CAL BANK LIMITED
FULL YEAR UNAUDITED 2014 RESULTSInvestor & Analyst Presentation
Disclaimer
CAL BANK - INVESTOR & ANALYST PRESENTATION 2
This report was prepared by CAL to provide background information on the Group.The report is issued for information purposes only, especially with regards to enablingusers understand the inherent potential of the business. It is therefore not asolicitation to buy or sell the stock.
The information contained herein is subject to change and neither the bank nor itsstaff is under any obligation to notify you or make public any announcement withrespect to such change.
Users are hereby advised to exercise caution in attempting to rely on this informationand carry out further research before reaching conclusions regarding their investmentdecisions.
Outline
CAL BANK - INVESTOR & ANALYST PRESENTATION 3
> Overview of CAL Bank Limited
> Operating Environment
> Full Year Unaudited 2014 Financial Highlights
> Review of Full Year Unaudited 2014 Financial Performance
> 2015 Strategy and Outlook
Management
CAL BANK - INVESTOR & ANALYST PRESENTATION 4
Mr. Frank AduManaging Director
Mr. Philip OwireduExecutive Director
Mr. Joseph Ofori-TeikoGeneral Manager
Mr. Charles AmoahAssistant General Manager
The Bank at a Glance - FY 2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 5
22Branches
85ATMs
15Corr. Banks
CHANNELS
ISSUED SHARES
548.26 MILLION
MARKET VALUE
553.74MILLION CEDIS
PUBLIC FLOAT
36.74PERCENT
1. As at 31/12/2014
MARKET INFORMATION¹
EMPLOYEES
752PROFESSIONAL
STAFF
CAL Bank Limited
is an indigenous bank established in Ghana in 1990,
listed on the Ghana Stock
Exchange
SUBSIDIARIES
3WHOLLY OWNED
SSNIT33.18%
ADP I HOLDING 427.69%ICAM
4.92%
FRONTAURA3.01%
MR DANIEL OFORI2.45%
FRANK BRAKO ADU, JR2.04%
OTHERS26.70%
PARTNERS
SHAREHOLDING STRUCTURE
Key Business Strengths
CAL BANK - INVESTOR & ANALYST PRESENTATION 6
f Continuing attractive growth multiples for Ghanaian banking sector
f Motivated, experienced and committed management team
f Solid track record of excellent financial performance
f Solid risk management and commitment to high ethical standards
f Robust cost & operating efficiency underpinned by modern IT infrastructure.
f Focused profit-driven strategy to maximize shareholder value
Outline
CAL BANK - INVESTOR & ANALYST PRESENTATION 7
> Overview of CAL Bank Limited
> Operating Environment
> Full Year Unaudited 2014 Financial Highlights
> Review of Full Year Unaudited 2014 Financial Performance
> 2015 Strategy and Outlook
Ghana Scorecard
CAL BANK - INVESTOR & ANALYST PRESENTATION 8
• GDP (oil): GHS 31.47bn up from GHS 25.96bn
• GDP (non-oil): GHS 29.96bn up from GHS 24.06bn
• GDP: Year-on-year growth of 5.1%
• GDP Growth rate for 2014: 4.1%²
GROSS DOMESTIC PRODUCT¹
• Headline inflation of 17.0% up from 13.8% in Q1
INFLATION
• 21% up from 16.0% in January 2014
POLICY RATE
As at the end of Q4:
• 91-day: 25.8% up from 19.2% in Q1
• 182-day: 26.4% up from 19.2% in Q1
• 1-year: 22.5% up from 17.0% in Q1
• 2-year: 23.0% up from 16.5% in Q1
INTEREST RATES
As at the end of Q4:
• Gold: USD 1200.62 per ounce Slightly down from USD 1205.90 in Q1
• Cocoa: USD 2946.95 per tonneup from USD 2699.79 in Q1
• Crude Oil: USD 57.30 per barrel Down from USD 95.44 in Q1
COMMODITY PRICES
• Full Year 2014 Depreciation: 26.5% Peaking at 39.0%³
FOREIGN EXCHANGE
Source: Ghana Statistical Service (GSS), Bank of Ghana, Bloomberg1. As at Q3 2014 unless indicated2. Revised by the GSS in January 20153. Full-Year Depreciation: Jan 1 – Dec 31, 2014 peaking at 38.99% on 19th
August
Banking Sector Scorecard
CAL BANK - INVESTOR & ANALYST PRESENTATION 9
11 LOCAL PRIVATE
3GOVERNMENT
14FOREIGN
28 LICENSED BANKS IN OPERATION
CAR
17.0%Down from 18.3%
LENDING RATES
27.8%From 25.6% in December 2013
NPL RATIO
12.1%Down from 12.9%
CREDIT GROWTH
26.6%Up from 13.1%
RECENT DEVELOPMENTS
¾ Bank of Ghana Raises Policy Rate to 21% from 19% inNovember 2014
¾ First National Bank (FNB) obtained its banking license.
