Facts Behind Figures - First Quarter 2013 MAY 2013 Ghana Stock Exchange

1

Speakers

Mr. Phillip Owiredu

Chief Financial Officer

Ms. Dzifa Amegashie,

Head of Investor Relations

2

Mr. Frank. B. Adu

Chief Executive Officer

The Ghanaian Economy & Banking Industry

GDP growth: 8.2% in FY2012 (versus 3.2% global growth)

End of March 2013 inflation was 10.4%, 140bps above the FY2013 target

The cedi weakened against the dollar marginally during Q12013, moving up to 1.9178 from 1.8847

Interest rates remain high, closing at 22.93% (90-day) and 23.23% (182-day bill) at the end of Q1’2013

Total industry assets grew 23.5% y-on-y to GHS 27.23 billion for 2012

Total deposits grew 22.5% y-on-y to GHS 19.52 billion for 2012

Net loans and advances grew 40.0% y-on-y to GHS 11.68 billion for 2012

Capital adequacy across the banking sector rose to 18.6%, 120bps higher than the prior year due to recapitalization

The Ghanaian Economy

Ghana Banking Industry in 2012

Projected 2013 Real GDP of 8% (versus 1.2% -Advanced Economies and 3.3%-World)

Strong performance in commodities, telecoms and oil & gas expected to fuel economic growth

Target single digit inflation for year end 2013 is 9.0%

Declining sector NPLs will further enhance sector performance and stability

Outlook

Source: World Economic Outlook, April 2013, Ghana Statistical Service, Bank of Ghana Financial Stability Report, February 2013

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4

2011 (GHS’000)

2012 (GHS’000)

BBGL 316,860 EBG 456,212

EBG 262,599 BBGL 373,073

SCB 232,576 SCB 311,349

ADB 181,707 GCB 295,881

Stanbic 181,161 Stanbic 234,556

GCB 178,240 ADB 207,760

SG-SSB 150,674 CAL 207,424

ZBL 110,042 ABG 170,921

GTB 104,550 SG-SSB 169,814

ABG 98,965 GTB 143,576

UBA 94,103 ZBL 140,433

CAL 88,354 HFC 132,946

NIB 84,065 UTB 128,435

ICB 77,759 UBA 125,235

HFC 77,201 FBL 121,425

Baroda 64,796 NIB 100,210

Energy 63,655 UGL 93,897

UTB 61,229 PBL 88,203

FBL 56,317 ICB 78,471

UGL 50,821 FAMBL 77,594

FAMBL 50,378 Baroda 72,673

PBL 49,640 Energy 67,716

BOA 42,708 BSSIC 66,463

BSSIC 31,955 BOA 61,773

CAL Bank ranks 7th out of 24 banks by Shareholders’ funds following GHS 75mn private placement & significant profit growth in FY2012

Source: Bank of Ghana, IC Securities Research

Note: MBG excluded because of RMB deal

CAL Bank - Improved lending capability with increased capital base since 2012

NEW SHAREHOLDING STRUCTURE

SSNIT 33%

African Development

Partners I 29%

PROPARCO 7%

CENTUM 4%

OTHERS 27%

Total Number Of Shareholders 23,655

Total Issued Share Capital 548,261,549

CAL Bank - A Top 10 Bank

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Note: Loans & Advances include loans to customers and to banks, Investments include GoG securities and all other investments

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

EBG SCB GCB ADB CAL BBGL UTB Stanbic FBL UGL

Loans & Advances – FY 2012 GHS Billions

0.0

0.5

1.0

1.5

2.0

2.5

3.0

EBG GCB SCB BBGL Stanbic FBL ADB SG-SSB UTB ZBL CAL

Customer Deposits – FY 2012

CAL Bank is firmly positioned amongst the top 10 Banks in Ghana

Total Assets - FY 2012 Net Profit – FY 2012

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

EBG GCB SCB BBGL Stanbic ADB FBL CAL SG-SSB UTB

Loans & Advances Investments Cash Other Assets Plant, Property & Equipment

GHS Billions

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

GCB SCB EBG BBGL Stanbic CAL UBA GTB Baroda ABG

GHS millions

Source: Bank of Ghana, IC Securities Research *MBG figures are unaudited

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CAL Bank - performing favorably among its listed peers

Return on Assets Return on Equity

Net Interest Margin Net Profit Margin

Net Interest Margin: Annualised Net interest / Average interest Earning Assets Net Profit Margin: Net Profit / Total Operating Income

Net Profit Margin: Annualised Net Profit / Shareholder’s Funds Net Profit Margin: Annualised Net Profit / Total Assets

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Q1 2013 Highlights

PROFITABILITY

• Total operating income up 120.7% to GH¢ 49.6m y/y

• Operating expenses up 81.4% to GH¢ 16.8m y/y

• Cost to income ratio down to 33.9%

• PAT up 159.9% y/y to GH¢ 21.3m.

