News

CAL Bank, (Ghana Stock Exchange: CAL) a 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 2009.

Speaking from the Bank’s headquarters in Accra, Ghana, Frank Adu Jnr, CEO of CAL Bank, said: “Despite a difficult trading environment in which we have seen the global financial crisis come to Ghana, the cedi depreciate 30% and the Ghana Stock Exchange All Share Index fall to half its value at the end of 2008, we have managed to record a strong performance with revenue increasing 16% and profits before tax increasing 23% compared to the same period last year. I am especially proud that CAL Bank’s achievements were recognized at the Ghana Banking Awards with a total of 7 awards including Best Retail Bank and Best Product Innovation. Following a successful AGM in March 2009, shareholders gave us a mandate to raise our stated capital to GH¢ 100 million. We are now in the process of raising this additional capital. Following the discovery of commercial quantities of oil last year and Ghana’s highly praised elections in December 2008, Ghana is attracting a lot of interest from foreign investors. We believe that, with our move to universal banking in 2004 and our recapitalization, CAL Bank is ideally placed to prosper in this new trading environment.”

Commenting on the banks financial strength, recapitalization and share price, CFO Mr. Philip Owiredu added: “Our increased revenue and profitability in the first quarter came primarily through an increase in our large business loans to our target sectors of telecoms, property and manufacturing. We were able to finance this through a 46% increase in deposits”. … ”With the ongoing recapitalization we will be in a position to make the larger industrial loans that we have in our pipeline and expand our branch network from 13 to 25” … “Our share price has fallen markedly in the past six months as the Ghanaian stock market has been hit by the global crisis. We are now trading at a P/E of 5 which we feel is very attractive.”



Financial Highlights – June 2009

•    Gross Earnings of GH¢ 17.1 million, an increase of 16.0% compared with the same period last year (GH¢ 14.7 million June 2008)

•    Profit Before Tax of GH¢ 4.32 million, a increase of 22.8% (GH¢ 3.52 million June 2008)

•    Profit After Tax of GH¢ 3.24 million, an increase of 29.7% (GH¢ 2.50 million June 2008)

•    Total Assets of GH¢ 387 million, up 39.8% (GH¢ 276 million June 2008)

•    Net Loans & Advances up 53.2% to GH¢ 201 million (GH¢ 132 million June 2008)

•    Deposits and other accounts up 46.3% to GH¢ 243 million (GH¢ 166 million June 2008)

•    Shareholders’ Funds up 17.4% to GH¢ 37.8 million (GH¢ 32.2 million June 2008)

•    Capital adequacy ratio of 12.6%

•    Cost/income ratio at 65.3%, (63.3% June 2008)

•    RoE 17.1% (15.5% June 2008)

•    RoA 1.7% (1.8% June 2008)


Operational Highlights

•    Winner of 7 awards at the 2008 Ghana Banking awards including Best Bank in Product Innovation and Best Bank in Retail Banking

•    Winner of the 2008 Bank of the Year Award from Chartered Institute of Marketing Ghana

•    Opening of 3 new branches bringing the total to 13, with plans for reaching a total of  25 branches by 2011

•    Strong revenue and profit growth

•    Authorization from shareholders to raise stated capital to GH¢ 100 million

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) 248 054 887
Audrey Mpunzwana +44 (0) 207 209 7508

Notes to the Editors:
About CAL Bank
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 recently 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