Financial Highlights
- Profit before Income Tax for the 1st Half 2025 – Rs. 464 Mn, an increase of Rs. 158 Mn
- Net fee and commission income grow by Rs. 55 Mn
- Net gains from derecognition of financial assets at fair value through other comprehensive income grow by Rs. 83 Mn
- Bank remains well capitalized and liquid;
o Total Capital Ratio at 18.06%
o Liquidity Coverage Ratio (LCR), Rupee at 174.93% and All Currency at 138.68%
o Net Stable Funding Ratio (NSFR) at 127.71%
- Total Assets grow by Rs. 4.2 Bn
Cargills Bank’s results for the six months ended 30 June 2025 reflected an increase of Rs. 104 Mn in profitability when compared to the corresponding period in 2024 posting a profit after tax of Rs. 240 Mn for 1H 2025. Net interest income of Rs. 1,836 Mn was an increase of Rs. 178 Mn 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 Mn for the six months ended 30 June 2025 recorded Rs. 55 Mn growth in comparison with the corresponding period in 2024. 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 realized on derecognition of financial assets boosted other income streams by Rs. 83 Mn in the six month period under review to reach Rs. 361 Mn. Net gains from financial assets at fair value through profit or loss decreased by Rs. 113 Mn to reach Rs. 67 Mn in 1H 2025. Consequently, total other income for 1H 2025 decreased by Rs. 44 Mn or 8% when compared to 2024 to reach Rs. 477 Mn.
Total operating expenses increased by 15% from Rs. 1,592 Mn in 1H 2024 to Rs. 1,883 Mn in 1H 2025. 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 totaling Rs. 180 Mn reflected a decrease of 59% from Rs. 440 Mn in 1H 2024. 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 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 18.06% while all liquidity related ratios were well above the regulatory minimum requirements.
Total assets of the Bank as at 30 June 2025 at Rs. 84.5 Bn reflected an increase of Rs. 4.2 Bn or 5% during the 1H 2025. The loan book posted a steady growth of Rs. 10.3 Bn or 22%, from Rs. 46.1 Bn to Rs. 56.4 Bn, witnessing the commendable performance of our frontline. Financial assets measured at fair value through other comprehensive income decreased by Rs. 4.6 Bn or 20% to reach Rs. 17.8 Bn, 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 Mn as at 30 June 2025 on realization 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 Bn at the reporting date from Rs. 59.4 Bn at the end 2024.
