29
CalBank FY2019 Results Presentation April 2020 © CalBank 2020
CalBank FY2019 Resul ts Presentat ionApril 2020
© C a l B a n k 2 0 2 0
This report was prepared by CalBank to provide background information on the Group. The report is issued for
information purposes only, especially with regards to enabling users understand the inherent potential of the business. It
is therefore not a solicitation to buy or sell the stock.
The information contained herein is subject to change and neither the bank nor its staff is under any obligation to notify
you or make public any announcement with respect to such change.
Users are hereby advised to exercise caution in attempting to rely on this information and carry out further research
before reaching conclusions regarding their investment decisions.
2
CALBANK THIRD QUARTER 2019 RESULTS PRESENTATION
October 2019
Disclaimer
CAL Management - Today’s presenters
3
Philip OwireduManaging Director
Thomas Boansi-Sarpong
Ag. CFO
Barbara BansonChief Risk Officer
Philip FynnTreasurer
Linda OffehHead, Risk
Dzifa AmegashieHead, Investor Relations
AGENDA
4
Covid-19 in Ghana
Operating Environment
Financial Results
Our Strategy
5
Coronavirus disease 2019 (COVID-19) in Ghana
Total DeathsTotal Cases* Recovered
Status of COVID-19 in Ghana*
▪ 12th March 2020 - 1st case of COVID-19 confirmed in Ghana
▪ 11th April 2020 - 566 confirmed COVID-19 cases & 8 deaths. All 8deaths had chronic underlying medical conditions (diabetes, heartconditions). Majority of confirmed cases mild symptoms not requiringhospitalization
▪ COVID-19 has impacted Ghana’s productive capacity. Economic activityhas slowed down due to the following:
▪ closure of all borders▪ partial lockdown of business hub cities of Accra/Tema and
Kumasi
▪ Contact tracing - over 19,276 contacts have been identified andsamples have been taken from 15,384 contacts. Experts advise thatGhana’s recorded cases are yet to peak and the situation may last forthe entire Q2-2020 or beyond
▪ Economic activity will be adversely impacted in Q2-2020 with GDPforecast to decline to 2.6% in a base case scenario
636 17 8
* Data as of 15/04/20
Ghana Government directives to limit and contain COVID-19 spread
➢ 16th March 2020 - 4-week ban on public gatherings of more than 25people (conferences, workshops, funerals, festivals, political rallies, churchactivities). The ban has been extended for another 2 weeks effective 13th
April 2020
➢ 16th March 2020 - Closure of educational institutions (All Universities andschools , both private and public)
➢ 23rd March 2020- Closure of all land, sea and air borders to humantraffic (excluding goods, supplies and cargo)
➢ 30th March 2020 14-day “stay-home” order and partial lockdown ofAccra, Tema and Kumasi to curb spread of COVID-19. Over 35,000 jointpolice and military personnel deployed to enforce this directive
➢ 9th April 2020 1-week extension of the partial lockdown of Accra, Temaand Kumasi
Percentage of COVID-19 Cases by Travel History
611
Well/Responding to Treatment
70.0%
30.0%
No History ofTravel
History ofTravel
COVID-19 | Potential impact on the Ghanaian economy (1/2)
Fiscal impact
• GDP projected to decline from 6.8% to 2.6% in a base-case scenario.
• Possible further GDP decline to 1.5% in a worst-case scenario of total lockdown in 2020.
• Total estimated impact on Government budget to the tune of GHS 9.5bn (USD 1.6bn), 2.5% of revised GDP as follows::
• shortfall in import duties by GHS 808.0mn (USD 140) for the FY 2020;• shortfall in tax revenues (excl. oil tax revenues and import duties) by GHS 2.3bn (USD 390mn);• shortfall in crude oil receipts of GHS 5.7bn (USD 987.1mn);• increase in health-related government expenditure of GHS 572 mn (USD 100 mn) on “National Preparedness &Response Plan” prepared by Ministry of Health / World Bank to support COVID-19 early detection/containment
• Overall, fiscal deficit is projected to be GHS 30.2bn (USD 5.2bn), 7.8% of revised GDP.
