CalBank PLC has reported an impressive financial results for the third quarter of 2024, demonstrating significant growth and solidifying its turnaround strategy.
The bank in a statement reported a profit-after-tax of GH¢223.9 million, reflecting a 26.1 percent increase compared to the same period last year, and a 41.8 percent rise over the first half of 2024.
Carl Asem, CEO of CalBank, attributed the bank’s performance to a positive trend in key earnings drivers, noting a staggering 97.4 percent increase in fees and commissions income.
Despite a 24.7 percent drop in net interest income, largely due to a conscious slowdown in loan expansion amid high interest rates, the bank’s overall financials remain strong. Asem stated, “Our Q3-2024 financials reflect a clear, sustained positive trend following our sterling Half-Year results.”
The decrease in net interest income was mitigated by significant recoveries of impaired loans, amounting to GH¢712.5 million thus far in 2024. The recoveries primarily came from the hospitality, construction, and services sectors, achieved through aggressive legal strategies and collateral liquidation.
The Company’s operating expenses rose by 9.3 percent year-over-year, attributed to general price increases in goods and services.
However, staff costs were effectively controlled, increasing only 9.7 percent, thanks to management’s focused cost control efforts amid challenging economic conditions and local currency depreciation.
CalBank’s deposit growth has been notably strong, with a 26.5 percent rise in total deposits, which climbed from GH¢7.5 billion in FY 2023 to GH¢10.1 billion in Q3 2024. This surge is particularly notable in the shift from corporate deposits to individual and SME accounts, now constituting over 80 percent of total deposits.
The CEO emphasized the importance of digital strategy in achieving these results, highlighting that the bank’s enhanced digital channels and agent banking franchise contributed to this deposit growth.
“Our strategic drive to optimize digital channels has directly impacted customer trust and confidence in our banking platforms.”
CalBank plans to continue executing its five-year strategy aimed at enhancing its market presence and solidifying its digital footprint. The bank registered 996 new agents in Q3, bringing its total to 1,886 across Ghana, aligning with its objective to become a leader in digital payments and innovation.
Joseph Mensah, Chairman of CalBank, praised the ongoing restructuring efforts by management and the board. “The fundamentals of the bank have been strengthened, and the outlook for the future is very bright,” he said.
CalBank’s solid financial results and strategic initiatives position it for sustained growth, benefiting investors, clients, and employees alike.
Mr. Asem expressed gratitude to the staff for their hard work, stating, “Together, we have turned the fortunes of the bank around towards growth.”
