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| Sunday, 9 June 2002 |
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Seylan Merchant Bank reverses 2001 trend with growth in 2002 Seylan Merchant Bank (SMB) has reported significantly better financial results in the first quarter of 2002 over the corresponding period of last year. The first quarter results of the bank submitted to shareholders recently reveal that the bank's gross income grew 41 per cent to Rs.96.7 million, while pre-tax profit grew 103 per cent to Rs. 570,000, from a loss of Rs. 21 million in the first quarter of 2001. A notable feature of this performance was the growth in net interest income from a shortfall of Rs. 4.2 million in the first quarter of 2001 to a surplus of Rs. 5.3 million in the first quarter of 2002. SMB attributes this to an overall interest cost reduction due to a drop in interest rates. SMB's Director and General Manager Rohan Senanayake said: "SMB was making losses from 1997 onwards due to the decline in stock market activities. We made profits in the first quarter of 2000, but were hit hard in the fourth quarter with the substantial increase in interest rates". The trend continued into 2001, at the end of which the bank declared a loss of Rs. 55.7 million. To return to profitability, SMB launched Fortune 2001, a campaign focused on stimulating the mobilisation of investments and disbursement of funds as well as to broaden the bank's investor base by catering to both small investors in Colombo and the provinces. "The bank had an excellent response from the public to this campaign. Our client base for leasing operations grew by an estimated 70 per cent last year," Mr. Senanayake said. "The effects of the momentum generated by the campaign can be seen in the results for the first quarter of 2002. "In contrast to bank, SMB's specialised leasing subsidiary, Seylan Merchant Leasing Limited (SMLL) recorded a creditable performance in 2001, its first full year of operation. This trend has continued in the first quarter of 2002, with SMLL reporting a profit of Rs. 3 million for the period. "The prospects for SMLL look encouraging, especially if the interest rates remain constant for the rest of the year," Mr. Senanayake commented. SMB commenced operations in October 1992 as a public limited liability company. A member of Ceylinco Consolidated, Seylan Merchant offers many merchant banking facilities. Its products include 'Jet Lease', a vehicle leasing facility, business loans and personal banking facilities such as 'SMB Quick Cash', 'SMB Classic Personal Loans' and 'SMB Fly High' and easy payment scheme to purchase air tickets. Its other subsidiaries include SMB Money Brokers (Pvt) Ltd., SMBex (Pvt) Ltd. and SMB Real Estate Ltd. |
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