MANAGERS of CalBank Plc say they are committed to running a sustainable bank and are ready to leverage the bank’s core capabilities to build resilience and achieve the desired sustainability in 2023 and beyond.
Taking its turn at the Facts Behind the Figures at the Ghana Stock Exchange (GSE) in Accra, management said it will build on its achievements in the past financial year, restructure and improve the health of the bank’s balance sheet to build resilience and ensure sustainability, while enhancing customer experience to sustain market share.
Operating income up 7.3%
Total income increased by 7.3% over prior year income of GH¢205.3million, largely driven by an increase in loans and advances and increased yields for the comparative periods. Net commissions and fees increased by 15.4% to GH¢240 million due to enhanced credit activities and sustained growth in our digital banking services.
Deposits up GH¢800m
Total Deposits of GH¢7:5 billion in Q1 2023 represents an GH¢800 million increase over the year-end 2022 deposits of GH¢ 6.7 billion. Our continuing digitalization agenda around payment platforms has resulted in a 20% growth in low-cost current and savings accounts deposits.
Operating expenses hit GH¢ 121.4m.
Amidst rising inflation and local currency depreciation, operating expenses rose sharply by 28.4% in Q1 2023 over prior year. We expended a total of GH¢ 121.4 million.
Net impairment loss drops
Credit loss expense decreased from GH¢ 14.4 million in Q1-2022 to GH¢20 million in Q1-2023. This represents a recovery from the FY 2022 fair value provision on the bank’s bond portfolio and other government credit exposures following the domestic debt exchange programme
Profitability soars marginally
Profit before tax in Q1-2023 increased marginally by 0.5% to GH¢ 63.0 million over the same quarter last year. The return to profitability in the first quarter reflects a recovery from the GH¢809.8 million loss recorded at the end of FY 2022 arising largely out of the adverse impact of the bank’s participation in the domestic debt exchange programme.
Group’s balance sheet grew to GH¢10.25 billion in Q1 2023 from GH¢ 9.25 billion at the end of FY 2022.
Investment securities decreased by 22.8% on the back of the impairment provisions following the domestic debt exchange programme while Loans & Advances increased by 32.0% to GH¢3.6 billion from GH¢2.7 billion as we took advantage of business growth opportunities in the market.
Borrowings decreased by 46.5% as a result of repayment of matured borrowings from our counter-parties during the review period.