Citizens Development Business Finance PlcCSELK: CDB.N0000

Quarterly Financial Report 31.12.2024

Jan 24, 2025 at 11:44 AM UTC · Issued by Citizens Development Business Finance Plc

Interim Financial Statements

For the period ended 31 December 2024

Citizens Development Business Finance PLC

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC		31 December 2024
Interim Financial Statements
Statement of Profit or Loss and Other Comprehensive Income

	For the quarter ended		For the nine months ended
	31 December		31 December

2024 Rs. '000

2023	Change
Rs. '000	%

2024 Rs. '000

2023	Change
Rs. '000	%

Revenue	6,434,613	5,765,826	12%
Interest income	5,719,341	5,304,106	8%
Less: Interest expense	2,892,347	3,056,521	-5%
Net interest income	2,826,994	2,247,585	26%
Fee and commission income	74,741	63,106	18%
Other operating income	640,531	398,614	61%
Total operating income	3,542,266	2,709,305	31%
Less : Impairment charges and other credit losses	(31,221)	232,348	-113%
Net operating income	3,573,487	2,476,957	44%
Less : Operating expenses
Personnel expenses	687,860	518,736	33%
Premises, equipment and establishment expenses	870,831	784,335	11%
Other expenses	200,401	162,712	23%
Total operating expenses	1,759,092	1,465,783	20%
Operating profit before taxes on financial services	1,814,395	1,011,174	79%
Less : Taxes on financial services	541,000	215,500	151%
Profit before tax	1,273,395	795,674	60%
Less : Income tax expense	368,000	230,000	60%
Profit for the period	905,395	565,674	60%
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Fair value changes in hedge reserve	-	(8,585)	100%
Items that will not be reclassified to profit or loss
Financial investments at FVOCI - net change in fair value	658,804	(3,955)	16757%
Net actuarial gain/ (loss) on defined benefit plan	(6,000)	(6,000)	0%
Total other comprehensive income	652,804	(18,540)	3621%
Total comprehensive income for the period	1,558,199	547,134	185%
Earnings per share
Basic earnings per share (Rs.)	12.78	8.07
Diluted earnings per share (Rs.) *	12.44	7.77

19,107,031	17,016,232	12%
17,035,866	15,833,885	8%
8,705,488	10,002,216	-13%
8,330,378	5,831,669	43%

203,203	177,782	14%
1,867,962	1,004,565	86%
10,401,543	7,014,016	48%
14,600	772,960	-98%
10,386,943	6,241,056	66%
1,979,334	1,513,810	31%
2,544,260	2,193,865	16%
572,219	375,926	52%
5,095,813	4,083,601	25%
5,291,130	2,157,455	145%
1,593,975	460,500	246%

3,697,155	1,696,955	118%
1,079,000	481,000	124%
2,618,155	1,215,955	115%
-	(102,705)	100%
637,853	358,127	78%
(18,000)	(18,000)	0%
619,853	237,422	161%

3,238,008	1,453,377	123%

36.95 17.36

35.98 16.71

Figures in brackets indicate deductions.

The above figures are subject to audit unless specified.

* Diluted EPS has computed considering the effect of employee share option scheme.

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 December 2024

Interim Financial Statements

Statement of Financial Position

As at

31-12-2024 Rs. '000

Audited 31-03-2024 Rs. '000

Assets
Cash and cash equivalents	3,597,285	3,642,333
Loans and receivables to banks	3,710,058	8,013,219
Deposits with financial institutions	14,228,940	14,908,971
Loans and receivables to customers	102,571,863	85,963,874
Other investment securities	9,567,417	7,126,742
Investment property	560,688	535,000
Property, plant and equipment	3,838,477	3,402,042
Right-of-use assets	905,053	880,741
Intangible assets	299,827	308,553
Goodwill on amalgamation	19,628	19,628
Other assets	4,342,269	3,976,882
Total assets	143,641,505	128,777,985
Liabilities
Due to banks and financial institutions	27,606,559	27,849,165
Deposits from customers	83,015,106	73,258,779
Debt securities issued and subordinated debt	4,810,162	2,788,338
Lease liabilities	962,088	912,177
Current tax liabilities	1,942,418	1,289,562
Deferred tax liabilities	560,581	560,581
Retirement benefit obligation	49,419	66,419
Other liabilities	1,730,499	1,845,126
Total liabilities	120,676,832	108,570,147
Equity
Stated capital	2,550,492	2,550,492
Reserves	6,371,362	5,806,374
Retained earnings	14,042,819	11,850,972
Total equity	22,964,673	20,207,838

Total liabilities and equity	143,641,505	128,777,985
Net assets value per share (Rs.)	324.13	285.22
Contingencies and commitments	5,964,703	6,012,503

The above figures are subject to audit unless specified.

