Ghana: CalBank Reports Impressive Q3 2024 Financial Results

CalBank PLC has announced impressive financial results for the third quarter of 2024, showcasing significant growth and reinforcing its turnaround strategy. The bank reported a profit-after-tax of GH¢223.9 million, marking a 26.1 percent increase compared to the same period last year and a 41.8 percent rise over the first half of 2024.

CEO of CalBank, Carl Asem, attributed this performance to a positive trend in key earnings drivers, noting a remarkable 97.4 percent increase in fees and commissions income. Despite a 24.7 percent drop in net interest income due to a deliberate slowdown in loan expansion amid high interest rates, the bank’s overall financial health remains robust. “Our Q3-2024 financials reflect a clear, sustained positive trend following our sterling Half-Year results,” Asem stated.

This decrease in net interest income was offset by substantial recoveries of impaired loans, amounting to GH¢712.5 million so far in 2024. The recoveries primarily came from the hospitality, construction, and services sectors, achieved through aggressive legal strategies and collateral liquidation.

The bank’s operating expenses increased by 9.3 percent year-over-year due to general price hikes in goods and services. However, staff costs were effectively managed, rising only 9.7 percent, thanks to focused cost control efforts amidst challenging economic conditions and local currency depreciation.

CalBank’s deposit growth has been particularly strong, with a 26.5 percent rise in total deposits, growing from GH¢7.5 billion in FY 2023 to GH¢10.1 billion in Q3 2024. This growth is notable in the shift from corporate deposits to individual and SME accounts, now constituting over 80 percent of total deposits. Asem highlighted the impact of the bank’s digital strategy, stating, “Our strategic drive to optimize digital channels has directly impacted customer trust and confidence in our banking platforms.”

Looking ahead, 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.

Chairman of CalBank, Joseph Mensah, 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.”