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Friday Nov 15, 2024
Thursday, 24 February 2011 00:35 - - {{hitsCtrl.values.hits}}
Merchant Bank of Sri Lanka (MBSL) reached a group turnover of Rs. 3 billion, Net interest income of Rs. 1.1 billion and profits of Rs. 551 million for the year 2010, with a market capitalisation of Rs. 6.9 billion.
The stable political environment, renewed interest from the corporate and business communities and a highly motivated staff capturing opportunities contributed to the remarkable performance, said Chairman of Merchant Bank of Sri Lanka M.R. Shah.
“The Colombo Stock Exchange showed a considerable performance in 2010, with All Share Price Index improving by 96% to reach 6,636 points and the Milanka Price Index growing by 83% to reach 7,061 points with a market capitalisation of Rs. 2,210 billion from Rs. 1,092 billion in 2009. Though net foreign outflow is an anxiety, it is pivotal to attract next level of risk taking investors into the country by form of offering Initial Public Offers, capital market products, funds incorporated in Sri Lanka or even unit trust arrangements,” he added.
MBSL Group performance was remarkable whilst the industry in general saw momentous growth. Turnover grew by 26% in 2010 to reach Rs. 3 billion and the profits grew by 63% to reach Rs. 551 million. The interest margin of 63% as against 41% in 2009 and Return on Equity of 16.57% as against 11.1% in 2009 is fundamental for the bank’s growth story.
The Chairman said: “Good governance, ethics and transparency that cascaded from the Board of Directors and focus on value driven activities were the key success factors that made our bank reap the benefits from the opportunities arising from the market place. We understand the 2011 Budget will offer immense opportunities for all banks and corporates in the country. Reduction of Financial Services Value Added Tax and Corporation tax will strengthen our bank in facing the changing needs of the economy. We want to be the frontiers to the growth story of emerging wonder of Asia.”
Shah revealed that the bank would focus on the core business activities, investment banking and SME sector, which is anticipated to provide above average returns in future. The courage and the strategic strength from the parent Bank of Ceylon is a morale boost to the management in its business dealings, he added, noting that this would support the bank in developing more conducive business relationships with clients and incarcerate business opportunities that emerges from the market.
Employee motivation through better working environment and management support has been a key success at MBSL in 2010 and the economic prospects and the support to the financial services from the Central Bank will continue to be growth prospects for the bank as it has been an opportunity flow for Merchant Bank of Sri Lanka, he concluded.
