Citizens Development Business Finance : Interim Financial Statements as at 30th June 2022

Interim Financial

Statements

For the period ended 30 June 2022

Citizens Development Business Finance PLC

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

30 JUNE 2022

Interim Financial Statements

Statement of Profit or Loss and Other Comprehensive Income

For the period ended

			30 June
		2022	2021	Change
		Rs. '000	Rs. '000	%
	Revenue	4,518,452	3,762,157	20%
	Interest income	4,161,872	3,354,758	24%
	Less: Interest expense	2,125,981	1,553,396	37%
	Net interest income	2,035,891	1,801,362	13%
	Fee and commission income	65,768	59,788	10%
	Other operating income	290,812	347,611	-16%
	Total operating income	2,392,471	2,208,761	8%
	Less : Impairment charges and other credit losses	116,994	427,853	-73%
	Net operating income	2,275,477	1,780,908	28%
	Less : Operating expenses
	Personnel expenses	495,255	427,353	16%
	Premises, equipment and establishment expenses	623,246	512,266	22%
	Other expenses	176,037	114,907	53%
	Total operating expenses	1,294,538	1,054,526	23%
	Operating profit before taxes on financial services	980,939	726,382	35%
	Less : Taxes on financial services	131,500	106,280	24%
	Profit before tax	849,439	620,102	37%
	Less : Income tax expense	250,000	175,000	43%
	Profit after tax	599,439	445,102	35%
	Other comprehensive income
	Items that are or may be reclassified subsequently to profit or loss
	Fair value changes in hedge reserve	154,759	-	100%
	Items that will not be reclassified to profit or loss
	Financial assets at FVOCI - Net change in fair value	(273,993)	(74,585)	267%
	Net actuarial gain/(loss) on defined benefit plan	(6,000)	(6,000)	0%
	Total other comprehensive income	(125,234)	(80,585)	55%
	Total comprehensive income	474,205	364,517	30%
	Earnings per share
	Basic earnings per share (Rs.)	8.58	6.38
	Diluted earnings per share (Rs.) *	8.48	6.30

Figures in brackets indicate deductions.

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

01

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

30 JUNE 2022

Interim Financial Statements

Statement of Financial Position

			Audited
	As at	30-06-2022	31-03-2022
	Rs. '000	Rs. '000
	Assets
	Cash and cash equivalents	1,098,909	2,023,974
	Financial assets measured at fair value through profit or loss (FVTPL)	140,909	148,685
	Derivative financial assets	2,048,178	1,121,320
	Loans and receivables to banks	696,674	240,435
	Deposits with financial institutions	10,116,444	8,292,576
	Loans and receivables to customers	80,038,919	78,725,310
	Other investment securities	5,509,043	6,576,030
	Property, plant and equipment	3,335,647	3,351,990
	Intangible assets	132,426	136,078
	Goodwill on amalgamation	156,489	156,489
	Retirement benefit asset	376,807	407,807
	Right-of-use assets	770,815	768,480
	Other assets	3,474,444	3,470,809
	Total assets	107,895,704	105,419,983
	Liabilities
	Deposits from customers	54,280,279	52,216,802
	Debt securities issued	5,386,682	5,726,897
	Other interest-bearing borrowings	24,415,165	24,709,737
	Lease liabilities	807,608	802,503
	Current tax liabilities	1,817,430	1,400,532
	Deferred tax liabilities	630,110	630,110
	Other liabilities	3,151,203	2,285,327
	Total liabilities	90,488,477	87,771,908
	Equity
	Stated capital	2,361,947	2,361,947
	Reserves	2,708,080	2,829,785
	Retained earnings	12,337,200	12,456,343
	Total equity	17,407,227	17,648,075
	Total liabilities and equity	107,895,704	105,419,983
	Net assets value per share (Rs.)	249.19	252.63

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.

