Retail
Subscription
to Advertise
  • ISSUES
    • 2006 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • June 2007
        • July 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • April 2008
        • May 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • October 2008
        • November 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • April 2013
        • June 2012
        • July 2012
        • September 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • June 2018
        • July 2018
        • August 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2023
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • January 2021
        • February 2021
        • March 2021
        • April 2021
        • May 2021
        • June 2021
        • July 2021
        • August 2021
        • September 2021
        • October 2021
        • November 2021
        • December 2021
      • 2022
        • January 2022
        • June 2022
        • February 2022
        • July 2022
        • March 2022
        • April 2022
        • August 2022
        • May 2022
        • September 2022
        • October 2022
        • November 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US
No Result
View All Result
Business Today
No Result
View All Result

Cargills Bank Gathers Momentum In 2017

0 0
0

In its third year of operations, Cargills Bank achieved a satisfactory Profit before Tax of Rs. 621 Mn, which included a substantial one-off gain of Rs. 410 Mn.


The Bank’s Net Interest Income grew 55% to reach Rs. 1.48 Bn, whilst Net Fee and Commission Income increased by 43% to Rs. 114 Mn during the year, with other sources of income (excluding the gain from disposal of its subsidiary) growing by 109% to Rs. 121 Mn at year-end. These revenue increases saw the Bank’s Total Operating Income growing substantially from its previous level to Rs. 2.2 Bn for the year, enabling it to achieve a Profit Before Tax of Rs. 211 Mn (when the net gain of Rs 410 Mn from disposal of its subsidiary is excluded). It is heartening that the contribution to this performance came from growth in activity across all core segments of the Bank supported by synergies from its strong association with the Cargills Group.


Total loans and advances of the Bank grew by 55% to reach Rs. 20.8 Bn whilst deposit portfolio doubled from Rs. 9.4 Bn to Rs. 18.8 Bn during the year. The CASA mix stood at 22% at year end. Total asset base of the Bank stood at Rs. 32.5 Bn as at end of 2017.


The Bank opened 3 new instore branches in Wattala, Ratnapura and Kaduruwela, bringing the total number of stand-alone branches to 17 whilst the total number of contact points stood at over 350.

The Year Under Review Saw Progress With “Cargills Cash”, Enabling Customers To “Experience The New Way To Bank”.

The year under review saw progress with “Cargills Cash”, enabling customers to “Experience the New Way to Bank”. This unique value proposition offers customers the opportunity to deposit, remit or withdraw cash from over 350 Cargills Food City (CFC) Outlets with the use of their Mobile Banking App. The remittance facility allows cash remittances even to non-account holders of Cargills Bank, offering them the convenience to collect cash from their Bank or from over 350 CFC outlets. It is encouraging that, in line with the Bank’s strategic focus, transactions at the CFC counters during the year exceeded Rs. 4 Bn in value.


The Mobile Banking App which is one of the USPs of the Bank enables customers to make Utility Bill Payments, CEFT / SLIPS transfers, Standing Orders, Open Accounts and Fixed Deposits. Beyond this, the Bank launched Sri Lanka’s first contactless Mastercard branded Debit card with EMV Compliant Chip and PIN Technology which enables customer convenience with enhanced security.


In a world in which digital banking is becoming the preferred channel for banking, an organization’s web site is the most important touch point. We are encouraged by the recognition received for our new Life Style Banking web site from The Financial Brand as one of the “Top 20 Visually Stunning Website Designs” among Banks and Credit Unions in the world.


The Cargills Bank’s model is one which offers an unique value proposition in reaching towards its Vision “to be the most inclusive bank, harnessing the spirit of progress in every Sri Lankan”. A key strategic priority towards this is the accessibility for the rural population and others who have hitherto been excluded from the country’s formal banking system. The Cargills Food City Model offers a win-win value proposition to both consumer and farmer, with a reach to the farmer that facilitates greater income generation for him and better prices for the consumer. In the same manner Cargills Bank aims to relieve the hitherto unbanked from the burden of borrowing from the informal sector whilst supporting the small and medium scale sectors in their entrepreneurship. Being integrated into local communities will hence be a key element of how we engage with our social capital.


As a retail centric bank, Cargills Bank offers an unique value proposition and harnesses synergies from the Cargills Group – its brand heritage and its retail strength, encompassing 350 Food City outlets spread across the length and breadth of the country.

“The Bank Is Optimistic About The Many Opportunities It Sees To Partner SMEs In The Country Leveraging On The Synergies Of Its Strong Association With The Cargills Group.”

Managing Director/Chief Executive Officer, Mr. R. Theagarajah stated that “whilst we look to the future with optimism, we are mindful of the possible challenges of narrower margins and the entry of nonbank players such as Telco’s into the banking space and of market volatility caused by global events, international conflicts, global terrorism, cyber threats and environmental challenges. Cargills Bank remains relatively insulated from direct impacts of global political events due to its business model being primarily domestic market focused”.


Theagarajah also added “Our unique retail and SME-focused and technology- led model, with the aim of offering customers new paradigms in convenience and speed of service, is based on an “Operational Expenditure model” rather than a Capital Expenditure based one. This approach places us on a firmer foundation of lower costs with greater agility and nimbleness to adapt to rapidly evolving technology”.


The Chairman Mr. Louis Page stated “A progressive, sustainable approach is intrinsic to Cargills Bank’s business model and we consider our business an avenue for wealth creation and financial inclusion for the yet unbanked, but bankable – a vital segment in the long-term progress of Sri Lanka. Cargills Bank was established envisaging an unique model of inclusivity and reaching the grassroots, with a key competitive advantage centred on the retail network of over 350 Cargills Food City outlets spread across the length and breadth of the country. The Cargills outlets offer banking customers convenience with low overhead for the Bank.”


The Chairman also added “The Bank is optimistic about the many opportunities it sees to partner SMEs in the country leveraging on the synergies of its strong association with the Cargills Group, and looks towards increasing exports and large scale revenue generating infrastructure projects to create new supply chains and employment opportunities”.


The Bank is working towards listing its shares in the Colombo Stock Exchange in 2020.

TweetShareShare

Business Today May 2023

Business Today

  • Privacy Policy
  • Terms & Conditions

© 2023 BT Options. All Rights Reserved

No Result
View All Result
  • ISSUES
    • 2006 to 2009
      • 2006
      • 2007
      • 2008
      • 2009
    • 2010 to 2019
      • 2010
      • 2011
      • 2012
      • 2013
      • 2014
      • 2015
      • 2016
      • 2017
      • 2018
      • 2019
    • 2020 to 2023
      • 2020
      • 2021
      • 2022
      • 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US

© 2023 BT Options. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In