Tough times for Calbank — Posts loss for 2nd year running
The bank is working hard to reverse its loss making position

Tough times for Calbank — Posts loss for 2nd year running

CalBank Plc failed to recover from its loss-making position in 2022 to post another loss of GH¢671.2 million in 2023.


The loss is however lower when compared to the GH¢809.8 million deficit recorded for the financial year 2022.

The bank’s share price also exhibited volatility throughout the year 2023. 

Starting at GH¢0.60 per share in January 2023, the bank’s share price dropped marginally to GH¢0.48 per share by the end of the year in review.

The performance of the bank comes at a time when in the same year, the GSE market recorded a mixed performance, with the GSE Composite Index ending the year with a gain of 28.1 per cent. 

However, the Financial Stock Index ended the year with a year-on-year loss of 7.4 per cent, with most listed banks witnessing a decline in share prices, reflecting the persisting difficulties in the economic landscape.


Unlike most of its competitors, the bank could not pay dividends to its shareholders for the year in review.

The bank said “considering the directive from the Bank of Ghana as part of reliefs to banks to address the impact of participating in the government’s domestic debt exchange programme and the significant impairment posted in 2023, the board does not recommend the declaration and payment of dividends and other distributions to shareholders.”

Financial performance

Acting Managing Director, Carl Selasi Asem, in his report captured in the financial statement of the bank and released by the Ghana Stock Exchange (GSE), he said the bank was steadfast in its commitment to delivering value to its shareholders and all stakeholders.

“The group’s performance, though less than satisfactory, can primarily be attributed to the lingering impact of the 2022/23 domestic debt exchange programme. 

The challenging operating environment further exacerbated the situation, leading to a substantial credit impairment provision of GH¢1.3 billion during the 2023 financial period. Despite these challenges, the group remains resilient and dedicated to overcoming hurdles for the benefit of its stakeholders.”

Mr Asem said despite the unsettling economic landscape, the bank remained steadfast in supporting the national recovery effort across both the private and the public sectors, leading the agenda for a prosperous growth. 

He said in the face of these economic challenges, the bank adeptly took advantage of market opportunities, resulting in a steady 11.9 per cent increase in deposits from GH¢6.7 billion in 2022 to GH¢7.5 billion by the close of 2023. 

“This strong deposit growth can be attributed to our commitment to optimising our digital channels, effectively reducing our cost of funding and enhancing our non-funded income streams,” he said.

Loss position

Explaining the bank’s position on the loss posted for the year in review, Mr Asem said the far-reaching consequences of the bank’s involvement in the DDEP in 2022 could not be overstated. 

Our top-line revenue stream was significantly impacted. Amidst a challenging macroeconomic environment and the potential adverse effects on borrowers, we diligently examined the credit portfolio per IFRS 9.

Consequently, we made significant additional provisions for credit impairments on our top 50 credit exposures, adopting a prudent approach to safeguard against potential risks.

This led to the group reporting a loss before tax of GH¢946.3 million in 2023, compared to a loss before tax of GH¢1.1 billion in the previous year. 

“Similarly, the group recorded a loss after tax of GH¢671.2 million in 2023, as compared to a loss after tax of GH¢809.8 million for the financial year 2022.”

Renounceable right issue

Earlier this month, CalBank rolled out plans to raise GH¢600 million through a rights issue and private placement.


The amount is to help recapitalise the bank after it made significant losses in 2022 due to the domestic debt exchange programme.

The Renounceable Rights Offer comprises 1,872,461,736 ordinary shares of no-par value at GH¢ 0.29 per share and 196,503,781 preference shares of no-par value at GH¢0.29 per share

The offer will be in a ratio of one new ordinary share for every 0.3351 existing ordinary shares and one new preference share for every 3.1935 existing ordinary shares held by a qualifying shareholder.

The issue opened on April 5, 2024, and run for 21 days, closing on April 26, 2024.


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