… addresses executive changes
CalBank PLC has responded to recent reports about significant changes in its executive leadership and board composition.
This was conveyed in a press release dated September 24, 2024, which comes in the wake of an article published by The High Street Journal, which alleged that the bank had dismissed a significant number of top executives and non-executive directors.
CalBank’s Board Chairman, Joe Mensah, sought to clarify the situation, stating, “No director of the bank has been dismissed.”
The bank explained that recent board changes were part of its “statutory and regulatory governance cycle.” Three independent, non-executive directors – Ben Barth, Dr. Cynthia Forson, and Richard Arkutu – retired by statutory rotation at the bank’s annual general meeting (AGM) held on September 4, 2024.
The statement clarified that Mr. Barth did not seek renomination when his tenure expired, while the terms of Dr. Forson and Mr. Arkutu concluded at the AGM. CalBank praised all three retired directors for providing “exceptional service to the bank during their tenure.”
However, the process of appointing new directors has been complicated by a pending injunction application filed by two minority shareholders, which has delayed the reappointment process.
“Due to a pending injunction application filed by two minority shareholders, that sought to injunct the consideration of some resolutions at the 2024 AGM, the process of reappointing directors has been delayed.
Currently, the following persons continue to serve as directors of the bank – Joe Mensah (Board Chairman), Kofi Osafo-Maafo, Kweku B. Korsah, Solomon Asamoah, Nana Otuo Acheampong, and Carl Selasi Asem (Managing Director).” the statement said.
The bank disclosed that it is preparing for an Extraordinary General Meeting (EGM), where “new directors will be appointed to restore the full complement of the Board, in line with governance standards and regulation.”
CalBank also addressed what it termed “legacy-related” challenges. The current Board, according to the statement, “has taken proactive steps to clean up the balance sheet, strengthen risk management, and set the bank on a path to future success.”
Key initiatives highlighted include improved risk management structures, particularly in credit and market risk frameworks. The bank asserted that these improvements have “not only reduced exposure to bad loans but have also ensured that none of the loans booked during this Board’s tenure have gone bad.”
In a move towards financial transparency, the Board ensured that appropriate provisions were made for troubled legacy accounts. This decision was described as “critical in positioning the bank to address its past challenges while focusing on future opportunities.”
The bank also reported “aggressive recovery efforts for non-performing loans” and a significant improvement in its deposit profile, attracting more stable and long-term deposits, which has strengthened the bank’s balance sheet and supported its liquidity.
Addressing changes in management personnel, CalBank confirmed that some senior-level management appointments were terminated or reassigned in June 2024 following due process. The bank has also made strategic recruitments, including Carl Asem as the new Managing Director, and new experienced senior hires in the retail division.
Despite the challenges, CalBank reported positive financial performance, stating that the bank “turned a profit for the first half of the current year, and the results are expected to show sustained growth through the year-end.”
Looking ahead, CalBank expressed confidence in its prospects. The bank said it is now positioned for sustained growth and market leadership with a strong focus on corporate governance, improved risk management, operational excellence, and innovation, the bank is poised to deliver exceptional value to its stakeholders.
The upcoming EMG is expected to “bring in additional Board expertise, further solidifying the bank’s path to greatness.”
