28.07.2006 Business & Finance

CAL Bank Makes Profit

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CAL Bank Ghana Limited yesteday posted a 59.6 per cent profit after tax of 22.549 billion cedis, promising to double the figure within a year. Profit after tax stood at 14.132 billion cedis in 2005.

Addressing the “Facts-Behind-The-Figures”, a Ghana Stock Exchange (GSE) programme to provide a situational analysis of listed equities, Mr Frank Adu, Managing Director of CAL Bank, said the company was in sound health working to ensure that shareholder value was not only maintained but appreciated significantly. He expressed optimism about the future of the Bank saying the economic atmosphere was promising for businesses to thrive. Net interest income fixed at 45.330 billion cedis at June 30, 2006 compared to 35.259 billion cedis for the same period last year.

Operating profit after tax as a percentage of turn-over, however, dropped to 26.75 per cent as at June 30, 2006 from 26.95 per cent in 2005.

Earnings per share for the year closed at 143.56 cedis, up from the 90.90 cedis in 2005. Group profit before tax for the period was 30.9 billion cedis compared to 20 billion cedis in 2005, an increase of 54.5 per cent as a result of an increase in income generated from increased earning assets base and non-funded income over the previous year.

Mr Adu said the Bank was fast rolling out a number of branches with the latest coming for Tarkwa, Tema and Okaishie, which would be available in September.

The Bank has entered the West African market in association with the African Investment Bank of Benin and is keen on becoming a member of the Associate Plus Member of the Visa Platform. He said the Bank had provided three additional ATMs at the Takoradi Market Circle, Tarkwa and the Castle Road branches. He said the Bank had also acquired a site on the Spintex Road for a branch.

Giving the outlook of the Bank, Mr Adu said they were working on staff retention, offering cheaper sources of deposits and staying on top of the competition.

Mr Ekow Afedzie, General Manager of the GSE, said it was important for brokerage companies to programme their activities aimed at educating shareholders on their rights and not only their responsibilities.

“This would ensure that the market has buyers and sellers playing the market,” he said.

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