Grenke (GLJ) investor relations material

Executive summary

• Profit increased by nearly 25% and return on equity rose by 80 basis points in H1 2026, with group earnings after taxes reaching EUR 32.6 million and return on equity after taxes at 4.6%, despite a challenging macroeconomic and geopolitical environment with high insolvencies and weak investment activity.

• New business reached EUR 1.6 billion, with market share gains in Germany, France, Italy, and North America, and expansion in core markets like the USA and Canada.

• Operating leverage improved as income grew faster than costs, leading to a significantly better cost-income ratio of 51.6%.

• Asset base expanded to EUR 9.2 billion, supporting future income growth.

• Loss rate remained elevated at 2.0% for H1 2026, above long-term averages, reflecting persistent risk environment.

Financial highlights

• Operating income rose 11% to EUR 353 million in H1 2026, driven by net interest income of EUR 250 million and profit from new and service business of EUR 138 million.

• Group earnings reached EUR 32.6 million, up from EUR 26.2 million year-over-year, with earnings per share rising to EUR 0.40.

• Cost-income ratio improved from 56.4% to 51.6%.

• Return on equity after taxes annualized at 4.6%, up 80 basis points year-over-year.

• Loss rate stood at 2%, above the long-term average of 1.5%.

Outlook and guidance

• Full-year 2026 earnings guidance confirmed at EUR 74–86 million, with leasing new business forecast at EUR 3.4–3.6 billion, likely at the lower end.

• Cost-income ratio expected to remain below 55%, reflecting stronger operating leverage.

• Loss rate for full-year 2026 now forecast just under 2%, higher than previous guidance.

• CM2 margin for 2026 expected around 16%.

• Ambition to achieve 10% return on equity by 2030 remains unchanged.