CDB’s PAT at Rs. 398 m, up by 28%

Continuing its growth momentum into the 3rd quarter of FY2011/12, Citizens Development Business Finance PLC (CDB) recorded exceptional all-round financial performance. The nine months profit-after-tax figure of Rs. 398 m as per the interim results released to the Colombo Stock Exchange (CSE) reflects a growth of 28% compared to the corresponding previous period.

CDB’s newly refurbished Gampaha branch

The third quarter profit reflects a decline of 25% compared to the corresponding previous quarter. This was mainly due to other incomes recording a mark to market value adjustment of Rs. 114.97 million in the corresponding previous quarter as against the current quarter recording a negative figure of Rs. 15.7 million.

However, the core business profit for the third quarter has recorded a growth of 80%. On the same basis after- tax-profit for the 09 months from the core business reflects a growth of 98%. The top-line grew by 36% during the 09 months period surpassing the Rs. two billion mark. Net interest income grew by 52% recording a figure of Rs. 886 million. These strong bottom-line results have been made possible by a steady growth of 45% to Rs.14.8 billion in the balance sheet from the last audited balance sheet date of March 31, 2011.

Continued improvement in the quality of the loan portfolio has resulted in recording a gross NPL of 2.15% and a net NPL of 0.47% being among the best in the industry.

CDB’s net asset value per ordinary share stood at Rs. 39.68 and earnings per share for the nine months ending December 31, 2011 recorded a figure of Rs. 8.62.

“The nine months results have been particularly encouraging and we are confident of concluding the financial year 2011/12 as yet another year with exceptional performance”, said CDB’s Managing Director / CEO Mahesh Nanayakkara. “Our all-round exceptional financial performance amply demonstrates the strength and dynamism of our sustainable growth-enabled business model based on rural lending and urban funding which also enable us to position ourselves as a net lender to the rural economy’, he added.

Elaborating on the business model, he said that it was a business model, proven and tested in good times as well as in challenging times which also provides ample flexibility and space to manoeuvre under volatile market conditions to achieve business growth targets, margins, and bottom-line results.