CDB surpasses Rs 300 m net profit

Continued improvements in key performance indicators in the third quarter of 2010 enabled Citizens Development Business Finance Ltd (CDB) to record a noteworthy profit growth for the nine months ended December 31, 2010.

The company's pre-tax profit has gone up by 938 percent to record Rs. 331.7 million up from Rs 31.9 million for the corresponding period last year, while revenue reached Rs 1492 million projecting a growth of 35 percent over the corresponding period.

CDB Director and CEO Mahesh Nanayakkara said, "From 2001 to 2010, CDB's total asset base has grown from mere Rs 276 million to Rs 9 billion.

The annual revenue has grown from mere Rs 25 million to around Rs 2 billion. Net assets which recorded a negative figure in 2001 have been converted to a positive of Rs 800 million.

From the loss making status in 2001, CDB has continuously recorded growth in profitability since 2004 and posted a net profit figure surpassing Rs 300 million for the first nine months of the current financial year (2010 and 2011).We are confident in concluding the current financial year (2010 and 2011) with the same momentum in bottom-line results".

Among the principal contributors to the net profit after tax figure of Rs 310.71 million recorded during the period under review, was an increase in net interest income by 79 percent to Rs 583 million, an increase of Rs 257 million over the preceding year. While the overall NPL ratio stood at 4.48 percent at December 31, 2010.