PAT Rs. 630 Mn for FY2011/12
Continuing the sustained growth momentum showcased by Citizens Development Business Finance PLC (CDB) in the past, the Company recorded exceptional all-round financial performance during FY2011/12 as per the interim results released to the Colombo Stock Exchange (CSE). Profit-after-tax is posted at an exemplary Rs. 630 Mn, reflecting a growth of 19% compared to the corresponding financial year. Core business bottom-line results for the year and Q4 excluding mark to market gains showed remarkable growth figures of 158% and 540% respectively. The top line grew by 29% surpassing the Rs. 2.8 Bn mark. CDB's net interest income gained 53% to Rs.1,248 Mn during the period under review. Earnings per share (EPS) are recorded at an impressive Rs.13.10.
The Balance Sheet saw growth of 61.88%, primarily fueled by a loan book growth of 68.66% to reach Rs.13.2 Bn, while the deposit portfolio increased by 52.08% to stand at Rs. 11.39 Bn. Total assets are detailed at Rs. 16.5 Bn as at the year end. The year end Capital Adequacy Ratio now stands well above the required regulatory requirement of 10%, showcased at 17.03%, while capital funds recorded strength, at a comfortable level of Rs. 2.29 Bn. Asset quality remained strong, recording a gross NPL ratio of 1.67% and a net NPL ratio of 0.37%, far outperforming industry average and thus, being benchmarked among best in the industry. Statutory liquidity ratio at 13.30% is well above the regulatory requirement of 10% and augmented with 89% of balance sheet assets in regular interest and cash flow generating assets including the asset backed loan portfolio. CDB enjoys an impressively strong liquidity position. The net asset value per share is at Rs. 44.15 as at the year end.
The CDB Board of Directors has proposed a first and final dividend of Rs. 2.50/= per share, comprising cash and script, subject to required approval by the shareholders and the CSE.
CDB Managing Director / Chief Executive Officer Mahesh Nanayakkara said that the results vindicate the business model adopted by CDB, demonstrating the tremendous potential in rural and urban sectors and the Company's ability to respond to changing and emerging market conditions. “Our strong branch network now standing with 40 online connected outlets is continuing to expand strategically. Our product portfolio and technology platform have remained apace with this expansion and upgrading drive, catering to the diverse and burgeoning needs of our clientele. Last year, CDB was adjudged the winner in the Specialised Banking and Financial Services Sector category at the National Business Excellence Awards (NBEA) 2011 organised by the National Chamber of Commerce and recognised at the Annual Report Awards competition of the Institute of Chartered Accountants with a bronze award in the Finance Company category”, Nanayakkara said.
He added that CDB’s credit rating also has been upgraded to BBB/P2 by RAM Ratings during the year, while the CDB brand is ranked among the fifty Most Valuable Listed Brands in the country by Brand Finance, positioned among the top five brands in non-banking financial institutions. “This assuredly places us in a position of sound financial stability, showcasing that our fundamentals are strong, while governance, ethics and principles are uncompromising. The impressive financial results this year simply underscore that we are on the right path, have instituted apt strategies and possess the right systems and processes to take the Company forward”, he concluded.
Caption for PHOTOS:
1. CDB Managing Director/Chief Executive Officer Mahesh Nanayakkara
2. CDB Chairman Herschel Gunawardena