A financial entity that has always worked on the solid ethos of enriching people's lives through enabling access to financial services and thereby, ensuring empowerment, once again proved its mettle by recording impressive financial performance for 2014/15. Citizens Development Business Finance PLC (CDB) posted a noteworthy 25% growth in Profit After Tax to notch Rs 701 M as profit, as detailed by interim results released to the Colombo Stock Exchange.
The upward trajectory in performance continues as CDB's Balance Sheet showcases growth of 13% standing at Rs 38.01 Bn, the Loan Book detailing an incline of 14% displayed at Rs 29.38 Bn and the Deposits & Savings portfolio growing by 10% to be notched at Rs 27.07 Bn. Net Assets is recorded at Rs 4.30 Bn reflecting a growth of 20%. Revenue recorded a growth of 9%, commendable given the low interest backdrop experienced, while Net Interest Income also moved upwards by 23% to stand at Rs 2.87 Bn.
Profit Before VAT on Financial Services, Crop Insurance Levy, Nation Building Tax and Income Tax surpassed a milestone of Rs 1 Bn, showcased at a historic Rs 1.04 Bn, reflecting a growth of 33%.
Despite an increase of 48% in Income Tax, the Company showcased an impressive Rs 701 Mn in Profit After Tax.
Earnings Per Share recorded a figure of Rs 12.92, while Net Asset Value Per Share is detailed at Rs 79.22. Having always been a company that has remained well above par in its compliance culture, Capital Adequacy Ratios for both Tier I and Tier II remained well above the regulatory requirement of 5% and 10% respectively. Tier I is now at 10.14%, while Tier II is at 12.92%. Liquidity Ratio is posted at 14.66%, compared to the required 10%, which once again is above the regulatory directive. The liquidity position has been further strengthened by CDB's regular cash flow and income generating assets including the asset backed loan book representing 90% of balance sheet assets. Non-Performing Loans (NPL) stood at 5.78% and 3.19% on gross and net basis respectively.
Having moved into its own corporate headquarters at No 123, Orabipasha Mawatha, Colombo 10, CDB continued to etch its presence as a formidable player in the financial services industry. Aligned with the directives instituted within the Financial Sector Consolidation Programme, CDB acquired 86.26% stake in Laugfs Capital Ltd, a specialized leasing Company during the period under review.
Continuing to collate accolades and kudos for not only its prowess in the financial services industry, but also for the progressive compliance culture and people oriented strategies it espouses, CDB has been recognized by professional organizations both in Sri Lanka and abroad on various platforms. The Company's annual report won a Platinum Award at the Vision Awards conducted by the League of American Communication Professionals (LACP) making it the best in-house report in the Asia Pacific Region, 42nd among the Top 100 annual reports globally and 17th among the Top 80 in the Asia Pacific Region. In addition, this Annual Report also gained a Silver Award for integrated reporting at the CA Annual Report Awards organized by the Institute of Chartered Accountants of Sri Lanka. Silver Awards were conferred on CDB at the SLITAD People Development Awards 2014 and HRM Awards 2014 and a Bronze Award for Service Brand of the Year at 13th SLIM Brand Excellence Awards.
With sustainable development being a deep rooted commitment in its entire corporate philosophy, CDB continued its flagship social responsibility programme of empowering young people through education and IT literacy. A contemporary IT laboratory was presented to Kadaya Motte Sinhala Vidyalaya in Puttalam and 58 scholarships to children from low income families who excelled in the Grade 5 Scholarship Examination and GCE Ordinary Level Examination were awarded under the CDB Sisudhiri scholarship scheme. Believing strongly that environmental conservation and preservation remains in the hands of future generations, an environmental awareness programme was conducted for students of seven schools in the Galle district in the Kanneliya Forest under CDB Mihikathata Adaren Programme.
