Mercantile Investments records net profit of Rs. 905 m

Thursday, 30 June 2011 01:09 - - {{hitsCtrl.values.hits}}

By Gayani Perera

Mercantile Investments (MI), which has now been renamed as Mercantile Investments PLC after registering with the Colombo Stock Exchange, this year successfully completes 47 years of service to the financial industry.

The company so far has seen progressive growth during the past few years, with MI has recording phenomenal growth this year.

MI provides a plethora of financial services to customers which include leasing, hire purchase, personal loans, vehicle loans, fixed deposits and savings. MI recently opened a branch in Kurunegala, which is the seventh branch to be included in its branch network and presently holds the fifth dominant position in the financial sector.

Commenting on the stability of the company Assistant General Manager – Leasing of MI Dhanushka Fonseka said: “Last year our lending increased by Rs. 2.7 billion to Rs. 5.08 billion, which is almost a 100% increase. The total deposit base of the company recorded 18% growth, compared to that of last year.

Our Non Performing Loan ratios are much lower than the prevailing industry rates, which is very encouraging. Our net profits have increased by 176% and amount to Rs. 905 million and net assets have also experienced a growth of 26%. We are very proud of the fact that we have been able to achieve such outstanding results despite the fact that we have a very small branch network when compared to the other larger players in the industry.”

Back by a very young and dynamic team, MI hopes to expand its services by opening branches in the Matara and Batticaloa areas very soon as well as a city office in Colombo.

“Our main area of focus is to provide a superior service to our expanding customer base. We provide a very personalised and speedy service to our customers, which are the secrets behind our success. In the near future we will also be opening a separate section for corporate leasing,” added Fonseka.

The leasing industry experienced a huge boom after the war, which was further heightened with the unregistered vehicle market increasing imports last year due to tax deductions. At present the future of the leasing industry looks bright and geared up with its recent achievements, MI will no doubt be in the forefront of everything positive taking place in the industry.