SMB reports strong profit growth in first half of 2006

COMPANY RESULT: The Seylan Merchant Bank (SMB) Group announced strong pre and post tax profits and healthy growth in income for the first half of 2006.

In results released to the Colombo Stock Exchange (CSE) last week, the Group reported a 71 per cent increase in operating profit before associate company's profit and taxation to Rs 47.9 million. Profit after tax was up 54 per cent to Rs 41.5 million.

Net income of the Group increased to Rs 419.8 million in the period under review, a growth of Rs 41.1 million or 11 per cent.

The increase in net income was chiefly due to an 18 per cent increase in other income of the Group which rose to Rs 68.9 million for the first half of 2006 from Rs 58.3 million in the corresponding period of last year.

A 10 per cent increase in interest income to Rs 350.9 million also contributed to this growth.

Deputy Chairman of SMB Rohan Senanayake said the increase in profitability could be attributed to the increase in income and growth in the leasing portfolio of the Group, which will further strengthen SMB's position in the market.

"With SMB being selected as one of the trading members to operate on the CSE, with a full stock-brokering licence and the company's tie up with K&N Kenanga of Malaysia, SMB can now be considered a fully fledged merchant banking unit. SMB can now provide a one-stop concept in financial services," he said.