Group profits top Rs. 300m in 2009:
MBSL Group performs well
Plans underway to build, acquire hotels:
Harshini Perera
Last year was a challenging year for Sri Lanka in terms of a nation
as well as a country. The end of the war marked the peaceful condition
in the country and economy has also established during the period. The
strength of the Government is what the situation has brought this far,
Chairman, Merchant Bank of Sri Lanka (MBSL) Janaka Ratnayaka told the
Daily News Business.
MBSL Chairman
Janaka Ratnayaka |
Though foreign countries felt the financial crisis hard the
Government faced it resiliently as it was strong on fiscal management.
There has been a financial crisis of our own, which is the insecurity of
the major financial companies. MBSL with the assistance of Central Bank,
acquired four of the financially unstable companies related to finance,
insurance and banking. This resulted in the control over the negative
impact, he said.
The Merchant Bank manages almost Rs. 50 billion liabilities and
entities and there are more than 5,000 employees. Among the four
financially affected companies, The Finance Company, which is the oldest
and biggest finance company, will be brought back to normal by the next
6 to 12 months.
MBSL Group has performed well in 2009 with an increase of profit and
performance. The Group recorded a 50 percent increase in profits which
amounted to Rs. 300 million compared to 2008.
The Merchant Credit of Sri Lanka, which is a 25-years-old finance
company, owned by Merchant Bank and Bank of Ceylon has performed
remarkably well. There was an increase of profit of 48 percent compared
to the previous year, Ratnayaka said.
“MBSL Savings Bank has recorded over Rs. 45 million net profit
although the company faced a financial crisis less than a year before.
The MBSL insurance company whereas targets a revenue of Rs. 1 billion
in this year,” he said.
He said that MBSL opened its eighth branch in Trincomalee on January
18 and expects to set up number of branches in Batticaloa, Ampara,
Mullaitivu and Jaffna. It will provide many employment opportunities for
youth in those areas. The group will soon be involved in the leisure
sector of which plans are under way to build hotels or acquire hotels
down south.
The head office building will also be completed with Rs. 500 million
investments at Union Place. The MBSL group will involve in portfolio
management and stock market activities more vibrantly, he said.
He said that good governance, ethics, proper system and procedures
will be put in place to cater the widespread network of stakeholders and
depositors of MBSL.
The depositor base of the group has increased to 150,000 at present.
MBSL protects the interest of depositors by paying their interest and
eventually capital, the Chairman said. |