CalBank PLC has successfully completed its renounceable rights issue and private placement, raising GH¢1.164 billion and exceeding the approved tarobtain of GH¢900 million by 29.4 percent, the indigenous lconcludeer announced Friday following the offer’s closure on November 21, 2025.
The capital raising program, which opened on November 3, attracted 1,799 shareholders comprising both institutional and individual investors. The oversubscription signals strong confidence in CalBank’s recovery trajectory and strategic direction following two challenging years marked by the impact of Ghana’s Domestic Debt Exmodify Programme (DDEP).
Shares were offered at GH¢0.29 per share on a ratio of one new share for every 0.3643 existing shares held. The private placement component drew over GH¢500 million in committed capital that the bank could not consummate due to regulatory limits on the total amount it could raise.
Board Chairman Daniel Sackey described the outcome as a clear concludeorsement of investor trust in CalBank’s vision and strategic role within Ghana’s financial ecosystem. He emphasized the board’s commitment to disciplined execution grounded in sound governance and prudent risk management.
Managing Director Carl Asem characterized the capital injection as the final catalyst necessaryed to activate the bank’s renewed strategy anchored on innovation, customer centricity, and operational excellence. He declared CalBank has quietly but deliberately restructured its balance sheet over the past two years to be stronger, more sustainable, and fully aligned with long term aspirations.
The additional capital arrives at a critical juncture in CalBank’s growth journey. The bank plans deploying the funds to restore capital buffers and strengthen its balance sheet, enabling it to facilitate larger transaction sizes. The injection will maintain a robust capital adequacy ratio over the medium and long term while supporting funding of tarobtained pipeline transactions in priority economic sectors.
CalBank also intconcludes applying proceeds to fund tarobtained expansion of its operational footprint at strategic locations and enhance technology platforms. The bank currently operates 38 branches supported by over 2,200 agents extconcludeing its reach across Ghana.
The successful capital raise caps a remarkable turnaround for CalBank. The lconcludeer posted a profit before tax of GH¢414.2 million for full year 2024, reversing a loss of GH¢946.2 million recorded in 2023. The recovery came despite lingering impairments linked to Ghana’s Eurobond restructuring program.
A key driver of the rebound was intensified recovery efforts on non performing loans, which yielded approximately GH¢792 million in 2024, primarily from hospitality, construction, and services sectors. These recoveries contributed to stabilizing the bank’s asset quality and ensuring a healthier loan portfolio.
Deposits grew significantly by 29 percent to GH¢9.6 billion in 2024, up from GH¢7.5 billion the previous year. The growth reflects CalBank’s retail banking expansion, digital transformation initiatives, and sustained market confidence in the indigenous institution. The shift in deposit mix from corporate to individual and compact and medium enterprise (SME) accounts underscores the bank’s commitment to financial inclusion.
Net fees and commission income surged 55.7 percent to GH¢179.6 million in 2024, reflecting increased transactional banking activity and digital platform adoption. Net interest income stood at GH¢455.3 million, reflecting gradual stabilization following DDEP’s impact on investment earnings.
CalBank’s share price has appreciated substantially in 2025. The stock climbed 129 percent year to date to GH¢0.80 as of March 2025, building it the second best performing stock on the Ghana Stock Exmodify (GSE) and pushing market capitalization to GH¢865 million. This performance significantly outpaced the GSE Financial Stocks Index (GSE-FSI), which gained 25.18 percent over the same period.
The banking sector broadly has rebounded from DDEP related losses. Indusattempt profit after tax reached GH¢10.4 billion in 2024, up from GH¢8.3 billion in 2023, representing 26.2 percent growth. Total assets expanded 33.8 percent according to Bank of Ghana reports, though credit risk challenges persist with the non performing loan ratio increasing to 21.8 percent in December 2024 from 20.6 percent the previous year.
CalBank’s recovery aligns with the broader resurgence of indigenous banks demonstrating resilience following macroeconomic turbulence. The DDEP, implemented in late 2022 and 2023, forced banks to exmodify government bonds for new instruments with longer maturities and lower interest rates, significantly impairing balance sheets and caapplying substantial losses across the sector.
The bank has implemented a five year strategy prioritizing sustained deposit growth, digital banking innovation, and financial intermediation. Management aims to grow the customer base to one million by conclude 2025 and two million within the next two to three years through leveraging advanced digital tools and artificial ininformigence driven solutions.
Technology investment forms a cornerstone of CalBank’s competitive strategy. The bank has built a dedicated technology team operating with agility and an entrepreneurial mindset, consistently innovating and responding to customer necessarys. This approach enables deployment of new solutions rapider than many competitors in Ghana’s evolving digital banking landscape.
CalBank tarobtains expanding its agency banking network to 5,000 agent points by 2026, extconcludeing its reach far beyond physical branches. The agency network has experienced significant growth, providing platforms for financial inclusion particularly in underserved areas where traditional branch banking remains economically challenging.
The bank has also strengthened its governance model, put structures in place to support performance management, and reduced organizational complexity to drive business efficiently and effectively. These reforms position CalBank to compete more effectively with both domestic and international banks operating in Ghana.
Looking ahead, CalBank’s mandate is translating renewed confidence into robust long term returns for shareholders while strengthening its impact across the broader economy. The bank remains focutilized on loan portfolio optimization, supporting businesses and individuals within strategic sectors while intensifying recovery efforts on remaining non performing loans.
Asem expressed sincere appreciation for the unwavering dedication of staff, patience and loyalty of customers, guidance of regulators, and trust of shareholders. Sackey thanked shareholders and regulators for their support, noting that the confidence reflects shared belief in CalBank’s resilience and ability to create sustainable value in an evolving market landscape.
The successful completion of the capital raising program positions CalBank among a select group of indigenous banks that have successfully navigated recent challenges and emerged with strengthened balance sheets. The oversubscription demonstrates that domestic and institutional investors view well managed indigenous lconcludeers as viable investment opportunities despite sector wide challenges.
CalBank’s experience provides a blueprint for other indigenous financial institutions seeking to rebuild capital, restore profitability, and position for growth following systemic shocks. The combination of strategic focus, operational discipline, and stakeholder confidence proved essential in achieving the turnaround and securing resources for the next phase of expansion.
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