Trading increases CAL Bank profits to 19%

Managing Director of CAL Bank Limited, Mr Philip Owiredu

CAL Bank Limited has increased its profits despite the COVID-19 scourge, which hampered business activities in 2020.

The indigenous bank gained a 19% rise in profit after tax to rake in GHC207 million, thanks to huge gains from its trading activities.

According to the 2020 audited financial statement of CAL Bank Limited, net trading income skyrocketed by 381% to finish the year with GHC130million.

This pushed total revenue by 14.7% to GHC673.6million, despite a decline in net fees and commissions (-43%) and an insignificant rise of 0.65% in net interest income.

The bank was one of the financial institutions that cut loans and advances to customers as the pandemic raged. There was a reduction of 17% to finish the year at GHC2.4billion.

Deposits from customers rose by 13.5% to GHC 4.2billion.

Equity available to shareholders increased by 15.7% to 1.1billion as investors grew their earning per share from GHC 0.27 to GHC 0.33.

The stated capital was the same as the minimum capital requirement with a reserve of GHC 136,000.

Total liabilities are lesser than total assets with a debt/asset ratio of 0.85, showing the financial strength of the bank in the long term.

For its stability, CAL Bank registered a Capital Adequacy Ratio-a measurement of a bank’s available capital to its risk-weighted assets – of 21.9 %, a reduction of the 22.5% registered in 2019.

Non-Performing Loans also increased to 13.1% from the 9.9% recorded in 2019 due to the COVID-19 impact.

Profile of CAL Bank Limited

CAL Bank Limited, formerly Continental Acceptances Ltd and Cal Merchant Bank, commenced operations in July 1990, providing financial solutions to the Ghanaian banking sector. CAL Bank Limited received its Universal Banking License in 2004 and soon began providing specialized retail banking services.

CAL Bank Limited continues to provide a broad range of banking and financial solutions to large corporations, small and medium-sized enterprises, public sector institutions and retail customers through a network of 29 branches and over 100 ATMs across Ghana.

It is listed on the Ghana Stock Exchange and trades under the symbol CAL.

Social Security and National Insurance Trust (SSNIT) is the majority shareholders. The other investors are spread across local and international private institutions and individuals.

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