CDB records Rs.1519 Mn Revenue in 2009/10 with Rs. 64 Mn net profit after tax
June 8, 2010 06:16 pm
* Stock Exchange listing on the cards
Citizens Development Business Finance Ltd’s (CDB) pre-tax profit (annualised) for the Financial Year ending March 2010 crossed the Rs. 71 Mn mark, while net profit after tax (annualised) crossed the Rs. 64 Mn mark, as per the audited accounts for the financial year ending 31 March 2010. Though these figures reflect marginal declines of 0.34% and 2.5%, the CDB considers that these figures reflect a satisfactory performance given the context it operated in.
Revenue (annualised) recorded a figure of Rs. 1519 Mn, while net interest income increased by 19.7% or Rs. 404 Mn to Rs. 483 Mn (annualised) in 2009/2010. CDB’s total Asset Base stands at Rs. 6676 Mn as at 31 March 2010. CDB Net Assets recorded over
Rs. 513 Mn as at 31 March 2010.
All business units contributed significantly and substantially towards this performance. At the end of the review period, CDB’s NPL ratio stood at 7.52%, well below the industry average.
CDB’s Director/CEO Mahesh Nanayakkara said, “Our results are based on intrinsic fundamentals such as our customer-centric business approach, performance-driven culture, an organic integration of our people with our business, and, our commitment to enterprise governance.”
Taking advantage of the synergies created by the confidence
and renewed vigour after emerging as a winning team that faced the most
challenging year in its history last year, CDB availed itself of the unprecedented
opportunities in post-war
CDB is currently in the process of repositioning its branch
network with upgraded facilities to serve clients better. It has also expanded
its outreach to the Northern region with fully-fledged service centres in
“Our unique, inclusive business model embedded with a rural lending and urban funding formula manifests our aspiration of being a net lender to the rural economy. This business model is also geared towards providing bottom of the pyramid market access to lending products and an opportunity for clients in this segment to deal with a formal financial institution. This will, in turn, educate them and create awareness of the reciprocal benefits of building a positive business relationship with a formal financial institution. This strategy adopted by CDB has produced consistent financial results despite changing economic cycles and unparalleled challenges revealing it to be a time-tested and recession-proof business strategy”, Nanayakkara added.
CDB’s AGM - Operations and HR, Roshan Abeygoonewardena said, “Our approach of integrating our people into our business is a key component that has already given us great results. It has, in fact, been a decisive factor in CDB overcoming all hurdles. During the year our HR team introduced a framework branded “HR Cap” (Competencies, Aspirations, Performance) with the setting up of a well equipped training auditorium. This was a step towards enhancing our own training programmes, profiting from joint training with professional bodies as well as initiating a staff career plan feedback scheme.”
Included in its plans for the near future is CDB’s aim to list its shares on the Colombo Stock Exchange (CSE). By being a listed institution on the Colombo Stock Exchange, CDB intends to achieve the multiple objectives of complying with regulatory requirements ahead of stipulated deadlines, broadening its shareholder structure, strengthening its capital raising ability to support future growth strategy and increasing its transparency as a public listed institution.
Photo caption: CDB’s Director/CEO Mahesh Nanayakkara
