grenke Q3 earnings double as cost control offsets higher losses

grenke reported a sharp rise in third-quarter earnings as stronger operating income and tighter cost control helped offset continued pressure from elevated loss rates amid a challenging economic backdrop.

The SME-focused leasing group posted Q3 earnings of €22.4 million, up from €12.0 million a year earlier. Operating income grew 15.5% to €169.4 million, while operating expenses rose just 7% to €90.7 million, improving the cost-income ratio to 53.5%, well below the company’s 60% target for the year.

The company said the improvement was driven by higher interest income, which rose by €22 million compared with the same quarter in 2024, and supported by disciplined cost management despite the planned expansion of its workforce.

However, the loss rate remained elevated at 1.9%, reflecting persistent macroeconomic strains. Risk provisions and claim settlements came to –€51.5 million, up from –€37.8 million a year earlier.

Even so, grenke’s operating result climbed to €30.5 million, from €17.9 million a year earlier.

Earnings for the first nine months of 2025 totalled €48.6 million, down from €57.0 million last year but in line with expectations. The company said its cost-income ratio for the period improved to 55.4%, reflecting double-digit income growth over the nine-month period.

Leasing new business rose 5.8% in the quarter to €781.2 million, pushing lease receivables to €7.1 billion at the end of September. The equity ratio remained stable at 16%, consistent with grenke’s internal target.

The company reaffirmed its full-year guidance, expecting Group earnings of €71–€81 million and leasing new business between €3.2 billion and €3.4 billion, though it said the final outcome will depend heavily on full-year risk provisioning.

“Based on our key figures, we are likely to reach the lower half of our expected Group earnings range,” said CEO Sebastian Hirsch, calling the performance “a very solid result” given economic conditions.

“More importantly, our earnings are now again above last year’s level and continue to grow. The turnaround we initiated is thereby progressing steadily.”

CFO Martin Paal said the improvement in the cost-income ratio showed the benefits of income growth paired with cost discipline, helping offset “persistently elevated loss levels” and supporting the full-year outlook.

grenke said that if the loss rate for 2025 remains just below 1.8%, as seen so far this year, earnings are likely to land toward the lower end of its guidance range.