Cargills Bank’s results for the six months ended 30 June 2026 reported a profit before tax of Rs. 362 Mn reflecting a 22% drop when compared to the corresponding period in 2025. This was primarily driven by a significant Rs. 422 Mn reduction in total other income alongside an 11% increase in total operating expenses which impact was partially offset by growth in both net interest income and net fee and commission income.

Net interest income rose to Rs. 2,207 Mn, a 20% increase over 1H 2025. This growth was primarily driven by loan growth reinforced with a strategic focus on repricing of deposits and advances to reflect the market conditions to manage the NIM in an optimal manner, as reflected by the increase in NIM from 4.38% as at end 2025 to 4.64% in the period under review.

Net fee and commission income recorded an increase of Rs. 76 Mn compared to corresponding period in 2025. This 17% increase was supported by growth in fee income from deposits, credit cards, and trade-related services.

Conversely, total other income for the period decreased by 89% to Rs. 55 Mn. This was largely due to higher realized capital gains on the derecognition of financial assets and net gains from financial assets at fair value through profit or loss reported in 1H 2025.

Total operating expenses increased by 11% to Rs. 2,039 Mn. Personnel expenses rose by 17% due to salary increments and adjustments aimed at reflecting market conditions and retaining talent. Depreciation and amortization grew by 35%, primarily driven by investments in information technology and other infrastructure upgrades. The Bank's Cost-to-Income Ratio stood at 73.43%, compared to 70.68% as at 31 December 2025.

The Bank significantly narrowed its Other Comprehensive Loss to Rs. 137.4 Mn, a 69% improvement from the Rs. 440.7 Mn loss in 1H 2025. This was supported by lower fair value losses on financial assets measured at fair value through OCI. Consequently, Total Comprehensive Income turned positive at Rs. 43.2 Mn, reflecting a 122% recovery in comparison to the corresponding period in 2025.

The Banking segment of the operating segments was the primary driver of performance, with profit before tax rising to Rs. 306 Mn from a loss of Rs. 27 Mn in 1H 2025. This growth was fueled by a 42% increase in segment net interest income, which reached Rs. 2,055 Mn. The Treasury and Investments segment contributed Rs. 56 Mn in profit before tax, a decrease from the previous period’s high base of Rs. 491 Mn. This decrease was primarily due to lower realized capital gains on the derecognition of financial assets and reduced net gains from financial assets at fair value through profit or loss.

The Bank demonstrated improvement in asset quality through rigorous scrutiny and recovery actions. Total impairment charge for the period was Rs. 100 Mn, representing a decrease of Rs. 80 Mn from the Rs. 180 Mn charge in 1H 2025.

The Bank’s gross asset quality showed an underlying improvement as the Gross Stage 3 Ratio (Impaired Loans to Total Loans on a Gross basis) dropped to 11.30% from 12.00% as at end 2025. The Stage 3 Loans (Net of Stage 3 Impairment) to Total Loans Ratio stood at 6.53% as of 30 June 2026 compared to 6.52% in December 2025 and 7.85% in June 2025. The Stage 3 Provision Cover was maintained at 42.26% vs 45.65% as at end 2025.

Cargills Bank continues to maintain Capital Adequacy and Liquid Assets Ratios well within regulatory requirements. The Total Capital Ratio marginally improved to 17.66% from 17.12% as at end 2025. The Liquidity Coverage Ratio (LCR) - Rupee was at 156.27% while the LCR - All Currency was at 150.95%. The Net Stable Funding Ratio (NSFR) stood at 120.85% as at the reporting date.

Total assets of the Bank as of 30 June 2026 at Rs. 104.7 Bn reflected an increase of Rs. 13.0 Bn or 14% since December 2025 (YoY growth of 24% since June 2025). The net loan book posted a steady growth of Rs. 9.2 Bn or 15%, from Rs. 63.1 Bn to Rs. 72.3 Bn (YoY growth of 28% since June 2025).

Customer deposits grew by 18% to reach Rs. 77.9 Bn as at the reporting date (YoY growth of 32% since June 2025), reflecting deepening customer trust, successful deposit mobilization strategies and onboarding new customers.

Earlier in the year, the Bank successfully raised equity capital of Rs. 2.5 Bn by way of a Rights issue of ordinary voting shares with the objectives of meeting regulatory requirements, enhancing its capital base and supporting loan growth. In concluding this exercise, the trust and confidence placed by the investors is appreciated and acknowledged.