Merchant Bank of Sri Lanka PLC (MBSL) in the fourth quarter (4Q) ended December 31, 2007 saw income grow by 24.1% year on year (YoY) to Rs. 445.3 million, while profit after tax (PAT) in the period under review grew by 18.3% to Rs. 134 million. The Group in the financial year ended December 31, 2007 saw total income increase by 24.1% YoY to Rs. 1.4 billion, while profit increased by 18.3% to Rs. 244.6 million.

Group Chief Executive officer Gamini Karunathilake told reporters on Wednesday that growth was due to cost rationalization and the "pass through" effects of the country's high interest regime to the consumer.

MBSL is a Bank of Ceylon subsidiary.

The Group was able to reduce their non performing loan portfolio from 14% to 10% in the period under review.

The company which is also involved in capital market activities, is working on three initial public offerings valued at Rs. 1.5 billion this year, its Deputy Director A.M.A. Cader said.