CalBank Limited has recorded a profit-after-tax of GHS145.2 million in 2017, a significant increase over the GHS7.2 million recorded in 2016.
This has been attributed to the improvement of the banks operating income by 25.9 percent and a reduction in the operating cost by 30.5 percent.
Management of the bank also attributed the rebound in profit to improvement in revenue lines, prudent cost management and enhanced operations.
Total assets of the bank increased by 17 percent from GHS3.6 billion, recorded last year, to GHS4.21 billion.
However, the bank’s non-performing loan ratio increased to 10.9 percent compared to 8 percent the previous year.
In order to meet the minimum requirement of GHS 400 million, as set by the Bank of Ghana, management of CalBank has sought approval from shareholders to transfer GHS250 million from its income surplus account to increase the bank’s stated capital to GHS 350 million.
The remaining GHS50 million is to be raised from its operations by December this year.
In view of this, management, board and shareholders of the bank have agreed to the nonpayment of dividends.
Rather, a bonus will be given to shareholders in the form of shares, where one share will be issued on every seven shares held.
Presenting the annual report to shareholders at the banks’ Annual General Meeting, Board chairman of Cal bank, Mr. Paarock VanPercy said the decision should compensate shareholders for not receiving direct cash dividend.
He was optimistic about the prospects of the bank this year, as they continue to implement a three-year strategy which began in 2016.
“The bank is well placed to meet all the regulatory requirements to ensure we remain a strong institution operating in a strengthened industry,” he noted.
The bank is currently in talks with various international institutions to raise over US$100 to fund its medium to long term transactions.
Frank Adu, Managing Director of the bank also outlined some initiatives being rolled out to improve operations while meeting the needs of clients.
“We continue to employ the right tools, systems and processes to utilize the ingenuity of our people, forge stronger partnerships with the right institutions and deepen the relationships that we have formed with our customers to deliver our strategy and earn competitive returns,” he assured.
By Nana Oye Ankrah