Citizens Development Business Finance : Interim Financial Statements for the period ended 31.12.2022

Interim Financial Statements

For the period ended 31 December 2022

Citizens Development Business Finance PLC

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 DECEMBER 2022

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

2022 Rs. '000

2021	Change
Rs. '000	%

2022 Rs. '000

2021	Change
Rs. '000	%

Revenue	5,947,031	4,427,919	34%
Interest income	5,511,554	3,857,611	43%
Less: Interest expense	3,556,217	1,477,717	141%
Net interest income	1,955,337	2,379,894	-18%
Fee and commission income	65,090	87,976	-26%
Other operating income	370,387	482,332	-23%
Total operating income	2,390,814	2,950,202	-19%
Less : Impairment charges and other credit losses	161,363	141,970	14%
on financial assets
Net operating income	2,229,451	2,808,232	-21%
Less : Operating expenses
Personnel expenses	536,071	484,649	11%
Premises, equipment and establishment expenses	613,156	514,586	19%
Other expenses	141,984	141,845	0%
Total operating expenses	1,291,211	1,141,080	13%
Operating profit before taxes on financial	938,240	1,667,152	-44%
services
Less : Taxes on financial services	334,152	257,000	30%
Profit before tax	604,088	1,410,152	-57%
Less : Income tax expense	274,247	348,550	-21%
Profit for the period	329,841	1,061,602	-69%
Other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Fair Value Changes in Hedge Reserve	5,209	15,263	-66%
Items that will not be reclassified to profit or
Equity investments at FVOCI - Net change in fair	93,765	179,697	-48%
value
Net actuarial gain/(loss) on defined benefit plan	(6,000)	(6,000)	0%
Total other comprehensive income	92,974	188,960	-51%
Total comprehensive income for the period	422,815	1,250,562	-66%
Earnings per share
Basic earnings per share (Rs.)	4.72	15.21
Diluted earnings per share (Rs.) *	4.61	15.02

15,487,448	12,572,176	23%
14,401,847	10,755,131	34%
8,903,591	4,503,985	98%
5,498,256	6,251,146	-12%
186,106	226,722	-18%
899,495	1,590,323	-43%
6,583,857	8,068,191	-18%
314,264	854,681	-63%
6,269,593	7,213,510	-13%
1,509,162	1,373,570	10%
1,912,050	1,527,287	25%
444,268	365,572	22%
3,865,480	3,266,429	18%
2,404,113	3,947,081	-39%
509,646	612,929	-17%
1,894,467	3,334,152	-43%
604,247	883,550	-32%
1,290,220	2,450,602	-47%
260,534	176,859	47%
(191,777)	145,793	-232%
(18,000)	(18,000)	0%
50,757	304,652	-83%
1,340,977	2,755,254	-51%

18.47 35.11

18.03 34.67

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.

01

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 DECEMBER 2022

Interim Financial Statements

Statement of Financial Position

			Audited
	As at	31-12-2022	31-03-2022
	Rs. '000	Rs. '000
	Assets
	Cash and cash equivalents	1,861,671	2,023,974
	Financial assets measured at fair value through profit or loss (FVTPL)	40,281	148,685
	Derivative financial assets	1,155,552	1,121,320
	Loans and receivables to banks	298,267	240,435
	Deposits with financial institutions	8,573,434	8,292,576
	Loans and receivables to customers	77,642,886	78,725,310
	Other investment securities	6,369,236	6,576,030
	Investment Properties	535,000	-
	Property, plant and equipment	3,335,059	3,351,990
	Intangible assets	126,004	136,078
	Goodwill on amalgamation	156,489	156,489
	Retirement benefit asset	344,807	407,807
	Right-of-use assets	786,268	768,480
	Other assets	3,632,656	3,470,809
	Total assets	104,857,610	105,419,983
	Liabilities
	Deposits from customers	58,325,470	52,216,802
	Debt securities issued and subordinated debt	5,464,795	5,726,897
	Other interest-bearing borrowings	19,262,392	24,964,628
	Lease liabilities	828,390	802,503
	Current tax liabilities	661,824	1,400,532
	Deferred tax liabilities	630,110	630,110
	Other liabilities	1,672,590	2,030,436
	Total liabilities	86,845,571	87,771,908
	Equity
	Stated capital	2,361,947	2,361,947
	Reserves	2,831,348	2,829,785
	Retained earnings	12,818,744	12,456,343
	Total equity	18,012,039	17,648,075
	Total liabilities and equity	104,857,610	105,419,983
	Net assets value per share (Rs.)	257.85	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
14 February 2023
Colombo

