- sees positive equity position, increased customer deposits
- following successful capital raise
By Ebenezer Chike Adjei NJOKU
Indigenous financial services provider, CalBank PLC has reported a financial turnaround for the first half of 2024, marked by a 49.4 percent increase in profit after tax, reaching GH¢151.9 million compared to GH¢105.7 million in the corresponding period last year. This is contained in its unaudited results for the six months ending June 30 2024, which showed improvements in profitability and equity.
This recovery is underpinned by a 130.1 percent growth in net fees and commissions income, which rose to GH¢113.4 million from GH¢49.3 million a year earlier.
Operating expenses increased by 24.2 percent to GH¢320.1 million, yet the growth rate of expenses was effectively contained relative to profits, reflecting prudent cost management strategies. The bank’s total assets grew by 14.4 percent to GH¢10.9 billion, while customer deposits increased by 9.5 percent to GH¢8 billion, indicative of sustained customer confidence and support.
A notable highlight of the bank’s performance is the turnaround in shareholders’ equity, which improved from negative GH¢18.49 million at the end of 2023 to GH¢112.9 million by June 2024. This positive equity position was bolstered by a successful capital raise in June, which secured GH¢145.8 million. The resolution of a legal challenge to the rights issue facilitated this achievement, reflecting continued shareholder confidence in CalBank’s strategic direction.
Carl Selasi Asem, Acting Managing Director of CalBank PLC, attributed the turnaround to a comprehensive review of operational tactics and an enhanced risk management framework. “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 (DDEP) in 2022 and unprecedented impairment charges in 2023, we have now emerged stronger and are entirely focused on delivering value to our stakeholders,” Mr. Asem stated.
He said the half-year results signify the beginning of a new chapter of growth and success for the bank, with a clear focus on delivering for clients, investing in its people, and achieving sustainable growth for shareholders.
The bank’s return on average assets (ROAA) increased to 5.8 percent from 2.3 percent in the previous year, while the return on average equity (ROAE) surged to 389.8 percent from 237 percent, indicating efficient utilisation of assets and equity to generate profits. “Our return to profitability and positive equity are significant milestones that reflect our dedication to the continued financial stability and sustainable growth of CalBank. We remain confident in our ability to drive further success and strengthen our capital position in 2024 and beyond,” Mr. Asem further stated.
Looking ahead, CalBank aims to build on its current momentum with strategic initiatives focused on enhancing product and service offerings, investing in technology to improve operational efficiency, expanding its retail franchise, and maintaining rigorous risk management practices, he added.
