CalBank PLC has posted a remarkable financial turnaround for the full year ending December 31, 2024, signaling renewed confidence in the bank’s strategy and resilience. The performance, driven by deposit growth, cost discipline, and non-performing loan recoveries, marks a significant shift from the previous year’s losses.
The bank reported a profit before tax of GH¢414.2 million, a stark contrast to the GH¢946.2 million loss recorded in 2023. The improvement comes despite lingering impairments linked to the Government of Ghana’s Eurobond restructuring program, which had previously weighed on earnings.
A key driver of the rebound was the bank’s intensified recovery efforts on non-performing loans (NPLs), which yielded approximately GH¢792 million, primarily from the hospitality, construction, and services sectors. These recoveries contributed to stabilizing the bank’s asset quality, ensuring a healthier loan portfolio.
CalBank’s Chief Executive Officer, Carl Asem, described 2024 as a transformative year, underpinned by disciplined execution and financial resilience. “2024 was a defining year for CalBank, marking a significant turnaround in our financial performance. The disciplined execution of our strategy has resulted in a strong recovery, improved financial health, and a positive outlook for the future. We remain committed to enhancing shareholder value, driving digital innovation, and ensuring financial sustainability,” he said.
The bank also saw a sharp rise in net fees and commission income, which surged by 55.7 percent to GH¢179.6 million, reflecting increased transactional banking activity and digital platform adoption. Meanwhile, net interest income stood at GH¢455.3 million, reflecting gradual stabilization following the impact of the Domestic Debt Exchange Program (DDEP) on investment earnings.
Deposit mobilization was another area of strength, with total deposits increasing by 29 percent to GH¢9.6 billion. This growth was fueled by CalBank’s focus on retail banking expansion, digital transformation, and financial inclusion initiatives. A shift in deposit mix toward individual and SME accounts underscored the bank’s strategic emphasis on broad-based growth.
The expansion of CalBank’s agent banking network, which now exceeds 2,200 agents, played a crucial role in extending the bank’s reach. Additionally, increased usage of digital platforms and collection systems contributed to higher transaction volumes and improved customer engagement.
Board Chairman, Joseph Mensah credited the bank’s return to profitability to strategic restructuring efforts undertaken by both management and the board. “The Bank’s return to profitability is a testament to the strategic restructuring efforts by both management and the board. We are now well-positioned for continued success and sustainable growth,” he noted.
CalBank intends to deepen its retail footprint, optimize its loan portfolio, and strengthen its risk management frameworks. The bank’s five-year strategy prioritizes sustained deposit growth, digital banking innovation, and financial intermediation, positioning it among Ghana’s top-tier financial institutions.
By leveraging its digital initiatives and strategic partnerships, CalBank aims to sustain its growth momentum and reinforce its role in supporting businesses and individuals within key economic sectors.
