BTK Leasing Publishes 2024 Financial Statements
BTK Leasing has released its financial statements for the 2024 fiscal year, reporting a net profit of 5,507 MTND, a 4.1% increase compared to 2023. Despite a higher corporate tax burden, the company was able to improve its profitability.
Leasing Activity Boosted by Rising Interest Rates
The company's leasing activity benefited from the rising interest rate environment, allowing it to apply high exit rates. This is reflected in revenue from leasing operations, which increased by 19.3% year-over-year to 40,300 MTND. Gross financing granted totaled 369,215 MTND, while net leasing receivables stood at 337,242 MTND.
Rising Interest Rates Also Bring Higher Financial Charges
The increase in interest rates also led to higher financial charges, which rose by 23.5% to 23,552 MTND. Borrowing resources increased from 231,670 MTND in 2023 to 299,397 MTND the following year. The net profit before tax (PNL) reached 19,199 MTND, a 16.7% year-over-year increase.
Risk Management: Improved Portfolio Quality
On the risk front, the quality of the portfolio improved. Although the risk cost evolved to 2,755 MTND, the rate of classified claims continued its downward trend, reaching 11.63% (12.66% in 2023). Classified claims totaled 46,729 MTND, including 32,634 MTND in class 4. The coverage of these risks by provisions stood at 59.2%.
Tax Audit and Settlement
BTK Leasing underwent an in-depth tax audit covering various taxes and duties for the period from 2018 to 2021. The taxes claimed by the tax authorities amount to 6,331 MTND, including 4,319 MTND in principal and 2,011 MTND in late payment penalties. Thanks to the 2024 amnesty, the company was able to negotiate a 5-year payment schedule and benefited from a 100% waiver of late payment penalties and a 50% reduction in withholding tax.
No Dividend Distribution, Focus on Strengthening Fundamentals
Once again, the Board of Directors has decided not to distribute dividends and to allocate the available profit (3,026 MTND) to retained earnings. The priority is to strengthen the company's fundamentals, and this is a good choice.
