1st Half Unaudited Results FY10

ACCRA, GHANA – 29 July 2010

CAL Bank, (Ghana Stock Exchange: CAL) the universal bank based in Ghana with a historic focus on manufacturing and export services and recent expansions into Retail Banking, Asset Management and Brokerage Services announces its unaudited results for the half year ended 30 June 2010.

Speaking from the Bank’s headquarters in Accra, Ghana, Frank Adu Jnr, CEO of CAL Bank, said: “In line with our forecasts 2010 is proving to be a strong year for the bank. There are two trends we are seeing in the industry this year, the aftershocks of the credit crunch have been pushing up NPL rates across the industry and the collapse of interest rates with 91 day t-bills dropping from 18.64% in January to 12.74% today. CAL is well placed to meet both these challenges although we have seen NPLs rise we remain well below the industry average. Falling rates have caused total amount loans held in the industry to fall as firms delay their borrowing in expectation of further savings. At CAL we are moving ahead of the market by aggressively cutting our rates as such we have seen our loan book increase 17.8%”

Commenting on the banks ongoing financial strength, recapitalization and share price CFO Mr. Philip Owiredu added: “Following our successful capital raising in the 4th quarter of 2009 we have deployed the new capital and seen a 120.4% increase in net interest income, we have seen profits before tax rise accordingly (75.4% increase over the same period last year). Some specific challenges have led to a fall in forex income which we have resolved and expect to make up in the 2nd half of the year. Though our NPL rates have increased in the second quarter, at 15.1% they still remain well below the industry average which is a testament to our prudent risk management regime. I am particularly proud that we have continued to show strong growth in our balance sheet above the industry average”

Financial Highlights – June 2010

·         Gross Earnings of GHS 25.1million, an increase of 47.4%, compared with the same period last year (GHS 17.1 million June 2009).

·         Profit Before Tax of GHS 6.94 million, an increase of 75.4% (GHS 3.95 million June 2009).

·         Profit After Tax of GHS 4.82 million, an increase of 69.9% (GHS 2.83 million June 2009).

·         Total Assets of GHS 497 million, up 28.6% (GHS 390 million June 2009).

·         Loans & Advances up by 17.8% to GHS 238 million (GHS 202 million June 2009).

·         Customer deposits and other accounts up by 37.0% to GHS 305 million (GHS 223 million June  2009).

·         Shareholders’ Funds up 87.4% to GHS 75.0 million (GHS 40.0 million June 2009).

·         Capital adequacy ratio of 16.22%.

·         Cost/income ratio at 52.8%, (67.4% June 2009).

·         ROAE 16.8% (15.0% June 2009).

·         ROAA 2.2% (1.7% June 2009).

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FOR FURTHER INFORMATION:

CAL Bank

Philip Owiredu (Chief Financial Officer) +233 (0)21 680 264

Dzifa Amegashie (Investor Relations Officer) +233 (0)21 680 061-9

africapractice (Investor Relations advisers)

Azim Datardina +233 (0) 248 054 887

Audrey Mpunzwana +44 (0) 207 209 7508