- New leasing business in Q1 2022 grows dynamically by 36.5% to EUR 499.2 million (Q1 2021: EUR 365.8 million)
- Contribution margin 2 increases to EUR 83.2 million (+16.4% vs. Q1 2021: EUR 71.5 million)
- Mean acquisition value per lease contract equals EUR 8,064 (Q1 2021: EUR 7,434)
Baden-Baden, April 5, 2022: GRENKE AG, a global financing partner for small and medium-sized enterprises, generated new leasing business of EUR 499.2 million in the first quarter of 2022, amounting to a year-on-year increase of 36.5% (Q1 2021: EUR 365.8 million). The upward trend continued in the first quarter of the reporting year. In the fourth quarter of 2021, new business had grown year-on-year by 22.1%.
"The external environment remains extremely challenging," says Michael Bücker, Chair of the Board of Directors of GRENKE AG, in his comments on the current business performance: "We have done a good job and are again on a sustainable growth path." Dr Sebastian Hirsch, Chief Financial Officer of GRENKE AG, adds: "With our strong start in new leasing business in the new financial year, we are more than a third higher than in the same period in the previous year and fully in line with our guidance for 2022."
Regional development of new leasing business
In all regions, new leasing business was significantly higher in the first quarter of 2022 compared to the prior-year quarter. The DACH region recorded a year-on-year increase of 13.1% in the reporting period, and Western Europe excluding DACH recorded growth of 33.9%. The strongest growth in new leasing business was generated in Southern Europe with 58.2% and Northern/Eastern Europe with 58.7%. The other regions registered an increase of 19.2%.
Development of the contribution margin
The contribution margin 2 (CM2) of the new leasing business increased by 16.4% to EUR 83.2 million in the first quarter of 2022 compared to EUR 71.5 million in the first three months of the previous financial year. The CM2 margin was 16.7%, or 2.8 percentage points below the margin of the exceptionally profitable prior-year quarter (Q1 2021: 19.5%) and 0.4 percentage points above the figure of the previous quarter (Q4 2021: 16.3%). Contribution margin 1 (CM1) increased by 19.2% to EUR 55.6 million in the first quarter of 2022 (Q1 2021: EUR 46.6 million). The CM1 margin of 11.1% was 1.6 percentage points lower than in the same quarter of the prior year (Q1 2021: 12.7%) and 0.5 percentage points higher than in the previous quarter (Q4 2021: 10.6%).
The year-on-year development of the contribution margins was the result of higher refinancing costs and a higher mean acquisition value per new lease contract in the first quarter of 2022 of EUR 8,064 (Q1 2021: EUR 7,434). The increase in contribution margins compared to the fourth quarter of 2021 is extremely positive in view of the high level of refinancing costs. The mean acquisition value per contract in new leasing business in the fourth quarter of 2021 was EUR 8,677.
Development of lease applications
Despite the difficult economic environment, GRENKE registered a total of 134,653 lease applications in the first quarter of 2022, significantly above the level in the first quarter of 2021 (116,814 lease applications). In the fourth quarter of 2021, the number of lease applications totalled 119,825.
At Group level, 61,906 new leases were signed in the first quarter of the reporting year, representing a conversion rate of 46% (Q1 2021: 49,213 new leases, 42% conversion rate). In the fourth quarter of 2021, 60,064 new leases were concluded for a conversion rate of 50%.
Development of the factoring business and the Bank's new lending business
With purchased receivables of EUR 175.1 million, new factoring business recorded an increase of 12.6% compared to the same period in the previous year (Q1 2021: EUR 155.4 million). In Germany, new factoring business registered a decline of 15.5%, while new factoring business in the international markets increased by 26.3% to EUR 132.1 million. At EUR 15.8 million, GRENKE Bank's new lending business in the first quarter of 2022 reached a level comparable to that of the same quarter of the previous year (Q1 2021: EUR 14.7 million).
Development of refinancing at GRENKE Bank
GRENKE Bank's deposit business continued to be an important pillar of the Consolidated Group's refinancing with a share of almost 30%. The deposit volume amounted to EUR 1.3 billion as of March 31, 2022 (March 31, 2021: EUR 1.6 billion).
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