The Managing Director of Cal Bank, Frank Adu, has disclosed that with the audited financials of the bank, the company is just 50 million cedis away from meeting the 400 million cedis capital requirement by end of December 2018.
By this, Mr. Adu explained that the bank has been able to raise some 250 million cedis through its surplus profit after the books of the bank was audited end of March 2018.
“We have been allowed to transfer 250 million cedis from income surplus to stated capital. So now our stated capital goes to 350 million cedis which puts us 50 million cedis short of the Bank of Ghana limit of 400 million. Now, if the Bank of Ghana will allow the banks to do an interim audit in the cause of the year, then we would be able to even come next month and be able to transfer another 50 million out of income surplus”
“As we speak, at the end of March, our income surplus per our management account as published in the newspapers was 310 million cedis. If we take 300 million cedis from that which is the 250 million cedis plus 50 million cedis, we will meet the 400 million cedis and still have 10 million cedis in income surplus. So effectively, we have met the 400 million cedis just by those transfers,” Mr. Adu explained.
The Managing Director, who was speaking at the bank’s Annual General Meeting today [May 3, 2018], also disclosed that the bank recorded a profit after tax of 145.2 million cedis, and 152.9 million cedis by the group.
He explained that this was achieved by an improvement in operating income by 25.9 percent, and a reduction in total operating cost by 30.5 percent.
The bank did not pay dividend to the shareholders.
He added that the Group’s total assets increased by 16.7 percent to 4.22 billion cedis from 3.62 billion the previous year.
“Also, total assets of the bank also increased by 17.0 percent from 3.60 billion cedis to 4.21 billion cedis
By: Lawrence Segbefia/citibusinessnews.com/Ghana