CAL Bank, (Ghana Stock Exchange: CAL) a universal bank based in Ghana with a historic focus on manufacturing and export services and further expansions into Retail Banking, Asset Management and Brokerage Services, announces its first quarter 2010 results.

Speaking from the Bank’s headquarters in Accra, Frank Adu Jnr., CEO of CAL Bank, said: “2010 is CAL Banks 20th anniversary and I am very pleased that we have started this momentous year with a strong first quarter recording a 78.9% increase in profits before tax when compared with the same period in 2009. The improved results partly reflect the more favorable trading environment this quarter after the economic turmoil we saw in 2009. They are also a vindication of our move last year to maintain strict risk management discipline in anticipation of a rise in non-performing loans across the sector due to rising interest rates in 2009. This move allowed us to record a non-performing loans (NPL) ratio of 11.7% in Q1, well below the market average of 20%. I am confident that we took advantage of a difficult period of uncertain economic recovery last year to safeguard our balance sheet. We have now positioned ourselves well to benefit from the economic growth that Ghana will see when commercial oil production commences later this year.”

Commenting on the bank’s financial strength, CFO Mr. Philip Owiredu added: “Our first quarter results this year have given us a good glimpse of the potential for the rest of the year ahead. In this first quarter, we recorded a substantial 72.6% increase in operating income. Falling interest rates have allowed us to grow our balance sheet while keeping interest expense constant. The combination of increased interest income with static interest expense has seen our profits jump 78.9%. Like all our peers, we have seen some growth in non-performing loans over the period. However our prudential risk management regime has allowed us to keep the ratio well below the market average. Despite the competitive environment, we have been able to attract a 43% increase in customer deposits. The increase was primarily in wholesale deposits but with new branch openings planned this year, we intend to significantly expand our retail deposit book.”

 

The Group’s Financial Highlights - March 2010

 

 

 

 

FOR FURTHER INFORMATION:

CAL Bank

 

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

Dzifa Amegashie (Investor Relations Officer) +233 (0)21 685 091

Africapractice (Investor Relations advisers)

Azim Datardina +233 (0) 261 906 139

 

About CAL Bank

Celebrating its 20th anniversary this year, CAL Bank commenced operations in July 1990, and is considered to be one of the most innovative banks in Ghana.

The Bank mobilizes resources in world financial markets, and channels them to the Ghanaian market. In this way, CAL Bank supports the development of the national economy, focusing particularly on the manufacturing and export sectors.

With its highly skilled professional staff, CAL Bank plays an important role in the Ghanaian financial sector by providing wholesale banking services to corporate clients with sound financial bases and competent management. Emphasis is placed on the economic viability and technical feasibility of each project, as well as the marketability of the client's products and services.

Having acquired a Universal Banking License in 2004, CAL has included a retail-banking arm to its operations with specialized products and services to cater for the retail market. To complement retail banking & in line with its expansion programme, CAL is in the process of opening several branches in major cities and business districts in Ghana.

More information available at www.calbank.net