CDB ups 1H after tax profit by 141% to Rs. 241 m

Citizens Development Business Finance PLC (CDB) is continuing its strong performance during the first half of FY 2011/12, reflecting robust performance in all aspects of business.

According to the results released to the Colombo Stock Exchange (CSE), net profit-after-tax for the period under review has recorded a figure of Rs. 241 million, reflecting a growth of 141% compared to the corresponding period in the previous year.

The bottom line growth has been a result of the 31% growth of the balance sheet to Rs. 13.38 billion from the last audited balance sheet date of 31 March 2011. This expansion in balance sheet has been driven by a similar growth in loan book to Rs. 10.31 billion. The deposit base too grew by 26% to Rs. 9.4 billion.

Net interest income recorded a healthy growth of 51% recording a figure of Rs. 552 million. This financial performance has enabled CDB to record an EPS (Earnings per Share) of Rs. 5.57 for the six months ended 30 September 2011 and a book value per share of Rs. 36.66 as at 30 September 2011.

The quality of assets further improved, recording a NPA (Non-Performing Assets) ratio of 2.75% which is far below the industry average and could be benchmarked among best in the industry.

During the period under review CDB raised Rs. 718 million as fresh capital by way of a successfully concluded rights issue substantially strengthening its balance sheet and capital funds position.

CDB’s Director/Chief Financial Officer Damith Tennakoon said that the Tier I and Tier II capital adequacy ratios as at the balance sheet date of 30 September 2011 record figures of 17.11%, 17.79% respectively. This reflects a strong capital funds position and could be ranked among the strongest capital adequacy ratios within the industry.

He added that CDB was on track to achieve its strategic objectives set for the current financial year in terms of growth in total assets, revenue and bottom line results.

With its strong online connected distribution network of 34 outlets across the country including the north and east, planned distribution network expansion, and the intended ATM accessibility to its clients through the Commercial Bank ATM network, CDB is in a strong position to harness tremendous opportunities available to the financial services sector both in the rural and urban sectors.