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Tunisia: CIL reassures shareholders.

Mohammed Brigui, CEO of International Leasing Company (CIL), presented, on Tuesday December 23, the balance sheet of his enterprise for the current year, a positive one since Cil manages to come up with a 3295 MDT profit as at September 30. The company whose turnover amounts to 12,500 MDT, and equity stands at about 26.8 MDT is present in four cities (Tunis, Sousse, Sfax and Gabés) . CEO said that his company is holding a market share of around 16.38% in terms of opening credit lines and 17.01% of outstanding leasing. Rolling stock has the largest share with 63,826 MDT.

Rolling stock, spearhead of the company

CIL activity has evolved since 2004, when opening credit lines was not exceeding 72.2 MDT, while outstanding leasing amounted to 141 thousand dinars. In 2007, opening credit lines reached 132.5 mdt and outstanding leasing went up to 187.1 thousand dinars. For the first nine months of 2008, CIL opening credit lines  reached 96.9 MDT (up 2.3 compared to the same period of 2007), while outstanding leasing reached 208.2 MDT against 177 mdt during 2007 first months of 2007. Besides the rolling stock, capital assets that used up opening credit lines are the other two major activities of the CIL, namely real estate up to 8030 with MDT, and equipment and machinery up to 24,761 MDT. The real estate business has dropped over 2007 first nine months when it was standing at around 14,831 thousand dinars.  M Brigui made it clear said that his company «does not run after figures, but after profits.”

 The real estate activity, he added, presents some risks for leasing companies. «In addition, CIL is not focusing only on these three major activities, “small businesses” represent 16.40% of opening credit lines by sector i.e. the largest share, along with “car hire” activity.

CIL assets balance sheet rose from 202.3 MTD (September 30, 2007 ) to 229.1 thousand dinars a year later. Customers’ debts and leasing operations accounted for the largest portion of these assets with 209.9 thousand dinars (189,259 in 2007). The investment portfolio rose from 2.53 MDT in 2007 to 3.76 on September 30, 2008.

The liabilities balance sheets increased from 202.3 mdt (September 30,  2007), to 229,114  a year later. Shareholders’ funds rose during this period from 24.06 mdt to 26.8 mdt. At the same time, borrowing increased from 157.8 mdt to 184.5 mdt.

Important  solvency ratio 

CIL financial reporting took place in the presence of a number of shareholders who asked questions about the company’s ratios. CEO highlighted a coverage ratio of 85.78% for the first nine months of this year. “We hope to reach between 95% and 100% by the end of the year,” said Brigui, a rate that far exceeds that of 70% required by BCT. The non performing loans rate fell from 13.92% as at 30 September 2007, to 9.69% a year later. The solvency ratio or equity, in turn, declined from 12.4% to 11.45%.  CEO said that this rate  “will improve over the years to come, it may rise to 15% or even 16%”. Company ROE rose from 15.82% in 2007 to 17.80% in 2008, even for ROA which rose from 1.65% in 2007 to 1.84% in 2008. 

  “Last year we distributed free shares to our shareholders, this hasl not stopped our share  to keep its value,” said Mr. Brigui. In view of figures, the total benefit of CIL share increased by 28% and the nominal dividend by 15%. The payout, however, declined compared to 2007, standing at 46% against 54% in 2007.

News agencies in 2009

Mohammed Brigui still remained unclear on the future of his business. Asked about the expansion of the company outside Tunisia, particularly in neighbouring markets, he indicated that little progress has been made in this respect, and that nothing has been yet decided. Mr. Brigui announced the opening of two new agencies, one in  Nabeul (Cap Bon)  and another in Béja (North West). “Small farmers in need of transportation are very creditworthy customers,” he stressed. CIL main objectives for 2009 come in improving its market share up to 18%, and in maintaining CDL ratio of CDL at its current level. The long-term objectives, as highlighted by the company manager, are to increase the opening credit lines activity up to 175 MD 2012, as well as to achieve a coverage ratio of 100% from 2010.

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