Cal Bank has made a remarkable turnaround in its financial performance, recording a Profit Before Tax (PBT) of GH₵414.2 million for 2024.
This marks a significant recovery from the loss of GH₵946.2 million in 2023. The bank’s 2024 Audited Financial Results highlight the impact of strategic financial management, increased deposits, and improved risk mitigation efforts, all contributing to the bank’s renewed profitability.
Despite facing a substantial modification loss and impairment charge of GH₵346.9 million due to the Government of Ghana’s Eurobond Restructuring Exchange Programme, Cal Bank managed to post strong earnings. This was achieved through disciplined cost control, a focus on deposit mobilization, and a commitment to risk management.
Net Interest Income (NII) stood at GH₵455.3 million, reflecting a steady recovery from the impact of Ghana’s Domestic Debt Exchange Programme (DDEP) on investment securities and the bank’s loan book. While the cost of funding improved, the full benefits of these changes are expected to materialize further in the coming years.
One of the key drivers of the bank’s improved performance was deposit growth. Cal Bank recorded a 29% increase in deposits, reaching GH₵9.6 billion in 2024, compared to GH₵7.5 billion in 2023. This growth underscores the bank’s success in expanding its retail banking operations, digital transformation initiatives, and sustaining confidence among customers.
Strategic Expansion in Retail and Digital Banking
Cal Bank attributed its deposit growth to a strategic shift towards retail banking expansion, agent banking, and digital financial solutions. The bank’s agent banking network grew to over 2,200 agents, significantly expanding its reach and enhancing financial inclusion efforts.
In addition, the bank saw a major shift in its deposit mix, with a growing number of individual and SME accounts replacing corporate deposits. This shift aligns with Cal Bank’s mission to drive financial inclusion and support smaller businesses.
Digital banking played a crucial role in the bank’s financial turnaround. Net Fees and Commission Income surged by 55.7% to GH₵179.6 million, driven by increased digital transactions and enhanced service delivery across the bank’s digital platforms. These results reflect the bank’s continued investment in improving transactional banking experiences and boosting operational efficiency.
Cal Bank also made significant progress in managing its loan portfolio. The bank successfully recovered approximately GH₵792 million in impaired loans, particularly from businesses in the Hospitality, Construction, and Services sectors. These recoveries contributed to the bank’s stronger financial position and reinforced its disciplined approach to risk management.
The bank’s focus on sustainable lending and stricter risk assessment frameworks has helped stabilize its loan book. As a result, Cal Bank is now in a better position to support businesses and individuals while ensuring long-term financial sustainability.
Leadership Insights on the Bank’s Turnaround
Commenting on the 2024 performance, Cal Bank’s Chief Executive Officer, Carl Asem, described the year as a defining moment for the bank.
“2024 was a defining year for Cal Bank, marking a significant turnaround in our financial performance. The disciplined execution of our strategy has resulted in a strong recovery, improved financial health, and a positive outlook for the future.”
Carl Asem
The Board Chairman, Joseph Mensah, also expressed confidence in the bank’s trajectory, emphasizing the role of strategic restructuring in the bank’s return to profitability. “The bank’s return to profitability is a testament to the strategic restructuring efforts by both management and the board,” Mr. Mensah noted.
Outlook for 2025: Sustaining Growth and Strengthening Market Position
Looking ahead, Cal Bank is focused on maintaining its strong financial performance and executing its five-year strategic plan. The bank aims to position itself among Ghana’s top-tier financial institutions by strengthening its nationwide presence through retail expansion. By deepening digital banking penetration, Cal Bank seeks to attract more retail customers and enhance accessibility to financial services across the country.
In addition to retail growth, the bank is prioritizing broad-based deposit expansion by focusing on low-cost current and savings accounts. This approach aims to build a sustainable core deposit base, which will support financial intermediation and ensure a steady flow of funds for lending. By maintaining a strong deposit portfolio, Cal Bank will be better positioned to provide competitive banking solutions to individuals and businesses.
Risk management remains a key focus for the bank, as it works to reinforce its risk management frameworks to ensure financial stability and long-term growth. Through enhanced risk assessment and mitigation strategies, Cal Bank aims to navigate economic uncertainties and safeguard its financial position.
Furthermore, the bank is committed to optimizing its loan portfolio by supporting businesses and individuals in strategic sectors. At the same time, Cal Bank will intensify recovery efforts on non-performing loans to improve asset quality and enhance overall financial health. By focusing on responsible lending practices and effective debt recovery, the bank seeks to maintain a balanced and resilient credit portfolio.
With a renewed focus on digital banking, risk management, and deposit mobilization, Cal Bank is well-positioned to build on its 2024 success and drive sustainable growth in the years ahead.
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