Monetary policy & currency impacts
On 18th March 2020, BOG introduced measures to mitigate impact of COVID-19 on the economy including:
• Monetary Policy Committee reduces Policy rate by 150bps to 14.5%;• Primary Reserve Requirement for Banks cut by 200.0bps to 8.0% ;• Capital Conservation Buffer for banks cut to 1.5% from 3.0% to provide liquidity support to the economy;• Provisioning for Loans in the “Other Loans Especially Mentioned” (“OLEM”) category is reduced from 10.0% to5.0% for all Banks and Specialized Deposit-Taking Institutions (“SDIs”) as a policy response to loans that mayexperience difficulty in repayments due to slowdown in economic activity;
• Microfinance Institutions loan repayments that are past due for up to 30 days to be classified as “Current”;• Mobile money transactions up to GHS 100 are free of transaction charges (excluding cash out).• Daily transaction limits for mobile money were increased;• LCY cedi recorded a YTD appreciation of 1.7% at 31st March 2020.
6Source : Ghana Ministry of Finance -Statement to Parliament 30/03/20BOG – Bank of Ghana
COVID-19 | Potential impact on the Ghanaian economy (2/2)
GovernmentMeasures to mitigate
impact
Government of Ghana has committed USD 100.0mn to support its preparedness and response to COVID-19;
• On 16th March 2020, the Coronavirus Alleviation Programme (CAP) was established to address the disruption ineconomic activities. The Ministry of Finance (MOF) will release GHS 1.0bn (USD 173.2mn) to fund the programme.
• MOF has proposed the use of USD 219 mn from the Stabilization Fund to finance the programme.
• The following measures, have been proposed to close the fiscal gap:
• Lowering cap on Ghana Stabilization Fund from USD 300 mn to USD 100 mn and amending PetroleumRevenue Management Act ("PRMA") to allow withdrawal from the Ghana Heritage Fund to undertakeexpenditures in relation to the Coronavirus pandemic. There is an estimated USD 591.1mn in the Ghana HeritageFund
• Securing World Bank Development Policy funding (“DPO)* of GHS 1.7bn (USD 297mn) and IMF Rapid CreditFacility of GHS 3.1bn (USD 544 mn)
• Arranging with BoG to defer interest payments on non-marketable securities estimated at GHS 1.2bn (USD 212mn) to 2022 and beyond;
• Establishment of COVID-19 Fund to receive donations from the public to support CAP and welfare of the needyand vulnerable;
• Payment of GHS 300 mn (USD 52mn) to National Health Insurance scheme to provide liquidity to Health Careproviders and the pharmaceutical industry.
7
* DPO-Development Policy OperationSource : Ghana Ministry of Finance 31/03/20
COVID-19 | Impacts on Ghanaian Financial Sector
Impact on Financial Sector
• Some disinvestments of local bonds by approx. 25.0% of foreign investors and high demand for dollars which could negativelyimpact foreign reserves.
• Ongoing 14-day partial lockdown has triggered a reduction in trading activity in currency markets; Ghana Government isoptimistic that Feb. 2020 USD 3.0bn Eurobond raised will provide the needed buffer to anchor the Cedi.
• Slowdown in economic activity may results in debt service difficulties (especially in hard-hit sectors such as aviation andhospitality). Containment measures (social distancing, public gatherings) may lead to reduced productivity and job losses.
• Banks and financial institutions have announced measures to help clients mitigate impacts of COVID-19 on businessese.g. 6-month moratorium on principal repayments, reduction in interest rate, Ghana Association of Bankers GHS 10 million
Covid-19 Response Fund; Bank’s GHS 3 billion syndicated facility to support pharmaceutical, hospitality and manufacturingindustries; waiver of bank fees on electronic channels, 8
COVID-19 pandemic has led to tight financing conditions in global and domestic financial markets.
COVID-19 | Potential impact on CalBank and measures to mitigate
9
IDENTIFIED RISK AREAS PROPOSED MEASURES TO MITIGATE POSSIBLE IMPACT
Impact on Asset Quality
To insulate the asset portfolio against possible impact, the following reviews are being conducted:• Restructuring customer exposures to reflect reductions in client cash flow/changes in business cycles• Rescheduling customer exposures to accommodate delayed/reduced cash flows • Interest Rate reductions to ease debt service burden and default on businesses adversely impacted by COVID-19
Strained Liquidity The Bank’s Liquidity Contingency Plan measures include;• Borrowing from the interbank market• Selling government bonds to improve our liquidity position• Enter into repurchase agreements based on Treasury securities• Borrowing from the Central Bank.
