C & I Leasing Plc posted stronger earnings in the first half of 2025 as robust growth in lease rental income helped cushion the impact of rising financing and depreciation charges tied to its expanding asset base.
Group profit after tax rose 9.6 percent year-on-year to N1.08 billion in the six months through June, from N987 million a year earlier, the Lagos-based company said in a statement.
Revenue climbed 12.5 percent to N20.5 billion, buoyed by an 11.5 percent jump in lease rental income to N17.9 billion, while net lease income surged 44 percent as expenses on leases moderated.
The company, which provides operating leases, fleet management and outsourcing services, saw net outsourcing income rise nearly 30 percent to N783 million, while interest income multiplied to N308 million from a negligible base. Other operating income rose to N548 million, though contributions from joint ventures slipped 25 percent to N822 million.
Still, heavier costs tempered bottom-line growth. Finance expenses jumped 54 percent to N6.97 billion on the back of higher borrowings and rising market rates, while depreciation swelled 45 percent to N4.56 billion as the firm added more lease assets.
Second-quarter profit grew faster than the half-year trend, rising 34 percent to N646 million on revenues of N10.9 billion, underscoring steady operating momentum despite cost pressures.
The balance sheet also expanded. Total assets increased 10.4 percent to N128.4 billion as of June, lifted by higher operating lease assets, finance lease receivables and cash holdings.
Borrowings climbed almost 13 percent to N44.3 billion, while commercial papers jumped 55 percent to N10.9 billion, pushing total liabilities to N79.8 billion.
Shareholders’ equity edged up to N48.6 billion, though the company recorded a N676 million translation loss on foreign operations.
At the company-only level, half-year profit after tax advanced to N986 million from N837 million a year ago, with revenue climbing to N15.8 billion. Retained earnings grew almost 11 percent to N9 billion, helping equity rise to N19.8 billion.
Earnings per share fell to 36 kobo from 56 kobo in the prior year, following a bonus issue that expanded the share base.
With recurring lease rentals still the largest revenue driver, analysts say C & I Leasing’s near-term outlook hinges on sustaining asset utilization and controlling funding costs as debt levels climb.
A 6 percent drop in trade receivables suggests improving cash collections, but higher interest expenses from short-term notes and bank loans remain a key risk.
