CalBank PLC delivered strong earnings for the 2025 financial year, with profit before tax rising 16.2% to GHS 481.4 million, underscoring a decisive turnaround anchored on capital restoration, cost discipline and improving asset quality.
The performance marks a significant recovery from 2024, when profit before tax stood at GHS 414.2 million, and signals renewed financial stability after an extensive balance sheet restructuring exercise.
Strong Earnings Backed by Diversified Revenue Growth
Operating income grew 10.4% year-on-year to GHS 886.0 million, reflecting a more balanced and sustainable revenue mix.
Net interest income increased 12.8% to GHS 513.6 million, supported by disciplined asset pricing and an improved funding mix. Net fees and commissions rose 17.9% to GHS 211.7 million, driven by transaction banking and digital channel growth. Meanwhile, net trading income surged 65.7% to GHS 150.0 million on the back of effective treasury positioning.
The diversified income structure helped cushion earnings volatility and strengthened the bank’s recurring revenue base.
Cost Discipline and Credit Recovery Strengthen Bottom Line
The improved profitability was reinforced by tighter cost controls and sustained credit recovery efforts. Other operating expenses declined significantly to GHS 224.4 million from GHS 292.2 million in 2024, reflecting overhead rationalisation and operational efficiencies. The bank also recorded a net impairment gain of GHS 193.7 million, highlighting progress in loan recoveries and credit book clean-up.
Together, revenue growth and cost containment drove stronger operational alignment and profitability resilience.
Capital Rebuild and Sharp Asset Quality Improvement
A major milestone in 2025 was the oversubscribed GHS 900 million Rights Issue, which restored the bank’s capital position.
Total shareholders’ equity surged to GHS 1.53 billion from GHS 217.3 million in 2024. The Capital Adequacy Ratio rebounded to 19.8%, well above regulatory minimums, compared with negative 6.38% a year earlier.
Asset quality also improved markedly, with the Non-Performing Loan ratio falling sharply to 17% from 47.5%, reflecting stricter underwriting standards and targeted portfolio recalibration.
Outlook for 2026
Management says the bank enters 2026 fully capitalised and strategically repositioned. Key priorities include selective credit expansion, deepening retail and SME banking, accelerating digital transformation, expanding non-interest income streams, and maintaining strict cost and risk discipline.
“The Board is pleased with the significant progress achieved in 2025, highlighted by a rebuilt capital base, rigorous operational and risk discipline, and sustained profitability. The Bank now stands prudentially sound and strategically repositioned for disciplined growth, durable performance, and the delivery of sustainable value to shareholders and stakeholders,” Board Chairman of CalBank PLC, Daniel Sackey said.
