Grenke reports profit growth despite weaker leasing business

Grenke, a financing specialist focused on leasing for small and medium-sized enterprises, reported a 7 percent increase in profit for the second quarter, reaching 17.1 million euros.

Despite the profit growth, the company noted a slight decline in new leasing business, which fell by 1 percent year-on-year to 858.5 million euros. Management attributed this to a challenging market environment, including delays between market interest rates and company conditions, as well as higher expected defaults. The loss ratio also rose from 1.7 to 2.1 percent due to increased expenses related to corporate insolvencies. CEO Sebastian Hirsch has confirmed the company's annual forecast.