CAL Bank posts impressive Q3 results

CAL Bank, in its continuous aggressive growth agenda, has posted very impressive third quarter results, with interest income, fees and commission, as well as profits shooting up from last year.

The bank saw its net interest income go up by 20.4 percent from the same period last year to GH¢129.9million, while net fees and commissions increased by 71.6 percent to GH¢37.9million.


Net trading income increased almost threefold (278.8percent) to GH¢64.6million in the period. Non-funded income increased by 127.7 percent to GH¢110.9million, with net operating income rising by 54.9 percent to GH¢225.4million.


The bank posted a credit loss expense of GH¢15.4million, which is an increase of 38.3 percent from the previous year.


Total operating expenses increased by 37.7 percent to GH¢75.1million, while profit before tax increased by 65.3 percent to GH¢150.3million. Net profit for the period jumped by 57.9 percent to GH¢105.2million.


CAL Bank appeared to be on a sound financial track with cost/income ratio improving to 31.2 percent from 34.8 percent a year ago.

The bank is set to boost its lending as it earlier this year signed an unsecured US$28.5million Tier II loan facility agreement with Proparco, a subsidiary of Agence Française de Développement (AFD).


CEO of CAL Bank, Frank Adu Jnr., commented: “The economic difficulties of the first half of 2014 have persisted into the second half of the year. Although local currency depreciation has abated in Q3-2014, the continuing upward trajectories of inflation and interest rates have further concentrated CAL’s focus on preserving our balance sheet and rigorously pursuing our risk management imperatives in the second half of 2014.


Through these measures, we have generated a healthy 54% y/y growth in Total Income, 65% y/y growth in pre-tax profits and 57% growth in total assets. We have further returned an Average ROA of 7.7% and an Average ROE of 45% to our shareholders”


On the way forward, Mr. Adu added: “The entire Ghanaian banking industry is facing increased risks to asset quality, liquidity and capital funding. However, following CAL’s successful performance so far in this trying macro-environment, we will continue in 2014 with our strategy of rebalancing our earning asset-mix to mitigate increased credit risk and interest rate risk. Further, we will continue to effectively manage Forex assets and liabilities to reduce exchange risk”.