CDB surpasses half billion mark in net profits in FY 2011

Thursday, 2 June 2011 00:00 -     - {{hitsCtrl.values.hits}}

Citizens Development Business Finance PLC (CDB) posted remarkable results for the financial year 2010/11 recording a consolidated net profit after tax of Rs. 529.8 m as per the interim results released to the Colombo Stock Exchange (CSE).

This reflects an over seven fold increase compared with the corresponding annualised figures for the previous 12 months.

Director/CFO Damith Tennakoon commented: “The total asset base recorded a growth of 53% surpassing the Rs. 10 b mark. Revenue figures reflected a growth of 47.6 % or Rs. 719 m amid a falling interest rate scenario offset by a strong loan book growth of 54%.

The key contributors to the bottom-line figure have been from the growth of net interest income figure which recorded a growth of 68% surpassing Rs. 800 m and a mark to market adjustment of Rs. 312 m deriving from investment in shares.”

He further elaborated: “CDB has also recorded an exceptionally healthy figure in its asset quality recording a NPL Ratio of 3.64%. The healthy NPL ratio has been equally contributed by the growth of the loan book as well as decline in absolute value of NPL portfolio.”

During the FY 2010/11 CDB obtained a listing on the Colombo Stock Exchange and is currently listed on the Main Board of the CSE with a market capitalisation figure exceeding Rs. 3.5 b.

The brand CDB has also been ranked among the top 100 Leading Brands in Sri Lanka by the Brand Finance Lanka. Managing Director/Chief Executive Officer Mahesh Nanayakkara said that these results have been made possible due to multiple factors of extremely conducive business environment, precise and focus strategy adopted by the management team, effective board oversight, and the hard and committed work put in by each and every member of CDB team.

“These financial results reflect the unprecedented transformation of CDB from virtually an unknown institution in 2001 with an asset base of a mere Rs. 275 m.

The CDB has today established its footprints within the financial services industry and is well poised to exploit endless opportunities and possibilities presented within the context of post war Sri Lanka.” CDB has set ambitious accelerated growth targets for the 2011-2020 decade and is well positioned to play a leading role with its plans to further expand its 33 strong online connected branch and service centre network including the Northern and Eastern Provinces.

It will further expand its product offering with savings accounts in collaboration with the Commercial Bank of Ceylon to share the country’s biggest ATM network.  CDB also intends to forge ahead to make a substantial contribution to the national economy with its focused business model built on the premise of blending  rural lending and urban funding, positioning CDB as a net lender to the rural economy.