SMB profit after tax up 54% to Rs. 41.5 million in 1 H, 2006

The Seylan Merchant Bank (SMB) Group recorded strong pre and post tax profits and healthy growth in income for the first half of 2006.

In results released to the Colombo Stock Exchange (CSE), the Group reported a 71 per cent increase in operating profit before associate company's profit and taxation to Rs. 47.9 million. Profit after tax was up 54 per cent to Rs. 41.5 million.

Net income of the Group increased to Rs. 419.8 million in the period under review, a growth of Rs. 41.1 million or 11 per cent.

The increase in net income was chiefly due to an 18 per cent increase in other income of the Group which rose to Rs. 68.9 million for the first half of 2006 from Rs. 58.3 million in the corresponding period of last year. A 10 per cent increase in interest income to Rs. 350.9 million also contributed to this growth.

Lease rental receivables of the Group rose to Rs. 3.2 billion during the first six months of the year as against Rs. 2.8 billion earned as at December 31, 2005. This was a growth of Rs. 363.5 million or 12.7 per cent.

Commenting on these results the Deputy Chairman of SMB Rohan Senanayake said that the increase in profitability could be attributed to the increase in income and growth in the leasing portfolio of the Group, which will further strengthen SMB's position in the market.

"With SMB being selected as one of the trading members to operate on the CSE, with a full stock-brokering licence and the company's tie up with K&N Kenanga of Malaysia, SMB can now be considered a fully fledged merchant banking unit," he said.