Impact on Revenue and Profitability
• Drop in demand for bank products and services adversely impacting budgeted revenue lines which may lead to decreased profitability. • The full impact is yet to be determined within Q2-2020 and Q3-2020. We are stress-testing budgeted financial plans to reflect scenarios based on the spread
of the virus and national lockdown and will provide guidance in due course• Provided necessary safety tools and communication logistics for font line staff to carry out business relationships to minimize loss of business and to take
advantage of any opportunities arising.
Cybersecurity threatsfrom remote-access exposing bank systems to attack
• Conducted full review of cybersecurity policies and controls on data security, fraud, and privacy and tailored them to the new remote working environment.• Conducted vulnerability and penetrating testing and all identified vulnerabilities which have been corrected to improve on the security environment.• Ensured CalBank Cyber security unit is sufficiently staffed and available to accommodate potential new and elevated levels of requests from departments for
additional system security.
Reduction in employee productivity from remote working
• On 20th March 2020, commenced remote working to minimize the potential for staff being exposed to the virus. Staff and supervisors can currently communicate fully from their remote locations using the Bank’s e-meeting tools which have been made available to ALL staff since 20th March 2020 (Email, Microsoft Teams, Skype for Business)
• Line Managers continue to be responsible for Targets and deliverables under the remote working arrangement. • Supervisors are required to check on their staff weekly and report to CAL HR• Critical role/functions are performed at the Bank’s premises.
CAL Bank's Business Continuity Management (BCM) Steering Committee is conducting business simulations and analysis and projects that the Bank’s business may be impacted by COVID-19 in the following ways:
AGENDA
10
Covid-19 in Ghana
Operating Environment
Financial Results
Our Strategy
3.8% 3.7%
8.1%
6.3% 6.0%6.8%
2.6%
2015 2016 2017 2018 *3Q2019 2020 Orig F2020 Rvsd F
MONETARY POLICY RATETight monetary policy continues to curb inflationYear-end 2020 inflation rate projected at 8.0%1
Dec-19, 7.9%
Dec-19, 16.0%
6.0%
11.0%
16.0%
21.0%
26.0%
31.0%
Apr-16 Aug-16Dec-16 Apr-17 Aug-17 Dec-17Apr-18Aug-18Dec-18Apr-19 Aug-19Dec-19
Inflation MPR
GDP GROWTH RATE2020 GDP growth projected at 1.5% - 2.6% in 2020 due to
Covid-19.
Agriculture
18.5%
Services
45.8%
Industry
35.7%
SECTOR CONTRIBUTION TO GDP
The finance and insurance sectors contribute 5.0 percentage points to the Services industry
Source: Bank of Ghana, Summary of Economic and Financial Data
11
2019 Macroeconomic overview
3.0
4.0
5.0
6.0
7.0
8.0
Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Apr-20
USD GBP EUR
EXCHANGE RATELocal currency relatively stable in 2019/2020 due to increased
FX flow from Eurobond and cocoa loan proceeds
12
Y/Y
0.2PERCENTAGE POINTS
DEC. 2019
14.7PERCENT
DEC. 2018
14.5PERCENT
Y/Y
3.4PERCENT
DEC 2019
39.360.3% OF GDP
DEC. 2018
35.957.2% OF GDP
Y/Y
1.5PERCENTAGE POINTS
Sep. 2019
4.5PERCENT OF GDP
