Monday Dec 01, 2025
Monday Dec 01, 2025
Tuesday, 25 November 2025 02:21 - - {{hitsCtrl.values.hits}}
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Chairman Asoka Pieris |
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MD and CEO Senarath Bandara |
Cargills Bank yesterday announced its results for the nine months ended 30 September 2025, reflecting an increase of Rs. 155 million in profitability when compared to the corresponding period in 2024 posting a profit after tax (PAT) of Rs. 313 million.
In a statement the Bank said Net interest income of Rs. 2,743 million was a 10% increase of Rs. 244 million in the nine months period compared with the corresponding period of 2024. Despite the low interest regime that prevailed, commendable 31% growth in loan book coupled with continued focus on repricing of deposits and advances to reflect the market conditions to manage the NIM in an optimal manner resulted in the aforesaid growth in NII. The marginal reduction in NIM was due to the gradual reduction in market interest rates in line with the CBSL policy directions.
Net fee and commission income of Rs. 682 million for the nine months ended 30 September recorded Rs. 60 million growth in comparison with the corresponding period in 2024. Concerted efforts to improve trade volumes, loan related fee income, card related fee income and improved remittance income were among the main contributory factors for this growth of 10% recorded.
Capital gains realised on derecognition of financial assets and net gains from financial assets at fair value through profit or loss reduced by Rs. 142 million and Rs. 161 million to reach Rs. 361 million and Rs. 80 million, respectively in the nine-month period of 2025. Consequently, total other income for the nine-month period of 2025 decreased by Rs. 307 million or 38% when compared to 2024 to reach Rs. 501 million.
Total operating expenses increased by 14% from Rs. 2,431 million in corresponding period of 2024 to Rs. 2,761 million in the nine-month period of 2025. Personnel expenses increased by 15% due to increase in the cadre coupled with revision in salary to reflect market conditions. Other operating expenses grew by 15% due to increase in the branch network, marketing and other administrative expenses including professional charges. The bank’s Cost-to-Income Ratio of 70.31% reflected an increase from 58.23% in 2024 mainly due to the above cost
escalations.
Subsequent to a careful scrutiny of the status of borrowers and considering the improved macro-economic environment and results of recovery actions, impairment charges totalling Rs. 162 million reflected a decrease of 80% from Rs. 811 million in the nine-month period of 2024 . The Bank’s Stage 3 Loans (Net of Stage 3 Impairment) to Total Loans Ratio stood at 7.55% as Page 2 of 17 of 30 September 2025 Vs 8.74% as of 30 September 2024 whilst Stage 3 Provision Cover was 44.78% as of 30 September 2025.
The Bank maintains Capital Adequacy and Liquid Assets Ratios well within the minimum requirements prescribed by the Central Bank. The Total Capital Ratio stood at 17.08% while all liquidity related ratios were within the regulatory minimum requirements.
Total assets of the bank as of 30 September at Rs. 88.5 billion reflected an increase of Rs. 8.2 billion or 10% during the nine-month period of 2025. The loan book posted a steady growth of Rs. 14.3 billion or 31%, from Rs. 46.1 billion to Rs. 60.4 billion, witnessing the commendable performance of our frontline. Financial assets measured at fair value through other comprehensive income decreased by Rs. 5.9 billion or 26% to reach Rs. 16.5 billion, partly reallocating its proceeds to fund the loan book growth in response to increased credit demand. Fair value through other comprehensive income reserve dropped to Rs. 223 million as of 30 September on realisation of part of gains in profit or loss and unwinding of another portion in approaching maturity. Customer deposits increased by 5% to reach Rs. 62.5 billion at the reporting date from Rs. 59.4 billion at the end 2024.
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