Full Year 2025 Grenke AG Earnings Call Transcript
Key Points
- Grenke AG (WBO:GLJ) achieved group earnings of EUR71.8 million in 2025, meeting their guidance despite challenging macroeconomic conditions.
- The company reported a significant increase in operating income by 14.7%, driven by higher net interest income and improved profits from new and service business.
- Grenke AG (WBO:GLJ) successfully reduced its cost-income ratio by 4 percentage points to 55.2% through strict cost discipline and efficiency measures.
- The company achieved a record leasing new business volume of EUR3.3 billion, indicating strong market performance in key regions like Germany, France, and Italy.
- Grenke AG (WBO:GLJ) completed strategic initiatives such as the financial purchase of their remaining franchise company and the initiation of the sale of their factoring segment, strengthening their business focus.
- The loss rate remained elevated at 1.7%, above the long-term average of 1.5%, due to increased insolvencies and defaults.
- Despite improvements, the return on equity after taxes remained stable at 5.2%, indicating room for further profitability enhancement.
- The company faced a normalization of new business in Northern Eastern Europe, with a 5% decline compared to the previous year.
- Grenke AG (WBO:GLJ) anticipates a continued high level of macroeconomic uncertainty and geopolitical tensions, which could impact future performance.
- The company is cautious about achieving its long-term target of a 10% return on equity by 2030, acknowledging it as a challenging path.
Good morning and welcome from Baden-Baden, ladies and gentlemen, to our financial year figures 2025. My name is Franziska Randt. I'm the head of IR department and I have the pleasure that today here with me is our CEO, Sebastian Hirsch; and CFO, Martin Paal.
Welcome. We will start with the presentations and right after that you will have the opportunity to ask questions. Without further ado, I will now hand over the floor to Sebastian.
Thank you, Franziska, and a warm welcome from my side. Thank you ladies and gentlemen for joining our earnings call today. Ladies and gentlemen, looking back at 2025, the year was once again shaped by a challenging environment and ongoing geopolitical tensions, and it seems to be persistent. But despite these challenges, we successfully navigated our business through the year.
Let me briefly summarize last year's performance step by step. First of all, we are proud to have achieved
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