CAL Bank will explore a combination of options to shore up its stated capital to GH¢100 million to be able to deliver on its medium to long-term goals, Mr Frank Adu, Managing Director, said on Tuesday.
Speaking at the ‘Facts Behind the Figures Programme’ of the Ghana Stock Exchange (GSE) in Accra, Mr Adu said it was increasingly clear that the bank could not raise the required amount through rights issues alone and would therefore take advantage of other opportunities such as private placement.
CAL Bank undertook a rights issue in 2009 to raise GH¢30 million but this was undersubscribed with a total of only GH¢13.91 million mobilised.
Shareholders at the bank’s annual general meeting in March this year approved a resolution authorising the Directors to take steps to enable the bank to meet the stated capital before the 2012 deadline.
“All I can say is that we are exploring various options and sure that we will succeed in our quest to position the bank to take advantage of investment opportunities,” he said.
Mr Adu was positive about the bank’s performance in 2011 as the business environment improved while the bank also worked to tap into prospects in the emerging oil industry for growth.
The bank expects deposit growth of 40 per cent while the loan book is expected to go up by 35 per cent.
Mr Adu said the bank also expected its non-performing loans to remain stable through rigorous risk management.
CAL bank’s net profits for the first four months to April grew by 28.5 per cent to GH¢4.35 million from GH¢3.38 million. Net fees and Commission jumped 43.2 per cent to GH¢4.6 million from GH¢3.2 million.
Loans and advances also grew by 28.8 per cent to GH¢264.36 million in the first four months to April, up from GH¢205.21 million.
Deposits also rose to GH¢341.48 million, representing an increase of nearly 29 per cent over GH¢264.93 million for the corresponding period in 2010.
Mr Adu said the performance was driven by growth in non-interest revenue by 50.56 per cent due to increase in traded business and lower levels of provisioning.