Financial Highlights

• Profit after tax stands at Rs. 105 Mn for the quarter
• Total Capital Ratio at 19.01%
• Net loan book grows by 6% (Rs. 3.8 Bn) compared to December 2025 to reach Rs. 67 Bn (YoY growth of 37%)
• The stage 3 loans (net of stage 3 impairment) to total loans ratio at 6.44%,
• Total assets grow by 6% compared to December 2025 to reach Rs. 97.5 Bn (YoY growth of 19%),
• Successfully raised equity capital of Rs. 2.5 Bn through a Rights Issue

Cargills Bank’s results for the quarter ended 31 March 2026 reported a profit before tax of Rs. 185 Mn reflecting 42% drop when compared to the corresponding quarter in 2025 mainly due to a significant reduction in total other income, which decreased by Rs. 381 Mn. The decrease in total other income was partially overcome by increase in the net interest income.

Net interest income rose to Rs. 1,041 Mn, a 20% increase over Q1 2025. This growth was primarily driven by loan growth reinforced with a strategic focus on repricing of deposits and advances to reflect the market conditions to manage the NIM in an optimal manner, as reflected by the increase in NIM from 4.38% in Q1 2025 to 4.46% in the quarter under review.

Net fee and commission income recorded a marginal decrease of Rs. 7 Mn compared to corresponding quarter in 2025. This 3% decrease was impacted by one-off items included in fee income related to loans and advances in Q1 2025, as well as a marginal reduction in trade related fee income this quarter.

Similarly, total other income for the period decreased by 96% to Rs. 15 Mn. This was largely due to higher realized capital gains on the derecognition of financial assets and net gains from financial assets at fair value through profit or loss reported in Q1 2025.

Total operating expenses increased by 7% to Rs. 979 Mn. Personnel expenses rose by 15% due to salary increments and adjustments aimed at reflecting market conditions and retaining talent. Depreciation and amortization grew by 36%, primarily driven by investments in information technology and other infrastructure upgrades. The Bank’s Cost-to-Income Ratio stood at 75%, an increase from 71% in the corresponding period in 2025.

The Bank significantly narrowed its Other Comprehensive Loss to Rs. 60.4 Mn, an 80% improvement from the Rs. 307.3 Mn loss in Q1 2025. This was supported by lower fair value losses on financial assets measured at fair value through OCI. Consequently, Total Comprehensive Income turned positive at Rs. 44.4 Mn, reflecting a 131% recovery in comparison to the corresponding period in 2025.

The Banking segment of the operating segments was the primary driver of performance, with operating profit before taxes rising to Rs. 282 Mn from Rs. 129 Mn in Q1 2025. This growth was fueled by a 36% increase in segment net interest income, which reached Rs. 944 Mn. The Treasury and Investments segment contributed Rs. 18 Mn in operating profit before tax, a decrease from the previous period’s high base of Rs. 362 Mn. This decrease was primarily due to lower realized capital gains on the derecognition of financial assets and reduced net gains from financial assets at fair value through profit or loss.

The Bank demonstrated significant improvement in asset quality through rigorous scrutiny and recovery actions. Total impairment charge for the quarter was Rs. 24 Mn, representing a decrease of Rs. 102 Mn from the Rs. 126 Mn charge in Q1 2025.

The Bank’s Stage 3 Loans (Net of Stage 3 Impairment) to Total Loans Ratio improved to 6.44% as of 31 March 2026 from 6.52% in December 2025 and 8.18% in March 2025. The Stage 3 Provision Cover was maintained at 44.64% vs 45.65% as at end 2025.

Cargills Bank continues to maintain Capital Adequacy and Liquid Assets Ratios well within regulatory requirements. The Total Capital Ratio improved to 19.01% from 17.12% as at end 2025, providing a solid buffer for future growth. The Liquidity Coverage Ratio (LCR) – Rupee was at 212.26% while the LCR – All Currency was at 192.19%. The Net Stable Funding Ratio (NSFR) stood at 128.51% as at the reporting date.

Total assets of the Bank as of 31 March 2026 at Rs. 97.5 Bn reflected an increase of Rs. 5.8 Bn or 6% since December 2025 (YoY growth of 19% since March 2025). The net loan book posted a steady growth of Rs. 3.8 Bn or 6%, from Rs. 63.1 Bn to Rs. 67 Bn (YoY growth of 37% since March 2025).

Customer deposits grew by 5% to reach Rs. 69.4 Bn as at the reporting date (YoY growth of 22% since March 2025), reflecting deepening customer trust, successful deposit mobilization strategies and onboarding new customers.

During the quarter under review, the Bank successfully raised equity capital of Rs. 2.5 Bn by way of a Rights issue of ordinary voting shares with the objectives of meeting regulatory requirements, enhancing its capital base and to support loan growth. In concluding this exercise, the trust and confidence placed by the investors is appreciated and acknowledged.