CDB PAT up 39% to Rs. 1.4 b | Sunday Observer

CDB PAT up 39% to Rs. 1.4 b

MD/CEO of CDB Mahesh Nanayakkara
MD/CEO of CDB Mahesh Nanayakkara

The Citizens Development Business Finance PLC (CDB), recorded yet another 2017/18 milestone with after tax profit showing a 39% increase to Rs 1.4 bn, from the last two year’s back-to-back record of topping the Rs 1 bn mark.

CDB’s bottom line growth in 2017/18 was driven by a 37% surge in its top line, an upward trajectory to Rs 11.8 bn, from Rs 8.6 bn in 2016/17. These revenue gains resulted in a 20% increase in net interest income, to Rs 3.5 bn, from Rs 2.9bn in the previous year. The lending portfolio recorded a growth of 38%. Credit growth has been achieved while simultaneously controlling the non-performing credit risk. The Company closed the year by containing the Gross NPL ratio (Net of IIS) to 3.07%, from 3.08% in the previous financial year, and the Net NPL ratio (Net of IIS and provisions) slashed to 0.89%, from 1.05%.

The Company sustained a 30% growth in net operating income, which reached Rs 4.8 bn, from Rs 3.7 bn, with the operating profit margin continuing to improve from 16.27% to 16.63%. The profit before tax also moved up by 37% to Rs 1.7 bn. Despite the rising cost structures in 2017, CDB reduced its cost to income ratio from 58.28% one year ago, to 54.52%, indicating the efficiency gains that have accrued during the year. CDB closed the year by recording a stronger financial base, with total assets beefed up by 40% to Rs 75.5 bn on the back of robust loan portfolio growth to Rs 59.4 Bn, from Rs 43.2 bn, up 38%. Total equity increased by 15%, to Rs 7.2 bn and the Company also grew its deposit base to Rs 44.7 bn, which is a growth of 37% year-on-year. Return on average assets improved to 2.17% from 1.93%.

CDB has proposed a first and final dividend of Rs 5.00 per share, in comparison to last year’s dividend of Rs.3.50 per share, subject to approval of shareholders at the Annual General Meeting.

The earnings per share has moved up to Rs 25.80 from Rs 18.53, whilst the Return on Equity (after tax) has increased to 20.92% from 17.83% and Net Asset Value per share has augmented to Rs 131.71, from Rs 114.93.

While expanding its business activities, the Company has remained above and beyond all regulatory capital adequacy directives, to ensure the financial stability of the Company at all times.