Cargills Bank recorded a post-tax profit of Rs. 70.8 million reflecting an improvement of 15% for the first half (1H) of 2018 compared to the 1H of 2017.
Although the impairment charges and operating expenses have significantly increased compared to the 1H of 2017, the impact on the bottom line has been cushioned by the improved business performance in both core and other banking operations compared to 2017.
The Bank’s net interest income (NII) of Rs. 992 million improved by 45%, resulting from the improved NIM from 5.53% to 5.87%, during the 1H of 2018 compared to the 1H of 2017. The interest income of Rs. 1,869 million, increased by 52% during the 1H of 2018, compared to 1H 2017, arising from the interest income from investment in government securities of Rs 240 million which improved by 156%, despite the discontinuation of notional tax credit facility by the new Inland Revenue regulations.
Total other income including the trading income for the 1H of 2018 increased by 29% compared to that of 1H, 2017 which resulted by improved treasury performance during the period which brought in capital gains of Rs. 19 million which is a 220% increase compared to the 1H of 2017.
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