Monday, July 18, 2011

Mercantile Investments records Rs. 905mn Profit

By Gayani Perera

Mercantile Investments (MI) which has now been renamed as Mercantile Investments PLC after registering with the Colombo Stock Exchange this year successfully completes 47 years of service to the financial industry. The company so far has seen a progressive growth during the past few years where in which this year MIL has been able to record a phenomenal growth. The company provides a plethora of financial services to customers which include Leasing, Hire Purchase, Personal Loans, Vehicle Loans, Fixed Deposits and Savings. MI this year and very recently opened a branch in Kurunegala which is the 7th branch to be included to their branch network and presently holds the 5th dominant position in the financial sector.

Commenting on the stability of the company Mr. Dhanushka Fonseka, Assistant General Manager – Leasing of MI said, “Last year our lending has increased by Rs. 2.7 billion to that of Rs. 5.08 billion which is almost a hundred percent increase. Also the total deposit base of the company has recorded an 18% growth, when compared to that of last year. Our NPL (Non Performing Loan) ratios are much lower than the prevailing industry rates which is very encouraging. Our Net Profits have increased by 176% and amounts to Rs. 905 million and Net Assets have also experienced a growth of 26%. We are very proud of the fact that we have been able to achieve such outstanding results despite the fact that we have a very small branch network when compared to the other larger players in the industry.”

Back by a very young and dynamic team MI hopes to expand their services by opening branches in the Matara and Batticaloa areas very soon as well as a city office in Colombo.

“Our main area of focus is to provide a superior service to our expanding customer base. We provide a very personalized and speedy service to our customers which are the secrets behind our success. In the near future we will also be opening a separate section for Corporate Leasing”, added Mr. Fonseka.

The leasing industry experienced a huge boom after the war which was further heightened with the unregistered vehicle market increasing its imports last year due to the tax deductions which took place. At present the future of the leasing industry looks bright and geared up with their recent achievements MI will no doubt be in the forefront of everything positive taking place in the industry.

source - www.dailymirror.lk

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