CAL Bank’s net profit rises to GH¢160m in 2015
The net profit of CAL Bank rose by 14 per cent to GH¢160 million last year as a result of strong growth in almost all of its income lines.
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Net interest income, total assets, customer deposits and total deposits all witnessed growth, resulting in the positive growth in the net profit.
These came to light at the annual general meeting of the bank held in Accra.
The bank’s Managing Director, Mr Frank Adu Jr, said the growth was consistent with its performance over the years.
He said in spite of the economic challenges last year and heightened competition in the banking sector, measures put in place by the board and management ensured that it weathered the storm to record enviable results.
According to the bank’s financials, which were presented at the meeting, total assets grew by 23.8 per cent, GH¢2.7 billion in 2014 to GH¢3.35 billion last year, as a result of some strong growth in shareholders’ funds and liabilities.
As of December last year, shareholders and liabilities totalled GH¢2.8 billion and GH¢500 million respectively.
Deposits, on the other hand, also rose by 14.6 per cent, which Mr Adu Jr attributed to “gains from expanded branch network and deliberate deposit mobilisation efforts during the period”.
Last year, the bank raised its branch network to 32 locations and 92 operational automated teller machines (ATMs) spread across the country.
“Non-performing loan ratio at the end of the period was 5.5 per cent compared to 6.2 per cent at the end of 2014, reinforcing the quality of our assets,” the MD explained.
He said the bank took advantage of growth opportunities during the period to raise its advances.
In doing that, he said, “the bank maintained a continuous focus on enhancing the quality relationship management, monitoring and recoveries to effectively manage the quality of our loan book.”
Downside risks
Despite the enviable results in the wake of the challenging environment, the CAL Bank MD admitted that other indices of the bank deteriorated on the back of specific challenges.
“Our capital adequacy ratio remained relatively high at 21.4 per cent arising out of our tier two funding and increased earnings in 2015,” he said.
Going forward, Mr Adu Jr said, the bank would leverage its strong capital position to sustain planned future development of its business.
He said the development of its head office was progressing steadily and remained on course to be completed in November this year.
He added that completion of the new head office was expected to coincide with the rebranding of the bank “to signify a renewed and fresh chapter in our history.”