Ghana’s indigenous Cal Bank is currently recording an impressive performance in the trading of its shares on the Ghana Stock Exchange.
The bank since March this year has seen its share price on a constant decline from 50pesewas per share to 26pesewas per share as of October 21, 2024, signifying a very low investor confidence in the bank.
But there seems to be a turnaround as the bank has started making gains on the stock market following the posting of impressive financial performance from the 3rd Quarter of 2024.
The bank’s report reveals that it recorded a GHc 223.9 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 GHc 712.5 million in previously impaired loans this year using courts and collateral liquidation to reel in those impaired funds.
Moreover, in an austere cost-cutting measure in the midst of inflation and currency depreciation, the reported a controlled operating expenses and staff costs.
These gains have resulted in the bank seeing an increase in its share price since March 2024. Cal Bank for the first time since March made gains in its share price last week as it closed trading at 28pesewas per share from 26pesewas per share representing 7.69 returns.
The streak continued as Cal Bank’s share further increased closing trading yesterday at 33pesewas per share from a previous increase of 30pesewas per share representing a 10% increase joining Ecobank as top gainers. 110,000 shares were traded, with a gross turnover of GH₵36,300.
Checks by The High Street Journal on the stock exchange as of Wednesday morning indicate that shares of Cal Bank are on a steep rise although it has not reached their March levels.
An official at the bank at its Facts Behind The Figures event yesterday, Tuesday, November 5, 2024, attributed this performance to their third quarter financial performance.
“Over the past one week, our share price has seen a 7.69 return from 0.26 to 0.28 as a result of the good financial performance that we recorded in Q3 2024 (Quarter 3). This brings our market capitalization to GH₵302.89 million,” he indicated.
This development, experts explain as signifying a growing investor confidence in the operations of Cal Bank despite the challenges the local bank has faced recently.
