grenke posts €71.8m 2025 earnings and proposes higher dividend

grenke AG has reported group earnings of €71.8m for the 2025 financial year, meeting the lower end of its guidance range and marking a slight increase from €70.2m in 2024.

The small-ticket leasing specialist said its board and supervisory board will propose a 5% increase in the dividend to €0.42 per share for 2025, up from €0.40 the previous year, in line with its long-term policy of distributing around 25% of profits.

Income from operating business rose 14.7% year-on-year to €660.8m, driven by growth in net interest income and other operating income streams, including service business and gains from disposals. Operating expenses increased by 6.9% to €364.6m, reflecting the company’s focus on cost discipline and process efficiency.

As a result, the operating result before settlement of claims and risk provision rose 26% to €296.3m. The cost-income ratio improved significantly to 55.2%, compared with 59.2% in the previous year.

However, the result from settlement of claims and risk provision remained elevated at €-196.0m due to a high level of defaults and insolvencies amid challenging macroeconomic conditions. The loss rate increased to 1.7%, compared with 1.3% in 2024.

Chief executive Dr Sebastian Hirsch said the company had delivered a turnaround in profitability during the year.

“For three consecutive quarters, we have steadily increased our profit – thereby achieving the turnaround in our profitability and meeting our annual target,” he said.

Hirsch added: “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.”

“We remain committed to managing the business on the basis of profitability. That includes growing our new business – but profitably, and not at any price,” he said.

The company’s leasing new business increased 7.8% to €3.29bn during the year. Lease receivables rose 12.7% to €7.3bn, while total assets increased to €9.1bn.

The equity ratio stood at 15.6% at the end of 2025, broadly in line with the company’s target of around 16%.

Looking ahead, grenke expects group earnings of between €74m and €86m in 2026, with leasing new business forecast in the range of €3.4bn to €3.6bn.

The company also reaffirmed its longer-term goal of achieving a return on equity after tax of 10% by 2030.