Graphic Business News

CAL Bank ready for mergers, acquisition

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Mr Frank Adu Junior (2nd right), MD of Cal Bank, speaking at the function.
Mr Frank Adu Junior (2nd right), MD of Cal Bank, speaking at the function.

Cal Bank Limited has hinted of the possibility of merging or acquiring a bank as part of moves to meet the GH¢400 million minimum capital requirement set by the Bank of Ghana (BoG).

In the event that any of the two options failed, the Managing Director, Mr Frank Adu Jnr, said the bank was in a position to raise the amount to be able to meet the set threshold.

Speaking at the ‘Facts behind the figures’ programme at the Ghana Stock Exchange (GSE) in Accra on Wednesday, Mr Adu stated that the bank was fully prepared to raise the amount should all other options fail.

“As a bank, we have all the necessary plans put in place to be able to meet the BoG’s capital requirement. So in case we are not able to merge with any bank, I want to assure our customers that we’ll be able to meet the threshold,” he said.

Aggressive agency banking

In a presentation, the Executive Director of Cal Bank, Mr Philip Owiredu, indicated that the bank was pursuing agency banking aggressively.

He emphasised that the bank would launch its agency banking by the beginning of next year to reach the unbanked population in the country. 

He said its total assets increased from GH¢3.2 million during the third quarter of 2016 to GH¢3.8 million in the third quarter of 2017, indicating a 19.2 per cent increase.

Loans and advances to customers also increased from GH¢1.8 million to GH¢2 million during the period under review.

Performance

Mr Owiredu said the bank recorded positive results during the period under review.

It pooled GH¢113.6 million in profit after tax during the first quarter of 2017, as against GH¢90.9 million for the same period in 2016.

In terms of customer deposits, the bank performed better than some of its competitors, he said.

The Managing Director of the GSE, Mr Kofi Yamoah, commended Cal Bank for the performance and its continued engagement with its customers.

He encouraged banks listed on the bourse to take active interest in the programme, since it gave them the opportunity to communicate adequately with their customers.