CAL Bank said robust risk management practices, efficient credit monitoring, and controlled credit growth, have resulted in the Bank remaining successful in the current challenging economic environment.
It said Risk Managers and Business Units have enhanced monitoring and reporting on identified risks for emerging challenges so they could be addressed on-time.
Identified risk exposures include foreign exchange risk, market risk (Interest Rate & Inflation Risk), credit risk and operational risk.
Mr. Philip Owiredu, Executive Director, CAL Bank told investors and journalists at the ‘facts behind the figures’ programme in Accra, that management was closely monitoring exposure to at-risk sectors such as government, construction, mortgage, real estate, down-stream oil & gas due to emerging economic challenges
Besides, he said, the bank was effectively managing foreign exchange assets and liabilities, to reduce exchange risk and minimize exposure to foreign currency denominated expenses.
There was also rigorous cost control to ensure value for money in procurement and capital expenditure.
Mr Owiredu said these efforts helped the Bank to grow its net interest income in the third quarter of this year by 20.4 percent from the same period last year to 129.9 million Ghana cedis, despite the difficult economic conditions.
The bank’s Net trading income also increased almost threefold (278.8percent) to 64.6 million Ghana cedis in the period, while net fees and commissions increased by 71.6 percent to 37.9 million Ghana cedis.
He said the bank’s non-funded income increased by 127.7 percent to 110.9 million Ghana cedis, with net operating income rising by 54.9 percent to 225.4 million Ghana cedis.
Mr Owiredu attributed the good performance to prudent measures put in place to ensure that the bank was on a sound footing.
He said despite the stiff competition in the banking sector, the bank’s customer’s deposits increased by 25 percent.
The increase, he said, was driven by targeted deposit mobilization efforts of the new branches and deepening of relationship with existing branches.
The bank posted a credit loss expense of 15.4 million Ghana cedis, which is an increase of 38.3 percent from the previous year.
Total operating expenses increased by 37.7 percent to 75.1 million Ghana cedis, while profit before tax increased by 65.3 percent to 150.3 million Ghana cedis. Net profit for the period jumped by 57.9 percent to 105.2 million Ghana cedis.
Mr Frank Adu Junior, Chief Executive Officer, CAL Bank expressed optimism about the prospects of the economy and the banking sector.
He said although the local currency had seen some amount of stabilization in the third quarter of the year, the bank was focused on preserving its balance sheet.
