Cargills Bank reports profitability turnaround in 2022
View(s):Cargills Bank, driven by robust growth in operating income that offset erosions due to increased provisioning and operating costs, has reported a profit before tax of Rs. 206 million for the financial year 2022, recovering from a loss before tax of Rs. 369 million in the previous year.
Total operating income rose 74 per cent year-on-year to Rs. 4.28 billion on account of growth in both Interest and Fee-based income in similar proportion. The bank prudently managed its lending portfolio with the intention of preserving liquidity and maintaining asset quality, leading to a slight decline in the portfolio. However, the bank was able to expand its net interest margins over the previous year, resulting in significant growth in interest income. Meanwhile robust performance in card operations, trade finance and remittances resulted in 75 per cent year-on-year growth in fee-based income, the bank said in a media release.
Senarath Bandara, Managing Director/CEO of Cargills Bank commenting on the performance of the bank stated, “Cargills Bank navigated the uncertain economic climate of 2022 with resilience and pragmatism. The bank adopted an agile approach in response to the challenges to seek growth and stability in spite of external pressure. Our approach has borne fruit with the bank achieving profitability within the year under review, while also pursuing our long-term growth aspirations to create sustainable value for all stakeholders.”
Ranjit Page stepped down as Chairman of the Board of Cargills Bank in January 2023, having served the maximum term permitted by the Central Bank as a Director on the Board of a bank. Reflecting upon the purpose for which the Cargills group decided to set up a bank, Mr. Page said: “Understanding the need of the country, we decided to invest more aggressively in building infrastructure to support the agriculture and dairy farming communities and sought a banking license to support the ecosystem we were building.”
Richard Ebell, who previously held the position of Senior Director, was appointed as Chairman of the Board. Highlighting the merits of the bank’s ecosystem-based business model, Mr. Ebell stated “Our access to the Cargills ecosystem benefits the bank, and at a societal level, gives its customers increased convenience and ease of banking, opening doors to previously underserved sectors of the population.”
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