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Cargills Bank records 30% growth in total assets in 2023
Tue, 30 Apr 2024

Cargills Bank released its annual report for 2023, reporting a robust growth in Profit before Tax driven by a 30% increase in total assets during the year.

The Bank posted a Profit before Tax of Rs.730Mn for the year, vs. Rs.206Mn in the corresponding period. Total Operating Income grew 14% YoY to Rs.4,875Mn, driven mainly by a 39% growth in Net Fees and Other Income to Rs.1,494Mn. Net Interest Margins contracted slightly during the year to 5.61%, from 5.99% in the corresponding period, amid the declining interest rate environment in the second half of 2023.

Total operating expenses increased 23% YoY to Rs.2,892Mn, mainly on account of a 48% growth in Other Operating Expenses amidst cost escalation in establishment and IT costs. Meanwhile, Provision for Impairment declined 42% YoY to Rs.849Mn, resulting in an Operating Profit before Taxes of Rs.1,135 Mn, up 145% YoY. Total Liabilities of the Bank grew 31% YoY, mainly on account of a growth in deposits of 34% YoY to Rs.50,729Mn for 2023. Meanwhile, total assets increased 30% YoY to Rs.69.7Bn with a 13% YoY growth in the lending portfolio to Rs.40,559 Mn and a 73% YoY growth in Financial assets measured at Fair Value.

Elaborating on the bank’s performance during 2023, Senarath Bandara, Managing Director / CEO of Cargills Bank stated “I am humbled to report that we created sustainable value for our stakeholders, leading to the Bank recording our highest-ever operational profit of Rs. 1,135 Mn, and achieving 30% growth in total assets in FY2023. Our agility, focus, and prudent management of liquidity and portfolio quality, supported by the extensive network and the opportunities embedded within the Cargills ecosystem, have stabilised our course and strategically positioned the Bank to capitalize on future growth opportunities.

“In spite of facing a volatile operating environment, the Bank successfully completed its listing on the Colombo Stock Exchange, with its initial public offering (IPO) receiving subscriptions of 3X the value offered.”

“We are humbled by the positive response, reinforcing our confidence in our vision and delivery capabilities. Following the listing, our capital base was augmented to Rs. 11.9 Bn, while an additional 2,000 shareholders were added to our shareholder base.”


Sources : https://www.dailynews.lk/2024/04/09/business/487019/cargills-bank-records-30-growth-in-total-assets-in-2023/




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