MBSL records highest profits in 25th anniversary year
The Merchant Bank of Sri Lanka (MBSL) recorded a year of achievement
in 2006 with its highest ever profitability, regaining the status of a
billion-revenue group and a satisfactory improvement in its assert
quality. This impressive level of performance was coincidentally
achieved during its 25th anniversary year.
MBSL's CEO Gamini Karunathilake said that progress to this level was
enriched with opportunities through which MBSL took part in the
socio-economic development of the country.
"On the other hand, our strength in resilience was underscored
through the many challenges that MBSL withstood to preserve its
stakeholder interests", he said.
MBSL regained its billion-income position in 2006 after the drawback
experienced during the 1997-2001 period. MBSL's total income in 2006
reached Rs. 704 Mn which marked a growth of 31% compared to the income
of 539 Mn in 2005. The net profit attributable to the company also
increased by 32% to Rs. 210 Mn when compared to the net profit of Rs.
158 Mn in the previous year.
This has been the highest net profit so far in MBSL's 25-year
history. The enhancement of profitability was achieved mainly through
the expansion in the revenue generating activities.
A growth in the interest income together with an increase in the
interest margin in 2006, despite pressure from rising interest rates was
recorded.
Interest income of the year grew by 28% to Rs. 610 Mn while the net
interest margin improved to 69% compared to that of 61% in 2005. The
other income category, which mainly consists of corporate finance and
capital market activities, strengthened the income of MBSL by Rs. 95 Mn
in 2006 against the previous year level of Rs. 64 Mn. |