After recording impressive performances at a time that some banks are struggling in the last three years, CAL Bank has recorded over a ninety percent drop in profits for 2016.<\/p>\n
[contextly_sidebar id=”SD4YCzZRYdQUyCbzMsWAM0iLNKIexHcd”]According to the bank\u2019s 2016 financial results, its profit dropped from 160 million cedis in 2015 to 7.2 million cedis in 2016.<\/p>\n
This was largely due to the high provision for impairments which amounted to almost 200 million cedis.<\/p>\n
Although the bank is among banks affected by the huge energy sector debts, its profits increased by over 50 percent and 14 percent in 2014 and 2015 respectively.<\/p>\n
The profit for 2015 recorded GH\u00a2160,042,000 compared to GH\u00a2 140,352,000 in 2014.<\/p>\n
Also, the 2014 profits of GH\u00a2 140,352,000 represented a 52.6% increase from the GH\u00a292,010,000 in 2013.<\/p>\n
Total income for 2016 amounted to 357.4 million cedis from 388.4 million cedis the previous year.<\/p>\n
Overview of 2016 performance<\/strong><\/p>\n With the exception of the interest income that made some gains in 2016, the bank\u2019s net fees and commissions, net trading income as well as other operating income such as corporate finance and advisory services all recorded a drop between 2015 and 2016.<\/p>\n Total operating expenses increased by over ninety-seven percent between 2015 and 2016.<\/p>\n The expenditure increased from 175.2 million cedis to 345.3 million cedis for the period.<\/p>\n This was also largely accounted for by the provision for impairment on financial asset of 199.2 million cedis from 35.6 million cedis the previous year.<\/p>\n Meanwhile the bank increased total assets under management from 3.35 billion cedis to 3.59 billion cedis between 2015 and 2016.<\/p>\n Its liabilities also increased from 2.84 billion cedis to 3.09 billion cedis in 2016.<\/p>\n MD hopeful of turnaround<\/strong><\/p>\n Explaining CAL Bank\u2019s 2016 performance, its Managing Director Frank Adu told Citi Business News<\/strong> he is confident of a turnaround with the repayment of debts owed in the energy sector.<\/p>\n \u201cI think while shareholders were not happy about the fact that they were not going to receive dividends, they are also smart; they understand that you are also cleaning up the mess and that it is better to be prudent and protect the balance sheet than to go and pay dividends when you are not in the position to do so,\u201d he stated.<\/p>\n \u201cYou are in a business where the bank has been entrusted to you to grow it. All financial institutions which gallop fail; you do not sell money the way you sell other commodities; it\u2019s risky so you take your time,\u201d he added.<\/p>\n Shareholders could not receive any dividends this time round.<\/p>\n As at close of trading on Tuesday, CAL Bank\u2019s share prices were trading at 69 pesewas.<\/p>\n –<\/p>\n By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" After recording impressive performances at a time that some banks are struggling in the last three years, CAL Bank has recorded over a ninety percent drop in profits for 2016. [contextly_sidebar id=”SD4YCzZRYdQUyCbzMsWAM0iLNKIexHcd”]According to the bank\u2019s 2016 financial results, its profit dropped from 160 million cedis in 2015 to 7.2 million cedis in 2016. This was […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171,11],"tags":[],"yoast_head":"\n