Sep. 2018
3.0PERCENT OF GDP
INTEREST RATES 91-DAY BILL
PUBLIC DEBT (USD BN)
FISCAL DEFICIT
INFLATION RATE
Y/Y
1.5PERCENTAGE POINTS
DEC. 2019
7.9PERCENT
DEC. 2018
9.4PERCENT
MONETARY POLICY RATE
Y/Y
1.0PERCENTAGE POINTS
DEC. 2019
16.0PERCENT
DEC. 2018
17.0PERCENT
AVERAGE LENDING RATES
Y/Y
0.4PERCENTAGE POINTS
DEC. 2019
23.6PERCENT
DEC. 2018
24.0PERCENT
Source: Bank of Ghana, Summary of Economic and Financial Data March 2020
2019 Macroeconomic indicators
13
K E Y I N D ICATORS G H S M N )
Source: Bank of Ghana, Summary of Economic and Financial Data March 2020
AV ERAGE I N TEREST R ATE ( % )
13.5
14.0
14.5
15.0
15.5
16.0
16.5
17.0
Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19
GRR MPR 91-D Bill
81.2
93.2
107.3
129.1
51.7
58.2
68.3
83.5
31.0
37.742.7
45.2
Dec-16 Dec-17 Dec-18 Dec-19
Total Assets Total Deposits Gross Advances
2019 Banking Sector Overview
SOLVENCY EFF IC IENCY*
A S S ET QUAL I T Y R E TURNS
Improvement in major FSIs in 2019
* includes impairment charge
Source: Bank of Ghana, Summary of Economic and Financial Data March 2020
14
64.2%
61.5%
58.6%
56.0%
18.0%
18.5% 19.3%
17.5%
2016 2017 2018 2019
48%
52%
56%
60%
64%
68%
RWA/Total Assets CAR
87.8%86.3%
84.3%
81.2%
2016 2017 2018 2019
Total Cost to Gross Income
17.3%
21.6%
18.2%
14.3%
2016 2017 2018 2019
17.6% 18.7% 18.5%19.9%
3.8% 3.6% 3.4%4.8%
2016 2017 2018 2019
ROE ROA
2019 Banking sector financial soundness indicators (FSI)
Trend towards investment and fewer loans
Sources: ICS Research, Bank of Ghana Banking Sector Report*Other Assets include Other Assets and Fixed Assets 15
Banks are leaning towards investments and away from loans and advances with associated default risk
Investment portfolio mix of banks shifting towards longer-dated government securities
Government
Public Enterprises
Public Institutions
Foreign Private Enterp
Local Private Enterprises
Households
Others
Allocation to local private enterprises has dropped in favor of households Local private enterprises are the largest contributor to NPLs
SHARE OF TOTAL CREDITSHARE OF NPLs
79.2% 79.0%
57.3%
32.4% 30.9%
17.9% 19.1% 41.2% 66.5% 68.2%
2.9% 1.8% 1.5% 1.1% 0.9%
2015 2016 2017 2018 2019
Bills Securities Shares & Other Equities
26.4% 27.0% 26.0% 26.0% 24.0%
22.6% 27.7% 30.5% 36.6% 38.0%
42.7% 37.7% 33.6%30.2% 31.0%
8.2% 7.5% 9.7% 7.4% 7.3%
2015 2016 2017 2018 2019
Cash and Due from Banks Investments Net Advances Other Assets*
1.7%0.1%
2.2%
8.9%
79.6%
7.0%0.6% 0.3% 0.2%
2.8%
8.5%
73.5%
8.7%
6.0%
DEC-2015 DEC-2019
2.4%2.0%
8.4%
10.0%
61.0%
14.9%
1.4%5.3%
3.0%
4.5%
8.4%
55.4%
20.8%
2.5%
DEC-2015 Dec-2019
2019 Credit analysis of banking sector
TOTAL ASSETS (GHS BN ) TOTAL DEPOS ITS (GHS BN )
LOANS & ADVANCES (GHS BN ) NET PROFIT (GHS MN)
CalBank competitively placed across key metrics
16
1.29
1.40
1.50
1.77
2.64
2.92
3.59
5.38
ACCESS
RBGH
ADB
SCB
SOGEGH
CAL*
GCB
EGH
31.64
79.12
128.54
173.70
174.29
281.86
428.46
444.95
ADB
RBGH
SOGEGH
ACCESS
CAL*
SCB
GCB
EGH
3.34
4.44
4.69
4.71
7.05
7.62
12.52
13.23
RBGH
SOGEGH
ADB
ACCESS
CAL*
SCB
GCB
EGH
2.52
3.01
3.17
3.39
3.86
5.42
9.32
9.73
RBGH
ACCESS
SOGEGH
ADB
CAL*
SCB
GCB
EGH
FY 2019 Competitor benchmarking - Listed banks (1/2)
17
RETURN ON EQUITY (% ) RETURN ON ASSETS (% )