¾ Rand Merchant Bank (RMB), a subsidiary of FirstRand,South Africa’s second-largest financial servicescompany will expand its presence in West Africa byopening a subsidiary in Ghana
¾ ADB set to list on the Ghana Stock Exchange in 2015
¾ Standard & Poor’s cut Ghana’s credit rating to B-, sixlevels below investment grade, concerned thatauthorities won’t be able to rein in the budget deficit
¾ The Government of Ghana intends to borrow GHS25.4 billion cedis in the domestic market in the firsthalf of 2015, twice the amount borrowed in the sameperiod in 2014
¾ As part of the GHS 24.5 billion, The Bank of Ghana willoffer 630 million cedis ($193 million) of notes on Feb.19, with proceeds used to roll over maturities,reorganize debt and manage liquidity
TOTAL ASSETS
GHS 47.8BILLION
In September 2014 up from GHS 33.9 billion in January
Outline
CAL BANK - INVESTOR & ANALYST PRESENTATION 10
> Overview of CAL Bank Limited
> Operating Environment
> Full Year Unaudited 2014 Financial Highlights
> Review of Full Year Unaudited 2014 Financial Performance
> 2015 Strategy and Outlook
CAL 2014 Key Performance Highlights
CAL BANK - INVESTOR & ANALYST PRESENTATION 11
(GHS million) FY 2014 FY 2013 %Δ
Net Interest Income 184.10 143.74 28.07%
Net Fees & Commissions 51.90 29.77 74.37%
Other Income 88.96 45.65 94.89%
Total Income 324.96 219.15 48.23%
Total Operating Expense 106.07 74.07 43.19%
Profit-Before-Tax 198.41 127.57 55.54%
Profit-After-Tax 143.13 93.54 53.01%
Profitability
1
(GHS million) FY 2014 FY 2013 %Δ
Investments 410.73 278.25 47.61%
Loans & Advances 1,337.21 980.41 36.39%
Customer Deposits 1,348.15 799.21 68.69%
Shareholders’ Funds 399.53 287.04 39.19%
Total Assets 2,715.26 1,564.07 73.61%
Balance Sheet
2
FY 2014 FY 2013 %Δ
Capital Adequacy Ratio 27.62% 19.36% 42.66%
EPS (GHS) 0.2611 0.1706 53.01%
ROAA 6.69% 6.86% -2.50%
ROAE 41.69% 37.83% 10.20%
Performance Ratios
3
Outline
CAL BANK - INVESTOR & ANALYST PRESENTATION 12
> Overview of CAL Bank Limited
> Operating Environment
> Full Year Unaudited 2014 Financial Highlights
> Review of Full Year Unaudited 2014 Financial Performance
> 2015 Strategy and Outlook
Income Analysis 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 13
84.576
143.74
184.1
0
50
100
150
200
FY12 FY13 FY14
NET INTEREST INCOME (GHS million) NET FEES & COMMISSIONS (GHS million)
27.031.9
54.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY12 FY13 FY14
TRADING INCOME (GHS million)
13.9
31.2
76.3
0.010.020.030.040.050.060.070.080.090.0
FY12 FY13 FY14
EARNINGS BY INCOME TYPE
63.0% 65.0% 56.1%
37.0% 35.0% 43.9%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
FY12 FY13 FY14Net Interest Income Non Interest Income
Improving Profitability 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 14
133.1
201.6
304.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
FY12 FY13 FY14
NET OPERATING INCOME (GHS million) PROFIT-BEFORE-TAX (GHS million)
66.92
127.6
198.4
0
50
100
150
200
250
FY12 FY13 FY14
PROFIT-AFTER-TAX (GHS million)
51.7
93.5
143.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
FY12 FY13 FY14
ROAA & ROAE
34.8
0%
37.8
0%
41.4
0%
5.20
%
6.90
%
6.60
%
F Y12 FY13 FY14
ROAA ROAE
Expense Evolution 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 15
48.8
74.1
106.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
FY12 FY13 FY14
TOTAL OPERATING EXPENSE (GHS million) CREDIT LOSS EXPENSE (GHS million)
17.5 17.5
20.5
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
19.5
20.0
20.5
21.0
FY12 FY13 FY14
Profit Drivers 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 16
10.0%
12.2%
9.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
FY12 FY13 FY14
NET INTEREST MARGINS COST OF FUNDS
7.8%
11.9%10.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
FY12 FY13 FY14
COST TO INCOME RATIO
36.7%
33.8%
32.6%
30.0%
31.0%
32.0%
33.0%
34.0%
35.0%
36.0%
37.0%
38.0%
FY12 FY13 FY14
Growing Asset Base
CAL BANK - INVESTOR & ANALYST PRESENTATION 17
1,163
1,564
2,715
0
500
1,000
1,500
2,000
2,500
3,000
FY12 FY13 FY14
TOTAL ASSETS (GHS million) TOTAL ASSET MIX
Cash & Bank Balances
8%
Loans & Advances
49%
Property & Equipment
3%
Investments29%
Other Assets11%
FY14
Cash & Bank Balances
8%
Loans & Advances
62%
Property & Equipment
3%
Investments18%
Other Assets9%
FY13
Loan Portfolio 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 18
