Combined forces to fuel MBSL's growth
The Quarter ending March 31, 2015 signifies Merchant Bank of Sri
Lanka and Finance PLC's (MBSL), first quarter as a consolidated and
unified entity, following the amalgamation with MBSL Savings Bank Ltd (MSB)
and MCSL Financial Services Limited (MCSL) in January.
With a post-merger Balance Sheet size of Rs. 27.3 billion, the
amalgamation and the resultant conversion to a Licensed Finance Company
under the Finance Business Act No. 42 of 2011 has enabled the Group to
attract relatively low-cost public deposits and diversify its funding
sources.
The Group's branch network also extended to 49 and the expansion of
our human resource consisting of experienced and talented staff has
provided ample opportunity for growth, in previously untapped
geographical regions and industry sectors.
Performance was reflective of ground breaking operational changes
arising during transition, including systems integration, streamlining
of processes, impairment needs and management of human resource issues
among others.
The Group's income for the quarter was Rs 1.33 billion reflecting the
decline in market interest rates although the Group's loan portfolio
remained relatively unchanged over the corresponding period.
However, a sharper decline in interest expenses by 25.17% facilitated
the Group to maintain a net interest income at Rs 462.24 million.
Impairment provisions for the period increased to Rs 244.82 million from
Rs. 187.39 million the previous year. |