Merchant Bank of Sri Lanka (MBSL) has accomplished another successful year in 2011 with impressive financial results.
It has posted an after tax profit of Rs. 332 million during the financial year ended on 31 December 2011 whilst turnover had risen by 2.4% to Rs. 1.6 billion.
“When we look at the performance of the Bank we can see a strong organic growth in its business volume amidst highly competitive environment through Leasing, Hire Purchase, Trade Finance, Investments, share issue management etc. The growth of MBSL was characterised by diversified sources of income across new products, new customers, and new locations while grabbing business opportunities from across every business segments,” a MBSL spokesman said.
MBSL is a public limited liability company listed on the Colombo Stock Exchange in 1991, which was incorporated in March 1982 in Sri Lanka and a subsidiary company of Bank of Ceylon. MBSL provides a comprehensive range of financial services of Leasing, Trade Finance and Corporate advisory activities. MBSL has achieved long term institutional rating of AA, short term rating of PI by RAM Rating Lanka Ltd in 2010. The subsidiaries of MBSL are Merchant Credit of Sri Lanka, MBSL Saving Bank Ltd, MBSL Insurance Company Ltd and its associate company is a stock broking company well known as Lanka Securities (Pvt) Ltd. During 2011, the Bank continued to focus on improving interest income from leasing which in total grew by 48% compared to 2010.
Treasury bills and money market income grew by 68%, which is a commendable performance considering the relatively stable interest rates witnessed during the year.
Interest received from Margin trading too witnessed a notable growth represented 144 % in 2011 due to trade related income taking centre stage as local capital market started activities to pickup after a dismal year in 2009. In 2011 also Leasing division represented the highest contribution as against other portfolio in the bank as a core sector by 67%.
Trade finance division contributed 16% and corporate advisory division (Capital market) contributed 11% of this year. MBSL continued to expand its portfolio in Financial Leases, Operating Leases and Hire-purchases portfolio amidst turbulent and highly competitive market conditions and recorded a substantial increase of 43% during the year. A Corporate brand campaign was launched in the fourth quarter of 2011 followed by Product communications to increase awareness. Although it reflected a heavy cost impacting the bottom line, it, contributed to the highest ever disbursements in a month recorded in December 2011. It shows an increasing trend in the total assets.
The total assets of the bank increased to Rs. 9.9 billion which is a significant increase of 38% compared to the last year among which Lease receivable grew by 43%. Similarly Loans and Advances rose by 39%. Moving forward, the growth momentum of the bank will be supported by increasing the overall “brand equity” through new product development, brand building, business/market expansion and promotional activities. Also Marketing department is geared to implement aggressive plans this year to further expand the MBSL presence in the Market. As the Bank celebrates its 30th anniversary this year, it plans to increase its branch network to 30 covering many parts of the island by the end of March 2012.
source - www.ft.lk
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