Ghana: Cal Bank Records First Quarter Profit

Cal Bank, an indigenous universal bank listed on the Ghana Stock Exchange (GSE), posted a strong performance in the first quarter of this as the company recorded an appreciable increase in interest income.

The company recorded 2019 first quarter profit after tax of GHc41.9 million compared with the GHC34.1 million recorded in the same period last year, representing an increase of 22.8 per cent.

Interest income of the bank in the first quarter of this year stood at GHC118, 068 million, relative to the GHc89, 103 million recorded in the same period last year, constituting an increase of 32.5 percent and total assets of the company increased to GHc5, 262,419 from GHC4, 609,598.

The total operating income grew by 27.3 percent to GHC147.6 million in the first quarter this year from GHc116.1 million.

Speaking at the bank's turn of the facts behind the figures at the GSE, the Executive Director of Cal Bank, Philip Owiredu attributed the performance of the bank to the growth in net loans and reduction in the cost of operations of the bank.

He said cost-to-income ratio reduced to 41 percent in the first quarter of this from 45.0 percent in the same period last year.

Mr Owiredu, who is also the Chief Financial Officer, said stated that capital of the bank increased to GHC400 million after transferring GHC300 million from income surplus to stated capital.

"Borrowings increased by 45.8 percent to GHC1.3 billion in first quarter of 2019 as credit lines secured mainly from Development Finance Institutions to support general Small and Medium Enterprise asset growth as well as sector-specific assets (renewable energy and women's finance)," he said.

Mr Owiredu said return on equity increased by 5.1 percent to 20.6 percent in the first quarter of 2019 from 19.6 percent and return on assets recorded 6.7 percent growth from 3.2 percent from 3.0 percent.

The Executive Director, however, said, capital adequacy ratio declined 17.9 percent in the first quarter of this year from 21.8 percent in the previous quarter and attributed it to the implementation of Basel Two and Three, which involve huge charges on the banks operations.

Highlighting on the outlook of the bank, Mr Owiredu said the prospects for the bank look bright.

Acting Managing Director of the GSE, Ekow Afedzie commended the company for its sterling performance.

He said Cal Bank had been regular in presenting it results under the facts behind the figures programme.


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