details, please refer to Note 5.8 Intangible assets in the notes to the consolidated financial statements.

The 2025 financial year was again challenging, as global geopolitical tensions intensified and politics and the economy faced significant, in some cases unpredictable developments, particularly in U.S. policies. Against the backdrop of moderate economic momentum in the euro area and low inflationary pressure, the European Central Bank initially continued its monetary policy easing and reduced the benchmark rate from 3 percent to 2 percent in the first half-year, subsequently maintaining it at this level.
Despite ongoing macroeconomic uncertainty throughout the financial year, we achieved growth in leasing new business in every quarter as planned, continuing the growth trajectory of the previous years. With approximately EUR 3.3 billion in leasing new business, we remained within our target range. Alongside the growth in leasing volume, profitability remained a key priority. With a resulting CM2 margin of 16.7 percent, we met our forecast to exceed 16.5 percent for the CM2 margin in 2025 (previous year: 17.0 percent).
The portfolio’s quality remained high overall in the 2025 financial year. However, the continued rise in economy-wide insolvencies continued to drive an increase in payment defaults.
As a result, the loss rate rose from 1.3 percent in 2024 to 1.7 percent in the reporting year, exceeding the long-term average of 1.5 percent.
To refinance our ambitious growth objectives, we successfully issued two additional benchmark bonds in the reporting year, each with a volume of EUR 500 million, in May and September 2025.
In September 2025, S&P Global Ratings confirmed our investment grade rating of BBB/stable/A-2. Fitch Ratings reaffirmed its investment grade rating of BBB/stable/F2 in June 2025. Based on a solid equity ratio of 15.6 percent at the end of 2025 and traditionally well-diversified refinancing options, the Board of Directors is confident in the Group’s ability to continue to finance its planned growth in leasing new business at market conditions in the coming year.