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PRESS RELEASE: GRENKELEASING AG: Consolidated Group net profit rises 11 % and reaches EUR 47.0 million - the upper end of our forecast range of EUR 44 to 48 million

DGAP-News: GRENKELEASING AG / Key word(s): Final Results GRENKELEASING AG: Consolidated Group net profit rises 11 % and reaches EUR 47.0 million - the upper end of our forecast range of EUR 44 to 48 million

07.02.2014 / 07:15

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Consolidated Group net profit rises 11 % and reaches EUR 47.0 million - the upper end of our forecast range of EUR 44 to 48 million

* 2013 Consolidated Group net profit amounts to EUR 47.0 million - an increase of 11 % in comparison to EUR 42.5 million in the previous year. * Net interest income grew 17 % to EUR 130.5 million. * Intended scrip dividend - dividend proposal of EUR 1.00 per share. * 2014: Targeted new business growth of 13-16 %; Consolidated Group net profit expected in a range of EUR 52 million to EUR 56 million.

Baden-Baden, February 7, 2014: In fiscal year 2013, the GRENKE Consolidated Group carried on the successful development experienced in recent years. The rise in net profit amounted to 11 % to EUR 47.0 million compared to EUR 42.5 million in the previous year. Thus, GRENKE achieved the upper end of the forecast range of EUR 44 to 48 million and accelerated the earnings momentum (previous year: 8 %).

The increase in earnings was largely the result of the strong level of high-margin new business generated in recent years, which has been generating income for us gradually as the terms of the contracts progress. Therefore, the trend continued toward a significantly more pronounced rise in interest income and similar income from the financing business. This increased 11 % to EUR 188.8 million (previous year: EUR 169.5 million) while the interest expenses of the refinancing and deposit business had only a moderate 1 % rise to EUR 58.3 million after EUR 58.0 million in the previous year.

Accordingly, net interest income rose 17 % to EUR 130.5 million (previous year: EUR 111.5 million). By consistently managing our new business margin, we are in a position to achieve a disproportional rise in income while at the same time taking into account future risks in our financing conditions. Consequently, we are always prepared for a possible rise in losses.

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PRESS RELEASE: GRENKELEASING AG: Consolidated -2-