CDB PAT exceeds Rs.300 m in Q3

Continued improvement in key performance indicators in the third quarter of 2010 enabled Citizens Development Business Finance Ltd (CDB) to record a noteworthy profit growth for the nine months ended December 31.

The Company's pre-tax profit has gone up by 938 percent to record Rs. 331.7 mn up from Rs. 31.9 mn for the corresponding period last year, while revenue reached Rs.1492m projecting a growth of 35 percent over the corresponding period.

Director/CEO Mahesh Nanayakkara said, "As reflected in key financial figures, CDB's transformation from a small player in 2001 to a prominent dynamic player within the industry by 2010 has been remarkable.

CDB's total asset base has grown from a mere Rs. 276 mn in 2001 to Rs. 9 bn in 2010. Annual revenue has grown from Rs. 25 mn to around Rs. 2 bn. Net assets which recorded a negative figure in 2001 is now Rs. 800 mn. From its loss making status in 2001, CDB has continuously recorded growth in profitability since 2004 and posted net profits surpassing Rs. 300mn for the first nine months of the current financial year.

CDB was recently assigned BBB-/P3 credit rating by RAM Rating (Lanka) Ltd. We are confident in concluding the current financial year with the same momentum in bottom-line results."

CDB's net interest income increased by 79 percent to Rs. 583 mn, an increase of Rs. 257 mn over the preceding year. The overall NPL ratio stood at 4.48 percent at December 31.

The earnings per share recorded a figure of Rs. 7.83. Mark to market value adjustment of investment in listed shares amounting Rs.114 m also contributed significantly to the bottom-line results.

CDB's AGM Business Development, Malcom Weerasuriya said, "Our total deposit base has increased by 39 percent to Rs. 6.7 bn.