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The Seylan Merchant Bank (SMB) Group has reported a healthy growth in profits for the nine months ending September 30, 2002, compared to the corresponding period of last year.

In results released this week, the SMB group reported a pre-tax profit of Rs. 7.1 million, a growth of 116 percent compared to the loss of Rs 43 million in 2001. Gross income of the group rose 39 percent to Rs 382 million.

Seylan Merchant Bank meanwhile reported a pre-tax profit of Rs 1.4 million, a growth of 103 percent from a loss of Rs 47 million at the end of the third quarter of 2001. The Bank's gross income grew 41 percent to Rs 323 million.

Two noteworthy features of this performance were the growth achieved in leasing and net interest income, SMB's Director/General Manager Rohan Senanayake said.

The Group's leasing portfolio grew 87 percent from Rs 710 million to Rs 1,327 billion while the Bank's leasing portfolio grew to Rs 1,192 billion, a growth of 86 percent over the first nine months of 2001.

Net interest income of the Group grew to Rs 47.8 million from a loss of Rs 5.6 million and net interest income of the Bank grew from a negative income of Rs 7.3 million to a positive income of Rs 28.7 million during the period under review.

"An improvement in macro economic conditions, a decrease in interest rates and positive Gross Domestic Product (GDP) levels have helped SMB maintain the current year's profitable trend," Senanayake said.

"Efforts to improve productivity and growth in the leasing portfolio have also contributed to this performance. If the current conditions continue we are confident of ending this year on a profitable note."

He said in a bid to develop SMB's Human Resources, the bank had also teamed up with People Power International (Pvt) Ltd., - an exclusive people management consultancy practice. "We hope this strategic alliance will result in an improvement in productivity, making SMB one of the best financial service providers," he added.

Incorporated in October 1992 and a member of Ceylinco Consolidated, Seylan Merchant Bank Limited celebrated its 10th anniversary this year. SMB is registered by the Central Bank of Sri Lanka as Registered Finance Leasing Establishments under the Finance Leasing Act No. 56 of 2000. Its subsidiaries include Seylan Merchant Leasing Limited, SMB Real Estate (Pvt) Ltd., and SMB Money Brokers (Pvt) Ltd.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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