In profit-after-tax for 1H 2011/12:

CDB records 141% growth of Rs 241 m

Citizens Development Business Finance PLC (CDB) continued its strong performance during the first half of FY 2011/12 reflecting robust performance in all aspects of business. According to the results released to the Colombo Stock Exchange (CSE) net profit-after-tax for the period under review has recorded a figure of Rs 241 million reflecting a growth of 141% compared to the corresponding period in the previous year.

The bottom line growth has been a result of the 31% growth of the balance sheet to Rs 13.38 billion from the last audited balance sheet date of March 31, 2011. This expansion in balance sheet has been driven by a similar growth in loan book to Rs 10.31 billion. The deposit base too grew by 26% to Rs 9.4 billion. Net interest income recorded a healthy growth of 51% recording a figure of Rs 552 million. This financial performance has enabled CDB to record an EPS (Earnings per Share) of Rs 5.57 for the six months ended September 30, 2011 and a book value per share of Rs 36.66 as at September 30, 2011.

The quality of assets further improved, recording a NPA (Non-Performing Assets) ratio of 2.75% which is far below the industry average and could be benchmarked among best in the industry.

During the period under review CDB raised Rs 718 million as fresh capital by way of a successfully concluded rights issue substantially strengthening its balance sheet and capital funds position.

CDB’s Director and Chief Financial Officer, Damith Tennakoon said that the Tier I and Tier II capital adequacy ratios as at the balance sheet date of September 30, 2011 record figures of 17.11% and 17.79% respectively.

This reflects a strong capital funds position and could be ranked among the strongest capital adequacy ratios within the industry.

He added that CDB is on track to achieve its strategic objectives set for the current financial year in terms of growth in total assets, revenue and bottom line results.