Steady Steps

June 10, 2010 (LBO) – Sri Lanka’s Citizens Development Business Finance says it has maintained profitability and managed non performing loans last year in a tough operating environment and is now looking to expand. The firm has changed its financial year from December to March and posted revenues of 1.9 billion rupees for the 15 months to March 2010 against 1.63 billion rupees in 2008 according to the firm’s audited accounts.

CDB says annualized revenues for the 12 months were 1.51 billion rupees.

Net interest income for the 15 months was 605 million rupees up sharply from 404 million in the year to December 2008.

Consolidated after tax profits were 80.2 million rupees for the 15 months up from 65.5 million rupees, after providing 91 million rupees for loan losses. Annualized after tax profits were 64 million rupees. In 2008 the reported net profits of 65.5 million rupees.

CDB said its non-performing loan ratio was 7.52 percent, which was below industry average.

CDB said it was expanding to make use of opportunities after a war ended in 2009. It has set up service centres in Jaffna and Vavuniya.

Chief executive Mahesh Nanayakkara says it has a model of “rural lending and urban fundi