CAL Bank Records Impressive Third Quarter Results

frank aduCAL Bank has for the third quarter of this year, seen its net interest income shoot up by 20.4 per cent, from the same period last year to GH¢129.9 million, despite the difficult economic conditions confronting the country.

The bank’s net trading income also increased almost threefold (278.8 per cent) to GH¢64.6 million in the period.

Mr. Philip Owiredu, Executive Director, CAL Bank, who announced this at the bank’s turn at the ‘Facts behind the figures’ programme in Accra, said its net fees and commissions increased by 71.6 per cent to GH¢37.9 million.

He said the bank’s non-funded income increased by 127.7 per cent to GH¢110.9 million, with net operating income rising by 54.9 per cent to GH¢225.4 million.

Mr. Owiredu said the bank was able to chalk the impressive performance because of the prudent measures adopted to put it on a sound footing.

He said despite the stiff competition in the banking sector, the bank’s customers’ deposits increased by 25 per cent.

The increase, he said, was driven by targeted deposit mobilisation efforts of the new branches and deepening of relationship with existing bran-ches.

The bank posted a credit loss expense of GH¢15.4 million, which is an increase of 38.3 per   cent from the previous year.

Total operating expenses increased by 37.7 per cent to GH¢75.1million, while profit before tax increased by 65.3 per cent to GH¢150.3 million. Net profit for the period jumped by 57.9 per cent to GH¢105.2 million.

On risk management, Mr. Owiredu said the bank had strengthened its risk management processes in response to the current deteriorating economic environment.

Risk managers and business units, he said, had enhanced monitoring and reporting on identified risks for emerging challenges so they could be addressed on time.

“CAL Bank’s robust risk management practices, efficient credit monitoring and controlled credit growth have resulted in the bank remaining successful in this challenging economic environment,” he said.

Mr. Frank Adu Jnr, Chief Executive Officer, CAL Bank, was optimistic about the prospects for the economy and the country’s banking sector.

He said although the local currency had seen some amount of stabilisation in the third quarter of the year, the bank was focused on preserving its balance sheet.

On the outlook for the bank, he said it was on track to its target of opening 30 branches before the end of next year.

By David Adadevoh

email
Print Friendly

Leave a Comment