CalBank records strong mid-year performance
![• Mr Asem](https://ghanaiantimes.com.gh/wp-content/uploads/2024/07/Mr-Asem.jpg)
CalBank PLC has announced a significant and positive turnaround in the bank’s financial results during the first half of the year, 2024.
A statement issued by the bank in Accra on Friday disclosed that the bank’s half-year results saw a solid performance with fees and commissions growing by 130.1 per cent and profit-after-tax up by 49.4 per cent on the prior year.
Consequently, the statement said the bank had also emerged stronger and more resilient despite a challenging macro-economic environment and the considerable impairment taken in the prior year.
“The improved balance sheet reflects a significant milestone in the bank’s recovery journey, with a growth in total deposits of 9.6 per cent and total assets growth of 14.4 per cent, showcasing unwavering customer trust and support,” it stated.
“This success is a testament to the hard work of our team and our deliberate strategies to transform our business model,” it added.
During the period under review, net fees and commissions income grew by 130.1 per cent from GH¢49.3 million to GH¢113.4 million, operating expenses were contained relative to profits, growing by 24.2 per cent to GH¢320.1 million and profit-after-income increased by 49.4 per cent to GH¢151.9m (GH¢105.7 million at half year 2023).
“The bank recorded a positive equity position following a successful capital raise completed in June 2024, underscoring improved financial stability and an enhanced capital position, shareholders’ equity strengthened to GH¢112.9 from GH¢184.9 at FY 2023 with return-on-average assets increased to 5.8 per cent from 2.3 per cent at HY 2023 while return- on-average equity increased to 389.8 per cent from 23.7 per cent at half year 2023,” it added.
“CalBank successfully completed a capital raise in June 2024, raising GH¢145.8 million. The legal challenge to the Rights Issue was withdrawn, allowing the bank to focus on its strategic goals and growth initiatives. The successful closing of the capital raise is testament to shareholders and customers’ continued trust in the CalBank brand, with Total Assets increased by 144 per cent to GH¢10.9m, (GH¢9.6m at HY2023) and Total Customer deposits increased by 9.6 per cent to GH¢8.0B (GH¢7.3b at HY 2023),” it further stated.
Speaking on the bank’s achievement, Acting Managing Director of CalBank PLC, Carl 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 in 2022 and some exposures resulting in unprecedented impairment charges in 2023.”
As a result of the foregoing, he said, they conducted a comprehensive review of operational tactics and took steps to enhance risk management framework to further improve the quality of their 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,” he stressed.
He expressed confidence in the bank’s ability to build on this momentum and drive further success to ensure they strengthen capital position in 2024 and beyond.
BY TIMES REPORTER