CDB posts Rs. 1.7 b PAT - FY 2018/19 | Sunday Observer

CDB posts Rs. 1.7 b PAT - FY 2018/19

Citizens Development Business Finance PLC (CDB) posted a profit of Rs. 2.7 bn before taxes, an increase of 34% as per the interim group financial results for FY 2018/19, released to the CSE. CDB now possesses an asset base of Rs. 91.9 bn, which at Company level is posted at Rs. 89.4 bn.

The Group’s revenue for this FY of Rs. 16.9 bn reflects a growth of 40%, while net interest income showcases an increase of 52%, at Rs. 5.5 Bn. Profit before taxes recorded a figure of Rs. 2.7 Bn reflecting a growth of 34%. Taxes amounting to Rs. 951 Mn reflecting an increase of 58% in comparison to the corresponding previous period include VAT on financial services, debt repayment levy, Nation Building Tax, crop insurance levy & income tax. PAT stands at Rs. 1.8 Bn, which too is a significant increase of 24%, achieved despite a threefold increase in impairment charge set aside for a higher impairment reserve. This is in line with regulatory requirements and accounting standards which CDB does not expect to translate into actual credit losses.

The Company recorded PAT of Rs. 1.7 bn, reflecting a growth of 22%, while Unison Capital Leasing Ltd (UCL) contributed Rs. 98 mn towards the Group’s PAT figure. UCL is CDB’s 90.3% owned specialized leasing subsidiary, and will merge with CDB as per regulatory requirements. A Stock Exchange announcement has already been made in this regard.

The gross NPL ratio recorded at 6.68%, and on net basis indicates at 3.84%. The net NPL ratio excluding revolving repossessed stock is reflected at 1.5%.

CDB’s loan book recorded a modest growth of 18%, detailed at Rs. 71.5 Bn, from which 97% represents an asset backed portfolio. The deposit base as at the year end stood at Rs. 47.2 Bn with a healthy deposits to debt funding combination of 60% to 40%. This composition also helped to record a healthy assets and liabilities maturity status. Shareholders’ Funds recorded a figure of Rs. 8.8 bn, up by 22%, well above the regulatory threshold of Rs. 1.5 bn and the net book value per share stood at Rs. 162.50. Earnings per share (EPS) recorded a figure of Rs. 33.11 for the financial year. Tier I and II capital ratios stood at 7.78% and 11.05%, computed under the revised direction issued by the Central Bank.