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26.03.2009 Business & Finance

CAL Bank records 62 per cent growth in profits


The CAL Bank group had recorded a 62 per cent increase in operating profit last year, its Managing Director, said in a statement at the Annual General Meeting held in Accra on Thursday.

Operating profits rose from GH¢9.1 million in 2007 to GH¢11.5 million last year.

Mr Frank Braku Adu Jnr., Managing Director, said the group's total assets base during the same period grew by 44 per cent to GH¢339 million compared to the previous year's assets of GH¢236 million.

He said the growth in assets resulted from a 66 per cent increase in net loans and advances, and 23 per cent increase in property and equipment as result of branch network expansion.

Customer deposits rose by 42 per cent representing GH¢177 million compared to GH¢124 million for the previous year.

Mr Adu Jnr. said despite the challenges experienced at the stock markets, the Cal share price closed the year at GH¢0.60 per share after it had peaked at GH¢0.70 per share during the year.

He said the group in 2008 clearly succeeded in increasing profitability and growth in asset size and expressed the hope that management would continue with the high level of growth in the face of stiff competition.

Mr. Adu asked the shareholders to approve the resolution to increase the stated capital by GH¢100 million saying this was important to enable the bank to be part of the competition in the industry.

“We should compete and we can compete but we cannot compete adequately with the present capital base of the Bank,” he said.

Mr. Adu said the Bank would continue to be alive to its social responsibility programme by supporting the less privileged in society through the provision of support to children in foster homes.

Board Chairman, Mr. Robert Ahomka-Lindsay, said despite the downturn in the global economy the Board and Management would continue to focus on delivering shareholder value and strong corporate growth.

Shareholders approved all the resolutions, including an increase in the stated capital by GH¢100 million Ghana Cedis as well as a dividend of GH¢0.0145 per share.