CAL Bank records profit

CAL Bank, an indigenous Ghanaian financial institution, last year recorded a profit after tax of GH¢160.042, as against GH¢140,352 recorded in 2014.

This represents an increase of 14 per cent of the profit after tax recorded in 2014.

Speaking at the bank’s AGM in Accra, the Board Chairman, Paarock A. Vanpercy, attributed the performance to planned efforts in diversifying their revenue base, carefully managing cost and harnessing an innovative, and adaptive approach to serving customers.

“We continue to strengthen our balance sheet to enable us unlock its full potential and maintain the progress of our business,” he said.

He said the bank employed innovative deposit mobilisation strategies to increase its deposit base during the year.

He said that the board of directors had recommended a dividend of GH¢0.097 per share amounting to a total payout of GH¢53.18 million (2014: GH¢44.41), a growth of 19.7 per cent over 2014.

Mr. Frank Brako Adu Jnr., Managing Director of the bank said the bank’s total assets base  increased by 23.8 per cent to GH¢3.35 billion, while that of the group grew by 24.0 per cent during the year, from GH¢2.7 billion in 2014 to GHȻ 3.36 billion in 2015.

He said that customer deposit increased by 14.6 per cent from 1,348,161 in 2014 to 1,544,523 in 2015 and attributed it to gains from their expanded branches network and deliberate deposit mobilisation efforts during the period.

The MD said the bank’s recorded a Non-Performing Loan (NPL) ratio of 5.5 per cent in 2015 as compared to 6.2 recorded in 2014, saying the feat achieved on NPL, reinforced the quality of bank.

Mr.  Adu Jnr. said  “as a  bank we continue to focus on enhancing the quality of relationship management, monitoring and recoveries to effectively manage the quality of their loan book”.

He said the bank had broadened its delivery channels and diversified its market offering by the expanded branch networks to include Dansoman, Labone and its Airport City to enhance the bank’s retail franchise.

The Managing Director said the bank opened 92 operational ATMs at different locations and introduce its point-of-sale (POS), at the end of 2015 to offer convenience to customers.

Outlining some of the challenges encountered by the banks, Mr. Adu Jnr. mentioned power crisis, depreciation of the cedi, falling prices of commodities among others contributed to the difficulties in the 2015 operating environment.

By Victor Buxton              

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