News
CDB's aircraft leasing business returns to profit
March 31st 2022
China Development Bank Financial Leasing Co's (CDB) aircraft leasing business reported profit before tax of 312.9 million yuan (US$49.3 million) for 2021, returning to the black from a loss before tax of 305.9 million yuan in 2020. Read More » The result was due to "higher gain on disposals, lower aircraft asset and receivable impairments and lower finance expense", the lessor said. Revenue from aircraft leasing declined 7%, to 7.7 billion yuan, CDB said in a regulatory filing to the Stock Exchange of Hong Kong. The aviation industry was "still very much shaped by countermeasures aimed at fighting back renewed waves of infection" two years from the start of the COVID-19 pandemic, it said. "In 2022, strong vaccine rollout together with the lower perceived impact of the Omicron variant are expected to enable a careful lowering of barriers to economic activity with increased domestic and international travel," the lessor said. "Importantly, whenever and wherever restrictions are lifted, travel recovers quickly. This has been observed in the China, Russia, U.S. and European markets." The company, which also has leasing operations in infrastructure, shipping, inclusive finance and an "others" category, said overall net profit rose 20%, to 3.9 billion yuan, in 2021. Revenue was up 20.6% to 21.4 billion yuan.
