C&I Leasing Plc H1/Q2 Result – Leveraging Operating Efficiency Amidst Capital Constraints

Subject: C&I Leasing Plc Sustains Positive Earnings Momentum in Q1 2025 with Strong Top-Line and Balance Sheet Expansion

C&I Leasing Plc delivered a solid performance in the first quarter of 2025, sustaining its earnings momentum with notable growth in gross earnings, net profit, and balance sheet strength. The group’s unaudited financials for the period ended 31 March 2025 show significant year-on-year and quarter-on-quarter improvements across key financial metrics.

🔑 Key Performance Highlights (Q1 2025)

• Gross Earnings rose 9.4% year-on-year to ₦9.60 billion (Q1 2024: ₦8.77 billion), reflecting higher leasing and outsourcing activity.
• Lease Rental Income grew 9.7% to ₦8.55 billion from ₦7.79 billion a year earlier.
• Net Lease Rental Income surged 35.6% to ₦5.60 billion, reflecting improved cost management as lease expenses declined year-over-year.
• Operating Profit (before tax and expenses) stood at ₦3.54 billion, up from ₦2.88 billion in Q1 2024.
• Profit Before Tax increased to ₦487.91 million, although this reflects a moderation from ₦605.20 million in the prior year, largely due to higher finance and operating expenses.
• Profit After Tax came in at ₦433.29 million, compared to ₦501.90 million in Q1 2024.
• Earnings per Share was 15 kobo, compared to 26 kobo in Q1 2024.
• Retained Earnings improved to ₦7.40 billion, up from ₦7.01 billion as of December 2024.

📊 Balance Sheet Strengthens

C&I Leasing demonstrated a robust balance sheet expansion within the first quarter of 2025:

• Total Assets climbed 15.3% to ₦131.04 billion (Dec 2024: ₦113.69 billion), driven by:
  • Trade and Other Receivables nearly doubling to ₦25.83 billion (Dec 2024: ₦10.69 billion)
  • Cash and Bank Balances rising by 67% to ₦7.33 billion
  • Stable investments in joint ventures and finance lease receivables.
• Total Liabilities increased to ₦85.26 billion, up from ₦67.74 billion as at December 2024, attributed to:
  • A spike in Commercial Notes (₦17.61 billion vs. ₦7.17 billion in Dec 2024)
  • Higher Trade Payables and Deferred Tax Liabilities
• Total Equity remained resilient at ₦45.78 billion, relatively stable from ₦45.95 billion in Dec 2024, with strong contributions from foreign currency translation reserves and statutory reserves.

⚙️ Operational Notes

• Depreciation Expense grew 35.4% YoY to ₦2.09 billion, reflecting CAPEX buildup.
• Personnel Expenses rose by 18.5%, and Operating Expenses jumped by 53.2%, partly explaining the slight contraction in net margin.
• Finance Cost increased by 40.8% YoY, to ₦3.09 billion, due to increased borrowings and higher interest rate environment.

🧾 Summary

C&I Leasing Plc’s Q1 2025 results reflect operational resilience and financial strength amidst a capital-intensive operating model. With gross earnings growth, a significant rise in receivables, and stable equity, the company is well-positioned to leverage economic recovery and improve margins over the coming quarters.

While earnings per share dropped due to increased cost pressures, the overall fundamentals remain solid, and the group continues to deliver positive value to shareholders. Investors should continue to monitor its capital structure closely, especially debt-servicing capacity and working capital efficiency in the upcoming quarters.