MBSL turn over tops Rs. 1.6b

Year by year Merchant Bank of Sri Lanka PLC (MBSL)’s turnover was increasing and this year the bank recorded a turnover of Rs. 1.6 billion, which is 2.4% more than the previous year.

Merchant Bank of Sri Lanka PLC (MBSL) is a public limited liability company listed on the Colombo Stock Exchange in 1991, which was incorporated in March 1982 in Sri Lanka and a subsidiary company of Bank of Ceylon.

MBSL provides a comprehensive range of financial services of leasing, trade finance and corporate advisory activities. MBSL has achieved long term institutional rating of AA and short term rating of PI by RAM Rating Lanka Ltd in 2010.

The subsidiaries of MBSL are Merchant Credit of Sri Lanka, MBSL Saving Bank Ltd, MBSL Insurance Company Ltd and its associate company is a stock broking company known as Lanka Securities (Pvt) Ltd. MBSL has always pursued prudent growth and 2011 was no different earning an after tax profit of Rs. 332 million. Looking at the performance of the Bank, a strong organic growth in its business volume can be seen amidst a highly competitive environment through leasing, hire purchase, trade finance, investments, share issue management etc.

The growth of MBSL was characterized by diversified sources of income across new products, new customers, and new locations while grabbing business opportunities from across every business segments. During 2011, the bank continued to focus on improving interest income from leasing which in total grew by 48% compared to 2010.

Treasury bills and money market income grew by 68% which is a commendable performance considering the relatively stable interest rates witnessed during the year.

Interest received from margin trading too witnessed a notable growth represented 144 % in 2011 due to trade related income taking centre stage as local capital market activities started to pick up after a dismal year in 2009.

In 2011 also, the leasing division represented the highest contribution as against other portfolios in the bank as a core sector by 67%. Trade finance division contributed 16% and corporate advisory division (Capital Market) contributed 11% this year.

MBSL continued to expand its portfolio in financial leases, operating leases and hire-purchases portfolio amidst turbulent and highly competitive market conditions and recorded a substantial increase of 43% during the year.

A corporate brand campaign was launched in the fourth quarter of 2011 followed by product communications to increase awareness.

Although it reflected a heavy cost impacting the bottom line, it, contributed to the highest ever disbursements in a month recorded in December 2011.