??.whiles total revenue went up 37 percent, cost went up 26 percent

CAL bank
CAL bank

Cal Bank has revealed the expansion of the visibility of its branch network to 25 by the end of the year and 30 by the close of 2015 in order to increase their deposits levels.

The Executive Director of CAL Bank, Philip Owiredu said CAL Bank has 19 network branches however they still remain the strong Bank in terms of performance.

He noted all the Banks have published their figures for the year 2013 and in terms of profitability CAL Bank as the sixth Bank among the 27 Banks has made 92million in the industry.

The executive Director explained this includes profit before Tax margin of 48 percent, cost to income ratio still trending down as 33.5 and their share of industry loans which indicates about almost a Billion at the end of the year and very good returns on assets of 5.9 percent.

He added CAL Bank is also investing huge in technology in order issue out master cards to their customers with new products for quick and easy banking.

The CEO said this when they took their turn at facts behind the figures first quarter of 2014.

He said their primary business of the Bank is to pick up deposits and give out loans cautiously however they will keep their focus on the key growth sectors such as the energy sector, telecoms, mining industry and services especially in places with less risk.

Mr. Owiredu said in 2014, CAL Bank continue to grow in terms of income and profitability where all the figures for first quarter 2014 compared to the previous year 2013 shows an upward trend which provides 68million of the first quarter 2014 compared to 50million the previous quarter.

According to him, the bottom line is that they were able to make 29.9 million in the first quarter compared 21million first quarter of 2013 with an increase of 37 percent compared to the previous years.

This, he said loans have gone up, governments portfolio holding has gone up, increased earning assets and the non-funded income coming out of commissions and fees, forex credits, income from corporate finance activities have all gone up.

He stated they are gradually managing their rising cost because of the challenge of revenue generation and the recent policies that were introduced created the need to manage cost very well.

According to him, the most important thing was to ensure that they maintain the health of their balance sheet.

Whereas their total revenue went up 37 percent their cost went up 26 percent.

They realized that most banks are quite depending on net interest income but then considering the environment in which they operate but they managed to migrate the income dependency from net interest income to other cost.

However, they have shown a marginal reduction and because of the rising cost of deposits in the country most banks have seen some sort of significant reduction.

According to him, credit losses compared to the previous year 5.1 percent to 4.3 percent and basically they ensure that assets which are challenged they recognized them early enough that they don?t come up surprisingly.

Loans and advances have increased from 840million first quarter of 2013 to 1billion in the first quarter of 2014.

Their total assets has grown by 33 percent, growth rate of deposits is 22 percent which indicates a serious challenge to deposit growth.

He said borrowing went quite significantly because certain borrowings they have to carry out for specific transactions which were basically short termed therefore they had to borrow to finance those transactions.

Shareholder funds on the back of profit growth and some revaluation assets have gone up to 37 percent.

Interest bearing assets keeps dominating their asset profile by ensuring that they keep low interest bearing assets to the minimum so that the asset they are able to generate revenue.

He added the Board has approved some sort of risks which will guide management in terms of market risk, liquidity risks and operational risks in the environment they find themselves.

According to him, they have enhanced their monitoring tools and structures to ensure that they identify early warning signals and address them as early as possible.

Source:??Abubakari Seidu Ajarfor, Punch Newspaper

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