The financial statements are in compliance with the requirements of the Companies Act No. 7 of 2007 and Finance Business Act No. 42 of 2011.

Sgd.

Ruwan Chandrajith

Chief Financial Officer

The Board of Directors is responsible for the preparation and the presentation of these Financial Statements. Approved and signed for and on behalf of the Board

Sgd.	Sgd.
J R Alastair Corera	C M Nanayakkara
Chairman	Managing Director/CEO
24 January 2025
Colombo

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC										31 December 2024
Interim Financial Statements
Statement of Changes in Equity
					Reserves
		Stated	Other Capital	Revaluation	Fair Value	Hedge Reserve	Statutory	Regulatory	Retained	Total
		Reserve	Reserve	Reserve
		Capital		Reserve	Loss allowance	Earnings	Equity

							Fund	Reserve
		Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Balance as at 1 April 2023	2,361,947	30,854	761,406	(114,307)	102,705	2,143,943	1,606,402	11,297,271	18,190,221
Total comprehensive income for the period
Profit for the period									1,215,955	1,215,955
Other comprehensive income for the period
Fair Value Changes in Hedge Reserve				(102,705)				(102,705)
Financial investments at FVOCI - net change in fair value			358,127					358,127
Remeasurement of define benefit liability / (asset)							(18,000)	(18,000)
Transactions with equity holders of the Company
Employee share option plan	42,175	341							42,516
Exercise of share options
Dividend to equity holders for the period - 2022/23							(349,280)	(349,280)
Transfers during the period					(2,968)			656,969	(654,001)	-

Balance as at 31 December 2023	2,404,122	31,195	761,406	240,852	-	2,143,943	2,263,371	11,491,945	19,336,834

Balance as at 1 April 2024		2,550,492	7,552	761,406	20,554	-	2,647,053	2,369,809	11,850,972	20,207,838
Total comprehensive income for the	period
Profit for the period									2,618,155	2,618,155
Other comprehensive income for the period
Financial investments at FVOCI - net change in fair value				637,853					637,853
Remeasurement of define benefit liability / (asset)								(18,000)	(18,000)
Transactions with equity holders of the Company
Exercise of share option			14,780							14,780
Dividend to equity holders for the period - 2023/24								(495,953)	(495,953)
Transfers during the period					(99,460)			11,815	87,645	-

Balance as at 31 December 2024		2,550,492	22,332	761,406	558,947	-	2,647,053	2,381,624	14,042,819	22,964,673
Figures in brackets indicate deductions.
										03

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 December 2024

Interim Financial Statements

Statement of Cash Flows

For the nine months ended

31-12-2024 Rs. '000

31-12-2023 Rs. '000

Cash flow from operating activities
Interest receipts	17,750,788	15,342,687
Commission receipts	185,950	212,225
Other income receipts	1,837,742	991,251
Interest payments	(9,014,011)	(10,971,753)
Fee and business promotion expenses	(441,537)	(270,084)
Employee related payments	(1,904,334)	(1,438,810)
Supplier payments	(2,948,805)	(1,284,562)
Financial expenses	(22,041)	(16,626)
Operating profit before changes in operating assets	5,443,752	2,564,328
(Increase)/Decrease in operating assets
Investments in financial institutions	4,983,192	(12,294,795)
Investment in Government Securities	-	51,137
Net funds advanced to customers	(17,337,511)	(5,016,025)
Changes in other short-term assets	(583,575)	(313,492)
Changes in inventories	200,935	(451,531)
	(12,736,959)	(18,024,706)
Increase/(Decrease) in operating liabilities
Net borrowings	(242,606)	14,448,072
Net deposits from customers	10,064,850	6,273,677
	9,822,244	20,721,749

