Merchant Bank’s income up by 22% in 2012
MBSL group reported an income growth of 22% to reach Rs. 3.8 billion
in 2012. Assets under management of the company as at end of 2012
amounted to Rs. 12 billion and the group assets totaled to Rs. 22.5
billion representing a total asset growth of 21.7% and 17.1%
respectively.
This significant achievement was possible amidst difficulties and
challenges brought on by the volatile domestic and international market.
As a result of the company’s comprehensive branch expansion drive in
2012, it led to an unprecedented opening-out of 16 new branches and
extension offices in one day thus expanding the network to thirty. The
negative performance of the stock market has also had a pessimistic
impact not only the performance of the associate company- Lanka
Securities Ltd., but also on the returns on investments in quoted
shares. Rising interest rates further deteriorated the profitability of
the company for the year 2012. MBSL Savings Bank which was acquired for
resurrection also had a negative impact on the group profit due to
inadequate capital. Although, a considerable expenditure had to be
incurred on the network expansion, this will bring in better results in
the years to come despite the negative impact on the profitability of
the company for the year 2012. Several such new branches have been able
to reach break-even point indicating the viability of the company’s
vision.
The ‘Siyath Saviya’ micro financing project that was started with a
small Rs 10 million base, in November 2010, is now showing strong growth
and the loan portfolio has by now expanded to Rs 300 million. Within the
past two years MBSL has been able to reach around 8,000 rural farmers
and entrepreneurs to encourage them to forge ahead with their dreams of
success. MBSL is confident that in the years to come, the micro credit
programme will grow into a massive project that will improve the bottom
line of the company and uplift the living standards of rural
communities, while supporting the government’s drive to develop rural
economies.
Merchant Bank of Sri Lanka PLC (MBSL), at present has Thirty (30)
customer touch points located in the major cities in Sri Lanka
namely,Colombo, Panadura, Ambalangoda, Deniyaya, Hingurakgoda, Kekirawa,
Kandana, Embilipitiya, Bandarawela, Monaragala, Nittambuwa, Puttalam,
Avissawella, Matugama, Mahayyawa, Ampara, Ratnapura, Kandy, Kurunegala,
Galle, Maharagama, Anuradhapura, Negombo, Trincomalee, Ambalantota,
Vavuniya, Batticaloa, Chilaw and Hatton. The company has a stated
capital of Rs 1,607 million with its largest shareholder, the Bank of
Ceylon holding a strategic stake of 72%. MBSL has entered into a
strategic alliance in the year 2005 with SBI Capital Markets Limited
which is the largest investment Bank in India.
The Board of Directors of MBSL comprises of a directorate who are
eminent leaders in Management / Industry and other opinion makers in
their own right, with affiliations to the private and public sectors.
MBSL was awarded long term institutional rating of AA- and short term
rating of P1 by RAM Ratings Lanka Limited.
Its subsidiary companies MCSL Financial Services Ltd, which has 13
branches island-wide including Jaffna and MBSL Insurance with 55
branches add strength and stability to the MBSL group. In addition, MBSL
holds a 29% share of Lanka Securities Pvt Ltd. |