Citizens Development Business Finance PLC (CDB) recorded impressive financial results for the first quarter of the 2011/12 financial year posting a profit-after-tax figure of Rs 80 million. This reflects a growth of 132 percent in comparison with the corresponding previous quarter as per the interim results released to the Colombo Stock Exchange.
Revenue surpassed the rupees half a billion mark during the quarter recording a figure of Rs 572.57 million reflecting a growth of 37 percent compared to the corresponding previous quarter.
Net interest income grew by 60 percent on the same basis recording a figure of Rs 259.61 million. During the quarter, CDB’s asset base grew 9.16 percent from the previous financial year ending March 31, 2011, surpassing the Rs 11 billion mark.
The quality of the loan portfolio reflected in NPL stood at 3.19 percent and has been benchmarked as among best in the industry. The results posted for the first quarter of 2011/12 are seen as a continuation of the exceptional financial results posted during the previous financial year.
CDB has announced a Rights Issue consisting of both voting and non-voting shares to raise Rs 718 million with the multiple objectives of partly funding 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 August 12, 2011.
CDB intends to leverage on the capital raised through the Rights Issue to aggressively expand its 34 multi-layered online connected distribution network by adding a further 14 branches.
source - www.dailynews.lk
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