Financial statements of 12 listed leasing companies show an average 12% decline in net profit in the first three quarters of the current fiscal year that ends in in March.
Analysis of the companies’ financial statements published by Chabok Online show that leasing companies collective net profit amounted to 5,620 trillion rials ($13 billion) in the nine months, whereas it was at 6,380 rials ($14.8b) during the same period last year.
However, some companies managed to improve their margins including Mellat Leasing Company with 113% growth.
Ghadir Auto Leasing Company with 100% increase and Industry and Mine Leasing Company with 65% growth were the other companies reporting higher profits.
The report said that these companies had cut their own and financing costs.
Currently, 29 leasing companies operate officially in the Iranian market while thousands of others are present without a CBI license. Majority of leasing companies are either state-owned or owned by banks or auto companies.
Saipa Leasing Company (affiliated to the second major carmaker Saipa) posted the worst performance among listed leasing companies during the period with 65% decline in net profit.
The growth in banks’ contribution to funding economic enterprises is seen as a key factor pulling down the profit of leasing companies, as it has reduced the need for using leasing solutions.
