Mercantile Investments and Finance (MI) has recorded commendable core business growth posting robust profitability levels for the concluded financial year 2015/16.
MI’s pre-tax profit and post- tax profits stood at Rs 803 million and Rs 505 million respectively, though dropping by 12% and 20% respectively from last financial year.
“The rising interest rates and the resultant re pricing effect continued to impact the LFC sector including MI, in terms of increasing funding cost and exerting pressure on core margins enjoyed. MI to a great degree was able to maintain acceptable core margins by optimizing its attractive diverse lending product mix, moreover focusing its strategy on building its core business of lending,”Managing Director Gerard Ondaatjies aid.
Despite the vehicle sales market witnessing somewhat challenging conditions mainly due to the high import duty structure, MI’s lease finance business picked up creditably by 83% year-on-year. The expansion of MI’s branch network by further five locations, bringing total tally to thirty one, supported the company’s efforts in generating higher lending volumes particularly to boost its term based lending products such as personal and corporate lending and also its budding micro finance operation. As a result of this, MI’s lending book grew handsomely by 29% with its total lending portfolio exceeding Rs 25 billion by the end of March 2016.
In the midst of a20% total assets expansion, importantly the company managed to safeguard its asset quality, reflective from the decline in MI’s non-performing lending ratio which stood at 3.39% compared to 4.19% recorded previous financial year end. Deposit moblisation too remained steady with the deposit base growing by 15% year-on-year despite the stiff competition among the financial services sector in mobilising savings of people.
www.dailynews.lk
MI’s pre-tax profit and post- tax profits stood at Rs 803 million and Rs 505 million respectively, though dropping by 12% and 20% respectively from last financial year.
“The rising interest rates and the resultant re pricing effect continued to impact the LFC sector including MI, in terms of increasing funding cost and exerting pressure on core margins enjoyed. MI to a great degree was able to maintain acceptable core margins by optimizing its attractive diverse lending product mix, moreover focusing its strategy on building its core business of lending,”Managing Director Gerard Ondaatjies aid.
Despite the vehicle sales market witnessing somewhat challenging conditions mainly due to the high import duty structure, MI’s lease finance business picked up creditably by 83% year-on-year. The expansion of MI’s branch network by further five locations, bringing total tally to thirty one, supported the company’s efforts in generating higher lending volumes particularly to boost its term based lending products such as personal and corporate lending and also its budding micro finance operation. As a result of this, MI’s lending book grew handsomely by 29% with its total lending portfolio exceeding Rs 25 billion by the end of March 2016.
In the midst of a20% total assets expansion, importantly the company managed to safeguard its asset quality, reflective from the decline in MI’s non-performing lending ratio which stood at 3.39% compared to 4.19% recorded previous financial year end. Deposit moblisation too remained steady with the deposit base growing by 15% year-on-year despite the stiff competition among the financial services sector in mobilising savings of people.
www.dailynews.lk
No comments:
Post a Comment