CAL Bank of Ghana Sees 50% Profit Growth in 2013 on Lending
CAL Bank Ltd. (CAL), a lender that’s gained 42 percent this year, expects profit to rise 50 percent in 2013 as it increases loans and advances.
The Accra-based bank will expand its “loan book by over 35 percent,” Managing Director Frank Adu Jr. said in an interview in the city yesterday. “We will do more trade financing this year.”
The company will be present in all the growing areas in the economy, “especially in the oil and gas sectors, housing and infrastructure,” he said.
Ghanaian banks have led the stock exchange’s 44 percent gain this year, as many boost lending to clients in West Africa’s second-biggest economy, where growth is forecast to reach 8 percent and outpace the sub-Saharan African average for a sixth year.
CAL Bank’s profit climbed to 51.7 million cedis ($27 million), it said on Feb. 4. Loans and advances rose 82 percent to 747.4 million cedis, while net interest income, the money earned from lending, jumped to 84.6 million cedis from 41.4 million cedis, the bank said.
The bank will open four new branches to bring its total to 22, Adu said. CAL Bank’s shares fell 1.8 percent to 54 pesewas by the 3 p.m. close on the Ghana Stock Exchange.
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