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CDB Grows 253%

Aug 7, 2010 3:04:30 PM - thesundayleader.lk

Mahesh Nanayakkara

Citizens Development Business Finance Ltd. (CDB) announced a pre-tax profit of Rs 40.5 mn. for first quarter (1Q) 2010, a Rs 27.7 mn. or 217% year on year (YoY) growth.
CDB’s post-tax profit for 1Q ended June 30, 2010 amounted to Rs 34.5 mn., a Rs. 24.7 mn. or 253% growth.
CDB Chief Executive Officer Mahesh Nanayakkara said that this 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 a Rs. 449 mn. increase since March 31, 2010; while revenue reached Rs. 416 mn. reflecting a 14% YoY growth.
Net interest income grew by 38.4 % to Rs. 162 mn., a Rs. 44.9 mn. YoY increase.
Total deposit base stood at Rs. 5.4 bn., while overall NPL ratio stood at 6.70% at June 30, 2010. Earnings per share recorded a Rs. 0.87 figure for the Q,” he said.
CDB’s current countrywide reach stands at 32 outlets, including two service centres in Jaffna and Vavuniya. Credit extension to the SME sector through these branches has recorded figures exceeding
expectations within a short period of time.
It is also in the process of introducing new services such as pawning, foreign currency encashment (authorised money dealership), money remittance, Islamic finance and savings accounts.  CDB recently signed up to provide foreign 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’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 a listing application to the Colombo Stock Exchange. Once the approval process is finalized, CDB’s shares are expected to be  listed by next month. By being a listed institution, 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 said.