CalBank Plc has delivered a remarkable turnaround in its unaudited financial results for the first quarter of 2026, reporting a sharp surge in profitability, stronger capital levels, and significant improvements in asset quality. The performance marks a decisive shift from the challenges seen in the same period last year and signals a bank in recovery mode.
For the quarter ended March 31, 2026, CalBank recorded a profit after tax of GHS 106.8 million, a substantial increase from GHS 35.6 million reported in Q1 2025. This represents nearly a threefold increase in earnings, underscoring a strong rebound in the bank’s core operations. Profit before tax also rose significantly to GHS 163.8 million, compared to GHS 64.8 million a year earlier, highlighting improved operational efficiency and revenue expansion.
The bank’s top-line performance was equally impressive. Total revenue climbed to GHS 326.7 million, more than doubling from GHS 154.8 million in the prior year period. This growth was driven by a combination of higher interest income, improved fee generation, and a significant boost in trading activities. Net interest income rose to GHS 171.1 million, supported largely by a reduction in interest expenses, while net fees and commission income increased to GHS 66.3 million.
However, the most notable contributor to revenue growth was trading income, which surged to GHS 89.3 million, compared to just about GHS 25 million in Q1 2025.
Despite the strong revenue growth, operating expenses rose at a slower pace, allowing the bank to expand its profit margins. Total operating expenses stood at GHS 165.2 million, up from GHS 128.3 million in the previous year. The relatively moderate increase in costs compared to revenue growth reflects improved cost management and operational discipline.
On the balance sheet, CalBank demonstrated notable growth and repositioning. Total assets increased to GHS 13.4 billion, up from GHS 11.8 billion in Q1 2025. A closer look at asset composition reveals a strategic shift in the bank’s portfolio. Investment securities rose significantly to GHS 8.08 billion, while loans and advances to customers declined sharply to GHS 1.15 billion from GHS 2.22 billion.
This shift suggests a deliberate move away from higher-risk lending toward safer, more liquid government securities and financial instruments. While this strategy enhances stability and reduces credit risk exposure, it may also limit future income growth from traditional lending activities if not balanced ef
Funding and liquidity positions also improved considerably during the quarter. Customer deposits increased to GHS 10.34 billion, up from GHS 9.05 billion in the same period last year, indicating strong customer confidence and deposit mobilization efforts. At the same time, the bank reduced its reliance on borrowings, which declined to GHS 933 million from GHS 1.87 billion.
The stronger deposit base, combined with reduced borrowing, reflects a healthier funding structure and lower financing costs, further supporting profitability.
CalBank’s capital position also strengthened significantly. Total shareholders’ equity rose to GHS 1.69 billion, a dramatic increase from GHS 308 million recorded in Q1 2025. This improvement highlights the bank’s successful efforts to rebuild its capital base and absorb past losses, positioning it more favorably to meet regulatory requirements and support future growth.
One of the most encouraging developments in the report is the sharp improvement in asset quality. The bank’s non- performing loan (NPL) ratio dropped to 15.1%, a significant decline from 45.5% in the previous year. This indicates substantial progress in loan recovery, restructuring, and risk management practices.
From a regulatory standpoint, the bank appears to be in a much stronger position. The capital adequacy ratio stood at 17.2%, comfortably above minimum requirements, while the liquidity ratio improved to 90.7%, reflecting strong short-term financial resilience.
Cash flow performance further reinforced the positive outlook. The bank generated net operating cash inflows of GHS 1.45 billion, a significant turnaround from the negative cash flows recorded in Q1 2025. This was largely driven by strong growth in customer deposits and improved operational performance.
Overall, CalBank’s Q1 2026 results reflect a bank that is stabilizing after a difficult period. The combination of strong profit growth, improved asset quality, enhanced capital levels, and a more conservative asset allocation strategy suggests that management is prioritizing resilience and long-term sustainability.
However, the results also highlight an important structural consideration. A significant portion of the bank’s earnings growth was driven by trading income, which can be volatile and dependent on market conditions. Sustaining this level of profitability will likely require a balanced approach that strengthens core lending activities while maintaining prudent risk management.
In summary, CalBank’s performance in the first quarter of 2026 signals a robust recovery and a shift toward stability, positioning the bank as one of the notable turnaround stories in Ghana’s banking sector.
