CDB records steady growth for the financial year 2012/13
Citizens Development Business Finance PLC (CDB) has recorded steady
growth in all aspects of business for the year 2012/13 according to the
unaudited results released to the Colombo Stock Exchange (CSE).
Herschel Gunawardena - Chairman, CDB |
Mahesh Nanayakkara
- MD/CEO, CDB |
As indicated in the explanatory notes to the results published, the
current year figures have been stated in compliance with the LKAS/SLFRS
whilst the comparative figures are based on SLAS in accordance with the
ruling issued by the Institute of Chartered Accountants of Sri Lanka.
Balance sheet has recorded a growth of 48% documenting a figure of
24.49bn. Revenue reflected a growth of 50% recording a figure of 4.31bn.
Net interest income has recorded a growth of 36% at 1.70bn.
Interest income reflected an increase of 60% whilst interest expenses
increased by 83% indicating the adverse impact on margins due to
increases in market interest rates during most part of the period under
review. Profit before tax stood at 669.99mn in comparison to last year
figure of 644.27mn.
Profit after tax of Rs.534.87mn in comparison to Rs.630.43mn in the
corresponding previous period has been in the backdrop of over 9 fold
increase in income tax expenses. Total comprehensive income for the year
stood at 761.32mn
Balance sheet growth has been strongly supported by a loan book
growth of 47% and a deposit base growth of 56% recording figures of
19.45bn and 17.8bn respectively. The net and gross non performing loan
ratios (NPL) stood at 1.27% and 2.32% respectively. Strong liquidity
position reflecting 90% of the balance sheet assets in regular income
and cash flow generating assets coupled with statutory liquidity ratio
of 14.65% at the year end well above the regulatory requirement of 10%.
CDB also enjoyed a strong capital position with capital adequacy
ratio of 14.43% well above the regulatory requirement of 10% and
Shareholders' Fund standing at 3.00bn reflecting a growth of 30%.
Earnings per share recorded a figure of Rs.9.98 whilst net assets
value per share stood at Rs.55.32. The impact of the drop in gold prices
has had minimum impact on CDB as exposure to gold-backed assets stood at
4.3% of balance sheet assets.
Board of Directors has proposed a first and final dividend of Rs.2.75
per share for the approval of the shareholders.
Many prior initiatives came online during the year under review out
of which, key areas were the full live operation of the Core Banking
Solution, the first and only Core Banking Solution implemented by a Non
Bank Financial Institution (NBFI) in Sri Lanka; the launch of the CDB
VISA International Debit card; the provision of ATM accessibility to
clients via the largest ATM network in the country; and the installation
of the first CDB branded ATM at the head office. CDB was also the first
NBFI in Sri Lanka to be on the Sri Lanka Interbank Payment System
(SLIPS).
All these new initiatives have tremendously enhanced client service
standards and client convenience. CDB also opened 8 new outlets during
the year expanding online connected distribution network to 44 by the
year end. During the period under review CDB further consolidated its
positions as a net lender to the rural economy and provider of access to
finance for base of the pyramid markets whilst further strengthening the
deposit mobilizing brand franchise. |