Thursday, 21 June 2018

CDB Profit after tax up 39% to 1.4 Bn

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

CDB’s aggressive bottom line growth in 2017/18 was driven by a 37% surge in its top line, an upward trajectory to Rs 11.8 billion, from Rs 8.6 Bn in 2016/17. These revenue gains resulted in a 20% increase in net interest income, to Rs 3.5 billion, from Rs 2.9 billion in the previous year.

This is on the back of a remarkable lending portfolio growth of 38%. Demonstrating the quality of portfolio management, 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 billion, from Rs 3.7 billion, 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 experienced during 2017, CDB has successfully reduced its cost to income ratio from 58.28% one year ago, to 54.52%.

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%.

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.

The CDB’s 90.38% owned specialized leasing subsidiary UCL has performed well during the year under review, growing its balance sheet to Rs. 1.7 Bn from Rs. 693 Mn.
www.dailynews.lk

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