NON-PERFORMING LOAN RAT IO (% ) CAP ITAL ADEQUACY RAT IO (% )
CalBank competitively placed across key metrics
3.87
13.65
16.03
17.79
21.58
24.07
24.16
24.94
ADB
RBGH
SOGEGH
CAL*
ACCESS
GCB
SCB
EGH
0.67
2.37
2.46
2.89
3.36
3.42
3.69
3.70
ADB
RBGH
CAL*
SOGEGH
EGH
GCB
ACCESS
SCB
40.24
21.60
18.16
17.20
9.90
8.83
6.01
5.60
ADB
ACCESS
RBGH
SCB
CAL*
SOGEGH
GCB
EGH
15.06
15.11
17.50
18.58
21.75
22.70
27.41
27.53
SOGEGH
ADB
GCB
EGH
ACCESS
CAL*
RBGH
SCB
FY 2019 Competitor benchmarking - Listed banks (2/2)
AGENDA
18
Covid-19 in Ghana
Operating Environment
Q & A
Financial Results
Our Strategy
20.5%Loans and advances
GHS 2.9bn
22.5%Total deposits
GHS 3.9bn
30.1%Total assets
GHS 7.0bn
1.9ppsNPL ratio
9.9%
19
22.9%Net interest income
GHS 518mn
29.0%Net impairment loss
GHS 86mn
13.2%Profit after tax
GHS 173mn
24.0%
Non-funded income
GHS 78.1mn
FY 2019 CalBank Group Highlights
Amount in GHS thousands FY 2019 FY 2018 FY 2017 YoY FY 2019 Highlights
Interest Income 912,409 773,270 668,128 18.0% • Interest Income grew by 18.0%, largely driven by increase in
investment securities and loans.
• Interest Expense increased by 12.1% from increases in deposits
from enhanced deposit mobilization efforts and increased
borrowings from DFI’s & other funding partners. Despite this, the
Interest expense to interest income ratio improved.
• Net Fees and Commissions decreased by 33.0%, from a decrease
in credit related fees/commissions and increased transaction fees
on significant borrowings from DFI’s.
• Net Trading Income increased marginally by 0.2% from increased
volumes of fixed income trading of Government instruments and
decreases in forex gains during the period.
• Net Impairment Loss increased by 29.0% from provisions made
on specific challenged accounts and increase in gross loan book.
• Total Operating Expenses increased by 16.4% mainly from ::
❖ increases in staff costs (cost of living adjustment)
❖ increased expenditure on staff training to enhance
performance;
❖ increased depreciation from revaluation of landed
properties;
❖ increased advertisement to enhance brand visibility and
promote new products during the year.
Interest Expense (394,303) (351,641) (317,096) (12.1%)
Net Interest Income 518,106 421,629 351,032 22.9%
Fees and Commission Income 64,625 75,988 72,985 (15.0%)
Fees and Commission Expense (18,028) (6,445) (4,922) (179.7%)
Net Fees and Commissions 46,597 69,543 68,063 (33.0%)
Net Trading Income 27,168 27,106 40,671 0.2%
Net gains on derivative assets 4,115
Other Operating Income 407 979 2,466 (58.5)%
Operating Income 596,393 519,257 462,232 14.9%
Net Impairment Loss (86,066) (66,735) (54,947) (29.0%)
Net Operating Income 510,327 452,522 407,285 12.8%
Total Operating Expense (267,386) (229,616) (188,422) (16.4%)
Profit Before Tax 242,941 222,906 218,863 9.0%
Income Tax Expense (67,527) (69,690) (65,965) (0.2%)
Profit After Tax 173,413 153,216 152,898 13.2%
Source: Company FilingsDFI – Development Finance Institutions (DFI) 20
Summarized Group Income statement
Amount in GHS thousands FY 2019 FY 2018 FY 2017 YoY FY 2019 Highlights
Cash and Cash Equivalents 597,784 637,570 512,376 (6.2%) • Total Assets increased by 30.1%, from
increased Investment Securities and Loans.
