📈 Cargills Bank Posts Rs. 105M PAT in 1Q 2026 Amid 37% YoY Loan Growth

• Overall Financial Performance: Cargills Bank reported a Profit Before Tax (PBT) of Rs. 185M for 1Q 2026, marking a 42% YoY decline primarily due to a Rs. 381M reduction in total other income. However, Total Comprehensive Income turned positive at Rs. 44.4M, a 131% YoY recovery. Total assets grew 19% YoY to Rs. 97.5 Bn. • Core Banking & Income Breakdown: Net Interest Income (NII) rose 20% YoY to Rs. 1,041M, driven by robust loan growth and improved Net Interest Margin (NIM) from 4.38% to 4.46%. Net fee and commission income dipped 3% YoY to Rs. 211M, while other income fell 96% to Rs. 15M due to lower capital gains. Total operating expenses rose 7% YoY to Rs. 979M, pushing the Cost-to-Income Ratio to 75%. • Sector & Segment Highlights: The core banking segment was the main driver, with operating PBT rising to Rs. 282M (up from Rs. 129M in 1Q 2025). Conversely, the Treasury and Investments segment profit fell to Rs. 18M from Rs. 362M due to a high base effect. • Balance Sheet & Asset Quality: The net loan book expanded 37% YoY (6% since Dec 2025) to Rs. 67 Bn, while customer deposits grew 22% YoY to Rs. 69.4 Bn. Asset quality improved, with the Stage 3 loan ratio dropping to 6.44% (from 8.18% in March 2025), backed by a reduced impairment charge of Rs. 24M. • Capital & Liquidity: The bank strengthened its capital base by raising Rs. 2.5 Bn via a Rights Issue. The Total Capital Ratio improved to 19.01% (up from 17.12% in Dec 2025), well above regulatory needs.