Cargills Bank records Rs.730mn PBT in 2023

Cargills Bank released its annual  report for 2023, reporting a robust  growth in profit before tax (PBT),  driven by a 30 percent increase in  total assets during the year. The bank posted a PBT of Rs.730  million for the year vs. Rs.206 million  in the corresponding period. The total  operating income grew 14 percent  year-on-year (YoY) to Rs.4,875  million, driven mainly by a 39 percent  growth in the net fees and other  income to Rs.1,494 million. The net interest margins  contracted slightly during the year  to 5.61 percent, from 5.99 percent in  the corresponding period, amidst the  declining interest rate environment in  the second half of 2023.  The total operating expenses  increased 23 percent YoY to Rs.2,892  million, mainly on account of a 48  percent growth in the other operating  expenses, amidst cost escalation  in establishment and IT  costs.

Meanwhile, provision  for impairment declined  42 percent YoY to Rs.849  million, resulting in an  operating PBT of Rs.1,135  million, up 145 percent YoY. The total liabilities of  the bank grew 31 percent  YoY, mainly on account  of a growth in deposits of  34 percent YoY to Rs.50,729 million  for 2023. Meanwhile, total assets  increased 30 percent YoY to  Rs.69.7 billion, with a 13 percent  YoY growth in the lending portfolio  to Rs.40,559 million and a 73  percent YoY growth in financial  assets measured at fair value.  Elaborating on the bank’s  performance during 2023, Cargills  Bank Managing Director/CEO  Senarath Bandara stated that  the 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 the course and  strategically positioned the  bank to capitalise 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 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 billion, while an additional  2,000 shareholders were added to our  shareholder base,” he said.

Pettah, the bustling heart of Colombo’s shopping  scene, is once again abuzz with activity, as the  Sinhala and Tamil New Year and Eid-ul-Fitr both  fall on the same week this year.  Shoppers are seen flocking the streets and  both established stores and roadside vendors  work tirelessly to meet the surge in demand. It’s  hard to believe that just a few years ago, such a  vibrant scene would have been unthinkable, as  Sri Lanka faced its worst financial crisis.  Although the country is still navigating its path  to economic recovery and its citizens continue  to feel the effects of austerity measures, there is  a palpable sense of anticipation and joy, as they  prepare to celebrate these festive occasions. PIC BY PRADEEP DILRUCKSHANA