Mr. Philip Owiredu, the Managing Director of Cal Bank PLC, has indicated that as part of the bank’s digital and FinTech strategy, which is hinged on infrastructure, automation, and creating of a digital ecosystem, the Bank is implementing a two-year FinTech roll-out plan to offer customers new products with a completely new experience.
According to the Managing Director, Cal Bank has built an architecture that allows various businesses to offer their services on the Bank’s application platform. Mr Owiredu noted the Bank has automated all its processes and operate a fully functional automated 24-hour contact centre. “Cal Bank has updated its core banking platform to be more agile to easily accommodate its digital banking channels,” he said.
The Managing Director asserted the bank would continue to focus on brand communication, digitalisation and innovation, products and channels, technical, organisational culture and performance management, and strategic partnerships and efficiency and profitability.
Mr Owiredu noted the Bank has a strong development of the bank’s internal processes, people, technology, risk management and customer service offerings. He thus, highlighted the performance of the bank in the third quarter.
Mr Owiredu showed that the vision of the bank was to be the preferred bank for customer experience and innovation. The Managing Director averred the bank remains resilient amid the global pandemic, making some noteworthy strides on the bank’s three-year strategy, adding that “Our aggressive balance sheet growth resulted in 8th position in the industry from 9th the previous year.”
Mr Owiredu noted total assets increased 26.3 per cent from GH¢8.7 billion to GH¢10.9 billion driven by increased advances and investment securities.
“Total income increased by 10.3 percent over the prior year’s revenue of GH¢555.7 million. Performance for the period was primarily driven by improved credit business and channel performance.”
Mr. Philip Owiredu
Net Commissions and Fees Increased
Mr Owiredu added that the net commissions and fees also increased by 96.8 per cent because of enhanced credit activities and electronic banking services. He added that total deposits increased 13.3 percent to GH¢6.5 billion from intense corporate and retail deposit mobilisation drivers including through electronic channels.
The Managing Director, moreover, stated that investment securities increased by 811 per cent in line with the bank’s strategy to enhance interest income by investing in excess liquidity in short-term investments. “Net loans and advances increased by 58.5 per cent to GH¢3.5 billion from GH¢2.2 billion as we converted pipeline loans into booked transactions,” he said.
The Managing Director of Cal Bank indicated that borrowings increased by 84.6 per cent as it deepened its partnerships to secure borrowings from development finance institutions.
Mr Owiredu noted expenses remained controlled throughout the review period, explaining that “For the year to September 2022, operating expenses totalled GH¢332.6 m, reflecting an increase of 32.3 percent over the prior year’s GH¢251.3 million.”
The Managing Director explained that the increase in expenses were driven by the impact of exchange rates on foreign currency denominated expenses, inflation and increases in staff compensation levels.
“Net impairment loss dropped from GH¢48.8m to GH¢39.8m which represents 18.3 per cent. The improvement in credit loss expense was partly because of significant recoveries, and the improved quality of the stock of new loans.”
Mr. Philip Owiredu
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