CDB profits up 132% in Q1

Citizens Development Business Finance PLC (CDB) recorded for the first quarter of the 2011/12 financial year post tax profit of Rs 80m, a growth of 132percent compared to the corresponding quarter.

Revenue during the quarter was Rs 572.57m, a growth of 37percent compared to the corresponding quarter. Net interest income grew by 60percent on the same basis recording

Rs. 259.61m. During the quarter, CDB's asset base grew 9.16percent from the previous financial year ending March 31, 2011, surpassing the Rs.11b mark.

The quality of the loan portfolio reflected in NPL stood at 3.19percent and has been benchmarked as

among the best in the industry.

CDB has announced a Rights Issue consisting of both voting and non-voting shares to raise Rs.718m to partly fund its fast growing loan and lease portfolios while strengthening CDB's balance sheet in compliance with regulatory requirements.

The voting shares are priced at Rs. 70 while the non-voting shares are priced at Rs. 45.

CDB's shares are currently traded at a historic PE (Price Earnings) of below six times. The trading period of the Rights will be from August 5 to 12.