C&I Leasing plc has released its 2019 full year result for the period ended 31 December 2019. Figures from the result show gross earnings surged 15.3percent to N32.5billion in 2019 from N28.18billion in full year 2018. Apart from a significant drop in its tracking income, the firm recorded growth in revenue for its two other segments namely, leasing and outsourcing segments. Net Profit stood at N939 million from N1.19billion in 2018.
Specifically, revenue from lease rental income stood at N22.33 billion from N19.38billion, outsourcing income ballooned from N792.56million to N1 billion. Tracking and tagging income, however plummeted to N17.94million from N137.1million.
Earnings from its Ghana subsidiary, Leasafric Ghana Limited, dropped 5percent at N4.4billion from N4.64billion, also recording a loss after tax of N280.9million, also revenue from EPIC International FZE, U.A.E, that engages in the business of leasing vessels grew 15.93percent at N3.71billion from N 3.20billion. C&I Leasing FZE, a free zone enterprise registered in Dangote Free Zone in Lekki recorded N3.17billion in 2019. Revenue from the parent company C&I Leasing Plc jumped 27percent at N25.83 billion in from N20.33billion in 2018.
Personnel expenses jumped 17.48percent from N1.43billion to N1.68billion in 2019 with distribution expenses jumped 22.87percent at N18.69million from N15.21million.
According to the Equipment and Leasing Association of Nigeria, for the tenth time in a row, the Nigerian Leasing Industry buoyed its growth and continued to remain a major contributor to national economic development, while demonstrating its innovation and flexibility in the face of economic turbulence.
The leasing industry recorded a remarkable growth of 13.5 percent in 2019, with outstanding lease volume at N1.91trillion as against N1.68trillion in 2018. The oil and gas sector maintained its lead with outstanding lease of N577 billion (26%), followed by Transportation sector with N469billion (22%), Manufacturing N269billion (11%), Others (including Healthcare and Education accounted for N171billion (21%), while Agriculture, Telecommunications, and Government recorded considerable growth.
Finance lease continued with its lead at 65% of total leases while operating lease has been increasing its market share in recent times due to market dictates arising from the preference of corporate bodies to focus more on their core activities, while outsourcing other operational functions such as transportation and other logistics services. Also, operating lease is increasingly becoming a risk mitigant and niche market for several lessors in the industry.
In terms of players in the industry, Banks represent 80 per cent of the investment value, financing big ticket leases. While, with regards to transaction spread, non-bank lessors take 80 per cent of the transactions, actively servicing MSMES.