CDB races to Rs 40.5 Mn pre-tax profit in Q1 2010

* Submits application to CSE. Listing next month

Citizens Development Business Finance Ltd. (CDB) announced its pre-tax profit of Rs 40.5 Mn for the first quarter of 2010, a growth of Rs 27.7 Mn or 217 % over the corresponding period last year. The post-tax profit of CDB for the first quarter ended June 30, 2010 amounted to Rs 34.5 Mn, a growth of Rs. 24.7 Mn or 253%.

CDB’s Chief Executive Officer Mahesh Nanayakkara said that this remarkable performance was achieved through growth in total assets, revenue and improved margins. “Our total asset base grew by 6.7% to reach Rs. 7.1Bn reflecting an increase of Rs. 449 Mn since 31 March 2010, while revenue reached Rs. 416 Mn reflecting a growth of 14 % over the corresponding period. The net interest income grew by 38.4 % to Rs. 162 Mn an increase of Rs. 44.9 Mn over the corresponding period. The total deposit base stood at Rs 5369 Mn, while the overall NPL ratio stood at 6.70% at 30 June 2010. The earnings per share recorded a figure of Rs 0.87 for the quarter”, he added.  

CDB’s current countrywide reach stands at 32 outlets, including two Service Centres in the northern region. It is also in the process of introducing new services such as pawning, foreign currency encashment (authorised money dealership), money remittance, Islamic financing, and savings accounts. CDB recently signed up to provide foreign money remittance services through “Money Gram”. This will help CDB synergise the services it offers to its existing customers and further strengthen the varied financial services provided to the public.     

CDB intends to continue this momentum throughout the period strengthening its financial position in the industry. CDB has made remarkable progress in the northern region through its newly opened outlets in Jaffna, Vavuniya. Parallely the extension of credit to the SME sector through these branches has recorded figures exceeding expectations within a short period of time. CDB’s unique business model blends rural and urban sector in funding and lending. This positions CDB as a net lender to the rural economy enabling it to harness tremendous growth potential both in rural and urban sectors. 

“We have submitted listing application to the Colombo Stock Exchange. Once the approval process is finalized, CDB’s shares are expected to be listed by September. By being a listed institution on the CSE, we intend to achieve multiple objectives of complying with regulatory requirements ahead of stipulated deadlines, broadening our shareholder structure, strengthening the capital raising ability to support future growth strategy and increasing transparency as a public listed institution”, Nanayakkara added.