• Group earnings of EUR 71.8 million meet the lower end of the 2025 guidance range
  • Growth outlook for 2026: Group earnings of EUR 74 million to EUR 86 million and
    leasing new business in the range of EUR 3.4 billion and EUR 3.6 billion expected
  • Dividend increase of 5% to EUR 0.42 per share (2025: EUR 0.40) is proposed
  • Long-term target: Return on equity of 10% by 2030

 

Baden-Baden, March 12, 2026: grenke AG, a specialist in small-ticket leasing, today published its results for the 2025 financial year. Group earnings of EUR 71.8 million represented a slight increase (2024: EUR 70.2 million). With the loss rate still elevated at 1.7 percent, earnings are in line with the narrowed guidance announced in Q3 2025. The Board of Directors and the Supervisory Board will propose to the upcoming Annual General Meeting a 5 percent increase in the dividend for the 2025 financial year to EUR 0.42 per share (2025: EUR 0.40). This proposal is consistent with the Group’s long-term dividend policy of maintaining a distribution ratio of around 25 percent.

Dr Sebastian Hirsch, CEO of grenke AG: “For three consecutive quarters, we have steadily increased our profit – thereby achieving the turnaround in our profitability and meeting our annual target. With the completion of the franchise acquisitions and the launch of the sale of our factoring segment, we have sharpened our strategic focus. We can now devote all of our resources to our global core business of small-ticket leasing. Despite all of the international macroeconomic and geopolitical turbulence – which may become even more pronounced – we remain committed to the path we have taken of managing the business on the basis of profitability. That includes growing our new business – but profitably, and not at any price. My conclusion for 2025: We have mastered an important phase of our journey. Our goal: a return on equity after tax of 10 percent by 2030. Our next milestones: an average increase of around 1 percentage point each year.”

Dr Martin Paal, CFO of grenke AG: “We have proven that we can increase our efficiency by increasing our operating income significantly more than costs. Our solid cost-income ratio remains firmly on track. That is a positive signal in two respects: First, the steady growth of our leasing portfolio in recent years is making a lasting contribution to our current and future profitability. Second, this development demonstrates our success in maintaining our disciplined cost approach and commitment to achieving even greater process efficiency. Overall, this enabled us to offset a substantial portion of the elevated level of losses that were to be expected given the strained macroeconomic environment. We still have some way to go, but we are making clear operational progress towards greater profitability.”

 

Significantly improved cost-income ratio

The strong growth in leasing new business in recent years has led to a notable 14.7 percent increase in income from operating business to EUR 660.8 million (2024: EUR 576.1 million). This was driven by net interest income, which rose 13.6 percent to EUR 405.1 million (2024: EUR 356.7 million), as well as by other components of operating income, including the service business, the profit from new business, and gains and losses from disposals, which increased overall by 16.6 percent.

As part of the measures aimed at greater cost discipline and process efficiency, and with the continued advances made in digitalisation, operating costs increased by only 6.9 percent to EUR 364.6 million (2024: EUR 341.0 million). As a result, the planned deceleration in cost growth was achieved.

This led to an operating result before settlement of claims and risk provision of EUR 296.3 million, up 26.0 percent year-on-year (2024: EUR 235.0 million). Consequently, the cost-income ratio (CIR) recorded a sharp improvement to 55.2 percent in the 2025 financial year, compared to 59.2 percent in the previous year.

 

Loss rate remains elevated

As expected, the result from settlement of claims and risk provision remained at an elevated level of EUR -196.0 million (2024: EUR -131.0 million) due to the persistently high number of defaults and insolvencies amid persistently challenging macroeconomic conditions. The loss rate – defined as the ratio of settlement of claims and risk provision to leasing volume – amounted to 1.7 percent in the 2025 financial year (2024: 1.3 percent).

Group earnings increased 2.3 percent to EUR 71.8 million (2024: EUR 70.2 million). This resulted in a return on equity (RoE) after tax of 5.2 percent (2024: 5.2 percent).

 

Equity ratio as expected amid continued growth in lease receivables

At 15.6 percent (December 31, 2024: 16.2 percent), the equity ratio reported was in line with the Company’s self-set target of around 16 percent. As of December 31, 2025, total assets had increased from EUR 8.2 billion to EUR 9.1 billion.

Lease receivables rose by 12.7 percent to EUR 7.3 billion (December 31, 2024: EUR 6.5 billion), reflecting the strong growth in leasing new business in recent years. As of the December 31, 2025 reporting date, cash and cash equivalents equalled EUR 674.1 million (December 31, 2024: EUR 974.6 million).

In line with the grenke Group’s maturity-matched refinancing strategy, financial liabilities of EUR 7.3 billion in the 2025 financial year (December 31, 2024: EUR 6.5 billion) also largely matched the refinanced receivables in terms of both amount and maturity.

 

Outlook for 2026

For the 2026 financial year, grenke expects Group earnings in the range of EUR 74 million to EUR 86 million and leasing new business volume of EUR 3.4 billion to EUR 3.6 billion. The expectations for Group earnings and leasing new business are based on a CM2 margin of at least 16.5 percent, a loss rate of between 1.6 percent and 1.7 percent – driven primarily by the overall macroeconomic and geopolitical environment – and a CIR of around 55 percent. Based on the expected development of Group earnings, grenke is planning with an equity ratio of around 15 percent, which meets both the regulatory and rating requirements.

Profitability, and thereby a focus on return on equity (RoE), will remain the central priority in the years ahead. The target is to achieve an RoE after tax of 10 percent by 2030. 

The grenke Group’s Annual Report 2025 is available on the Company’s website under Reports & Key Figures. A digital version of the Annual Report 2025 is also available here.