Cal Bank Returns to Significant Growth in Profit for 2024; PBT Hits GH₵414.2M
Cal Bank has achieved significant profit growth in 2024, with Profit Before Tax (PBT) reaching GH₵414.2 million. This marks a major improvement from the GH₵946.2 million loss recorded in 2023.
The bank’s 2024 Audited Financial Results, released to JOYBUSINESS, highlighted this turnaround.
Cal Bank reported strong earnings growth despite a GH₵346.9 million modification loss and impairment from the Government of Ghana Eurobond Restructuring Exchange Programme.
Key Earnings Drivers and Financial Performance
The bank attributed its financial recovery to strategic cost management, strong deposit growth, and disciplined risk management.
Net Interest Income (NII) remained relatively stable at GH₵455.3 million, despite improved funding costs. This reflects steady recovery from the Domestic Debt Exchange Programme (DDEP) impact on investment securities and loan earnings.
Deposits rose by 29% to GH₵9.6 billion from GH₵7.5 billion in 2023. Cal Bank attributed this growth to its retail banking expansion, digital transformation, and increased market confidence in an indigenous Ghanaian bank.
“The rise in deposits is due to our focus on retail banking, agent banking, and digital solutions,” the bank stated.
The shift from corporate to individual and SME accounts highlights the bank’s commitment to financial inclusion. Cal Bank expanded its agent network to over 2,200 agents to extend banking services and financial inclusion.
Net Fees and Commission Income surged by 55.7% to GH₵179.6 million, driven by enhanced digital transactions and improved service delivery.
In 2024, the bank recovered GH₵792 million in impaired loans, mainly from the Hospitality, Construction, and Services sectors.
Cal Bank on 2024 Performance and Outlook
The bank emphasized that its performance demonstrates strategic execution, resilience, and a commitment to long-term shareholder value.
CEO Carl Asem described 2024 as a “defining year” that marked a strong financial recovery.
“The disciplined execution of our strategy has led to financial improvement and a positive outlook,” he said.
Looking ahead, Mr. Asem reaffirmed the bank’s focus on enhancing shareholder value, digital innovation, and financial sustainability.
Board Chairman Joseph Mensah praised the turnaround, attributing it to strategic restructuring efforts by management and the board.
Outlook for 2025
Cal Bank plans to continue executing its five-year strategy to position itself among Ghana’s top financial institutions.
- Retail Expansion: Strengthening nationwide presence and increasing digital banking access.
- Broad-Based Deposit Growth: Focusing on low-cost current and savings accounts to build a sustainable deposit base.
- Enhanced Risk Management: Implementing robust risk frameworks to support long-term growth.
- Loan Portfolio Optimization: Supporting businesses and individuals in key sectors while recovering non-performing loans.