Indigenous lender to leverage its digital offerings to drive sustained growth

Indigenous publicly-listed lender CalBank Plc says it will exploit opportunities that have been offered by the coronavirus pandemic, including the strong uptake of digital products, to accelerate the pace of its digital transformation journey to drive efficiency and growth.

In furtherance of this ambition, the bank has already developed a three-year comprehensive strategic plan that seeks to accelerate its growth through technology, enhanced customer experience and the deepening of its retail offering.

“We have embarked on a strategic transformational journey to pursue innovation, customer-centricity and a complete digital transformation agenda over the next three years,” Managing Director Philip Owiredu said in the bank’s 2020 annual report released this week.

The bank hopes to secure its operations with its digital-led strategy and to build an organisation that is resilient for sustained growth and returns.

CalBank’s balance sheet size increased by 12.3 percent in 2020 from GH¢7.0bn to GH¢7.9bn, while customer deposits increased by 12.7 percent from approximately GH¢3.7bn to GH¢4.2bn. It ended the year with a capital adequacy ratio of 22.3 percent, above the revised statutory limit of 11.5 percent.

The bank also grew its operating income by 15 percent over the prior year, from GH¢587.8m to GH¢675.8m. Profit after tax stood at GH¢207m in 2020, an increase of 18.8 percent over the 2019 outturn of GH¢174.3m. On the back of this growth, the directors have recommended a dividend per share of 11 pesewas, up from 8.9 pesewas in 2019.

According to Mr. Owiredu, the bank’s performance reflects a strong, resilient business that delivered strong topline earnings growth but was negatively impacted by an extraordinarily challenging operating environment.

“Our strong capital and liquidity positions going into the crisis enabled us to continue on our strategic pathway to strengthen the core of the bank, accelerate our digitisation drive, reduce risk and be well positioned to confront future challenges.”

With uncertainties still hovering around the banking industry, CalBank said it remains committed to working with both individual and corporate clients to find best-fit banking solutions to sustain growth as the sector recovers from the pandemic.

“As we look ahead, we are optimistic that your bank will continue on its path of healthy and sustained profitability growth as demonstrated by the commitment of staff in supporting our customers and driving our growth,” Mr. Owiredu added in his message to shareholders.