• EPS increased by 17.7% to 0.0389

• ROAE up to 52.3% from 36.7%

• ROAA up to 7.8% from 4.7%

CAL Bank has appreciated 76.3% year to date on the back of strong year-end and Q1 performance

• NPL down to 6.1% from 8.4% y/y

• Capital Adequacy up to 18.7% from 10.5% in Q1’12

RETURNS ASSET QUALITY

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Income Statement (GHS’000) Q1 2013 Q1 2012 FY 2012

y/y change

Net Interest Income 32,363 12,831 84,576 152.2%

Net Fees & Comms 7,733 4,292 25,824 80.2%

Net Trading Income 5,795 4,348 13,869 33.3%

Total Op. Income 49,557 22,452 133,054 120.7%

Total Op. Expenses (16,808) (9,265) (48,865) 81.4%

Impairment Charge (4,359) (2,320) (17,461) 87.9%

Profit Before Tax 28,391 10,867 66,854 161.3%

Profit After Tax 21,348 8,214 51,651 159.9%

Group Q1-2013 Performance- Income Statement

Total Income. Up 120.7%. y/y. Key Income drivers: • Interest income • Fees & Commissions • Trading Income

Interest Income. Up 152.2% y/y: Driven by loan re-pricing and 65% loan book

growth in key growth sectors:

• Energy, Oil & Gas • Transport & Communication • Manufacturing • Mining • Services

Non-Interest income. Up 78.7% y/y.

• Loan-linked commissions • Advisory fees • Forex trade income. • Trade finance income.

Impairment charge in line with growing loan book

*FY2012 Industry average. Q1’2013 industry data not available.

*Source: Bank of Ghana MPC 02-2013 Release

Comments

Interest income continues to drive revenue growth

52.3%

36.7% 35.0%

Q1'13Q1'12FY'12

Healthy return ratios

7.8%

4.7% 5.2%

Q1'13Q1'12FY'12

-

20

40

60

80

100

120

140

FY'12 Q1'12 Q1'13

GH

S m

illio

ns

Net Interest Income Net Fees & Commissions Net Trading Income Other Op. Income

Total Operating Income

Return on Average Assets Return on Average Equity

Profitability Q1-2013

9

64% 57%

49.6m

22.5m

133.2m

19%

65%

12%

6%

Return on average assets: LTM Net Profit / Average Assets Return on average equity: LTM Net Profit / Average Equity

19%

4% 19%

16% 12% 7%

Balance Sheet (GHS’000) Q1 2013 Q1 2012 FY 2012 y/y change

Total Assets 1,313,268 871,814 1,162,855 50.6%

Loans and Advances

840,762 537,484 747,385 65.2%

Investment in Government Securities

244,296 149,657 240,481 63.2%

Fixed Assets 40,331 29,534 35,531 36.6%

Total Liabilities 1,083,806 774,833 955,431 39.9%

Customer Deposits

740,114 616,479 794,555 20.0%

Borrowings 244,438 137,224 130,707 78.1%

Shareholders Funds

229,462 96,981 207,424 136.6%

Group Q1-2013 Performance - Balance Sheet

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Total assets increased 50.6%. y/y. Key drivers: • Loans and Advances

Loans and Advances Up 65.2% y/y: Key sectors:

• Energy, Oil & Gas • Transport & Communication • Manufacturing • Mining • Services

Government paper (T Bills) up 63.2 % Customer Deposits. Up 20.0% y/y.

• Deeping customer relationships • New customer acquisitions

Robust loan portfolio with NPL ratio of 6.1% vs. 13.2%* industry average

*FY2012 Industry average. Q1’2013 industry data not available.

