Celebrating its 20th anniversary as a harbinger of change and trailblazing forerunner in the Non-bank financial institution (NBFI) sector in Sri Lanka, Citizens Development Business Finance PLC (CDB) reported exceptional financial results for FY 2015/16, revelling in its innovative persona, corporate stewardship and incomparable team. 
The entity’s impressive track record in sustainable financial performance has built a robust and resilient foundation that has enabled the company to be fearless and holistic in its approach. This was well evidenced in the recognition it received from the Ceylon Chamber of Commerce which placed CDB among the Ten Best Corporate Citizens of 2015 and the winner in the Below Rs.5 billion Revenue Category, two feats that were added to the ever increasing kudos that CDB continues to collate.
CDB Managing Director/CEO Mahesh Nanayakkara articulates that CDB has affirmed its strong presence even more with this year’s results. “CDB’s reputation as a financial entity that has continued to be consistent in its financial performance is well demonstrated in the impressive milestones we notched this year. The balance sheet surpassed the Rs.50 billion mark, detailed at Rs.50.6 billion and reflecting a growth of 33 percent, positioning CDB among the largest NBFIs in the country.” 
He detailed that profit after tax too showcased a remarkable upward trajectory, positioning itself beyond the Rs.1 billion milestone, which is a growth of 43 percent. Revenue is recorded at Rs.7.5 billion, inclining 8 percent.
Net interest income is recorded at Rs.3 billion, which is an increase of 7 percent, while impairment charges and disposal deficits are Rs.399 million, reflecting a reduction of Rs.281 million or by 41 percent. The loan book recorded a growth of 31 percent standing at Rs.38.5 billion. The narrowing of net interest margins from 8.0 percent to 6.9 percent in comparison to last year was a result of the conscious strategy adopted by CDB to change the composition of the lending mix. 
The direct positive outcome of this strategy has been that both gross and net non-performing loan ratios reduced from 5.8 percent to 3.6 percent and 3.2 percent to 1.6 percent, respectively, which resulted in the reduction of impairment charges. The deposit base grew by 14 percent to be posted at Rs.30.8 billion, while debt funding, which became the main source of funding, heralded a growth of Rs.7.5 billion, an increase of an impressive 156 percent. Cost to income ratio stood at 57.58 percent
Total equity surpassed the Rs.5 billion mark, while Tier I and Tier II in the capital adequacy ratios stood at 11.72 percent and 11.74 percent, respectively, well above regulatory requirements. The liquidity ratio at 20.04 percent too was above the regulatory requirement level. Ninety one percent of assets are in interest bearing regular cash flow generating investments including the asset backed loan book consisting of 76 percent of assets. 
Profit before VAT on financial services, NBT and the crop levy is notched at Rs.1.43 billion, stipulating an incline of 36 percent, where profit before income tax stands at Rs.1.25 billion. This is an increase of 32 percent. Return on equity recorded 21.78 percent, while earnings per share stands at Rs.18.51. The net book value per share is now Rs.93.03 as per the balance sheet date.
CDB’s specialized leasing subsidiary changed its name to Unisons Capital Leasing Ltd (UCL) during the year. CDB fully subscribed to the rights issue announced by UCL during the FY 2015/16 investing Rs.82.1mn at Rs.10.50 per share, which increased CDB’s stake in UCL to 90.38 percent. For this financial year, UCL contributed Rs.15.6 million towards the group’s consolidated results. Judging by the positive trends already experienced, we expect UCL to make a significant contribution to the group’s bottom line in the coming years.