Moribund Merchant

May 05, 2009 (LBO) - Merchant Bank of Sri Lanka (MBSL) said its March quarter group net profit fell 5.



8 percent to 29.8 million rupees from a year ago, with net interest income flat.





MBSL is also acquiring control of Ceylinco Savings Bank (CSB), part of the troubled Ceylinco group, which suffered a run after another group firm, Golden Key Credit Card Company, collapsed.

MBSL was appointed the manager of CSB by the Central Bank in a rescue deal.

Interest income rose 15.7 percent to 406 million rupees while interest expenses fell 22.

9 percent to 258 million rupees, with net interest income virtually stagnant at 148 million rupees, the bank said in a sock exchange filing.

Provision for loan losses went up 22.

6 percent to 21 million rupees.

Total group assets were up almost 14 percent to 7.

8 billion rupees as at March 31, 2009 from a year ago.

MBSL, which is 89.3 percent owned by state-run Bank of Ceylon, has got into the insurance business with the acquisition of ABC Insurance for 77 million rupees.