COLOMBO: Citizens Development Business Finance PLC (CDB) posted a noteworthy 25 percent growth in profit after tax to notch Rs 701 million as profit, as detailed by interim results released to the Colombo Stock Exchange.
The upward trajectory in performance continues as CDB’s Balance Sheet showcases growth of 13 percemt standing at Rs 38.01 billion, the Loan Book detailing an incline of 14 percent displayed at Rs 29.38 billion and the Deposits & Savings portfolio growing by 10 percent to be notched at Rs 27.07 billion.
Net Assets is recorded at Rs 4.30 billion reflecting a growth of 20 percent. Revenue recorded a growth of 9 percent, commendable given the low interest backdrop experienced, while Net Interest Income also moved upwards by 23 percent to stand at Rs 2.87 billion.
Profit Before VAT on Financial Services, Crop Insurance Levy, Nation Building Tax and Income Tax surpassed a milestone of Rs 1 billionn, showcased at a historic Rs 1.04 billion, reflecting a growth of 33 percent. Despite an increase of 48 percent in Income Tax, the Company showcased an impressive Rs 701 million in Profit After Tax.
Earnings Per Share recorded a figure of Rs 12.92, while Net Asset Value Per Share is detailed at Rs 79.22. Having always been a company that has remained well above par in its compliance culture, Capital Adequacy Ratios for both Tier I and Tier II remained well above the regulatory requirement of 5 percent and 10 percent respectively. Tier I is now at 10.14 percent, while Tier II is at 12.92 percent. Liquidity Ratio is posted at 14.66 percent, compared to the required 10 percent, which once again is above the regulatory directive.
The liquidity position has been further strengthened by CDB’s regular cash flow and income generating assets including the asset backed loan book representing 90 percent of balance sheet assets. Non-Performing Loans (NPL) stood at 5.78 percent and 3.19 percent on gross and net basis respectively.
Having moved into its own corporate headquarters at, Orabipasha Mawatha, Colombo 10, CDB continued to etch its presence as a formidable player in the financial services industry. Aligned with the directives instituted within the Financial Sector Consolidation Programme, CDB acquired 86.26 percent stake in Laugfs Capital Ltd, a specialized leasing Company during the period under review.
With sustainable development being a deep rooted commitment in its entire corporate philosophy, CDB continued its flagship social responsibility programme of empowering young people through education and IT literacy. A contemporary IT laboratory was presented to Kadaya Motte Sinhala Vidyalaya in Puttalam and 58 scholarships to children from low income families who excelled in the Grade 5 Scholarship Examination and GCE Ordinary Level Examination were awarded under the CDB Sisudhiri scholarship scheme. Believing strongly that environmental conservation and preservation remains in the hands of future generations, an environmental awareness programme was conducted for students of seven schools in the Galle district in the Kanneliya Forest under CDB Mihikathata Adaren Programme.
