Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You

Join the forum, it's quick and easy

Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» කොළඹ කොටස් වෙළඳපොල විශ්ලේෂණය - 2024
by ChooBoy Fri Jul 19, 2024 11:53 am

» Winds of Change: Sri Lanka's Banking Crisis is Stalling Renewable Energy Ambitions of Local Stalwarts of Wind & Solar Power
by God Father Wed Jul 17, 2024 10:11 pm

» Banking Sector Analysis
by God Father Sat Jul 13, 2024 7:57 am

» Impact of Elections on Colombo Stock Market Sentiment
by Quibit Tue Jul 09, 2024 9:01 am

» LankaBIZ Unveils AI-Driven On-Demand Financial Research and Analysis Service
by Quibit Thu Jul 04, 2024 12:49 pm

» CDB Non voting
by Nandun Sun Jun 30, 2024 9:45 pm

» The Parsi Power Play: How a Small Community of Iranian Parsis are Controling Sri Lanka's US $ 85 billion Economy & 22 Million Population & Politics driving away FDIs
by MalakaDesmond Sun Jun 30, 2024 10:19 am

» Richard Pieris Group: Mismanaged?
by Walbaba Sat Jun 29, 2024 7:04 pm

» සොෆ්ට්ලොජික් හෝල්ඩිංග්ස් පීඑල්සී: අඳුරු අපේක්ෂාවන් සහිත ඉහළ අවදානම් ආයෝජනයක්
by D.G.Dayaratne Tue Jun 25, 2024 5:45 am

» සොෆ්ට්ලොජික් ප්‍රාග්ධනයට වන්දි ගෙවන Share BuyBack නිසා Softlogic ජීවිත රක්‍ෂණය බංකොලොත් වීමේ අවදානමක
by MalakaDesmond Tue Jun 25, 2024 1:49 am

» Softlogic Life insurance face Danger of Bankruptcy due to Share BuyBack that compensate Softlogic Capital
by MalakaDesmond Tue Jun 25, 2024 1:33 am

» Softlogic Holdings PLC: A High-Risk Investment with Bleak Prospects
by MalakaDesmond Tue Jun 25, 2024 12:52 am

by SL-INVESTOR Sat Jun 22, 2024 12:48 am

by ErangaDS Wed Jun 19, 2024 9:21 pm

» How will proposed Tax Reforms affect Sri Lankans in 2025
by Quibit Wed Jun 19, 2024 9:27 am

» Falsified accounts and financial misrepresentation at Arpico Insurance PLC (AINS)
by ChooBoy Tue Jun 18, 2024 11:31 pm

» Impact of IMF reforms to Sri Lanka Economy
by D.G.Dayaratne Mon Jun 17, 2024 6:36 pm

» Richard Pieris Finance Ltd continue to endanger the Depositors with negative performance
by ddindika Mon Jun 17, 2024 3:17 pm

» Richard Pieris Exports reports 97% decline in Net Profits
by Biggy Sat Jun 15, 2024 11:26 am

» Do your own Stock Market Research using AI Tools
by Quibit Fri Jun 14, 2024 10:50 am

» What will happen tomorrow?
by cheetah Thu Jun 13, 2024 12:07 pm

» Focus on Government controlled entities
by ErangaDS Mon Jun 10, 2024 4:15 pm

» Colombo Stock Market: Over Valued against USD!
by God Father Mon Jun 03, 2024 3:17 pm


Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


Send your suggestions and comments

* - required fields






You are not connected. Please login or register

Cargills Bank PLC: Financial Status and Future Outlook

Go down  Message [Page 1 of 1]

God Father

Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Cargills Bank PLC: Financial Status and Future Outlook Cargil10

Cargills Bank PLC’s annual and interim financial statements for December 2023, we can analyze the bank’s latest profitability, financial status, and future growth prospects.

- Cargills Bank PLC reported its highest-ever operational profit of Rs. 1,135 million for the financial year 2023.
- The bank’s Profit Before Tax (PBT) was Rs. 729.876 million, and Profit After Tax (PAT) was Rs. 440.020 million.
- Despite the PAT being lower than the previous year by Rs. 47.744 million, the bank still managed to increase its gross income to Rs. 12,907,417,000.

Financial Status:
- The bank’s total assets grew by 30%, an increase of Rs. 16 billion.
- It maintained strong capital adequacy and liquidity ratios, with a Total Capital Ratio (CAR) of 23.14% and a Statutory Liquid Assets Ratio (SLAR) of 39.82%.
- The bank’s Cost-to-Income Ratio increased from 55% to 59%, indicating higher costs relative to income.
- The Current Account Savings Account (CASA) ratio improved by 3%, from 21% to 24%.

Financial ratios for Cargills Bank PLC:

Liquidity Ratios:
- Statutory Liquid Asset Ratio (SLAR) – Total Bank (%): 39.82 in 2023, up from 27.00 in 2022.
- Liquidity Coverage Ratio – All Currency (%): 289.04 in 2023, significantly higher than the minimum requirement of 100% and up from 140.51 in 2022.
- Net Stable Funding Ratio (%): 117.57 in 2023, above the minimum requirement of 100%.

Regulatory Capital Ratios:
- Common Equity Tier 1 Capital Ratio (%): 19.89 in 2023, up from 18.95 in 2022.
- Total Tier 1 Capital Ratio (%): 22.63 in 2023, up from 22.32 in 2022.
- Total Capital Ratio (%): 23.14 in 2023, up from 22.85 in 2022.
- Leverage Ratio (%): 14.66 in 2023, up from 14.45 in 2022.

Asset Quality:
- Stage 3 Loans (Net of Stage 3 Impairment) to Total Loans (%): 8.63 in 2023, an increase from 4.85 in 2022.
- Stage 3 Loan Impairment to Stage 3 Loans (Stage 3 Provision Cover) (%): 46.69 in 2023, down from 51.15 in 2022.

Profitability Ratios:
- Net Interest Margin (%): 5.61 in 2023, down from 5.99 in 2022.
- Return on Assets (before income tax) (%): 1.10 in 2023, up from 0.36 in 2022.
- Return on Equity (%): 4.12 in 2023, down from 5.28 in 2022.
- Earnings per Share (Rs.): 0.50 in 2023, down from 0.55 in 2022.

These ratios provide insights into the bank’s financial health, including its ability to meet short-term obligations (liquidity), maintain capital adequacy (regulatory capital), manage the quality of its loan portfolio (asset quality), and generate profits (profitability).

Future Growth Prospects:
- Cargills Bank PLC has strategically positioned itself to capitalize on future growth opportunities by maintaining agility, focus, and prudent management of liquidity and portfolio quality.
- The bank has adopted a conservative lending approach, focusing on supporting the working capital needs of SME and Corporate customers, and continuing agricultural lending.
- It has a unique advantage in agriculture operations, providing financial assistance to customers through its value chain and supermarket chain, with over 10,000 facilities granted to farmers.
- The bank’s management is focused on sustainable growth through technology, infrastructure development, and strategic pricing.

In conclusion, Cargills Bank PLC has demonstrated resilience and growth in a challenging economic environment. While the bank’s PAT has seen a slight decrease, its operational profit, asset growth, and liquidity position indicate a strong financial status. The bank’s future growth prospects appear promising, especially with its strategic focus on agriculture and technology. However, without comparative data from other banks, it is not possible to provide a relative analysis.

This analysis and information is compiled by LankaBIZ (GPT) – Sri Lanka’s First ever AI Assistant for Stock Market and Research. Click below link to ask questions about any listed company in Sri Lanka.

Share this post on: reddit

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum