C&I Leasing’s gross earnings hit N16bn in Q3

C&I Leasing Plc, a transportation logistics solutions company, has announced a nine percent growth in gross earnings in the third quarter of this year.

According to the company’s third-quarter financial report, the gross earnings grew nine percent to N16.3 billion year-on-year and it was driven by the growth of its marine business which accounted for 69 percent of total gross earnings for the 9-month period.

Speaking during the facts behind the figures briefing in Lagos, Ugoji Lenin Ugoji, chief executive officer/managing director of C&I Leasing Plc, said its net operating income increased by 10 percent to N8.5 billion in the first half of 2023, which is an increase from the N7.6 billion reported in the third quarter of 2022.

He said there was an eight percent increase to N7.5 billion in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) as against N7 billion recorded in the same period in 2022.

Ugoji also announced that the group recorded a 12 percent increase in profit after tax of N414.1 million year-on-year which was achieved through a combination of top-line growth, cost reduction initiatives and optimal utilisation of assets.

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According to him, basic earnings per share of 42 kobo increased by 221 percent YoY due to higher earnings, adding that year-to-date growth in total assets increased by 25 percent to N72.1 billion, largely driven by assets being held in currencies other than local.

He said the Capital Adequacy Ratio increased 800 basis points to 35 percent on the back conversion of a $10 million convertible note; total assets witnessed a 25 percent increase to N72.1 billion in Q3.

“The global economy has witnessed turbulent few years and a weak recovery seems on the cards according to the OECD’s Economic Outlook. Uncertainty over the evolution of the war in Ukraine, and the recent happens between Israel and Palestine can smear the GDP with a growth rate from 3 percent in 2023 to 2.9 percent in 2024.

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“Africa’s GDP is expected to grow from $2.98 trillion in 2022 to $3.144 trillion by the end of 2023. Major contributors to the GDP in Africa are Nigeria, South Africa and Egypt; this is due to their population size, natural resources and level of economic development,” he said.

He further pointed out that inflationary pressures, as well as exchange rate fluctuations, have been issues the company continues to deal with, adding that measures are in place to ensure the company hedges against such uncertainties as an increased focus is now being given to non-asset-based revenue options to create a counterbalance for low asset utilisation caused by shrinking demand for the assets.

“These challenges, notwithstanding, we have remained focused on cost optimisation, business process improvement initiatives, and ensuring efficiency in the management of our sales performance,” Ugoji said.