Continued improvements in key performance indicators in the third quarter of 2010 has enabled Citizens Development Business Finance Ltd (CDB) to record a noteworthy profit growth for the nine months ended 31 December 2010.
The Company’s pre-tax profit has gone up by 938% to record Rs. 331.7 Mn up from Rs. 31.9 Mn for the corresponding period last year, while revenue reached Rs. 1492 Mn projecting a growth of 35% over the corresponding period.
Commenting on the transformation of the CDB, Director/CEO Mahesh Nanayakkara said, “The first decade of the 21st century has witnessed remarkable transformation, establishing CDB as a formidable leading player within the financial services industry. As reflected in all key financial figures, CDB’s transformation from a small player in 2001 to a prominent dynamic player within the industry by 2010 has been remarkable. From 2001 to 2010, CDB’s total asset base has grown from mere Rs. 276Mn to Rs. 9Bn. The annual revenue has grown from mere Rs. 25Mn to around Rs.2 Bn. Net assets which recorded a negative figure in 2001 have been converted to a positive of Rs. 800Mn. From the loss making status in 2001, CDB has continuously recorded growth in profitability since 2004 and posted a net profit figure surpassing Rs.300Mn for the first nine months of the current financial year (2010/2011). CDB was recently assigned BBB-/P3 credit rating by RAM Rating(Lanka) Ltd. We are confident in concluding the current financial year (2010/2011) with the same momentum in bottom-line results”.
Among the principal contributors to the net profit after tax figure of Rs. 310.71 Mn recorded during the period under review, was an increase in net interest income by 79% to Rs. 583 Mn, an increase of Rs. 257 Mn over the preceding year. While the overall NPL ratio stood at 4.48% at 31 December 2010. The earnings per share recorded a figure of Rs. 7.83 for the period under review. Mark to market value adjustment of investment in listed shares amounting Rs.114 Mn also has contributed significantly to the bottom-line results.
Last edited by Quibit on Sun Jan 30, 2011 6:18 pm; edited 1 time in total (Reason for editing : format condensed)