CalBank PLC has reported a profit-after-tax of GH¢223.9 million, reflecting a 26.1% increase compared to the same period last year.
Per data from the Bank’s unaudited financial results for the period ending September 30, 2024, CalBank Group however recorded a 24.7% drop in net interest income.
This was driven by a strategic slowdown in loan growth due to high interest rates.
The reduction in net interest income was offset by substantial recoveries of impaired loans, totaling GH¢712.5 million.
These recoveries, mainly from the hospitality, construction, and services sectors, were achieved through assertive legal actions and the liquidation of collateral assets.
Operating expenses for the company rose 9.3% year-over-year, largely due to inflationary pressures on goods and services.
However, staff costs were kept under control, rising only 9.7%, reflecting management’s disciplined cost-containment efforts amid challenging economic conditions and currency depreciation.
CalBank’s deposit growth has been remarkable, with total deposits up by 26.5% —rising from GH¢7.5 billion at the end of 2023 to GH¢10.1 billion by Q3 2024.
This growth is largely attributed to a shift in deposits from corporate accounts to individual and SME clients, who now represent over 80% of total deposits.
In a press statement, CalBank CEO, Carl Asem attributed the bank’s performance to a positive trend in core earnings drivers, highlighting a striking 97.4% increase in fees and commissions income.
He noted that CalBank’s digital strategy played a crucial role, with enhanced digital channels and an expanded agent banking network significantly contributing to deposit growth.
“Our long-term retail strategy is focused on expanding our presence nationwide and in the short term, our focus is to enhance and solidify our digital footprint. To this end, in Q3-2024, we registered 996 new agents, bringing our total agent network to 1,886, spread across all 16 regions of Ghana,”he said.
He further noted that, “We will continue to expand this delivery channel through 2024/2025 and beyond in line with our retail strategy. Across all channels, our business activity levels have shown resilience, setting a positive tone for the last quarter of 2024. In the long-term, our key imperative is to become the leading bank for digital payments and innovation in the country.”
Chairman Mr. Joseph Mensah also commented: “The turnaround of CalBank’s performance towards a positive trajectory has come about due to the ongoing restructuring efforts by management and the board. The fundamentals of the bank have been strengthened and the outlook for the future is very bright. We are well-positioned to continue on our pathway to success.”
