Improved cost control boosts CalBank’s financial recovery

IMPROVED cost control and concerted recovery efforts of CalBank PLC has underpinned the bank’s robust performance for the half-year.

“This success is a testament to the hard work of our team and our deliberate strategies to transform our business model,” the acting Managing Director of CalBank PLC, Carl Asem, stated.

The bank posted a strong performance for half-year 2024, showing a significant, positive turnaround in the bank’s financial results. 

The half-year to June 2024 performance showed 130.1% growth in fees and commissions from GH¢49.3 million to GH¢113.4 million over the same period last year. 

Profit-before-tax went up by 49.4% on the prior year to GH¢151.9 million, from GH¢105.7 million at half-year in 2023.

Consequently, the bank emerged stronger and more resilient despite a challenging macroeconomic environment and the considerable impairment taken in the prior year, a statement from the bank said.

It said its improved balance sheet reflected a significant milestone in the bank’s recovery journey, with growth in total deposits of 9.6% from GH¢7.3 billion to GH¢8 billion and total assets growth of 144% from GH¢9.6 million to GH¢10.9 million, showcasing unwavering customer trust and support.

Equity position

The bank, the statement said, also recorded a positive equity position following a successful raising of GH¢145.8 million capital completed last month, underscoring improved financial stability and an enhanced capital position.

Shareholders’ equity strengthened to GH¢112.9 from GH¢184.9 within the same period under review.

The bank said the legal challenge to the Rights Issue was withdrawn, allowing it to focus on its strategic goals and growth initiatives, adding that the successful closing of the capital raise was testimony to shareholders and customers’ continued trust in the CalBank brand.

Review yields results 

Mr Asem said, “Our journey over the past two years has been one of the most challenging in the history of CalBank, following the Domestic Debt Exchange Programme (DDEP) in 2022 and some exposures resulting in unprecedented impairment charges in 2023”. 

As a result, he added, the bank conducted a comprehensive review of its operational tactics and took steps to enhance our risk management framework to further improve the quality of the loan portfolio. 

“We have also put in place measures to ensure recovery. Through this, we have now emerged stronger and entirely focused on delivering value to our stakeholders. 

Our return to profitability and positive equity are significant milestones that reflect our dedication to the continued financial stability and sustainable growth of CalBank,” the acting MD stated.

Mr Asem expressed confidence in CalBank’s ability to build on the momentum and drive further success to ensure “We strengthen our capital position in 2024 and beyond”. 

He expressed gratitude to shareholders for their unwavering support, the employees for their relentless diligent hard work, and customers for their continued trust in the bank.

Looking forward, Mr Asem said CalBank PLC was committed to enhancing its products and service offerings to better serve its customers as well as optimise investments in technology to improve operational efficiency.