CDB’s pre-tax profit over Rs. 2.7 bn
View(s):Citizens Development Business Finance PLC (CDB) has reported ‘exceptional financial results’ for FY 2018/19, posting profit before tax of Rs. 2.7 billion, an increase of 34 per cent as per the interim group financial results released to the CSE.
“Within its relatively short journey in Sri Lanka’s financial services industry, CDB has climbed the zenith to rank within the top 5 largest Non-Bank Financial Institutions in the country, possessing an asset base of Rs. 91.9 billion, which at company level was Rs. 89.4 billion. Its’ strong balance sheet assets was made up of 93 per cent of regular cash flow and income generating assets,” the company said in a media release.
Group revenue for the year of Rs. 16.9 billion, reflects a growth of 40 per cent, while net interest income rose by 52 per cent to Rs. 5.5 billion. Taxes amounting to Rs. 951 million reflected an increase of 58 per cent in comparison to the corresponding previous period includes VAT on financial services, debt repayment levy, Nation Building Tax, crop insurance levy and income tax.
Profit after tax (PAT) stood at Rs. 1.8 billion, a significant increase of 24 per cent, achieved despite a threefold increase in impairment charge set aside for a higher impairment reserve.
The company recorded a PAT of Rs. 1.7 billion, reflecting a growth of 22 per cent, while Unison Capital Leasing Ltd (UCL) contributed LKR Rs. 98 million towards the group’s PAT figure.
CDB’s loan book recorded a modest growth of 18 per cent at Rs. 71.5 billion from which 97 per cent represents an asset backed portfolio.
MD/CEO Mahesh Nanayakkara said: “When our tagline of ‘Your Friend’ was launched 15 years ago, CDB was a relatively unknown entity and it best reflected our purpose at the time of being a true partner to the citizens of this country. However, having now become a financial services trailblazer and firmly etched our presence among the Top Five largest NBFIs in the country, the time is apt for us to take the concept of ‘Your Friend’ to the next level, by empowering their aspirations.”