|
|
 |
 |
 |
 |
| Tuesday, 6 April 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Mercantile Leasing records highest post-tax profit in 21 year-history Mercantile Leasing Ltd recorded a post tax profit of Rs. 71 million in 2003 reflecting a 61% increase over the profit of Rs. 44 million the previous year. The growth is the highest recorded profit in its twenty-one-year history.
The post tax profits of the group meanwhile have soared by over 76% to top Rs. 83 million compared with Rs. 47 million the previous year. The achievement is attributed to a surge in leasing activity last year which was brought about by the revitalised economy in Sri Lanka and a renewed recovery in the global economy. Chairman of Mercantile Leasing Ltd, A. N. U. Jayawardena in his review on the annual performance said that the company has displayed a sound performance yielding the highest ever returns since the company's inception over two decades ago while the income net of interest at Rs. 229 shows a significant increase of 32 % over last year's achievement of Rs. 173 million. Jayawardena said that the soft interest rate regime that prevailed throughout the year was the primary contributory factor towards the improvement in their net interest margins. The interim dividends received from the distributable profits of the three owned subsidiaries augmented the total net income of the company. He said that high revenue taxes and withholding tax on the issuance of corporate debt created anomalies between the borrowing costs of the leasing industry and the banking sector will hinder the growth in the leasing industry. Outlining the future strategies, he said the firm will focus to attract and retain quality clients and strengthen the company's funding base. The cost rationalisation and overhead management will also remain a priority. "Political stability, macroeconomic condition and stabilised interest rates are an essential pre-requisite for our growth", he said. Managing Director/Chief Executive Officer of Mercantile Leasing Ltd, P. M. A. Sirimane said that the post-tax profit was achieved despite an increase of 22% in Group operating costs. The increase was mainly due to the provision, the group made on account of possible bad and doubtful debts which increased from Rs. 28 million the previous year to Rs. 60 million this year. All branches and subsidiary companies performed well in the year while we opted to refrain from opening new branches this year. The existing branches contributed to 36% in the new lending and a share amounting to 23% of total income of the company. Sirimane said that the Group will continue to extend its multiple range
of financial products and services to selected customers while
facilitating transactions on e-commerce. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
