Q2 2026 Grenke AG Earnings Call Transcript
Key Points
- Group earnings increased by nearly 25% to EUR32.6 million in H1 2026, with return on equity up 80 basis points to 4.6%.
- Operating income grew 11% to EUR353 million, driven by higher net interest income and strong profit from new and service business.
- Cost-income ratio improved significantly to 51.6% from 56.4%, reflecting strong operating leverage and disciplined cost management.
- New business remained solid at EUR1.6 billion, with market share gains in Germany, France, Italy, and North America, including a doubling of US business.
- Funding base strengthened with successful first Canadian dollar bond issuance, supporting future growth in key markets.
- Management confirmed full-year earnings guidance of EUR74-86 million, with expectations for cost-income ratio to come in below previous assumptions.
- Loss rate remained elevated at 2%, reflecting persistently high insolvencies and challenging macroeconomic conditions.
- New business growth was modest at 1.4%, with expectations to land at the lower end of the guidance range due to weak investment activity.
- Northern and Eastern Europe saw an 11% decline in new business, partly due to the end of e-bike subsidies in Finland and active steering in Sweden and Denmark.
- CM2 margin decreased to 15.9% from prior year, impacted by higher risk provisions and increased ECB interest rates.
- Tax rate rose to 26.4% due to a one-off effect in France and a shift towards higher-tax core markets, reducing net profit.
- Disposal gains, while elevated, are expected to decline over the next years as higher-volume portfolios from 2022-2023 run out.
Welcome, ladies and gentlemen. Good morning from Baden-Baden to our today's earnings call regarding the Half Year Financial Report 2026. My name is Franziska Randt. I'm head of the IR department. And I have the extreme pleasure that today here with me is both CEO Dr. Sebastian Hirsch; and CFO Dr. Martin Paal. Welcome. We will start with the presentations and right after we will enter into our Q&A session.
Before we get started, let me remind you that this presentation contains forward-looking statements based on current assumptions and expectations which are subject to significant risks and uncertainties. The key assumptions and influencing factors are explained during the presentation and in the disclaimer at the end of this material. Please take these into account when assessing the information provided.
With that, I will now hand over the call to our CEO, Sebastian. Please go ahead.
Thank you, Franziska.
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