In This Article:
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Leasing New Business: Increased by 21.5% to EUR790 million.
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Lease Receivables: Surpassed EUR6 billion for the first time.
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Return on Equity Before Tax: Increased to 8.5% from 7.8% in the first half of 2023.
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Group Earnings: Rose to EUR45 million.
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Loss Rate: Normalized to 1.1% from 1.0% in the first half of 2023.
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Equity Ratio: Changed to 18.3% due to the share buyback program.
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Cost Income Ratio: Improved to 57.1% from 58.3% in the first half of 2023.
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Net Interest Income: Increased by EUR8.5 million to EUR176 million.
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Profits from New and Service Business: Grew by EUR13 million to EUR102 million.
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Cash and Cash Equivalents: EUR565 million at the end of the first half of 2024.
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Share Buyback Program: Acquired over 1.5 million shares, spending EUR35.5 million of the EUR70 million budget.
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Benchmark Bond Issuance: EUR500 million bond with a 5.75% coupon, significantly oversubscribed.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Grenke AG (WBO:GLJ) achieved a record level in its leasing new business, indicating strong demand and growth potential.
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The company has successfully increased its efficiency, contributing to a positive development in profit.
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Grenke AG's digitalization program is playing a pivotal role in enhancing efficiency across the value chain.
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The company opened a second subsidiary in the US, highlighting its expansion efforts and potential for growth in the US market.
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Grenke AG's return on equity before tax improved to 8.5% from 7.8% in the first half of 2023, showing increased profitability.
Negative Points
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There is a slight increase in insolvencies among small and medium enterprises, which could impact Grenke AG's risk provisioning.
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The company's loss rate normalized to 1.1%, reflecting challenging market conditions and a slight rise in insolvencies.
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Grenke AG's cost structure increased slightly, primarily due to rising staff costs.
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The macroeconomic environment remains challenging, with potential impacts on customer investment behavior.
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The company anticipates further bond issuance, which could be influenced by market conditions and affect future financing costs.
Q & A Highlights
Q: Could you provide an outlook on the macroeconomic environment and its impact on your business, particularly regarding customer reluctance to invest and insolvencies? A: Sebastian Hirsch, CEO: The macroeconomic environment remains challenging, but the insolvencies and outcomes in our loss rate are as expected. We see a stable demand for small-ticket investments, which makes leasing more attractive than loans in uncertain times. This aligns with our expectations and supports our new business growth.