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29.03.2007 Business & Finance

Cal Bank profit soars by 76%


Cal Bank Ghana recorded a ¢47 billion profit after tax in 2006, a 76% improvement on its 2005 profit of ¢26.7 billion.

Its profit before tax was ¢68 billion, with its balance sheet size jumping from ¢971 billion as at December 2005 to ¢1,570 billion, an increase of 62%.

The bank's stock price and shareholders fund also appreciated with the stock price appreciating by 10.25% from a ¢2,000 at the end of 2005 to ¢2,205 in 2006. The shareholders funds increased from ¢183 billion to ¢214 billion, an increase of 17%.

Speaking at Cal Bank's Annual General Meeting in Accra, Board Chiarman George Victor Okoh said “Ghana's economy remained resilient with improving economic fundamentals”, a factor that resulted in inflation dropping to 10.5% at the end of 2006 with the Cedi depreciating by 1.33% against the US dollar which is the country's major trading currency.

He also added that Ghana's foreign reserves have improved to about four months of import cover, with inward remittances exceeding US$ 2 billion in 2006.

The bench mark ratio of the 91 day Treasury bill according to the Chairman of Cal Bank reduced from 11.5% at the end of 2005 to 9.96% at the end of year 2006 and this was as a result of the improvement in the economy.

Mr. Okoh says Cal Bank is “well positioned to take advantage of the opportunities ahead of them with the stable economic fundamentals laid by the government in addition to the excellent platforms established by the board of directors and management of the company” which will be changed into “increased profitability, growth and enhanced shareholder value.”