Net Cash Generated from / (used in) operating activities	2,529,037	5,261,371
Contribution to plan asset	(110,000)	(25,000)
Taxation	(1,055,215)	(1,128,355)
	1,363,822	4,108,016
Cash flow from investing activities
Dividend receipts	46,537	46,354
Proceed from employee share options	-	36,315
Proceed /(Investment) in other investment securities	(2,440,675)	(180,603)
Purchase of property, plant and equipment	(673,066)	(192,046)
Proceed from sale of property, plant and equipment	11,535	16,014
Net cash from / (used in) investing activities	(3,055,669)	(273,966)
Cash flow from financing activities
Dividend paid	(495,953)	(349,250)
Net change in debt securities issued and subordinated debt	2,021,824	1,787,014
Net cash inflows/ (outflows) from financing activities	1,525,871	1,437,764
Net increase/(decrease) in cash and cash equivalents	(165,976)	5,271,814
Cash and cash equivalents at the beginning of the period	3,448,973	2,543,572
Cash and cash equivalents at the end of the period	3,282,997	7,815,386
Cash and cash equivalents at the beginning of the period
Cash at bank and cash in hand	3,642,333	3,267,193
Bank overdrafts	(193,360)	(723,621)
	3,448,973	2,543,572
Cash and cash equivalents at the end of the period
Cash at bank and cash in hand	3,597,285	7,980,016
Bank overdrafts	(314,288)	(164,630)
	3,282,997	7,815,386

Figures in brackets indicate deductions.

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 December 2024

Interim Financial Statements

Segmental Analysis

Lease and stock out on hire

Loans and advances

Others

Total

31-12-2024 Rs. '000

31-12-2023 Rs. '000

31-12-2024 Rs. '000

31-12-2023 Rs. '000

31-12-2024 Rs. '000

31-12-2023 Rs. '000

31-12-2024 Rs. '000

31-12-2023 Rs. '000

Interest	9,337,047	7,667,742	5,633,208	5,413,527	2,065,611	2,752,617	17,035,866	15,833,886
Non interest income							2,071,165	1,182,346
Segmented revenue	9,337,047	7,667,742	5,633,208	5,413,527	2,065,611	2,752,617	19,107,031	17,016,232
Total revenue	9,337,047	7,667,742	5,633,208	5,413,527	2,065,611	2,752,617	19,107,031	17,016,232

Unallocated expenses							15,409,876	15,319,277
Profit from operations							3,697,155	1,696,955
Income tax expenses							1,079,000	481,000
Profit for the period							2,618,155	1,215,955

Segmented assets	57,788,029	51,615,282	44,783,834	29,595,870	31,103,700	36,360,136	133,675,563	117,571,288
Unallocated assets							9,965,942	9,287,474

Total assets	57,788,029	51,615,282	44,783,834	29,595,870	31,103,700	36,360,136	143,641,505	126,858,762

								05

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 December 2024

Interim Financial Statements

Fair Value Measurement

31-12-2024

31-03-2024 (Audited)

Level 1

Rs. '000

Level 2

Rs. '000

Level 3

Rs. '000

Total

Rs. '000

Level 1

Rs. '000

Level 2

Rs. '000

Level 3

Rs. '000

Total

Rs. '000

Financial assets
Other investment securities
- Equity Instruments - Quoted Shares	2,389,179			2,389,179	1,956,733			1,956,733
- Equity Instruments - Unquoted Shares	-		37,910	37,910		124		124
Total financial assets disclosed at fair value	2,389,179	-	37,910	2,427,089	1,956,733	124	-	1,956,857
Other non-financial assets
Property Plant and Equipment - Free hold land			2,256,634	2,256,634			2,184,251	2,184,251
Total non-financial assets disclosed at fair value	-	-	2,256,634	2,256,634	-	-	2,184,251	2,184,251
Assets not disclosed at fair value				138,957,782				124,636,877
Total assets	2,389,179		2,294,544	143,641,505	1,956,733	124	2,184,251	128,777,985

Financial liabilities
Liabilities not disclosed at fair value				120,676,832				108,570,147
Total liabilities	-	-		120,676,832	-	-	-	108,570,147

Level 1 : Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

Level 2 : Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.

Level 3 : Inputs that are unobservable.

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC	31 December 2024
Interim Financial Statements
Shareholders' Information
TWENTY LARGEST SHAREHOLDERS AS AT 31 December 2024
Ordinary Voting Shares

