Citizens Development Business Finance PLC (CDB) crossed the Rs 1bn milestone in After Tax Profit for the second consecutive year in the FY 2016/17, despite an increasingly competitive and volatile operating environment.
Demonstrating strong and resilient results across the board, the Balance Sheet for year end reflected a growth of 7%, recording Rs. 53.9 bn. CDB’s revenue detailed at Rs. 8.6 bn reflects a growth of 15%, while interest income grew by 14% to Rs 7,587 mn. Interest expenses increased by 31% to Rs 4,699 mn.
This resulted in a decline of 6% in net interest income amidst a rising interest rate scenario, which saw a posting of Rs 2,888 mn. Net Operating income moved upwards to Rs 3.7 bn, a growth of 5% mainly attributed to a reduction of Rs 173 mn in impairment charges and other credit losses.
The Loan Book grew by 12% to stand at Rs 43.2 bn, while the deposit portfolio reflects a growth of 6%, reaching to Rs 32.6 bn. Growth in lending was supported by growth in the share of non-auto lending, which represented 7% of total lending compared to 5% last year. During the period under review, the gross NPL ratio further improved to 3.08%, compared to last year’s 3.62%. Similarly Net NPL improved to 1.05% from 1.56%.
Capital Funds increased by 24% notching Rs 6.2 bn, while ROE is detailed at 17.83%, ROA 1.93%, EPS at Rs. 18.53 and Net Asset Value per Share at Rs. 115.
Capital adequacy ratios for Tier I and Tier II stands at 12.32% and 14.12% respectively, compared to the regulatory required level of 5% and 10%. The liquidity ratio too echoed similar trends of being above regulatory requirements, displayed at 13.03%.
CDB’s subsidiary too proved its mettle this year. Unisons Capital Leasing Ltd (UCL), CDB’s 90.38% owned specialized leasing subsidiary acquired in October 2014, performed impressively in the 2016/17 financial year. UCL reported Rs 20 mn in Profit After Tax and expanded its balance sheet to an impressive Rs 693 mn, from Rs 370 mn last year.
CDB has embarked on an ambitious technology drive to maximize market opportunities with the planned launch of CDBiNet in the 1Q of 2017/18.
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