CAL Bank targets 9.3 inflation rate
CAL Bank has targeted an inflation rate of 9.3 percent by the end of 2012. This is expected to be on the back of a strong performance in commodities, telecoms, and oil and gas which is expected to fuel economic growth.
The bank is also targeting a projected GDP of 7.1 percent in 2012. These were disclosed when officials of the bank took their turn at the Ghana Stock Exchange, ‘Facts Behind the Figures Session’ on Tuesday.
CAL Bank which has been ranked 7th in industry asset size as at the first half of 2012, recorded a total income and net profit for the first nine months of the year at 81 percent and 243 percent respectively compared to the same period in 2011.
Also, an additional tier 1 capital of GHC 75 million was raised in the first half of 2012 to meet the Central Bank’s recapitalization requirement.
“We have a very active trading operation, thus we do a lot of propriety training, direct sales of EFEX for the purposes of paying bills etc, the two activities will then give us our net trading income; but the purpose of treasure when it comes to EFEX is to mange exchange rate risks, so we are not going out taking positions for the purpose of making money,” Mr. Frank Adu told Citi Business News.
Meanwhile, the bank’s total assets grew by 33.5 percent year on year largely supported by the 69.2 percent growth in loans and advances and 149 percent increase in Investments in Governments Securities; whereas deposits also rose by 2.2 percent year on year.
Mr. Adu is however optimistic of the growth of the bank in the long term saying, “the bank should continue growing, and we will like to Involve the top twenty shareholders of the bank on the decision on whether or not we should issue bonus shares in due of dividends so that we retain whatever we have raised for the purposes of recapitalizing the bank.”
CAL Bank is however seeking to grow its corporate loan Portfolio and Syndicated transaction by leveraging increased balanced sheet size.
By: Lorrencia Adam/Citifmonline.com/Ghana
