Tuesday, June 7, 2011

Merchant Group posts Rs 3 b turnover in 2010

The Merchant Bank of Sri Lanka PLC (MBSL) has recorded its highest ever profit in 2010.

Releasing their 2010 annual report to the Colombo Stock Exchange yesterday MBSL Chairman M.R. Shah said the Merchant Bank Group was successful in achieving a group turnover of Rs 3 billion, a net interest income of Rs 1.2 billion and a profit of Rs 492 million. "The peaceful environment prevailing in the country and the improved business opportunities in the market with the development of the capital market have contributed heavily for the group's performance," he said.

"Our Bank's performance from share market activities and share portfolio gains contributed Rs 223.8 million to the group's bottom-lines," he said. In 2010, the company recorded its all time highest income of Rs 1.5 billion recording an increase of 31.8 percent over the last year. Profit before tax for the year under review was Rs 651 million also is the highest ever and it is an increase of 156 percent over 2009.

Net interest income for the year was Rs 688 million recording a growth of 73 percent when compared to Rs 398 million for 2009. This was a direct result of reduced borrowing cost by 28 percent whilst increasing the investment in lending portfolio and other investments. The total assets of the bank was Rs 7.2 billion as at December 31 2010.

Income from leasing and higher purchase increased by 10 percent as against the previous year. Merchant Credit of Sri Lanka was the major contributor of the group's performance.

source - www.dailynews.lk

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