Sri Lanka’s Cargills Bank makes losses in March as bad loans soar
ECONOMYNEXT- Sri Lanka’s Cargills Bank posted a net loss of 196.5 million rupees in the March quarter, falling from a 18.3 million rupee net profit a year earlier with rising bad loans and interest costs, the firm’s interim financials showed.
The bank, the youngest in Sri Lanka, posted a loss per share of 22 cents in the March quarter. It is yet to be listed.
Cargills Bank’s interest income grew 13 percent from a year earlier to 990.8 million rupees, while interest expenses grew 35 percent to 429.4 million rupees, leading to net interest income falling 7 percent to 429.4 million rupees.
Bad loan provisioning grew 308 percent to 323.3 million rupees.
Operating expenses grew 27 percent to 477.5 million rupees.
The bank got a tax reversal of 86 million rupees, up from an income tax expense of 27.9 million rupees a year earlier.
The loan book grew to 25.7 billion rupees in the March quarter from 23.9 billion rupees in December.
Cash holdings grew to 4.8 billion rupees from 1.2 billion rupees in December.
Borrowings from banks grew to 4.3 billion rupees from 1.4 billion rupees in the three months.
Deposits grew to 21.7 billion rupees from 19.9 billion rupees.
Cargills Bank had the highest non-performing loans in the industry, at 9.65 percent, up from 6.04 percent three months earlier.
The total capital ratio was 28.80 percent in March, falling from 32.62 percent in December, but remaining above the 12.5 percent regulatory minimum.
Return on equity was a negative 6.93 percent, down from 1.09 percent. (Colombo/Jun04/2019)