CalBank PLC has unveiled impressive financial results for the third quarter of 2024, signaling a robust turnaround in its performance. The bank reported a profit after tax of GH¢223.9 million, representing a 26.1% increase compared to the same period last year and a notable 41.8% rise from the first half of 2024.
CEO Carl Asem credited the bank's success to positive trends in key earnings drivers, particularly highlighting a staggering 97.4% increase in fees and commissions income. This surge has played a critical role in bolstering the bank's overall financial health, especially amid challenges such as a 24.7% decline in net interest income.
This drop was primarily attributed to a strategic decision to slow down loan growth in response to rising interest rates. Asem stated, “Our Q3-2024 financials reflect a clear, sustained positive trend following our sterling Half-Year results.”
The decline in net interest income was effectively countered by significant recoveries from impaired loans, amounting to GH¢712.5 million in 2024, primarily from sectors such as hospitality, construction, and services. This recovery was achieved through aggressive legal strategies and collateral liquidation.
Despite a 9.3% increase in operating expenses due to inflation and rising costs of goods and services, staff expenses were controlled, rising only 9.7% due to focused cost management initiatives.
CalBank's deposit growth has been particularly impressive, with total deposits increasing by 26.5%, from GH¢7.5 billion in FY 2023 to GH¢10.1 billion in Q3 2024. This shift was especially notable in the transition from corporate deposits to individual and SME accounts, which now account for over 80% of total deposits.
Asem emphasized the importance of the bank’s digital strategy in achieving these results, noting that enhanced digital channels and an expanding agent banking franchise have significantly contributed to this deposit growth. “Our strategic drive to optimize digital channels has directly impacted customer trust and confidence in our banking platforms,” he added.
Looking forward, CalBank is committed to executing its five-year strategy aimed at enhancing its market presence and strengthening its digital footprint. The bank has 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.
Joseph Mensah, Chairman of CalBank, praised the ongoing restructuring efforts led by management and the board, stating, “The fundamentals of the bank have been strengthened, and the outlook for the future is very bright.”
This sentiment reflects a growing confidence in the bank's ability to navigate the challenging economic landscape and continue its positive trajectory.
The solid financial results and strategic initiatives position CalBank for sustained growth, benefiting investors, clients, and employees alike.
Mr. Asem expressed gratitude to the staff for their dedication and hard work, stating, “Together, we have turned the fortunes of the bank around towards growth.”
CalBank's commitment to digital transformation and a focus on customer-centric services will likely continue to drive its success in the competitive banking sector.
As it moves forward, the bank aims to leverage technology to enhance efficiency and foster deeper customer engagement, paving the way for long-term sustainability and profitability.
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CEO Carl Asem