CDB’s1Q after tax profit up 132% to Rs. 80 m

Tuesday, 2 August 2011 00:00 - - {{hitsCtrl.values.hits}}

Citizens Development Business Finance PLC (CDB) recorded impressive financial results for the first quarter of the 2011/12 financial year posting a profit-after-tax figure of Rs. 80 m. This reflects a growth of 132% in comparison with the corresponding previous quarter as per the interim results released to the Colombo Stock Exchange.

Revenue surpassed the rupees half a billion mark during the quarter recording a figure of Rs. 572.57 m reflecting a growth of 37% compared to the corresponding previous quarter. Net interest income grew by 60% on the same basis recording a figure of Rs. 259.61 m. During the quarter, CDB’s asset base grew 9.16% from the previous financial year ending 31 March 2011, thus surpassing the Rs.11 b mark.

The quality of the loan portfolio reflected in NPL stood at 3.19% and has been benchmarked as among best in the industry. The results posted for the first quarter of 2011/12 are seen as a continuation of the exceptional financial results posted during the previous financial year.

CDB has announced a Rights Issue consisting of both voting and non-voting shares to raise Rs. 718 m with the multiple objectives of partly funding its fast growing loan and lease portfolios while strengthening CDB’s Balance sheet in compliance with regulatory requirements.

The voting shares are priced at Rs. 70/- while the non-voting shares are priced at Rs. 45. CDB’s shares are currently traded at a historical PE (Price Earnings) of below six times. The trading period of the Rights will be from 5 to 12 August 2011.

CDB intends to leverage on the capital raised through the Rights Issue to aggressively expand its 34 multi-layered online connected distribution network by adding a further 14 branches. With the enormous opportunities presented in post war Sri Lanka and the inherent strengths of the organisation, CDB expects to continue its growth trajectory.