*Source: Bank of Ghana MPC 02-2013 Release

Comments

18.7%

10.5%

19.9%

Q1'13Q1'12FY'12

Asset Profile

-

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

FY'12 Q1'12 Q1'13

GH

S m

illio

ns

Loans and Advances Other Interest-Earning Assets Other Assets

58%

28%

14%

15%

21%

64% 64%

871.8m

1,162.9m

1,313.3m

12%

24%

Growth has been largely driven by interest earning assets

Capital Adequacy Ratio Industry NPL* vs. CAL NPL Ratio

Improving Asset quality

Careful risk management

BOG’s minimum of 10%

11 * Industry Q1’13 NPL as at March 2013

Total Assets

5.0%

8.4%

6.1%

10.4%

15.7%

13.4%

0.0%

5.0%

10.0%

15.0%

20.0%

FY12 Q1 12 Q1 13

CAL INDUSTRY

SECTORAL DISTRIBUTION OF LOANS

GROSS LOANS RATIOS

3%

8%

22%

9%

21%

5%

4%

15%

12%

Q1-2012

Agriculture

Mining & Quarrying

Manufacturing

Construction

Electricity

Commerce & Finance

Transport & Comms

Misc

Services

Government

2% 4%

22%

7%

20%3%

5%

11%

26%

Agriculture

Mining & Quarrying

Manufacturing

Construction

Electricity

Commerce & Finance

Transport & Comms

Misc

Services

Government

Q1-2013

84.2%

96.0%

74.6%

121.3%

FY2010 FY2011 FY2012 Q12013

Gross loans/Deposits Gross loans/Deposits + Term Funding

61.8%69.5%

62.2%

109.8%

Asset Profile Q1 2013

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Increasing profitability supported by stable interest spreads and cost efficiency

47.0%

49%

4% Q1-2013 Deposit Mix

Current Accounts

Time Deposits

Savings Deposits

Cost-to-income Ratio

64.8%

52.6%50.9%

34.4%33.9%

2009 2010 2011 2012 Q1-2013

Management continues to rebalance the deposit mix towards cheaper retail deposits

Deposit Mix and Profitability Q1-2013

13

83% 84.0%

16%

Q1-2013 Deposit Mix

Individuals and PrivateEnterprises

Public Enterprises

Cost-to-income ratio: Total Operating Expenses / Total Operating Income

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IINCOME STATEMENT (GHS’000)

2008 2009 2010 2011 2012 y/on/y change

5yr CAGR

Net Interest Income 16,431 22,635 37,075 41,394 84,576 104.3% 50.6%

Net Fees & Commissions 6,185 6,534 9,288 14,646 25,824 76.3% 42.9%

Net Trading Income 10,199 9,622 4,833 10,545 13,869 31.5% 8.0%

Operating Income 34,559 39,256 53,813 70,944 133,054 87.5% 40.1%

Total Operating Expenses (21,177) (25,450) (28,328) (36,135) (48,865) 35.2% 23.2%

Impairment Charge (2,186) (3,476) (12,849) (11,465) (17,461) 52.3% 68.1%

Profit Before Tax 11,499 10,515 12,598 23,352 66,854 186.3% 55.3%

Profit After Tax 9,068 8,303 9,466 16,905 51,651 205.5% 54.5%

Group 5-year Financial Performance

BALANCE SHEET (GHS’000)

2008 2009 2010 2011 2012 y/on /y change

5yr CAGR

Total Assets 338,902 452,812 509,992 809,364 1,162,855 43.7% 36.1%

Investment in Government Securities

43,530 75,138 117,668 154,880 240,481 55.3% 53.31%

Loans and Advances 190,938 214,715 256,634 411,582 747,385 81.6% 40.7%

Fixed Assets 14,371 15,018 27,379 28,779 34,669 20.5% 24.6%

Total Liabilities 301,474 394,388 431,214 721,010 955,431 32.5% 33.4%

Customer Deposits* 176,660 277,602 296,625 611,719 794,555 29.9% 45.6%

Borrowings 115,592 92,691 109,010 92,652 130,707 41.1% 3.1%

Shareholders Funds 37,428 58,424 78,778 88,354 207,424 134.8% 53.5%

* includes due to Banks

Outlook- 2013 & Beyond

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Corporate Banking

Treasury

Retail Banking

• Product-driven retail deposit mobilization will be focused on • Increasing retail deposits to reduce cost of funds and deposits ratio • Targeting the growing middle class clientele who have the appetite for asset-backed consumption • Improve brand visibility

• CAL’s corporate loan portfolio and syndicated transaction capacity will be grown by leveraging its increased balance sheet size

• Focus on promising growth sectors - energy, telecoms, mining, oil and gas • Enhance expertise to provide appropriate services to the increasing size of corporate clients

• Strengthen treasury activities to capitalize on economic growth opportunities • Improve capacity to participate actively in the bond market • Research and identify appropriate new money market products for introduction to market • Increase in credit & refinancing lines from correspondent banks

Human Resources

Technology

• Training and development of talent • Performance management and good reward system to enhance efficiency and motivation • Job rotations and mobility to hone diverse skills of employees

• Service quality will be improved by enhancing IT infrastructure • Focus on process automation, enhancing management information systems and investments into

modern communication systems

THANK YOU

Q&A

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