DGAP-News

GRENKELEASING AG: Consolidated Group net profit rises 23% to EUR 38.5 million - exceeds our previous expectations

DGAP-News: GRENKELEASING AG / Key word(s): Half Year Results
GRENKELEASING AG: Consolidated Group net profit rises 23% to EUR 38.5
million - exceeds our previous expectations

28.07.2015 / 07:22

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Consolidated Group net profit rises 23% to EUR 38.5 million - exceeds our
previous expectations

- Net interest income climbed 22.5% in the first half of 2015 to EUR 91.4
million (previous year: EUR 74.6 million).

- Consolidated Group net profit in the first half of 2015 grew 23.4% from
EUR 31.2 million in the previous year to EUR 38.5 million.

- Rise in 2015 earnings forecasts: Consolidated Group net profit expected
in the range of EUR 74 - 78 million (previous forecast: EUR 71 - 75
million)

Baden-Baden, July 28, 2015: The solid earnings development in the first
half of 2015 was supported by the profitable new business of the past
quarters and the continued positive interest rate environment. A rise in
interest income from the financing business and lower interest expenses on
refinancing led to a rise in net interest income of 22.5% to EUR 91.4
million (1.HY 2014: EUR 74.6 million).

Expenses for the settlement of claims and risk provision rose at a slower
rate than in the first half-year increasing 16.3% to EUR 28.9 million (1.HY
2014: EUR 24.8 million). The loss rate in the first half-year remained at
the previous year's level. Net interest income after settlement of claims
and risk provision increased by 25.6% from EUR 49.8 million in the previous
year's period to EUR 62.6 million.

Profit from insurance business grew 20.8% to EUR 23.6 million (1.HY 2014:
EUR 19.5 million). Profit from new business was 7.1% higher at EUR 24.8
million after EUR 23.2 million in the first-half of 2014. Including
gains/losses from disposals, which tend to be volatile on a quarterly
basis, income from operating business increased 18.9% from EUR 93.3 million
in the previous year's period to EUR 110.9 million.

Expenses rose at a below-average rate in the first half-year. Staff costs
grew 14.6% and amounted to EUR 30.4 million in the first half of 2015
compared to EUR 26.5 million in the previous year's period. Selling and
administrative expenses were 7.7% higher at EUR 24.2 million after EUR 22.4
million in the first-half of 2014.

The operating result increased by 26.0% to EUR 52.5 million after EUR 41.7
million in the first-half of 2014. In the first half of 2015, the
Consolidated Group's net profit expanded 23.4% to EUR 38.5 million
(previous year: EUR 31.2 million).

We are raising our net profit forecast for the current 2015 fiscal year and