CDB posts Rs 530m profit

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

Mahesh Nanayakkara

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

Director and CFO Damith Tennakoon commented said, the total asset base recorded a growth of 53 percent surpassing the Rs 10 billion mark. Revenue figures reflected a growth of 47.6 percent or Rs 719 million amid a falling interest rate scenario offset by a strong loan book growth of 54 percent.

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

“CDB has also recorded an exceptionally healthy figure in its asset quality recording a NPL Ratio of 3.64 percent. 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.

Managing Director and Chief Executive Officer Mahesh Nanayakkara said 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.