CalBank announces its Unaudited Results for the third quarter 2020
CalBank Plc (Ghana Stock Exchange: ‘CAL’) announces its Unaudited Results for the Quarter ended 30 th September 2020.
Accra, Ghana – 28th October, 2020.
Highlights of the Group’s Q3-2020 results (y/y) are:
Profit & Loss
• Net Interest Income grew by 5.5% to GHS 396.3m (from GHS 375.5 in Q3 2019)
• Operating Income increased by 11.9% to GHS 495.4m (from GHS 442.7m in Q3 2019)
• Net impairment Loss increased by 22.8% to GHS 71.8m (from GHS 58.4m in Q3 2019)
• Operating expenses increased by 16.1% to GHS 221.0m (from GHS 190.3m in Q3 2019)
• Profit before Income tax increased by 4.5% to GHS 202.6m (from GHS 193.9m in Q3 2019)
• Profit after Income tax increased by 4.0% to GHS 140.8m (from GHS 135.4m in Q3 2019)
• Cost/Income Ratio increased to 44.6% from 43.0% in Q3 2019
Balance Sheet
• Total Assets increased by 5.4% to GHS 7.6b (from GHS 7.2b in Q3 2019)
• Loans & Advances increased by 8.7% to GHS 2.7b (from GHS 2.5b at Q3 2019)
• Total deposits increased by 7.9% to GHS 4.1b (from GHS 3.8b in Q3 2019) • Borrowings decreased by 6.5% to GHS 2.1b (from GHS 2.3b in Q3 2019) • Capital Adequacy ratio increased to 20.8% (18.0% in Q3 2019) • NPL ratio decreased to 9% (10.3% in Q3 2019) Shareholder Ratios • ROAA decreased to 2.6% (3.0% in Q3 2019) • ROAE decreased to 18.4% (21.7% in Q3 2019) • Price-to-Book ratio decreased to 0.42 (0.64 in Q3 2019) • EPS increased by 4.0% to GHS 0.30 (GHS 0.29 in Q3 2019) Operating Environment The challenging economic environment occasioned by the Covid-19 pandemic has dampened business activity and increased overall market risk. The second and third quarter of 2020 have seen a decrease in average interest rates, an uptick in inflation and growth in the fiscal deficit and public sector debt. Key earnings drivers Third quarter earnings have been driven by Net Interest Income growing 5.5% over prior year. Loans and advances increased by 8.7%. However, Fees and Commissions decreased 24.1% following the inability to close major expected advisory mandates as a result of the pandemic as well as the waiving of various fees and commissions as part of Covid-19 reliefs. Net trading income grew 164.9% due […]