Cargills Bank reported a Profit After Tax (PAT) of Rs. 181 million for the six months ended 30 June 2026, despite a challenging period that saw profit before tax decline by 22% compared with the corresponding period in 2025.
Profit before tax stood at Rs. 362 million, with the decline primarily attributed to a significant Rs. 422 million reduction in total other income and an 11% increase in total operating expenses. These impacts were partially offset by strong growth in net interest income and net fee and commission income.
Net interest income increased by 20% year-on-year to Rs. 2.207 billion. The improvement was mainly supported by loan growth, together with a strategic focus on repricing deposits and advances in response to market conditions. This helped the Bank manage its net interest margin (NIM) effectively, with NIM increasing from 4.38% at the end of 2025 to 4.64% during the period under review.
Net fee and commission income also recorded healthy growth, rising by 17%, or Rs. 76 million, compared with the first half of 2025. The increase was supported by higher fee income from deposits, credit cards and trade-related services.
Meanwhile, total other income declined by 89% to Rs. 55 million. The reduction was largely due to the higher realised capital gains from the derecognition of financial assets and net gains from financial assets measured at fair value through profit or loss recorded during the first half of 2025.
Total operating expenses increased by 11% to Rs. 2.039 billion. Personnel expenses rose by 17%, reflecting salary increments and adjustments aimed at aligning remuneration with market conditions and retaining talent. Depreciation and amortisation increased by 35%, primarily due to investments in information technology and infrastructure upgrades.
As a result, the Bank’s Cost-to-Income Ratio stood at 73.43%, compared with 70.68% as at 31 December 2025.
Cargills Bank also made significant progress in reducing its Other Comprehensive Loss, which narrowed to Rs. 137.4 million, representing a 69% improvement from the Rs. 440.7 million loss recorded in the first half of 2025. The improvement was supported by lower fair value losses on financial assets measured at fair value through Other Comprehensive Income (OCI).
Consequently, Total Comprehensive Income turned positive at Rs. 43.2 million, representing a 122% recovery compared with the corresponding period in 2025.
The Banking segment remained the primary contributor to overall performance, recording a profit before tax of Rs. 306 million, compared with a loss of Rs. 27 million in the first half of 2025. The improvement was driven by a 42% increase in segment net interest income, which reached Rs. 2.055 billion.
The Treasury and Investments segment contributed Rs. 56 million in profit before tax, down from Rs. 491 million in the corresponding period. The decline was mainly attributed to lower realised capital gains from the derecognition of financial assets and reduced net gains from financial assets measured at fair value through profit or loss.
Nations Trust Bank Reports LKR 15.6 Bn PAT in 1H 2026 Following Strategic Acquisition
Nations Trust Bank PLC (NTB) reported a strong financial performance for the six months ended 30 June 2026, recording a Profit After Tax (PAT) of LKR 15.6 billion, supported by the successful acquisition and integration of HSBC Sri Lanka’s retail banking business.
After reporting a PAT of LKR 4.6 billion in the first quarter, the Bank recorded a significant acceleration in performance during the second quarter following the commencement of operations related to the acquisition on 1 May 2026. Overall assets grew by 26%, while a one-off tax credit associated with the acquisition also contributed to the first-half results.
The successful integration of HSBC Sri Lanka’s retail banking portfolio has further strengthened NTB’s position as a market leader in credit cards and premium retail banking services. Continued investment in service excellence and digital transformation, together with disciplined risk management, also supported the Bank’s performance during the period.
NTB’s results were underpinned by healthy asset growth and stable Net Interest Margins (NIMs) of 5.58%. Disciplined risk management helped maintain the Bank’s Net Stage 3 Ratio at 1.05%, while Return on Equity (ROE) increased to 31.33%, reflecting the expanded scale of the business and stronger earnings momentum following the acquisition.
Commenting on the results, Nations Trust Bank Director and Chief Executive Officer Hemantha Gunetilleke said:
“Our strong performance in the first half of 2026 reflects the impact of a larger customer base, a stronger balance sheet and new growth opportunities. Our results also underpin the strength of our business model, our customer relationships, and our continued focus on disciplined execution across all business segments.
“The acquisition of HSBC's retail banking business has been a strategic milestone in our growth journey and will continue to augment the Bank’s performance, while enabling us to maintain a strong focus on serving customers across our consumer, commercial and corporate businesses.”
The first-half performance marks a significant milestone in NTB’s growth journey, with the HSBC Sri Lanka retail banking acquisition expanding its customer base, strengthening its balance sheet and creating new opportunities across its consumer, commercial and corporate banking businesses.
Cargills Bank Reports Rs. 181 Million Profit After Tax for Six Months Ended June 2026
