Executive Director of CAL Bank Limited, Philip Owiredu who disclosed this at the bank’s turn of the Fact-Behind-The-Figures series in Accra last week, said the move was to position the bank to expand its loan book.
“We have a strategy of funding our loan book through deposit and loans so that we don’t mismatch our assets and liabilities,” he said.
He explained that the facility would help the bank to provide long term credit for its numerous clients who need both cedis and dollars to finance their operations.
Mr. Owiredu said this year was a challenging year for CAL Bank due to the difficult economic conditions and the bank’s exposure to the construction and commerce industries.
He said the bank’s exposure to the construction and commerce influenced the bank’s Non Performing Loan (NPL) ratio of 8.4 per cent in September this year, adding that construction accounted for 38 per cent of the NPL while commerce accounted for 25 per cent.
The Executive Director explained that in view of the challenging economic environment, the focus of CAL Bank this year was to maintain the strength of the balance sheet of the bank.
He explained that Cal Bank was well capitalised and the bank’s Capital Adequacy Ratio stood above 20 per cent, which is above the banking industry’s required ratio of ten per cent.
Asked of the prospects for Cal Bank next year, Mr. Owiredu responded, “We are looking forward to a good year next year.”
Giving the highlights on the third-quarter performance of the Cal Group, the Head of Investor Relations of Cal Bank, Dzifa Amegashie said the third-quarter profit after tax stood at GHȼ90.9 million, which was a 23.3 per cent decrease compared to the GHȼ118.5 million recorded in the same period last year.
She said the CAL Group total assets increased from GHȼ 3 billion to GHȼ3.3 billion in the third quarter this year.
Ms Amegashie said total deposits increased by 40.3 per cent due to the increase in the branches of the bank and aggressive marketing strategy adopted by the bank.
The Head of Investor Relations disclosed that borrowings of the bank fell by 40 per cent as a number of short-term facilities were retired.
Cal Bank Limited, an indigenous bank established in 1990 and listed on the Ghana Stock Exchange, currently has more than 26 branches across the country.
By Kingsley Asare