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STOPGALAMSEY- Cal Bank Overhauls Leadership Amid Financial Struggles

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Picture above credit : Daniel Agbokadzegede

Cal Bank, one of Ghana’s prominent indigenous banks, has taken drastic measures to address its financial woes by dismissing several top executives. The move aims to correct previous impairments and restore the bank’s capital base, according to a report by The High Street Journal.

The sacked executives include high-ranking officials such as the Head of Treasury, Head of Finance, and Chief Risk Officer, among others. Sources suggest that the dismissals are linked to a GH¢1.5 billion loan facility that went sour, with suspicions of internal collusion among the affected executives.

This development comes on the heels of the recent appointment of a new Managing Director, whose predecessor was reportedly pushed to retire in earlier restructuring efforts. To fill the leadership gaps, Cal Bank has engaged an experienced banking consultant to find suitable replacements for the sacked officials.

The Bank of Ghana has set a deadline for Cal Bank to resolve its internal issues by the end of November 2024. Cal Bank’s financial troubles surfaced earlier this year when it faced significant impairments that greatly reduced its capital. Despite efforts to raise GH¢600 million through a rights issue, the bank only managed to secure GH¢145.8 million, barely meeting the minimum threshold of GH¢120 million required.

In an effort to meet its capital requirement, Cal Bank turned to a private placement to secure the remaining GH¢454.2 million. While potential investors were identified by July, the bank has yet to finalize a deal.

However, there are signs of recovery. Cal Bank reported a significant financial turnaround in the first half of 2024, with profit after tax rising by 49.4%. The reversal of shareholders’ equity improved from a negative GH¢18.49 million at the end of 2023 to a positive GH¢112.9 million by June 2024.

DailyGuide/ Ruth Abla ADJORLOLO

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