Cargills Bank recorded a post tax profit of Rs. 18.3 million for the first quarter ended March 31, 2018, a decline of 57% compared with the corresponding period in the previous year.
The post-tax profit was adversely impacted by higher operational expenses and increase in impairment provision.
However, the interest income growth of 51% to Rs 876 million during Q1 2018 compared to Q1 2017 reflects the robust business performance. There was also satisfactory growth in the Net Interest Income (NII) by 41% to Rs. 462 million backed by improved Net Interest Margin (NIM), from 5.53 to 5.74%.
The Bank’s focus on improving non fund based income witnessed satisfactory returns. Net fees and commission income of Rs 33 million recorded a growth of 15% for the period under review benefiting from the higher trade volumes in core banking activities. The total other income of the bank grew by 31% for the period amounting to Rs 44 million reflecting the growth in gains generated from investments in government securities.
The Bank’s operating expenses of Rs. 376 million increased by 30% compared to the first quarter of the previous year. The bank also invested in Kiosks which are now being promoted under the concept ‘Bank in a Box’.
The Bank successfully launched Sri Lanka’s first contactless Mastercard branded Debit card with EMV Compliant Chip and PIN Technology in July 2017 replacing the previously issued proprietary ATM cards.
The Bank also launched its’ private banking centre at Maitland Crescent branch where tailor-made solutions are made available to discerning customers.
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