No	NAME	SHAREHOLDING	(%)
1	CEYLINCO LIFE INSURANCE LIMITED ACCOUNT NO.3	19,120,225	31.60
2	ASIA MANAGEMENT CONSULTANCY (PVT)LTD	13,259,039	21.91
3	CITIZENS DEVELOPMENT BUSINESS FINANCE PLC A/C 02 (CDB EMPLOYEE GRATUITY FUND)	4,209,383	6.96
4	JANASHAKTHI INSURANCE PLC-SHAREHOLDERS	2,991,722	4.94
5	CEYLINCO INSURANCE PLC A/C NO 2 (GENERAL FUND)	2,379,654	3.93
6	PEOPLE'S LEASING & FINANCE PLC / MR.W.P.C.M.NANAYAKKARA	2,146,594	3.55
7	ASEKI INSURANCE BROKERS (PVT) LTD	2,000,000	3.31
8	CEYLINCO LIFE INSURANCE LIMITED ACCOUNT NO.1	1,423,548	2.35
9	PEOPLE S LEASING AND FINANCE PLC/S.V.MUNASINGHE	1,385,253	2.29
10	PEOPLE S LEASING AND FINANCE PLC/R.H.ABEYGOONEWARDENA&V.F.ABEYGOONEWARDENA	1,373,666	2.27
11	SEYLAN BANK PLC/TENNAKOON MUDIYANSELAGE DAMITH PRASANNA TENNAKOON	1,200,888	1.98
12	CEYLINCO LIFE INSURANCE LIMITED ACCOUNT NO.2	954,323	1.58
13	PEOPLE'S LEASING & FINANCE PLC/MRS.N.D.KODAGODA	551,413	0.91
14	PEOPLE'S LEASING & FINANCE PLC/MR.I.M.KOTIGALA	302,798	0.50
15	PEOPLE'S LEASING & FINANCE PLC/MR. H.K. DASSANAYAKE	299,115	0.49
16	PEOPLE'S LEASING & FINANCE PLC / T. M. D. P. TENNAKOON	257,846	0.43
17	MR. A.A.S. KUMARA	256,335	0.42
18	MR. J.S. RANATHUNGA	252,163	0.42
19	MRS. A.I. PANAGODA	230,602	0.38
20	PEOPLE S LEASING AND FINANCE PLC/K.A.D.R.GUNASINGHE	210,579	0.35
	Sub total of Top 20 Share Holders	54,805,146	90.57
		5,701,608	9.43
	Total	60,506,754	100.00
	The percentage of shares held by the public as at 31 December 2024 is 42.71% (with 1,596 public share holders)
Ordinary Non Voting Shares

No	NAME	SHAREHOLDING	(%)
1	J.B. COCOSHELL (PVT) LTD	1,734,487	16.77
2	DEUTSCHE BANK AG AS TRUSTEE FOR JB VANTAGE VALUE EQUITY FUND	1,231,783	11.91
3	MR. A.M. WEERASINGHE	623,682	6.03
4	MR. Y.H. ABDULHUSSEIN	423,433	4.09
5	MISS R.H. ABDULHUSSEIN	376,776	3.64
6	ODYSSEY CAPITAL PARTNERS (PRIVATE) LIMITED	364,737	3.53
7	MR. M.A. JAFFERJEE	356,380	3.45
8	ESSAJEE CARIMJEE INSURANCE BROKERS (PVT) LTD	352,038	3.40
9	PEOPLE'S LEASING & FINANCE PLC/MR.H.M. ABDULHUSSEIN	300,402	2.90
10	MR. A. SITHAMPALAM	196,509	1.90
11	MRS. A.M. ESUFALLY	165,375	1.60
12	MR. S.M.P.L. JAYARATNE	133,966	1.30
13	MR. K. KOWRIESAN	114,000	1.10
14	GOLD INVESTMENT LIMITED.	108,009	1.04
15	JAFFERJEES INVESTMENTS (PVT) LTD.	108,009	1.04
16	MR. M.A. VALABHJI	108,009	1.04
17	COMMERCIAL BANK OF CEYLON PLC A/C NO. 04	105,390	1.02
18	LAKDHANAVI LIMITED	103,359	1.00
19	MR. H.M. ABDULHUSSEIN	102,104	0.99
20	MR. N.K. D'ALWIS	100,000	0.97
	Sub total of Top 20 Share Holders	7,108,448	68.72
		3,235,220	31.28
	Total	10,343,668	100.00

The percentage of shares held by the public as at 31 December 2024 is 81.88% (with 1,909 public share holders)

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC					31 December 2024
Interim Financial Statements
Shareholders' Information
DIRECTORS' AND CHIEF EXECUTIVE OFFICER'S SHAREHOLDING AS AT 31 December 2024
Ordinary Voting Shares
NAME					SHAREHOLDING

