DGAP-News

GRENKELEASING AG: Consolidated Group net profit rises 37.7% to EUR 48.3 million and exceeds our previous expectations

DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results
GRENKELEASING AG: Consolidated Group net profit rises 37.7% to EUR
48.3 million and exceeds our previous expectations

28.10.2014 / 07:19

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Consolidated Group net profit rises 37.7% to EUR 48.3 million and exceeds
our previous expectations

- Net interest income climbed 19.6% to EUR 115.2 million in the first
nine months of 2014 (previous year: EUR 96.4 million)

- Consolidated Group net profit in the first nine months of 2014 totalled
EUR 48.3 million for growth of 37.7% compared to EUR 35.1 million in
the previous year

- Lower-than-average increase in expenses for the settlement of claims
and risk provision to EUR 39.1 million

- 2014 profit forecast raised: Consolidated Group net profit expected in
a range of EUR 62-64 million (previous forecast: around EUR 56 million)

Baden-Baden, October 28, 2014: The positive income development in the first
nine months of 2014 was based on the high-margin new business acquired in
recent quarters and a favourable refinancing environment. Interest expenses
from refinancing and from the deposit business declined in absolute terms
to EUR 41.0 million after EUR 43.7 million in the first nine months of 2013
due to the favourable interest rate environment. This allowed net interest
income to rise 19.6% to EUR 115.2 million compared to EUR 96.4 million in
the prior year.

Expenses for the settlement of claims and risk provision had a
lower-than-average increase of 6.1% to EUR 39.1 million (previous year: EUR
36.8 million). The lower increase underscores our success in reflecting the
risks in our conditions. The loss rate in the first nine months was
slightly below the previous year's level. Accordingly, net interest income
after settlement of claims and risk provision rose by 27.8% to EUR 76.2
million after EUR 59.6 million in the comparable period of the previous
year.

Profit from insurance business grew 18.0% to EUR 30.5 million (9M-2013: EUR
25.9 million). Profit from new business grew 9.1% to EUR 35.0 million after
EUR 32.0 million in the first nine months of 2013. Gains from disposals,
which are of less significance and usually very volatile on a quarterly
basis, amounted to EUR 1.8 million after EUR 2.0 million in the first nine
months of 2013. Overall, income from operating business rose 20.0% to EUR
143.4 million after EUR 119.5 million in the comparable period of the
previous year.

Staff costs and selling and administrative expenses increased visibly less