Grenke AG first branch in the Netherlands
Publication date: 06-10-2025
Grenke AG is a leasing company based in Germany. They help small and medium-sized businesses (SMEs) get financing for things like laptops, phone systems, and electric bikes. Most of their customers are in Europe, but they’re also starting to grow in places like the U.S., Canada, and Australia.
What makes Grenke stand out is that they focus on smaller deals that big banks usually ignore. They work with around 35,000 equipment sellers and usually finance purchases under €25,000. This helps them spread their risk since no single customer makes up more than 1% of their business.
Even during tough times, Grenke has stayed profitable. That’s partly because their lease deals have higher built-in interest rates. After a challenging 2024, when a sharp rise in small-business insolvencies across Europe led to higher credit losses and lower earnings, Grenke began to show clear recovery signs in 2025. The company’s net income rose to €16 million in 2Q 2025 (+56% quarter-on-quarter), helped by growing leasing activity, tight cost control, and early signs that credit losses are stabilizing.
The improvement in interest income came mainly from business growth rather than rate moves — Grenke originated more new leases and expanded its total asset base. The company also benefits from the lag between its own funding costs and the rates it charges clients, as lease pricing remains firm while funding costs gradually decline.
New leasing business is on track to reach €3.2–€3.4 billion in 2025, which is about 5–11% higher than in 2024, showing renewed demand from European SMEs. At the same time, management has kept costs under control, with a cost-to-income ratio near 56%.
Although Grenke still sets aside money to cover potential customer defaults, the company now believes those provisions have reached their high point. In simpler terms, losses from unpaid leases are no longer rising as fast, and Grenke expects them to ease as economic conditions stabilize and pricing on new contracts better reflects current risks.
The equity ratio remains strong at about 16%, well above regulatory requirements. Grenke holds investment-grade ratings of BBB from both Fitch and S&P, with stable outlooks. Analysts highlight its strong capital position, granular client portfolio, and improving profitability as the main supports for its credit profile.
as of 30.06.2025 EUR bn
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|
| Assets | 8,9 | Net interest income/Average lease portfolio | 5,9 % | Debt/Equity | 4,9x |
| Lease portfolio | 6,9 | Operating income | 0,6 | Return on Equity | 3,7 % |
| Equity | 1,4 | Net income | 0,05 | Cost/Income | 59 % |
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