Citizens Development Business Finance Ltd (CDB), which is planning to go public by September on the Colombo Stock Exchange, this week reported a pre-tax profit of Rs 40.5 million for the first quarter of 2010, up by a phenomenal 217 % over the correspondng period last year.
Post-tax profit of CDB for the first quarter ended June 30, 2010 amounted to Rs 34.5 million, again very high from the earlier comparative period.
CDB’s Chief Executive Officer Mahesh Nanayakkara said in a press release that this ‘remarkable performance’ was achieved through growth in total assets, revenue and improved margins. “Our total asset base grew by 6.7% to reach Rs. 7.1 billion reflecting an increase of Rs. 449 million since 31 March 2010, while revenue reached Rs. 416 million reflecting a growth of 14 % over the corresponding period,” he added.
CDB’s current countrywide reach stands at 32 outlets, including two Service Centres in the northern region.
It is also in the process of introducing new services such as pawning, foreign currency encashment (authorised money dealership), money remittance, Islamic financing, and savings accounts.
The company says it intends to continue this momentum throughout the period strengthening its financial position in the industry.
Mr Nanayakkara says CDB’s unique business model blends rural and urban sector in funding and lending, positioning the institution as a net lender to the rural economy and enabling it to harness tremendous growth potential in both sectors.
Referring to plans to list the company, he said by being a listed institution “we intend to achieve multiple objectives of complying with regulatory requirements ahead of stipulated deadlines, broadening our shareholder structure, strengthening the capital raising ability to support future growth strategy and increasing transparency as a public listed institution.”