The Citizens Development Business Finance PLC (CDB) reported exceptional financial results for FY 2015/16, with a profit after tax of over Rs 1 billion.
The entity’s impressive track record in sustainable financial performance has built a robust and resilient foundation that has enabled the Company to be fearless and holistic in its approach.
This was well evidenced in the recognition it received from the Ceylon Chamber of Commerce which placed CDB among the Ten Best Corporate Citizens of 2015 and the winner in the Below Rs 15 bn revenue category, two feats that were added to the ever increasing kudos that CDB continues to collate. CDB Managing Director and CEO Mahesh Nanayakkara said CDB has affirmed its strong presence even more with this year’s results. “CDB’s reputation as a financial entity that has continued to be consistent in its financial performance is well demonstrated in the impressive milestones we notched this year. The Balance Sheet surpassed the Rs 50 bn mark, detailed at Rs 50.6 bn and reflecting a growth of 33%, positioning CDB among the largest NBFIs in the country.”
He said profit after tax too showcased a remarkable upward trajectory, positioning itself beyond the Rs 1 bn milestone, which is a growth of 43%. Revenue is recorded at Rs 7.5 bn, inclining 8%.
Net interest income is recorded at Rs 3 bn, which is an increase of 7%, while impairment charges and disposal deficits are Rs 399 mn, reflecting a reduction of Rs 281 mn or by 41%. The Loan Book recorded a growth of 31% standing at Rs 38.5 bn The narrowing of net interest margins from 8.0% to 6.9% in comparison to last year was a result of the conscious strategy adopted by CDB to change the composition of the lending mix.
The direct positive outcome of this strategy has been that both gross and net Non-Performing Loan ratios reduced from 5.8% to 3.6% and 3.2% to 1.6% respectively, which resulted in the reduction of impairment charges. The deposit base grew by 14% to be posted at Rs30.8Bn, while debt funding, which became the main source of funding, heralded a growth of Rs 7.5 bn, an increase of an impressive 156%. Cost to income ratio stood at 57.58%
Total equity surpassed the Rs 5 bn mark, while Tier I and Tier II in the Capital Adequacy Ratios stood at11.72% and 11.74% respectively, well above regulatory requirements.
The liquidity ratio at 20.04%too was above the regulatory requirement level. 91% of assets are in interest bearing regular cash flow generating investments including the asset backed loan book consisting of 76% of assets. Profit before VAT on Financial Services, NBT and the crop levy is notched at Rs1.43 bn, stipulating an incline of 36%, where profit before income tax stands at Rs 1.25 bn. This an increase of 32%. Return on Equity recorded 21.78%, while Earnings Per Share stands at Rs 18.51 The Net Book Value per share is now Rs 93.03 as per the balance sheet date.
CDB’s specialized leasing subsidiary, changed its name to Unisons Capital Leasing Ltd (UCL) during the year. CDB fully subscribed to the rights issue announced by UCL during the FY 2015/16 investing Rs 82.1mn at Rs 10.50 per share, which increased CDB’s stake in UCL to 90.38%.
For this financial year, UCL contributed Rs 15.6 mn towards the Group’s consolidated results. Judging by the positive trends already experienced, we expect UCL to make a significant contribution to the Group’s bottom line in the coming years.
The entity’s impressive track record in sustainable financial performance has built a robust and resilient foundation that has enabled the Company to be fearless and holistic in its approach.
This was well evidenced in the recognition it received from the Ceylon Chamber of Commerce which placed CDB among the Ten Best Corporate Citizens of 2015 and the winner in the Below Rs 15 bn revenue category, two feats that were added to the ever increasing kudos that CDB continues to collate. CDB Managing Director and CEO Mahesh Nanayakkara said CDB has affirmed its strong presence even more with this year’s results. “CDB’s reputation as a financial entity that has continued to be consistent in its financial performance is well demonstrated in the impressive milestones we notched this year. The Balance Sheet surpassed the Rs 50 bn mark, detailed at Rs 50.6 bn and reflecting a growth of 33%, positioning CDB among the largest NBFIs in the country.”
He said profit after tax too showcased a remarkable upward trajectory, positioning itself beyond the Rs 1 bn milestone, which is a growth of 43%. Revenue is recorded at Rs 7.5 bn, inclining 8%.
Net interest income is recorded at Rs 3 bn, which is an increase of 7%, while impairment charges and disposal deficits are Rs 399 mn, reflecting a reduction of Rs 281 mn or by 41%. The Loan Book recorded a growth of 31% standing at Rs 38.5 bn The narrowing of net interest margins from 8.0% to 6.9% in comparison to last year was a result of the conscious strategy adopted by CDB to change the composition of the lending mix.
The direct positive outcome of this strategy has been that both gross and net Non-Performing Loan ratios reduced from 5.8% to 3.6% and 3.2% to 1.6% respectively, which resulted in the reduction of impairment charges. The deposit base grew by 14% to be posted at Rs30.8Bn, while debt funding, which became the main source of funding, heralded a growth of Rs 7.5 bn, an increase of an impressive 156%. Cost to income ratio stood at 57.58%
Total equity surpassed the Rs 5 bn mark, while Tier I and Tier II in the Capital Adequacy Ratios stood at11.72% and 11.74% respectively, well above regulatory requirements.
The liquidity ratio at 20.04%too was above the regulatory requirement level. 91% of assets are in interest bearing regular cash flow generating investments including the asset backed loan book consisting of 76% of assets. Profit before VAT on Financial Services, NBT and the crop levy is notched at Rs1.43 bn, stipulating an incline of 36%, where profit before income tax stands at Rs 1.25 bn. This an increase of 32%. Return on Equity recorded 21.78%, while Earnings Per Share stands at Rs 18.51 The Net Book Value per share is now Rs 93.03 as per the balance sheet date.
CDB’s specialized leasing subsidiary, changed its name to Unisons Capital Leasing Ltd (UCL) during the year. CDB fully subscribed to the rights issue announced by UCL during the FY 2015/16 investing Rs 82.1mn at Rs 10.50 per share, which increased CDB’s stake in UCL to 90.38%.
For this financial year, UCL contributed Rs 15.6 mn towards the Group’s consolidated results. Judging by the positive trends already experienced, we expect UCL to make a significant contribution to the Group’s bottom line in the coming years.
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