GRENKE INTENDS TO SELL FACTORING COMPANIES

GRENKE intends to sell factoring Companies

Concentration to be on growth and digitalisation in the leasing business

Baden-Baden, 31.01.2024: The Supervisory Board of GRENKE AG today approved the Board of Directors' decision to focus on the leasing business with small and medium-sized companies in the future and initiate the sale of all factoring companies. The synergies with the core leasing business that were anticipated at the time of entering the factoring business have not materialised. Furthermore, a detailed analysis has shown that the existing factoring business could only be operated profitably in the long term with additional investments and a multi-fold increase in business volume (assets from the factoring business represented less than 2 percent of the consolidated statement of financial position in 2022). Instead of implementing a standalone factoring strategy separate from the leasing business, GRENKE intends to fully focus its resources and investments on advancing digitalisation and growth in the leasing business. GRENKE BANK AG's banking business will continue to play a key role in this context, particularly in terms of securing refinancing via deposits.

"This step will allow us to focus our energy on customers and digitalisation in the leasing business for small in-vestments," emphasises Dr Sebastian Hirsch, CEO of GRENKE AG, adding: "Factoring is fundamentally an attractive market. The expected synergy effects with our successful core business of leasing have not materialised. However, I am convinced there are strong opportunities for the factoring business given the appropriate attention and determination. This is why we are doing everything we can to support and facilitate a sale."