Cargills Bank records 30% growth in total assets in 2023

Cargills Bank has released its Annual Report for 2023, highlighting 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. 730 million for the year, vs. Rs. 206 million in the corresponding period. Total Operating Income grew 14% YoY to Rs. 4,875 million, driven mainly by a 39% growth in Net Fees and Other Income to Rs. 1,494 million. Net Interest Margins contracted slightly during the year to 5.61%, from 5.99% in the corresponding period, amidst the declining interest rate environment in the second half of 2023. 

Total operating expenses increased 23% YoY to Rs. 2,892 million, 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. 849 million, resulting in an Operating Profit before Taxes of Rs. 1,135 million, up 145% YoY.

Total Liabilities of the Bank grew 31% YoY, mainly on account of a growth in deposits of 34% YoY to Rs. 50,729 million 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 million and a 73% YoY growth in financial assets measured at fair value. 

Elaborating on the bank’s performance during 2023, Managing Director/CEO Senarath Bandara said: “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 million 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 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 (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 billion, while an additional 2,000 shareholders were added to our shareholder base.” With a vision to be Sri Lanka’s most inclusive bank driven by digital enablement, Cargills Bank is rated A(lka) by Fitch Ratings Lanka and is the financial services arm of the Cargills Group, providing a full range of banking and financial services. The Bank has embraced the CBSL’s vision of a cashless society and was the first to issue and acquire Lanka QR transactions in Sri Lanka, driving island-wide technology-based payment solutions. 

In addition to branches, ATMs and digital channels, Cargills Bank accounts are also accessible through Cargills Retail outlets island-wide and enjoy free cash deposits and withdrawals at over 470 Cargills Retail outlets courtesy of the Cargills Cash Service. Cargills Bank’s services include a full range of savings and current accounts, investment planners, credit and debit cards, consumer loans, agriculture and micro financing, SME and business banking solutions and trade facilities, treasury operations, inward remittances and an array of flexible and convenient digital banking services, ensuring 24/7 access and absolute convenience. 

Cargills Bank is headquartered in Colpetty in Colombo and maintains branches at Maitland Crescent, Maharagama, Old Moor Street, Wattala, Kandy, Peradeniya, Nuwara Eliya, Chilaw, Fort, Rajagiriya, Ratnapura, Thanamalwila, Matara, Galle, Kurunegala, Kaduruwela, Vavuniya, Chunnakam, Jaffna Nawalapitiya, Negombo, Anuradhapura and Bandarawela. The Bank’s branch network is bolstered by 28 Cargills Bank MINI service points located within selected Cargills Food City outlets that carry out banking functions such as account opening and customer support.