CalBank PLC, despite posting a strong profit for 2025, is signaling prudence by recommending a freeze on dividend payments into 2026, prioritizing the strengthening of its capital buffers and long-term resilience.
As part of his comments on the Bank’s 2025 Annual Report, Chairman Daniel Nii Kwei-Kumah Sackey highlighted the rationale behind the decision noting, “This decision, though it defers the near-term crystallization of income-based shareholder returns, is a deliberate and prudent measure to reinforce the Bank’s capital position.” He emphasized that retained earnings would not go unutilized: “Retained earnings will be reinvested to strengthen capital buffers, enhance balance sheet resilience, and ensure the Bank is well positioned to support sustainable business growth, withstand future shocks, and deliver long-term value to shareholders.”
The decision comes on the back of a remarkable turnaround for CalBank. The Bank posted a profit after tax of GHS 304.9 million in 2025, up from GHS 267.7 million in 2024, while non-performing loans fell sharply from 47.5% to 17%, reflecting significant asset quality improvements. This performance follows a highly successful GHS 900 million renounceable rights issue and private placement, which strengthened the capital adequacy ratio to 19.8%, well above regulatory requirements.
CalBank’s share price mirrored this positive momentum, climbing from GHS 0.35 at the start of 2025 to GHS 0.64 at year-end, representing a remarkable 82.85% price appreciation, highlighting strong market confidence in the Bank’s turnaround and strategic positioning.
While the dividend freeze may defer immediate income for shareholders, the Board frames it as a strategic step to safeguard long-term stability. By reinforcing capital buffers and ensuring a resilient balance sheet, CalBank positions itself to continue supporting households, businesses, and the broader economy without compromising future growth.
The move also reflects the Bank’s cautious optimism amid improving macroeconomic conditions in Ghana, including declining inflation, easing interest rates, and a strengthening domestic currency. According to the Chairman, the capital preservation approach is designed to ensure the Bank is well positioned to support sustainable business growth, withstand future shocks, and deliver long-term value to shareholders.