CDB's business model continues to evolve and remains strategically crafted to encompass multiple dynamics that compliment each other. With financial inclusion being a priority given its status as a net lender to the rural economy, urban funding and rural lending, adding access to finance for the base of pyramid markets has enabled CDB to play a vital role in rural economic development. However, competing with well established banking leaders in deposit and savings mobilization and lending to focused market segments to augment its value proposition, strongly positions CDB to continue performing consistently. Having constructed a solid foundation of stability and strength, CDB is undoubtedly poised to contribute effectively towards national development.
www.ceylontoday.lk
The upward trajectory in performance continues as CDB's Balance Sheet showcases growth of 13% standing at Rs 38.01 Bn, the Loan Book detailing an incline of 14% displayed at Rs 29.38 Bn and the Deposits & Savings portfolio growing by 10% to be notched at Rs 27.07 Bn. Net Assets is recorded at Rs 4.30 Bn reflecting a growth of 20%. Revenue recorded a growth of 9%, commendable given the low interest backdrop experienced, while Net Interest Income also moved upwards by 23% to stand at Rs 2.87 Bn.
Profit Before VAT on Financial Services, Crop Insurance Levy, Nation Building Tax and Income Tax surpassed a milestone of Rs 1 Bn, showcased at a historic Rs 1.04 Bn, reflecting a growth of 33%.
Despite an increase of 48% in Income Tax, the Company showcased an impressive Rs 701 Mn in Profit After Tax.
Earnings Per Share recorded a figure of Rs 12.92, while Net Asset Value Per Share is detailed at Rs 79.22. Having always been a company that has remained well above par in its compliance culture, Capital Adequacy Ratios for both Tier I and Tier II remained well above the regulatory requirement of 5% and 10% respectively. Tier I is now at 10.14%, while Tier II is at 12.92%. Liquidity Ratio is posted at 14.66%, compared to the required 10%, which once again is above the regulatory directive. The liquidity position has been further strengthened by CDB's regular cash flow and income generating assets including the asset backed loan book representing 90% of balance sheet assets. Non-Performing Loans (NPL) stood at 5.78% and 3.19% on gross and net basis respectively.
Having moved into its own corporate headquarters at No 123, Orabipasha Mawatha, Colombo 10, CDB continued to etch its presence as a formidable player in the financial services industry. Aligned with the directives instituted within the Financial Sector Consolidation Programme, CDB acquired 86.26% stake in Laugfs Capital Ltd, a specialized leasing Company during the period under review.
Continuing to collate accolades and kudos for not only its prowess in the financial services industry, but also for the progressive compliance culture and people oriented strategies it espouses, CDB has been recognized by professional organizations both in Sri Lanka and abroad on various platforms. The Company's annual report won a Platinum Award at the Vision Awards conducted by the League of American Communication Professionals (LACP) making it the best in-house report in the Asia Pacific Region, 42nd among the Top 100 annual reports globally and 17th among the Top 80 in the Asia Pacific Region. In addition, this Annual Report also gained a Silver Award for integrated reporting at the CA Annual Report Awards organized by the Institute of Chartered Accountants of Sri Lanka. Silver Awards were conferred on CDB at the SLITAD People Development Awards 2014 and HRM Awards 2014 and a Bronze Award for Service Brand of the Year at 13th SLIM Brand Excellence Awards.
With sustainable development being a deep rooted commitment in its entire corporate philosophy, CDB continued its flagship social responsibility programme of empowering young people through education and IT literacy. A contemporary IT laboratory was presented to Kadaya Motte Sinhala Vidyalaya in Puttalam and 58 scholarships to children from low income families who excelled in the Grade 5 Scholarship Examination and GCE Ordinary Level Examination were awarded under the CDB Sisudhiri scholarship scheme. Believing strongly that environmental conservation and preservation remains in the hands of future generations, an environmental awareness programme was conducted for students of seven schools in the Galle district in the Kanneliya Forest under CDB Mihikathata Adaren Programme.
CDB's business model continues to evolve and remains strategically crafted to encompass multiple dynamics that compliment each other. With financial inclusion being a priority given its status as a net lender to the rural economy, urban funding and rural lending, adding access to finance for the base of pyramid markets has enabled CDB to play a vital role in rural economic development. However, competing with well established banking leaders in deposit and savings mobilization and lending to focused market segments to augment its value proposition, strongly positions CDB to continue performing consistently. Having constructed a solid foundation of stability and strength, CDB is undoubtedly poised to contribute effectively towards national development.
www.ceylontoday.lk
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