• Customer Deposits increased by 20.0% from
pick up in deposit mobilization from existing
business unit.
• Borrowings increase 53.7% attributable to
over US$ 200m additional funding secured
from DFI’s and other funding partners.
• Fixed Assets grew 15.8%, attributable to
revaluation of Head Office and other Fixed
Assets and Investment in IT infrastructure.
• Investment Securities growth of 56.2% and
loan growth of 20.5% was funded by 20.0%
growth in deposits and 53.7% increase in
borrowings.
Investment Securities 2,836,462 1,815,912 1,486,965 56.2%
Loans and Advances to Customers 2,920,026 2,422,952 1,853,674 20.5%
Other Assets 50,084 71,063 91,313 (29.5)%
Fixed Assets 504,242 435,583 278,810 15.8%
Total Assets 7,048,498 5,419,299 4,223,138 30.1%
Customer Deposits 3,694,513 3,078,682 2,428,201 20.0%
Deposits from Banks & other Financial Institutions
164,471 71,371 69,422 130.4%
Borrowings 2,028,126 1,319,932 931,816 53.7%
Other Liabilities 186,601 162,568 121,629 (14.8)%
Shareholders’ Equity 974,787 779,445 672,070 25.1%
Total Liabilities and Shareholders’ Equity 7,048,498 5,419,299 4,223,138 30.1%
Source: Company Filings
21
Summarized Group Balance sheet
RES IL IENT PROFITAB IL ITY (GHS MN)OPERATING INCOME COMPOSIT ION (GHS
MN)
RETURNS (% ) COST TO INCOME (% )
401.0367.2
462.2519.3
596.4
166.2
10.2
152.9 153.2 173.4
FY 15 FY 16 FY 17 FY 18 FY 19
Total Income Net Profit
248.6 251.3351.0
421.6518.1
152.3115.8
111.497.6
78.3
FY 15 FY 16 FY 17 FY 18 FY 19
Net interest income Non-funded income
2.0%
22.8%
19.7%17.8%
0.3%
3.6% 2.8% 2.5%
FY 16 FY 17 FY 18 FY 19
ROE ROA
35.9%
41.1%
40.8%
44.2%44.8%
30.0%
35.0%
40.0%
45.0%
50.0%
FY 15 FY 16 FY 17 FY 18 FY 19
Source: Company Filings
22
CAGR: 10.43%
CAGR: 1.06%CAGR: 20.15%
CAGR: -15.76%
FY 2019 Operating performance & profitability (1/2)
20 19 OPERATING INCOME BY TYPE2019 OPERATING INCOME BY BUS INESS L INE
( % )
NET INTEREST INCOME AND MARGIN(N I I i n GHS MILL IONS / N IM in % )
Net Interest Income
87%
Net Fees and Commissions
7%
Net Trading Income
4%
Other Income2%
Corporate banking and
project finance34.63%
Consumer and retail banking
30.79%
Treasury33.16%
Others1.43%
248.6
251.3
351.0
421.6
518
.1
5.7%
4.8%
5.6% 5.5%
5.1%
4.2%
4.4%
4.6%
4.8%
5.0%
5.2%
5.4%
5.6%
5.8%
-
100.0
200.0
300.0
400.0
500.0
600.0
FY 15 FY 16 FY 17 FY 18 FY 19
GH
S m
illio
ns
Net Interest Income Net Interest Margin
23
FY 2019 Operating performance & profitability (2/2)
Source: Company Filings
NET LOAN PORTFOL IO (GHS BN ) 20 19 LOAN CONCENTRATIONS
LOAN BOOK D I STR IBUT ION BY SECTOR( FY 20 18 )
Commerce & Finance21.4%
Construction19.5%
Manufacturing6.1%
Mining & Quarrying4.2%
Government16.6%
Services 17.1%
Transport, Storage & Comm.
