MBSL has made a strong come back in the financial year 2018, recording a pre-tax profit of Rs 447 million.
In comparison to the pre-tax profit of Rs 229 million recorded in 2017, MBSL recorded a pretax profit growth of 95 percent. As a direct result of changes that the company made to enhance financial and operational resilience from the mid of the year, the company witnessed a standalone profit after tax growth of 79.21% increase from 101 million (mn) to 181mn.
Commenting on the Company’s solid performance in 2018, Dr Sujeewa Lokuhewa, Chairman MBSL said, “this year, we revisited our strategic focus to reinforce our core fundamentals to improve our resilience against external forces. We streamlined our lending model to enhance our credit control and recovery management architecture. This move allowed us to manage risk posed by the external environment on our target market, the Small and Medium Business segment.”
The company’s efforts to pursue restrategise the business activities led to lending portfolio growth rates of 9 percent and 109 percent in leasing and gold loan activities respectively. MBSL’s impairment cost reduced by Rs 109 million, driven by prudent provisioning policy employed by MBSL. During the financial year 2017/18, MBSL disbursed 18.44 bn worth of secured loans.
The strategic growth plans for the future include consolidating the company’s strengths to build resilience in order to effectively navigate the unpredictable macroeconomic environment of Sri Lanka.
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