Indigenous bank, CalBank has expressed optimism about the year 2023, saying, it will focus on demonstrating a strong and resilient business model in the execution of its medium-term strategy aiming to deliver a solid financial performance.

This will be done across its business through product and service innovation, a customer-centric focus, a performance-based culture of service excellence and efficiency, underpinned by diligent risk management and sound governance.

Chief Executive Officer, Philip Owiredu said CalBank has weathered many storms over the last 33 years and has always emerged stronger, adding “I am confident that with the commitment, dedication and zeal of the board, management and staff, 2023 will be a successful year and play an important role in the businesses and personal aspirations of our stakeholders”.

On the back of optimism about Ghana reaching an IMF deal by the end of the second quarter of 2023 and a number of key government initiatives to boost key economic sectors, the Ghanaian economy is replete with opportunities for the financial services sector.

CalBank said it is well positioned to leverage these opportunities across the corporate and retail franchises as they emerge, based on the significant investments it has made by frontloading technology spend towards strengthening its core.

“Our robust risk management framework will ensure that we remain vigilant around the heightened credit and market risks that linger as the country emerges from a volatile, high inflation environment”.

CalBank records profit of ¢63.1m in quarter 1

Despite the loss recorded in 2022, CalBank bounced back to register a profit of ¢63.1 million in the first quarter of 2023.

Its quarter one 2023 deposits of ¢7.5 billion represent an ¢800 million increase over the year-end 2022 deposits of ¢6.7 billion.

The bank said the continuing digitalization agenda in this first quarter of 2023 around payment platforms has resulted in a 20% growth in its low-cost current and savings accounts deposits.

“A key pillar of our retail strategy has been the expansion of our presence nationwide. To this end, in the first quarter of 2023, we commissioned two new branches in Kasoa [Central region] and Bolgatanga [Upper East region], a further two branches are currently under development and scheduled for commissioning by the end of the second quarter of 2023. This will bring our total branch network to 38.

Calbank records loss of ¢809m in 2022 due to DDEP

The bank reported a loss of ¢809.8 million in the financial year 2022 compared to a profit-after-tax of ¢222m in 2021.

This loss arose out of the write-down of investments in government instruments impacted by the Domestic Debt Exchange Program (DDEP) and increased impairment on other financial assets.

The group’s total assets were also negatively impacted by the DDEP and declined by 7.8% to ¢9.3 billion at the end of 2022.

Nevertheless, CalBank continues to be a strong financial services group because of the strong capital and liquidity positions going into the DDEP which ensured that the group was well-positioned to confront the sovereign debt headwinds and minimize the adverse impact of the challenges thereof.

Its post-DDEP regulatory capital ratio of 11.9% is above the revised statutory CAR of 10.0%.