SMB reports strong profit growth in first half of 2006
COMPANY RESULT: The Seylan Merchant Bank (SMB) Group announced
strong pre and post tax profits and healthy growth in income for the
first half of 2006.
In results released to the Colombo Stock Exchange (CSE) last week,
the Group reported a 71 per cent increase in operating profit before
associate company's profit and taxation to Rs 47.9 million. Profit after
tax was up 54 per cent to Rs 41.5 million.
Net income of the Group increased to Rs 419.8 million in the period
under review, a growth of Rs 41.1 million or 11 per cent.
The increase in net income was chiefly due to an 18 per cent increase
in other income of the Group which rose to Rs 68.9 million for the first
half of 2006 from Rs 58.3 million in the corresponding period of last
A 10 per cent increase in interest income to Rs 350.9 million also
contributed to this growth.
Deputy Chairman of SMB Rohan Senanayake said the increase in
profitability could be attributed to the increase in income and growth
in the leasing portfolio of the Group, which will further strengthen
SMB's position in the market.
"With SMB being selected as one of the trading members to operate on
the CSE, with a full stock-brokering licence and the company's tie up
with K&N Kenanga of Malaysia, SMB can now be considered a fully fledged
merchant banking unit. SMB can now provide a one-stop concept in
financial services," he said.