Home / Financial Services/ Mercantile Investments records robust performance

Mercantile Investments records robust performance

Comments / {{hitsCtrl.values.hits}} Views / Friday, 12 July 2019 00:00

Mercantile Investments and Finance Managing Director Gerard Ondaatjie at the opening of the Ja-Ela branch 

Mercantile Investments and Finance PLC (MI) has just released the company’s latest Annual Report under the theme ‘A Profound Journey’. 

Despite a challenging business environment for the finance company sector, the company reported a robust financial performance yet again for the FY 2018/19, posting a Net Profit Before Tax (NPBT) and Net Profit After Tax (NPAT) of Rs. 787 million and Rs. 458 million respectively. 

However, the adoption of the SLFRS 9 new accounting standard and the observed slowing down of collections due to external economic factors had a direct impact on the non-performing loans and the Company’s  impairment charges which increased year on year and resulted in a 8% and 11% reductions in the NPBT and NPAT respectively.

At a moment when the company celebrates 55 years in business, MI’s Annual Report reflects upon this year’s performance and the successful journey undertaken thus far, and MI’s corporate strategy in facing future sector challenges. 

Managing Director Gerard Ondaatjie in his ‘Managing Director’s Review,’ said: “In this challenging backdrop, Mercantile Investments was receptive to market changes and took a proactive approach, taking steps to curtail immerging risks, whilst making necessary strategic maneuvers towards longer term organisational goals and aspirations.”

Through a committed effort, the company was able to maintain a strong capital position which is reflected from the prudential capital adequacy ratios published. The Tier 1 Core Capital Risk Ratio and the Total Risk Weighted Capital ratio stood strong at 14.98% and 16.69%, well above the enhanced BASEL II requirements of 6% and 10% respectively.

The company opened three new branches in Puttalam, Ja-Ela and Malabe in 2019 but will moreover continue to pursue its consolidation strategy of optimising the existing branches of 39 locations to maximize business opportunities, staying optimistic about a speedy revival of the existing challenging business conditions. 

MI is geared with a comprehensive strategic plan for the next three years to drive its business towards a sustainable growth trajectory and in this pursuit, was also able to take appropriate measures since 2018 to enhance employee capabilities, to stay competitive and face challenges posed by the industry and the economy.

Mercantile Investments and Finance PLC is a Licensed Finance Company under the Finance Business Act No. 42 of 2011, listed on the DiriSavi Board of the Colombo Stock Exchange.


Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Why NPP for minorities and the nation?

Tuesday, 12 November 2019

The two minority communities, Tamils and Muslims, and their ethnic political parties are once again caught up in a dilemma in choosing one or the other of the two leading presidential candidates, Sajith and Gota. The Tamil parties drew a set of 13 d

Corporate treasurers should make more use of derivatives to hedge risks

Monday, 11 November 2019

Humans have never liked the idea of uncertainty. More so, they did not like the idea of economic uncertainty. Hence, the need to hedge this uncertainty gave rise to the evolution of derivatives. Derivatives have been used by mankind for a very long

China’s rising giants

Monday, 11 November 2019

China’s evolution into a global powerhouse with the world’s second largest economy is a familiar story. Less well-known though is the tremendous growth of the nation’s state-sponsored aviation sector, which now has a global reach. Serving the w

Sajith: Our last best hope

Monday, 11 November 2019

Candidate Gotabaya Rajapaksa was addressing a massive rally in Polonnaruwa. Just as he commenced with the usual preliminaries, there occurred a diversion. Wasantha Senanayake, the infantile trapeze artist, thought it was the opportune time to appear

Columnists More