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Profits at the CBSL registered finance company were Rs339mn for the quarter on equity of approximately Rs7.6bn. The firm is operating a full balance sheet with assets of approximately Rs80bn.
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Deposits grew to a massive Rs47bn by the end of the quarter. Despite regularly stellar performance, the company's stock trades at close to just 1/2 of its book value.
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Controlled by parent Ceylinco Insurance (CINS), the company has failed to inspire confidence with minority shareholders and therefore trades at strikingly low valuation.
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Ceylinco Insurance (CINS) has a history of minority shareholder oppression and has been subject to litigation by one of its largest shareholders Prabash Subasinghe. Subasinghe has effectively been frozen out of Ceylinco Insurance for several years.
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The company has failed to grant his request for a board seat, and continues to pay relatively small dividends to shareholders alongside significant compensation to top executives.
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Subasinghe and related entities own just under 30% of the company, a multibillion rupee holding.