8.2% Others7.0%
LOAN BOOK D I STR IBUT ION BY SECTOR( FY 20 19 )
Commerce & Finance16.6%
Construction32.0%
Manufacturing5.5%
Mining & Quarrying3.0%
Government15.6%
Services 13.9%
Transport, Storage & Comm.
7.4%Others6.0%
70.0%
30.0%
50 largest exposures
Others
1.8
2.0
1.9
2.4
2.9
35.0%
8.9%
-5.7%
30.7%
20.4%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
FY 15 FY 16 FY 17 FY 18 FY 19
Net Loans Loan growth
24
CAGR: 12.8%
FY 2019 Balance sheet parameters
25
CUSTOMER DEPOS ITS (GHS MN) FUNDING MIX (GHS MN)
1,545
2,3
12
2,4
28
3,0
79
3,6
95
14.6%
49.7%
5.0%
26.8%19.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY 15 FY 16 FY 17 FY 18 FY 19
GH
S m
illio
ns
Deposits Deposit growth
1,544.52,312.4 2,428.2
3,078.73,694.51,113.5
572.8931.8
1,319.9
2,028.1
187.0 214.2191.1
241.2
334.6
FY 15 FY 16 FY 17 FY 18 FY 19
Customer Deposits Borrowing Others
DEPOS IT M IX [ 20 18 ]
Current account
55%
Time deposit39%
Savings account
6%
CAGR: 24.3%
DEPOS IT M IX [ 20 19 ]
Current account54%
Time deposit39%
Savings account7%
Source: Company Filings
FY 2019 Funding and liquidity positions
21.4%
19.3%
21.9% 16.7%22.7%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
FY 15 FY 16 FY 17 FY 18 FY 19
Regulatory Minimum 10%
NON-PERFORMING LOANS RAT IO
5.5%
8.0%
10.9%
8.4%
9.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
FY 15 FY 16 FY 17 FY 18 FY 19
CAP ITAL ADEQUACY RAT IO
26
FY 2019 Capitalization and asset quality
AGENDA
27
Covid-19 in Ghana
Operating Environment
Financial Results
Our Strategy
“Our current strategy builds on our earlier strategy of “ digital transformation” and seeks to projects our organization onto a platform through which customers can connect to enhance their businesses and access all the bank’s products
and services at their convenience ”
Build a robust value capturing distribution platform for growth• Fully implement Agent Banking to promote financial inclusion • Roll out new e-offerings (e-loans and e-savings, CAL App, Internet banking) to SME, Retail & Corporate clients• Enhance payment channels i.e.. Internet banking, mobile apps, etc.• Enhance card services to offer convenience e.g. cardless ATM services., Prepaid cards debit cards
Presence & Products
Key Focus Areas Description
Improve the credit value chain and enhance technology platforms to improve efficiencies.
• Promote women banking business. Offer green finance to renewable energy value chain• Digitize trade offerings to bring convenience to customers and build their business. • Implement robust business intelligence solutions to support decision making• Upgrade data storage and processing: Implement Document management solution
Process
Develop performance and results oriented, data driven, collaborative professionals• Develop and implement a modern performance management system anchored on data-driven measurable targets• Create culture of continuous learning and knowledge sharing & expand Coaching & Mentoring Program • Deploy and enhance workplace health, financial security and safety programs
People
Forge stronger partnerships with relevant ecosystems to accelerate growth, deepen relationships & improve service• Deepen relationships with existing Technology partners to increase innovation agility & product speed to market.• Deepen Partnerships with our Insurance partners, Educational & Health Institutions & major retailers for greater deposit mobilization• Partner with Regional financial institutions to promote intra-Africa and Sino-Africa trade.
Partnerships
Strengthen risk management culture, improve technology to strengthen bank’s defense mechanisms• Adopt information Technology infrastructure Library (ITIL) framework for IT Service Management • Implement Disaster Recovery Project• Implement document management solution• Implementing bank-wide fraud management systems. • Implement information policy and data protection measures to ensure compliance with Data Protection regulations• Adopt sustainable banking principles.
Risk Management & Compliance
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2020 | Our strategic priorities
THANK YOU
W: www.calbank.netT: +233 (0) 302 680 061-69, 680 079
F: +233 (0) 302 680 081A: P. O. Box 14596, Accra
23, Accra
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