Sri Lankaâ€™s Cargills says supermarket, bank synergies yielding results
ECONOMYNEXT – Sri Lanka’s Cargills group has said its strategy of making its supermarket and banking businesses work together is yielding results with customer transactions growing between the two.
The group added 38 Cargills Food City supermarkets to its network last year, increasing its store count to 353 outlets and strengthening its position as the largest supermarket chain in the country.
Cargills Bank, started in 2014 has expanded its branch network to 17 but also has got regulatory approval to operate banking counters at all its Food City supermarkets islandwide, helping it keep costs low.
“Cargills Bank reported a commendable performance during the year, with robust growth in both lending and deposit portfolios,” group chairman Louis Page told shareholders in the latest annual report.
During the year, the bank launched a number of consumer products including both a debit and credit card.
“Synergies with Cargills Food City are now showing tangible results with transactions growth and encouraging consumer response to the added convenience of the service,” Page said.
The report said that in line with the focus of the group to use the synergies within the Cargills Group, transactions by Cargills Bank customers within ‘Cargills Food City’ reached Rs.4 billion in value in 2017.
Net finance costs of the sector rose 124% to Rs.283 million in 2017 amidst heavy investment in expansion of the ‘Cargills Food City‘ supermarket chain, the report said.
Cargills Bank saw total asset growth of 55% to Rs.32.5 billion in 2017 and deposit growth doubled to Rs.18.8 billion.
(COLOMBO, 04 September, 2018)