MBSL’s highest profit in 25 years

The Merchant Bank of Sri Lanka Ltd (MBSL), recorded the highest profit in its 25-year history with the latest third quarter results showing an outstanding 32% growth in revenue and profit over the corresponding period over the last year.

The bank said in a statement that the cumulative revenue and profit after tax for the 9-months ending September 30, 2006 recorded Rs. 517 million and Rs 157 million, respectively. 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, the statement said.

A growth in the balance sheet too was recorded in the current period with the lending portfolio rising by 18% while borrowings decreasing by 6%. Shareholder funds too rose by 7% after the payment of a dividend of 7.5%. The bank’s assets amounting to Rs 3.3 billion, include the bank’s gross loans and advances contributed by leasing, hire purchase and trade financing.

The bank’s trade finance unit has been consolidating its position during the year and has been focusing on the recovery of bad debts. The unit recorded a turnover of Rs. 93 million with a contribution of Rs. 58 million reflecting a growth of 82% and 150%, respectively.

The bank is chaired by Udayasri Kariyawasam, who is also the Chairman of Bank of Ceylon which has a 76% stake.