The management of Cal Bank says they are hopeful of turning around the bank’s deteriorated capital position earliest by the first quarter of next year.
The Capital Adequacy Ratio (CAR) of Cal Bank which is a measure of its financial strength by comparing its capital to the money loaned out or invested in risky ventures ran into a negative.
This issue with the bank was mainly caused by rising Non-Performing Loans (NPL) due to a major loan it granted in times past that went bad.
The bank’s NPL hovers around 41% but the management confirms the particular loan that went bad represents about 50% of the total percentage of NPLs.
With the deteriorated capital, the bank is in distress need of capital injection to cushion it against risk.
To restore this capital issue, the management has embarked on a number of reforms and plans which have offered it hope of regaining its financial strength with respect to its capital requirement early next year.
According to the management, in addition to the internal reforms, its capital restoration plan has been approved by the Central Bank which they are religiously implementing to the letter.
The management says it is leveraging on its balance sheet optimization in addition to the commitment by the current shareholders to support the restoration of its capital.
“We have had a capital restoration plan which has been approved by the BoG. Currently, we are working on it to be able to execute it. We strongly believe that hopefully by the end of Q1, we should be able to resolve the negative capital issue. There are levels of plans both for balance sheet optimizations and also for our shareholders who have indicated their promise to be able to manage it. We believe that by the end of Q1, we should be able to resolve it,” Managing Director of Cal Bank, Carl Selasi Asem revealed at its Facts Behind the Figures event on Tuesday, November 5, 2025.
Meanwhile, the bank has posted impressive financial performance for the third quarter of this year. The bank’s third-quarter report reveals that it recorded a GHS223.9 million profit after tax for Q3, marking a 26.1% bump from last year and a 41.8% leap from its half-year profit.
Cal Bank also in the same period recovered GHS712.5 million in previously impaired loans this year using courts and collateral liquidation to reel in those impaired funds. This significant performance is trickling into the bank’s performance on the Ghana Stock Exchange. The bank’s shares have started making gains indicating a renewed investor confidence in the local indigenous bank.
