Citizens Development Business Finance PLC (CDB) crossed the Rs. 1 billion milestone in after tax profit for the second consecutive year in the FY 2016/17, despite an increasingly competitive and volatile operating environment.
The Balance Sheet for year end reflected a growth of 7%, recording Rs. 53.9 billion.
CDB’s revenue detailed at Rs. 8.6 bn reflects a growth of 15%, while interest income grew by 14% to Rs. 7,587 million.
Interest expenses increased by 31% to Rs. 4,699 million. 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 million.
Net Operating income moved upwards to Rs. 3.7 billion, a growth of 5% mainly attributed to a reduction of Rs. 173 million in impairment charges and other credit losses.
The Loan Book grew by 12% to stand at Rs. 43.2 billion, while the deposit portfolio reflects a growth of 6%, reaching to Rs. 32.6 billion.
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 billion, 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 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 million in Profit After Tax and expanded its balance sheet to an impressive Rs. 693 million, from Rs. 370 million last year.
In its bid to give stakeholders more accessibility, CDB expanded its distribution network by adding seven new branches, completing 69 branches.
CDB has embarked on an ambitious technology drive to maximize market opportunities with the planned launch of CDBiNet in the 1Q of 2017/18.
An online omni channel transactional platform with a 360 degree application for customer portfolios, CDBiNet facilitates management and maintenance of personal portfolios including online account opening facilities, online fund transfers to any bank via the Common Electronic Fund Transfer System (CEFTS) and online utility bill settlements.