Amidst a Rating Outlook elevation, Mercantile Investments expands reach

Friday, 8 December 2023 00:10 - - {{hitsCtrl.values.hits}}

Managing Director Gerard Ondaatjie inaugurates the Ragala branch

Mercantile Investments said yesterday its commitment to performance and stability in the face of a highly volatile economic environment was amplified with Fitch Ratings’ recent upgrade of its credit rating to a “Stable Outlook,” removing the previous status of “Rating Watch Negative” (RWN).

“This positive development underscores the company’s solid funding and liquidity profile, its expected resilience against margin pressure, and its effective management of macroeconomic risks. Notably, MI’s stronghold in vehicle financing further solidifies its position within the industry,” the Company said in a statement. “The affirmation of its credit rating and the stable outlook serve to enhance investor confidence, emphasising MI’s dedication to maintaining financial strength despite potential challenges in the dynamic financial landscape,” it added.

Despite the economic challenges MI said it has demonstrated ongoing business resilience in its half-year financial results, reflecting sustained growth in its core operations. The company achieved robust pre-tax and post-tax profits, amounting to Rs. 222.7 million and Rs. 140.6 million, respectively, marking remarkable growth in the first half of the 2023/24 financial year and projects steady upward trajectory, with the planned business growth anticipated in the medium term.

In harmony with the remarkable milestones surpassed for almost over a six-decade history at MI, the company is steadfastly driving the expansion of its branch network, extending its services first time in Central Province with the Ragala branch opening held in August 2023. The most recent addition to this flourishing network being the strategically launched Kandy branch, nestled in the heart of Kandy town and Ambalangoda branch opening in November 2023—an emblematic milestone that elevates the company’s total branches to an impressive 46.

MI said these expansions surpass mere numerical growth; they signify a deliberate strategy to position branches strategically across the country. By the end of this financial year, MI endeavours to launch multiple branches in prime locations of the county including Wellawatta, Kalutara, and Bandarawela adopting an unique branch concept riding on costs efficiency. This calculated approach also is designed to facilitate enhanced accessibility for current and prospective customers, showcasing the company’s dedication to provide a broad spectrum of financial solutions, MI added.