NET LOAN GROWTH (GHS million)
747
980
1,337
0
200
400
600
800
1,000
1,200
1,400
1,600
FY12 FY13 FY14
Agriculture<1%
Commerce & Finance
19%Construction25%
Electricity, Gas & Water
8%
Manufacturing3%
Mining & Quarrying3%
Miscellaneous5%
Services12%
Government 23%
Transport, Storage &
Communication2%
LOAN DISTRIBUTION BY SECTOR –FY 2014
96.9%
95.1%
95.0%
3.1%
4.9%
5.0%
FY12
FY13
FY14
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
Retail Corporate
LOAN DISTRIBUTION BY CUSTOMER TYPE – FY 2014
NPL RATIO
5.0%
7.9%
6.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
FY12 FY13 FY14
Deposit Portfolio 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 19
CUSTOMER DEPOSITS (GHS million)
707
799
1,384
0
200
400
600
800
1,000
1,200
1,400
1,600
FY12 FY13 FY14
DEPOSIT MIX BY TYPE
52.4% 46.0% 45.6%
43.4%48.9% 50.5%
4.3% 5.1% 3.9%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
FY12 FY13 FY14
Current Account Time Deposits Savings Deposits
74.9% 73.0% 67.4%
25.1% 27.0% 32.6%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
FY12 FY13 FY14
Local Currency Foreign Currency
DEPOSIT MIX BY CURRENCY
Funding, Capital Adequacy & Liquidity
CAL BANK - INVESTOR & ANALYST PRESENTATION 20
20.0% 19.4%
27.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
FY12 FY13 FY14
FUNDING MIX
67.6%
54.4% 52.4%
19.9%
19.5%15.5%
12.5%
26.1%32.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
FY12 FY13 FY14
Deposits Equity Borrowing
CAPITAL ADEQUACY RATIO
LIQUIDITY RATIO
51.1%42.7%
56.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
FY12 FY13 FY14
Share Price Chart Jan-Dec 2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 21
-
0.20
0.40
0.60
0.80
1.00
1.20
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
Volume Traded Price (GHS)Min Price: GHS 0.85Max Price: GHS 1.05Year-end Price: GHS 1.01Current Price: GHS 1.03* (06/02/2015)
Pricing Evolution 2012-2014
CAL BANK - INVESTOR & ANALYST PRESENTATION 22
4.03x
5.69x
3.91x
0.00x
1.00x
2.00x
3.00x
4.00x
5.00x
6.00x
FY12 FY13 FY14
PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO
1.00x
1.88x
1.42x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
FY12 FY13 FY14
Outline
CAL BANK - INVESTOR & ANALYST PRESENTATION 23
> Overview of CAL Bank Limited
> Operating Environment
> Full Year Unaudited 2014 Financial Highlights
> Review of Full Year Unaudited 2014 Financial Performance
> 2015 Strategy and Outlook
2015 Strategy & Outlook
CAL BANK - INVESTOR & ANALYST PRESENTATION 24
People
Technology
Risk Management &
Compliance
• Roll-out bespoke training of all staff using dedicated CAL resource Center• Continue to reward staff performance to retain motivated & high quality personnel• Deepen cross-training to enhance cost and operational efficiency• Remain on-track with CAL Head Office project to provide world class , conducive work environment
• Pursue high quality, selective asset growth from target sectors• Grow non-funded income from International trade , forex , advisory & syndication mandates• Increase share of wallet across target business sectors (oil & gas, energy & power, services and telecommunications)
• Increase branch network to 30 - selected locations to increase deposit base• Launch further attractive promotions to boost deposits.• Build capacity of sales teams to popularise new retail product and increase take-up• Develop additional E-banking services and Card products targeting retail consumers• Launch branchless banking through agencies and outlets
• Continue business process automation to boost operating efficiency• Increase operational ATMs from 85 to 110 by year end 2015• Enhance IT products to offer additional channel expansion notably:
– VISA/MasterCard POS merchant terminals– MasterCard/ China Union Pay products– ATM acquiring on MasterCard– Issuance of Prepaid Master Cards– Enhance Visa Platform using VBV– Acquiring Diners and Discovery on ATMs/POS channels– Enhanced Internet banking
• Strengthen risk management framework• Balance market risk exposures while optimising return on risk• Enhance loan monitoring and early-detection toolkits to ensure quality loan portfolio.• Maintain low NPL ratio
Corporate Banking
RetailBanking
CAL BANK - INVESTOR & ANALYST PRESENTATION 25
THANK YOUQ&A
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