Financial Times

People’s Merchant Bank Limited (PMBL), has achieved the highest ever profit of before and after tax, amounting to Rs 58.75 million and Rs 36.47 million respectively for the year ending March 31, 2006.

This is the highest ever profit record for the second year running, while the asset base of the company has grown by 32 percent to Rs. 1.1 billion during year 2005/2006.

PMBL’s Board of Directors has proposed a first and final dividend of 20 percent to be approved at the oncoming Annual General Meeting of the company scheduled for 30th June. This, if approved, will be equal late year’s rate.

A notable achievement during the year was the opening of two branches in Gampaha and Avissawella. The Bank’s leasing division has made new inceptions exceeding half a billion for the first time and the leasing and hire purchase portfolio has grown by over 50 percent with the banks at Kurunegala, Matara and Mathugama posting good results.

The trade finance division produced very high return on assets, whilst the real estate division gave a boost to the bank’s profits.

The corporate finance division structured and placed several securitisation issues on behalf of its clients during the year and they have also been mandated to carry out several IPO assignments.

Lending institutions showed their faith in the bank by the raising of Rs 350 million in unsecured debentures during the year.

The Bank’s Annual Report 2004/05 was yet again awarded a “Certificate of Recognition”, at the Awards for Excellence in Annual Reports, conducted by The Chartered Institute of Accountants, Sri Lanka.

This is the 9th consecutive year that PMBL’s report has received such an award. Fitch Ratings Lanka has also been appointed to obtain a rating for PMBL, the result of which will be announced shortly, thereby becoming the first merchant bank in Sri Lanka to publish such a rating.

Maintaining its position as the highest quoted merchant bank share in the stock market, PMBL’s shares performed exceptionally during the year, peaking at Rs 45 per share, during February 2006. Key shareholders of PMBL are People’s Bank, DPMC Financial Services and South Bridge Capital Investments (Sri Lanka).

In the report, PMBL Chairman Mr. Kuvera de Zoyza congratulated the bank’s CEO Mr. Guy de Silva for the great progress and achievements of the bank during the period of his stewardship since May 2003, the employees for their efforts in earning the profit before tax of over Rs 1.2 million per employee, and has referred in particular to the 10-year summary of the bank’s results, which clearly sets out the said progress of the bank.