MR. J.R.A. CORERA					1,027
PEOPLE'S LEASING & FINANCE PLC/MR.J.R.A. CORERA					21,622
MR W.P.C.M. NANAYAKKARA					1,283
PEOPLE'S LEASING & FINANCE PLC / MR.W.P.C.M.NANAYAKKARA				2,146,594
MR. T.M.D.P. TENNAKOON					-
PEOPLE'S LEASING & FINANCE PLC/MR.T.M.D.P.TENNAKOON				257,846
SEYLAN BANK PLC/TENNAKOON MUDIYANSELAGE DAMITH PRASANNA TENNAKOON			1,200,888
MR. S.V. MUNASINGHE					-
PEOPLE'S LEASING & FINANCE PLC/MR.S.V.MUNASINGHE					1,385,253
MR. R.H. ABEYGOONEWARDENA / MRS. V.F. ABEYGOONEWARDENA				5,652
PEOPLES'S LEASING & FINANCE PLC/ MR. R.H.ABEYGOONEWARDENA & V.F.ABEYGOONEWARDENA		1,373,666
MR. D.A. DE SILVA					-
DIALOG FINANCE PLC/D.A. DE SILVA					177,930
MR. J.P. ABHAYARATNE					-
MR. S.P.P. AMARATUNGE					-
MRS. P.R.W. PERERA					-
MR. S. KUMARAPPERUMA					-
MR. E.R.S.G.S. HEMACHANDRA					-
PROF P.N. GAMAGE					-
MRS. J. LOKULIYANA					-
Total					6,571,761
Ordinary Non Voting Shares
NAME					SHAREHOLDING

MR. J.R.A. CORERA					10,335
MR W.P.C.M. NANAYAKKARA					56
MR. T.M.D.P. TENNAKOON					-
MR. S.V. MUNASINGHE					-
MR. R.H. ABEYGOONEWARDENA / MRS. V.F. ABEYGOONEWARDENA				82,842
PEOPLES'S LEASING & FINANCE PLC/ MR. R.H. & MRS. V.F.ABEYGOONEWARDENA			37,850
MR. D.A. DE SILVA					-
MR. J.P. ABHAYARATNE					-
MR. S.P.P. AMARATUNGE					-
MRS. P.R.W. PERERA					-
MR. S. KUMARAPPERUMA					-
MR. E.R.S.G.S. HEMACHANDRA					-
PROF P.N. GAMAGE					-
MRS. J. LOKULIYANA					-
Total					131,083
MARKET PRICES FOR THE QUARTER ENDED 31 December 2024
			Ordinary Voting Shares	Ordinary Non Voting Shares
			31/12/2024	31/12/2023	31/12/2024	31/12/2023
			Rs.	Rs.	Rs.	Rs.
Highest Price		268.75	205.00	175.00	86.80
Lowest Price		160.00	173.75	101.00	76.00
Last Traded		247.00	200.00	172.25	80.30
FLOATING ADJUSTED MARKET CAPITALIZATION AS AT	31 December 2024

	Number of	Market price per	Market	Percentage of	Floating Adjusted
	Capitalization	Market
		shares	share	public holders
		(Rs.)	Capitalization

Voting Share		60,506,754	247.00	14,945,168,238	42.71%	6,383,081,354
Non Voting Share		10,343,668	172.25	1,781,696,813	81.88%	1,458,853,350
Total Shares				16,726,865,051		7,841,934,705

The Float adjusted market capitalization of the Company falls under Option 3 of Rule 7.13.1 (i) (a) of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the said option

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 December 2024

Interim Financial Statements

Explanatory Notes

The Company has used the same accounting policies and method of computing described in the audited financial statements of the Company for 2023/24 in the preparation of these interim financial statements.
As at 31 December 2024 stated capital represents 60,506,754 ordinary voting shares and 10,343,668 ordinary non voting shares.
All known expenses have been provided in these financial statements and management fees are not applicable to the Company.
During the period there were no material changes in the composition of assets, liabilities and contingent liabilities and there is no seasonality and cyclicality affecting the interim operation.
In terms of the rule 7.1 of the listing rules of the Colombo Stock Exchange, the Board of Directors of the company at its meeting held on 10th December 2024 approved the payment of an interim cash dividend of Rs. 5 per voting and non voting share for the financial year ending 31 March 2025.
Ten million seven hundred fifty two thousand (10,752,000) Subordinated, Unsecured, Listed, Redeemable, Rated Five Year (2019/2024) debentures issued at a price of Rs. 100/- each in 2019 were redeemed on December 2024.
Since 31 December 2024, there were no material events other than the above, that required adjustment or disclosure in these financial statements.
These financial statements are prepared in accordance with the Sri Lanka Accounting Standard - LKAS 34 " Interim Financial Reporting".

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