CDB grows PAT an impressive 25% to Rs. 701 m in FY 2014/15

Monday, 1 June 2015 00:00 - - {{hitsCtrl.values.hits}}

Citizens Development Business Finance PLC (CDB) once again proved its mettle by recording impressive financial performance for 2014/15. CDB posted a noteworthy 25% growth in profit after tax to notch Rs. 701 m 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% standing at Rs. 38.01 b, the Loan Book detailing an incline of 14% displayed at Rs. 29.38 b and the Deposits and Savings portfolio growing by 10% to be notched at Rs. 27.07 b.

Net assets is recorded at Rs. 4.30 b, reflecting a growth of 20%. Revenue recorded a growth of 9%, commendable given the low interest backdrop experienced, while Net Interest Income also moved upwards by 23% to stand at Rs. 2.87 b.

Profit before VAT on Financial Services, Crop Insurance Levy, Nation Building Tax and Income Tax surpassed a milestone of Rs. 1 b, showcased at a historic Rs. 1.04 b, reflecting a growth of 33%. Despite an increase of 48% in Income Tax, the company showcased an impressive Rs. 701 m 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% and 10% respectively. Tier I is now at 10.14%, while Tier II is at 12.92%.

Liquidity Ratio is posted at 14.66%, compared to the required 10%, 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% of balance sheet assets. Non-Performing Loans (NPL) stood at 5.78% and 3.19% on gross and net basis respectively.

Having moved into its own corporate headquarters at No. 123, 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 Program, CDB acquired an 86.26% stake in Laugfs Capital Ltd., a specialised leasing company, during the period under review.

CDB has also been recognised by professional organisations both in Sri Lanka and abroad on various platforms. The company’s Annual Report won a Platinum Award at the Vision Awards conducted by the League of American Communication Professionals (LACP) making it the best in-house report in the Asia Pacific Region, 42nd among the Top 100 annual reports globally and 17th among the Top 80 in the Asia Pacific Region.

In addition, this Annual Report also gained a Silver award for Integrated Reporting at the CA Annual Report Awards organised by the Institute of Chartered Accountants of Sri Lanka. Silver awards were conferred on CDB at the SLITAD People Development Awards 2014 and HRM Awards 2014 and a Bronze Award for Service Brand of the Year at 13th SLIM Brand Excellence Awards.