Cargills Bank posts Rs.313mn profit for 9 months as loan book expands 31%

Chairman/Independent Non-Executive Director Asoka Pieris

Managing Director/Chief Executive Officer Senarath Bandara

Cargills Bank PLC reported a profit after tax of Rs.313 million for the nine months ended September 30, 2025, marking an increase of Rs.155 million compared with the same period in 2024.
The net interest income rose 10 percent to Rs.2,743 million, reflecting a 31 percent growth in the bank’s loan book and continued efforts to reprice the deposits and advances, in line with the prevailing market conditions. The bank noted that the slight reduction in the net interest margin was due to the gradual easing of interest rates, consistent with the Central Bank policy directions.
The fee and commission income climbed 10 percent to Rs.682 million, supported by the improved trade volumes, higher loan-related fee income, increased card transactions and growth in the remittance income. However, capital gains from the derecognition of financial assets and net gains from financial instruments at fair value through profit or loss fell by Rs.142 million and Rs.161 million, respectively, bringing the total other income down 38 percent to Rs.501 million.
The operating expenses increased 14 percent to Rs.2,761 million, driven by a 15 percent rise in personnel costs, following staff expansion and salary revisions and a 15 percent increase in other operating expenses, reflecting higher branch network costs, marketing, administrative expenses and professional fees. Consequently, the bank’s cost-to-income ratio rose to 70.31 percent, from 58.23 percent a year earlier.
The impairment charges fell sharply to Rs.162 million, down 80 percent, from Rs.811 million, reflecting careful monitoring of the borrowers and improved results from the recovery measures. The stage three loans, net of impairment, stood at 7.55 percent of total loans, with a stage three provision cover of 44.78 percent.
Cargills Bank maintained strong regulatory ratios, with a total capital ratio of 17.08 percent and all liquidity-related ratios comfortably above the Central Bank minimums.
Total assets reached Rs.88.5 billion as of September 30, 2025, up Rs.8.2 billion or 10 percent over the nine-month period. The loan book grew to Rs.60.4 billion, from Rs.46.1 billion, reflecting a strong demand for credit. 
Meanwhile, the financial assets measured at fair value through other comprehensive income fell 26 percent to Rs.16.5 billion, partially reallocated to the fund loan growth. Customer deposits rose 5 percent to Rs.62.5 billion, from Rs.59.4 billion at end-2024.