Citizens Development Business Finance PLC (CDB) recorded a 132 percent growth in profits for the first quarter of the 2011/12 financial year with after tax profits reaching Rs. 80 million interim results released to the Colombo Stock Exchange showed.
Revenue surpassed the rupees half a billion mark during the quarter recording a figure of Rs. 572.57 million, up 37 percent from a year ago.
Net interest income grew by 60 percent to Rs. 259.61 million.
During the quarter, CDB’s asset base grew 9.16 percent from the previous financial year ending 31 March 2011, surpassing the Rs.11 billion mark.
The quality of the loan portfolio reflected in NPL stood at 3.19 percent.
CDB has also 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 historical PE (Price Earnings) of below 6 times. The trading period of the rights will be from 05 August 2011 to 12 August 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. With the enormous opportunities presented in post war Sri Lanka and the inherent strengths of the organization, CDB expects to continue its growth trajectory, the company said in a statement issued yesterday (1).
source - www.island.lk
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