In its most recent financial year ending 31st March, SMBC Aviation Capital, an aircraft leasing company headquartered in Dublin, reported a record 35% growth in profits, accumulating $460 million (€423 million). The firm purchases aircrafts from manufacturers, including Airbus and Boeing, which are then leased globally. In the same financial period, SMBC saw a 41% rise in leasing revenues to $1.9 billion, and pre-tax profit also rose by 35% to $460 million, another record for the company.
This figure excludes a $756 million settlement from Russian insurance business, Insurance Company NSK, last October, regarding 16 aircrafts leased to Russian airline Aeroflot. As a result, the total pre-tax surplus for SMBC was $1.2 billion.
Many of the aircrafts previously leased to Russian airlines remained in Russia, following the suspension of leases due to sanctions subsequent to Russia’s invasion of Ukraine in February 2022. Along with other lessors, the company is now suing multiple insurers, with a case expected to appear in Dublin’s High Court next Tuesday.
SMBC confirmed on Thursday that it had finalised $5 billion in leases in the past year, delivering aircraft to 18 separate customers. Currently, SMBC has 271 aircraft on order from Airbus and Boeing. The CEO, Peter Barrett, highlighted the strong demand for their aircraft in a market of limited supply. He characterised the financial year’s results as solid and stated that SMBC is financially stable and well-aligned for steady returns and future growth. The primary shareholders of the company are Japan’s Sumitomo Mitsui Financial Group and Sumitomo Corporation.