02

	CITIZENS DEVELOPMENT BUSINESS FINANCE PLC									31 DECEMBER 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								2,450,602	2,450,602
	Other comprehensive income for the period
	Fair Value Changes in Hedge Reserve				176,859			176,859
	Equity investments at FVOCI - net change in fair value			145,793				145,793
	Remeasurement of defined benefit liability/(asset)						(18,000)	(18,000)
	Transactions with equity holders of the Company
	Employee share option plan			33,211						33,211
	Dividend to equity holders for the year - 2020/21						(523,446)	(523,446)
	Transfers during the period					(22,459)			22,459
		****
	Balance as at 31 December 2021	2,350,363	33,211	609,661	127,258	176,859	1,881,996	11,137,891	16,317,239
	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								1,290,220	1,290,220
	Other comprehensive income for the period
	Fair Value Changes in Hedge Reserve					260,534			260,534
	Equity investments at FVOCI - net change in fair value				(191,777)				(191,777)
	Remeasurement of defined benefit liability/(asset)							(18,000)	(18,000)
	Transfers during the period						(2,011)		2,011
	Transactions with equity holders of the Company
	Dividend to equity holders for the year - 2021/22							(261,960)	(261,960)
	Transfers during the period					(65,183)			65,183
	Balance as at 31 December 2022		2,361,947	30,854	825,559	(200,429)	112,764	2,062,600	12,818,744	18,012,039

Figures in brackets indicate deductions.

03

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

31 DECEMBER 2022

Interim Financial Statements

Statement of Cash Flows

For the period ended

31-12-2022 Rs. '000

31-12-2021 Rs. '000

Cash flow from operating activities
Interest receipts	14,323,540	10,835,604
Commission receipts	205,700	257,528
Other income receipts	965,106	1,422,036
Interest payments	(8,080,692)	(4,710,181)
Fee and business promotion expenses	(345,018)	(267,324)
Employee related payments	(1,434,162)	(1,298,570)
Supplier payments	(4,402,770)	(1,235,201)
Financial expenses	(19,030)	(24,775)
Operating profit before changes in operating assets	1,212,674	4,979,117
(Increase)/Decrease in operating assets
Investments in financial institutions	(338,690)	1,483,539
Investment in Government Securities	103,157	3,107
Net funds advanced to customers	846,467	(2,397,294)
Changes in other short-term assets	37,756	261,583
Changes in inventories	(219,197)	(104,510)
	429,493	(753,575)
Increase/(Decrease) in operating liabilities
Net borrowings	(6,092,479)	(746,721)
Net deposits from customers	5,285,769	2,331,692
	(806,710)	1,584,971
Net Cash Generated from / (used in) operating activities	835,457	5,810,513
Contribution to plan assets	(30,000)	(100,000)
Taxation	(1,953,223)	(1,438,172)
	(1,147,766)	4,272,341
Cash flow from investing activities
Dividend receipts	34,728	32,232
Investment in other investment securities	206,794	(3,559,587)
Purchase of property, plant and equipment	(9,368)	(127,382)
Net cash from / (used in) investing activities	232,154	(3,603,639)
Cash flow from financing activities
Dividend paid	(261,960)	(523,446)
Net change in debentures	216,466	(889,350)
Net cash inflows/ (outflows) from financing activities	(45,494)	(1,412,796)
Net increase/(decrease) in cash and cash equivalents	(961,106)	(744,094)
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	807,977	1,170,475
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	1,861,671	1,471,605
Bank overdrafts	(1,053,694)	(301,130)
	807,977	1,170,475

Figures in brackets indicate deductions.

04