CDB assets top Rs. 20 b mark; 7th largest entity in finance biz industry

Monday, 19 November 2012 00:00 - - {{hitsCtrl.values.hits}}

Citizens Development Business Finance PLC (CDB) surpassed the Rs. 20 billion mark in total assets as per the interim results released to the Colombo Stock Exchange (CSE). With this milestone CDB stands amongst the seven largest institutions coming under the Finance Business Act.

Bottom line results for the six months ending 30 September 2012 and in the second quarter, excluding mark to market value adjustments, reflected a growth of 11.56% and 15.79% respectively in comparison to the corresponding period in the previous financial year.

Profit after Tax for the six months recorded a figure of Rs. 245.5 million. Revenue during the six months grew by 48% to Rs. 1.92 billion whilst net interest income recorded a growth of 37%. Gross Non-performing Loans (NPL) stood at 2.54% (Net NPL was 1.17%).

CDB’s Balance Sheet grew by 21.79% during the six months period ending 30 September 2012 since the last audited Balance Sheet date of 31st March 2012, recording a figure of Rs. 20.15 billion.

The capital position was at a sound Rs. 2.48 billion with capital adequacy ratios both at Tier 1 and 2 maintained at 15.21% and 15.40% respectively. CDB also proactively engaged in the timely re-pricing of assets and liabilities and managing the pressure on interest rate risks and liquidity whilst actively supporting growth of the loan book.

The statutory liquidity ratio at 15.85% is well above the regulatory requirement of 10% and is augmented with 89% of balance sheet assets in regular interest and cash flow generating assets, including the asset backed loan portfolio.

CDB’s Managing Director/CEO Mahesh Nanayakkara stated that CDB has adapted to the changed market profile and is moving towards achieving the set targets for the current financial year.

CDB achieved some key industry milestones during the period under review. CDB became the first Non Bank Financial Institution (NBFI) in Sri Lanka to sign up with VISA International, first NBFI to obtain membership of Sri Lanka Interbank Payment System (SLIPS). CDB also became the first and only NBFI to rollover a core bank integrated software solution backed by Polaris of India and Millennium Information Technology (MIT) a member of London Stock Exchange.

CDB’s distribution network has been further expanded and strengthened with the addition of seven new outlets during this period bringing the total network to 43 outlets across the country.