The Merchant Bank of Sri Lanka & Finance PLC (MBSL) has made a strong turnaround by posting a profit during one of the worst-affected periods in recent history demonstrating its ability and resilience to overcome obstacles but it has managed to turn the situation around to post a profit.
The pre-tax profit growth was 296%, up from pre-tax loss growth of 116% in the first quarter of 2020. Such profits are a direct result of the institution-wide changes that have been put in place to deal with the pandemic. The Net Interest Income increased 70% to Rs. 718 mn from Rs. 422 mn, in the first quarter of 2020. Kanchana Ratwatte, Chairman of MBSL said: “Our ability to move with the times, our team’s sense of loyalty, and our commitment to excellence in any situation has helped us effectively to navigate through these difficult times and come out stronger. The company is turning around with renewed vigour, more focus and new strategies. We are very optimistic about our future”.
The growth in gross earnings was a result of increase in equity related activities and real estate income. The company’s customers’ loyalty was proven with an increase of deposits by 5% to Rs. 22.8 bn from Rs. 21.7 bn.Net fee and commission income increased by 33%as a result of improved business volumes. The company was able to curtail the operating cost by around 1% year on year with strict management of the costs. The pandemic affected the overall numbers at MBSL but did not hesitate to implement all relief measures introduced in line with the government policies to cushion the impact of the pandemic on customers to assist in improving their cash flows.
CEO (Actg) of MBSL, Jude Gamalath added that, “It was due to our utmost commitment to customer relationships that strengthened the trust they have in us, strong focus on key business areas, and the 100% dedication of our staff and management that we were able to post profits in one of the country’s worst periods in recent times. Such factors allowed us to create a quick turnaround in Q1 2021. We are happy that we have been able to do this and look forward to continued success in the future”.
MBSL entered the Sri Lankan financial sector as the country’s pioneer merchant bank in 1982 and was quoted on the Colombo Stock Exchange in 1991.
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