MBSL posts 6% revenue increase in 1st quarter 2014
Wednesday, 7 May 2014 00:00
-
- {{hitsCtrl.values.hits}}
The Merchant Bank of Sri Lanka PLC (MBSL) posted revenue of Rs. 598 million for the 1st quarter of the financial year 2014 as against Rs. 563 million during the corresponding quarter of last year.
The net interest income of MBSL recorded a growth of 18% from Rs. 206 million to Rs. 243 million in the three month period mainly from lease and hire purchase, term loans, microfinance and personal loans.
Interest expenses decreased from Rs. 343 million to Rs. 330 million for the same period, recording a marginal drop by 4%. This decrease mainly reflected due to overall interest rate reduction in the market.
Other comprehensive income for the period increased from Rs. 5.4 million to Rs. 15 million, this was due to fair value gained from financial assets available for sale.
The total assets of MBSL reached to Rs. 13.6 billion as at 31 March 2014, compared to Rs. 13 billion as at 31 March 2013 reflecting a growth of 4%. The growth in the company’s asset base is mainly represented by lease and hire purchase receivables and loans and advances to customers.
Furthermore, the overall portfolio increased from Rs. 9.7 billion to Rs. 10.2 billion over the base figures on 31 March, 2013. This was mainly due to the increase in corporate and retail credit activities. “We have successfully managed to improve our credit growth while maintaining strong capital adequacy ratio at 21.34 % at the end of 1st quarter 2014, which is well above the regulatory requirements,” MBSL CEO T. Mutugala said.
Merchant Bank of Sri Lanka PLC is planning to merge with MBSL Savings Bank Ltd. and MCSL Financial Services Ltd. and become a finance company. The latest move comes as a part of the latest financial sector consolidation plans laid out by the Central Bank of Sri Lanka. MBSL is a subsidiary coming under the state run banking giant Bank of Ceylon.
