Cargills Bank posts Rs. 240 m PAT for 1H 2025

• 1H Profit before Income Tax Rs. 464 m, an increase of Rs. 158 m
• Net fee and commission income grow by Rs. 55 m
• Total Capital Ratio at 18.06%
• Liquidity Coverage Ratio, Rupee at 174.93% and All Currency at 138.68%
• Net Stable Funding Ratio at 127.71%
• Total Assets grow by Rs. 4.2 b

Chairman Asoka Pieris

Managing Director/CEO Senarath Bandara

Cargills Bank has reported a Profit After Tax (PAT) of Rs. 240 million in the first half of 2025, an increase of Rs. 104 million from a year ago, the bank said in a statement.

In a statement, the bank said its Net Interest Income of Rs. 1,836 million was an increase of Rs. 178 million in 1H 2025 compared to 1H 2024. The marginal reduction in NIM was due to the gradual reduction in market interest rates in line with the CBSL policy directions. The bank continued to focus on repricing of deposits and advances to reflect the market conditions and to manage the NIM in an optimal manner.

Net fee and commission income of Rs. 440 million was a growth of Rs. 55 million growth from a year earlier. Concerted efforts to improve trade volumes, loan related fee income, card and acquiring related fee income and improved remittance income were among the main contributory factors for this growth of 14% recorded.

Capital gains realised on derecognition of financial assets boosted other income streams by Rs. 83 million in the six-month period under review to reach Rs. 361 million. Net gains from financial assets at fair value through profit or loss decreased by Rs. 113 million to reach Rs. 67 million. Consequently, total other income decreased by 8% YoY to reach Rs. 477 million.

Total operating expenses increased by 15% YoY to Rs. 1,883 million. Personnel expenses increased by 16% due to increase in the cadre coupled with revision in salary to reflect market conditions. Other operating expenses grew by 19% due to increase in the branch network, marketing and other administrative expenses including professional charges. The bank’s Cost-to-Income Ratio of 66.59% reflected an increase from 58.23% in 2024.

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. 180 million reflected a decrease of 59% YoY. The bank’s Stage 3 Loans (Net of Stage 3 Impairment) to Total Loans Ratio stood at 7.85% whilst Stage 3 Provision Cover was 45.04% as at 30 June.      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 18.06% while all liquidity related ratios were well above the regulatory minimum requirements.

Total assets of the bank as at 30 June at Rs. 84.5 billion reflected an increase of Rs. 4.2 billion or 5% during the 1H 2025. The loan book posted a steady growth of 22% to Rs. 56.4 billion witnessing the commendable performance of our frontline. Financial assets measured at fair value through other comprehensive income decreased by 20% to reach Rs. 17.8 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. 297 million as at 30 June on realisation of part of gains in profit or loss and unwinding of another portion in approaching maturity. Customer deposits decreased marginally by 1% to Rs. 58.9 billion at the reporting date.