Big wins for CalBank (GSE “CAL”) this quarter, with their Q3 2024 results showing they’re still on a growth streak. Here’s a breakdown of the key numbers and what they mean for Ghana’s banking future.
Earnings Highs & Lows CEO Carl Asem summed up CalBank’s third-quarter results with a mix of impressive highs and some necessary slowdowns. On the income side, fees and commissions surged a stunning 97.4% compared to last year. But net interest income dipped by 24.7%—why? CalBank chose to tap the brakes on new loan growth as interest rates rose, impacting operating income, which dropped 9.8% from last year.
Recoveries on Point Here’s the rebound story: CalBank recovered GHS712.5 million in previously impaired loans this year. That’s mostly thanks to hard-hitting recoveries in hospitality, construction, and services. They’re taking a tough stance, using courts and collateral liquidation to reel in those impaired funds.
Cost Control? Nailed It. Inflation and currency depreciation couldn’t stop CalBank’s cost-control game. Operating expenses edged up by 9.3%, while staff costs grew 9.7%, signaling tight cost management amid the economic turbulence.
Profit Surge Here’s the big win: CalBank posted a GHS223.9 million profit after tax for Q3, marking a 26.1% bump from last year and a 41.8% leap from their half-year profit.
Deposit Growth: Hitting New Highs Deposits are up 26.5%, reaching GHS10.1 billion, up from GHS7.5 billion last year. CalBank’s retail focus is paying off, as more individuals and SMEs are choosing CalBank for their accounts—bringing Current and Savings accounts (CASA) to over 80% of total deposits.
Digital Dominance The reason for this deposit shift? CalBank’s digital game is strong. From a growing agent network to optimized digital channels, customers trust CalBank’s online and mobile platforms for secure, reliable banking.
Growth Goals and Digital Expansion CalBank’s plan? Cement its spot among Ghana’s top banks with a robust 5-year strategy. They’ve registered 996 new agents in Q3, totaling 1,886 across all 16 regions. Digital expansion is the name of the game, and by year’s end, they plan to keep ramping up their agent network as they aim to lead in digital payments.
A Future in SME Support & Risk Resilience With SME lending and low-cost accounts in focus, CalBank’s deposit drive strategy supports growth in the sector. Solid risk management is at the core, aiming for sustainable growth, financial strength, and community support.
CEO Carl Asem’s Final Thoughts “Our Q3 results are a testament to CalBank’s resilience,” says Asem. He extended a shoutout to management and the board, applauding their dedication and vision to “turn the bank’s fortunes around.”
Chairman Joseph Mensah Weighs In Chairman Joseph Mensah echoed Asem’s confidence, pointing to CalBank’s restructuring and forward momentum. “The bank’s fundamentals are stronger than ever. We’re poised for success.”
For more on CalBank’s Q3 success story, reach out to Dzifa Amegashie, Head of Investor Relations, at [email protected] or +233 (0)261 513134.