Damith Tennakoon

Deputy CEO/Director/CFO

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
12 August 2022
Colombo

02

	CITIZENS DEVELOPMENT BUSINESS FINANCE PLC								30 JUNE 2022
	Interim Financial Statements
	Statement of Changes in Equity
					Reserves
		Stated	Other Capital	Revaluation	Fair Value	Hedge Reserve	Statutory	Retained	Total
		Capital	Reserve	Reserve	Reserve		Reserve	Earnings	Equity
							Fund
		Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
	Balance as at 1 April 2021	2,350,363	-	609,661	3,924	-	1,881,996	9,206,276	14,052,220
	Total comprehensive income for the period
	Profit for the period							445,102	445,102
	Other comprehensive income for the period
	Financial assets at FVOCI - net change in fair value				(74,585)				(74,585)
	Remeasurement of defined benefit liability/(asset)							(6,000)	(6,000)
	Transactions with equity holders of the Company
	Transfers during the period				(3,586)			3,586
	Balance as at 30 June 2021	2,350,363	-	609,661	(74,247)	-	1,881,996	9,648,964	14,416,737
	Balance as at 1 April 2022	2,361,947	30,854	825,559	56,531	(145,759)	2,062,600	12,456,343	17,648,075
	Payment of surcharge tax							(715,053)	(715,053)
	Total comprehensive income for the period
	Profit for the period							599,439	599,439
	Other comprehensive income for the period
	Fair value changes in hedge reserve					154,759			154,759
	Financial assets at FVOCI - net change in fair value				(273,993)				(273,993)
	Remeasurement of defined benefit liability/(asset)							(6,000)	(6,000)
	Transactions with equity holders of the Company
	Transfers during the period				(2,471)			2,471	-
	Balance as at 30 June 2022	2,361,947	30,854	825,559	(219,933)	9,000	2,062,600	12,337,200	17,407,227
	Figures in brackets indicate deductions.

03

	CITIZENS DEVELOPMENT BUSINESS FINANCE PLC		30 JUNE 2022
	Interim Financial Statements
	Statement of Cash Flows
	For the year ended
		30-06-2022	30-06-2021
		Rs. '000	Rs. '000
	Cash flow from operating activities
	Interest receipts	4,297,564	3,551,215
	Commission receipts	70,890	97,058
	Other income receipts	231,868	380,463
	Interest payments	(2,268,922)	(1,653,418)
	Fee and business promotion expenses	(138,079)	(84,046)
	Employee related payments	(470,255)	(402,353)
	Supplier payments	(896,062)	(555,106)
	Financial expenses	(11,859)	(4,902)
	Operating profit before changes in operating assets	815,145	1,328,911
	(Increase)/Decrease in operating assets
	Investments in financial institutions	(2,280,107)	(997,290)
	Investment in Government Securities	13,612	24
	Net funds advanced to customers	(1,566,296)	470,344
	Changes in other short-term assets	(48,310)	26,951
	Changes in inventories	39,553	(202,170)
		(3,841,547)	(702,141)
	Net borrowings	(1,688,875)	(739,699)
	Net deposits from customers	2,206,417	717,119
		517,542	(22,580)
	Net Cash Generated from / (used in) operating activities	(2,508,860)	604,190
	Contribution to plan assets	-	-
	Taxation	(873,369)	(141,392)
		(3,382,229)	462,798
	Cash flow from investing activities
	Dividend receipts	30,631	26,546
	Investment in other investment securities	1,066,987	538,633
	Purchase of property, plant and equipment	(3,154)	(23,515)
	Net cash from / (used in) investing activities	1,094,464	541,664
	Cash flow from financing activities
	Net change in debentures	138,353	(923,668)
	Net cash inflows/ (outflows) from financing activities	138,353	(923,668)
	Net increase/(decrease) in cash and cash equivalents	(2,149,413)	80,794
	Cash and cash equivalents at the beginning of the period	1,769,083	1,914,569
	Cash and cash equivalents at the end of the period	(380,330)	1,995,363
	Cash and cash equivalents at the beginning of the period
	Cash at bank and cash in hand	2,023,974	2,090,509
	Bank overdrafts	(254,891)	(175,940)
		1,769,083	1,914,569
	Cash and cash equivalents at the end of the period
	Cash at bank and cash in hand	1,098,909	2,116,186
	Bank overdrafts	(1,479,239)	(120,823)
		(380,330)	1,995,363

Figures in brackets indicate deductions.

04