Cargills Bank demonstrated its resilience and strong growth potential in its financial performance for the 1st half of 2023, driven by a focused strategic approach, management ofliquidity and portfolio quality, and agility to navigate the market environment.

The Bank consolidated on the turnaround in its financial performance, achieving an Operating Profit before taxes of Rs. 615 million in 1H 2023. This marks a sharp improvement from the loss before taxes of Rs. 144 million reported during the same period in the previous year. Consequently, the bank’s Profit After Tax (PAT) for 1H 2023 was reported at a healthy Rs. 253 million, a significant improvement from the loss of Rs. 195 million reported in the corresponding period of 2022.

Total Operating Income grew 36% to reach Rs. 2.4 billion, mainly driven by growth in Net Interest Income of 30% to Rs.1.8 billion.The bank reported Impairment charges of Rs. 446 million during the first six months of 2023, a 44% decrease over the corresponding period of 2022. Meanwhile, Total Operating Expenses rose by 21% to Rs. 1,369 million amidst increased cost structures and rupee depreciation. Nevertheless, the bank’s Cost to Income ratio improved to 56% in Q2 2023 from 63% in Q2 2022 due to increased income.

The bank’s total asset base surged by 25% year-to-date to reach Rs. 67 billion, underscoring its growing market presence, while the Net Asset Value per Share improved to Rs.11.82 as at 30 June 2023 from Rs.11.01 at the beginning of the year.

Attesting to its financial strength and stability, Cargills Bank maintained healthy statutory ratios, reporting a Total Capital Ratio of 21.84% and Liquid Asset Ratio of 29.36%, as at June 30, 2023. These robust figures underscore the bank’s solid foundation and its ability to weather environment uncertainties.

While pledging support towards Sri Lanka’s national debt restructuring efforts, Cargills Bank also welcomes the government’s decision to exclude the banking sector from the restructuring of treasury instruments.

The bank’s support to all customers, through government-mandated moratoria and beyond, and its responsiveness to customer-specific circumstances have exemplified its commitment to aiding customers during challenging times. The bank expects further downward pressure on interest rates and stands ready to support the economic recovery.