Cargills Bank reports resilient performance 2021

• Strong portfolio growth and improved asset quality

Cargills Bank released its Annual Report for 2021, highlighting resilient performance during the financial year on account of strong portfolio growth and improved asset quality, amidst a challenging operational environment. The Bank’s deposit portfolio grew by 26% to Rs. 40.2 billion, while loans and advances increased by a healthy 39% during the year under review to Rs. 40.5 billion. Total assets increased by 20% to Rs. 55.8 billion, while total operating income rose 22% YoY to LKR 2.5 billion on account of strong core and fee-based income growth.

In his annual message, Cargills Bank Chairman Ranjit Page stated: “True to the tagline of ‘Banking on the Human Spirit’, the Bank achieved growth across all key parameters, carefully navigating the challenges in the environment. The management implemented a number of initiatives to steer the performance of the Bank, improve operating efficiencies, utilise technology to optimise our channels and processes, enhance internal controls, and stringently manage recoveries, thereby ensuring the Bank emerged stronger than in the previous year. I humbly note that Cargills Bank, with its unique model and Vision to become ‘The Most Inclusive Bank’ and empower the hitherto excluded, is well poised to contribute to Sri Lanka’s economic revival.”

Attributing the turnaround in the Bank’s performance to the unified effort of the team Cargills Bank Managing Director/CEO Senarath Bandara in his annual message also stated: “We continued to bank on the ‘Spirit of Community’ to navigate these challenging times successfully, and the Bank was able to deliver substantial double-digit growth in its loan book as well as its deposits, achieving a significant reduction in losses. The Bank was able to grow its retail portfolio year-on-year and much of this growth came from small to medium ticket loans. Continued growth in our Retail portfolio not only improved the stability of our loan book but also supported the interest margins. The Bank’s SME and Business Banking portfolios also reported strong growth during the year, which facilitated fee income streams throughout the calendar year.”

Cargills Bank has grown to serve over 175,000 customers through 500+ touch points and 21 branches, supported by a growing family of 600+ employees. During the 2021, Fitch Ratings Lanka revised Cargills Bank’s parent-supported Issuer Rating to AA-(lka) with a Stable Outlook, underscoring the stability of the bank with the backing of the Cargills group.

To support its wider customer acquisition strategy, the Bank introduced two new customer channels in 2021, launching Cargills Bank MINI Service Points at selected Cargills Food City outlets to augment its branch network and introducing digital non-face-to-face customer onboarding, allowing for KYC protocols for new customers to be completed online. Both these mechanisms have greatly strengthened the Bank’s ability to acquire new customers.

The Bank also reported a significant growth in digital payments through its own digital banking channel, as well as through aggregator fintech partners that operate their own third-party payment applications. Cargills Bank works with 6 aggregator partners, facilitating JustPay and LankaQR payments on these platforms.

The strength of the Cargills Group, with a legacy spanning 178 years, provides synergies to Cargills Bank that support its endeavours to provide sustainable financial empowerment for the agricultural sector and the SME sector. In this effort, the Bank partnered with the Group in its Cargills Village to Home initiative, identifying and supporting participating SMEs with finance and payment services. 

Cargills Bank offers customers a full range of products and services including savings accounts, investment planner accounts, credit and debit cards, consumer loans, agriculture and micro financing, SME and business banking loans and trade facilities. The Bank also provides a range of flexible and convenient digital banking services, ensuring 24/7 access and absolute convenience. Cargills Bank accounts are also accessible through Cargills FoodCity outlets island-wide and customers enjoy free cash withdrawals and deposits at any Cargills FoodCity counter, courtesy of the Cargills Cash Service.

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 and Nawalapitiya.