C & I Leasing Plc entered 2025 facing heavier borrowing costs and swelling depreciation charges.
Yet, by leaning on its core strength—lease rental income—the Lagos-based company managed to post stronger half-year earnings and keep growth on track.
Profits Edge Higher
In the six months to June, profit after tax rose nearly 10% year-on-year to ₦1.08 billion, up from ₦987 million a year earlier.
Revenues advanced 12.5% to ₦20.5 billion, driven largely by lease rentals, which climbed 11.5% to ₦17.9 billion.
Net lease income surged 44% as related costs moderated, underscoring the resilience of the company’s core business.
Income Streams Diversify
Other income streams added momentum.
Outsourcing income grew almost 30% to ₦783 million, while interest income, once negligible, multiplied to ₦308 million.
Operating income rose to ₦548 million, though joint venture contributions slipped 25% to ₦822 million, tempering the overall gain.
Costs Weigh On Growth
Finance expenses jumped 54% to ₦6.97 billion, reflecting higher debt and rising market rates.
Depreciation also climbed 45% to ₦4.56 billion as the firm added new lease assets.
Read Also: Coronation Insurance 2024 Revenue Rises To ₦49.4bn
Despite these pressures, the second quarter offered a brighter note: profit for the period rose 34% to ₦646 million on revenues of ₦10.9 billion, signalling steady momentum.
Balance Sheet Expands
Total assets grew 10.4% to ₦128.4 billion, lifted by lease assets, receivables and cash holdings.
Borrowings rose almost 13% to ₦44.3 billion, while commercial papers jumped 55% to ₦10.9 billion, pushing liabilities to ₦79.8 billion.
Shareholders’ equity edged higher to ₦48.6 billion, though a ₦676 million foreign currency translation loss eroded part of the gain.
At the company-only level, profit after tax increased to ₦986 million from ₦837 million, supported by revenue of ₦15.8 billion.
Retained earnings expanded nearly 11% to ₦9 billion, helping equity rise to ₦19.8 billion.
Still, investors felt a pinch.
Earnings per share fell to 36 kobo from 56 kobo a year earlier, following a bonus issue that expanded the share base.
Looking forward, analysts say the outlook hinges on familiar themes: keeping assets fully utilised and containing funding costs as borrowings rise.
A 6% fall in trade receivables suggests collections are improving, yet higher interest expenses from short-term notes and bank loans remain a key risk.
For now, C & I Leasing’s story is one of resilience—leveraging recurring rental income to absorb the strain of heavier financing costs while keeping its growth engine running.
