The Merchant Bank of Sri Lanka Ltd (MBSL) has recorded an all time high income of Rs. 1.03 billion in 2009 an 11.6% increase over the previous year.
This achievement was possible due to prudent financial policies and proper business ethos followed by the company, said the new chairman of MBSL M.R. Shah when he addressed the Bank’s Annual General Meeting in Colombo recently.
MBSL posted an after tax profit of Rs. 200.9 million for the financial year ended 31 December 2009, compared with a profit of Rs. 205 million in the corresponding period of the previous year.
The MBSL group profit for the same period was Rs.283 million for 2009 compared with Rs 224.4 million in the previous year. The high profit growth was largely due to steady growth in business volumes, efficient management of lending together with excellent recovery practices which have all contributed to this success, Mr Shah said.
A growth in the Balance Sheet too was recorded during this period . Lending portfolio increased by 18% while borrowings decreased by 6%. The MBSL Group assets amounting to Rs. 11.8 billion, comprising the bank’s gross loans and advances contributed by leasing, hire purchase and trade financing, he said.
At the AGM, shareholders were optimistic that there would be a boost in business activities which in turn will generate a better return on their investments.
Shareholders K.C. Vignarajah and T. Vedamanickam noted that corrective measures should be taken to rectify mistakes and to ensure that corruption in every form would be eliminated which will then impact favourably on investors.
Mr. Vignarajah said that with the objective of sustaining investor confidence and support MBSL should make every effort to pay an attractive dividend.