Monday, 2 March 2015 00:00
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The pioneer Merchant Bank and subsidiary of Bank of Ceylon, Merchant Bank of Sri Lanka PLC, currently known as ‘Merchant Bank of Sri Lanka & Finance PLC’ (MBSL), after its merger with two own subsidiaries, recorded a jump start to 2015 by ending 2014 with a 17% growth of its asset base. MBSL posted revenues of Rs. 656.2 million for the ending quarter of 2014 with a Profit before Tax (PBT) of Rs. 120.6 million for the same period.
While the revenues grew aggressively during the last quarter of 2014, net interest income also displayed a sharp increase with a 39% growth from Rs. 800.1 million during the first nine months to Rs. 1,111.8 million by the end of the year. MBSL which did not compete in the public deposit and savings market up until the merger implementation on 1 January 2015, operated by raising funds through money market activities
Further, MBSL has been able to reduce the Interest and Similar Expenses significantly by 13% during the last quarter in 2014 against Q4 of 2013. The values stood at Rs. 345.1 million in Q4 of 2013 and Rs. 298.5 million in Q4 of 2014.
Speaking on the results MBSL CEO T. Mutugala said, “Q4 of 2014 was a tough period as everyone was busy with the merger, as well as winding up all business activities. But we were able to pull through due to commitment and team work.”
MBSL merged with MCSL Financial Services Ltd and MBSL Savings Bank Ltd on 1 January 2015. Fixed deposits, savings, property development and pawning are some of the new business activities carried out by MBSL. Further, the branch network of MBSL grew by 20 new branches and business places with the merger, covering north of the island, where MBSL did not have any presence prior to 2015. Currently the branches and business places stands at 49 covering all parts of the country.
Bank of Ceylon remains as the major shareholder of the merged entity, Merchant Bank of Sri Lanka & Finance PLC, with a strategic stake of 78%. 2015 marks the 33rd anniversary of MBSL, which they plan to celebrate in a grand scale.
