Cal Bank has returned to significant growth in earnings for last year with Profit Before Tax (PBT) reaching GH₵414.2 million.
This shows an improved leap, from the loss posted by the bank in 2023 of GH₵946.2 million.
This was captured in the bank’s 2024 Audited Financial Results released to JOYBUSINESS.
CAL Bank said it recorded the strong growth in earnings despite the impact of substantial modification loss and impairment of GH₵346.9 million arising from the Government of Ghana Eurobond Restructuring Exchange Programme.
Key earnings drivers and financial performance
According to the bank, the full-year financial performance reflects a sustained recovery, driven by strategic cost management, strong deposit growth, and a disciplined approach to risk management.
On, Net Interest Income (NII), the bank said despite an improved cost of funding, the NII remained relatively muted at GH₵455.3 million, reflecting a steady recovery from DDEP-impacted earnings from investment securities and the loan book.
Deposits grew significantly by 29% to GH₵9.6 billion, up from GH₵7.5 billion in 2023, which Cal Bank says, reflects the bank’s retail banking expansion, digital transformation, and sustained market confidence in an indigenous Ghanaian bank.
“The growth in deposits has been bolstered by the bank’s strategic focus on retail banking expansion, agent banking network, and digital banking solutions”, the bank revealed.
It again stated that “the shift in deposit mix from corporate to individual and SME accounts underscores the bank’s commitment to financial inclusion”.
Cal Bank said its agent network, grew over 2,200 agents as part of the drive to deepen financial inclusion whilst expanding the reach of banking services.
Net Fees and Commission Income also increased significantly by 55.7% to GH₵179.6 million, which CAL Bank explained was driven by enhanced digital channel utilization, reflecting improved transactional banking and service delivery.
Cal Bank also maintained that its strategic focus in 2024 sustained recovery efforts delivering approximately GH₵792 million in impaired loan recoveries, particularly from the Hospitality, Construction, and Services sectors.
Cal Bank on 2024 Performance and Outlook
The bank noted that, the results underscore its strategic execution, resilience, and unwavering commitment to delivering long-term value to shareholders, showcasing a remarkable turnaround and strong financial performance.
Commenting on the results, Chief Executive of the bank, Carl Asem, said “2024 was a defining year for CalBank, marking a significant turnaround in our financial performance”
“The disciplined execution of our strategy has resulted in a strong recovery, improved financial health, and a positive outlook for the future”, he added.
Going forward, Mr Asem observed that “We remain committed to enhancing shareholder value, driving digital innovation, and ensuring financial sustainability.”
The Board Chairman of the bank, Mr. Joseph Mensah added that “the bank’s return to profitability is a testament to the strategic restructuring efforts by both management and the board.
Outlook for 2025
The bank pledged to remain focused on its disciplined execution of its five-year strategy, aimed at positioning the bank among the top-tier financial institutions in Ghana.
Retail Expansion: Strengthening nationwide presence while deepening digital banking penetration.
Broad-Based Deposit Growth: Sustain a strong focus on low-cost current and savings accounts, building a sustainable core deposit base to support financial intermediation.
Enhanced Risk Management: Prioritizing resilience through robust risk frameworks to support long-term sustainable growth.
Loan Portfolio Optimization: Supporting businesses and individuals within strategic sectors while intensifying recovery efforts on non-performing loans.
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