CalBank PLC has posted a strong set of financial results for the first half of 2026, reporting a 25 per cent increase in profit before tax as the lender's turnaround strategy continues to gather pace.
The bank recorded a profit before tax of GHS353.6 million for the six months ending June 2026, up from GHS283.2 million during the same period last year.
The performance was supported by stronger earnings from its core banking operations, with growth recorded across interest income, fees, commissions and trading activities.
Management said the results reflect a business that is increasingly relying on sustainable operating performance rather than one-off recoveries.
"Our first half performance demonstrates that CalBank's transformation is delivering sustainable financial results," Managing Director Carl Selasi Asem said.
Core income strengthens despite lower interest rates
One of the biggest drivers of the bank's performance came from net interest income, which climbed 83 per cent to GHS347.5 million.
The improvement came even as interest rates moderated. Interest income rose from GHS399 million to GHS451.5 million, while funding costs dropped sharply, pushing interest expenses down to GHS104 million from GHS209 million over the same period.
The bank also broadened its sources of revenue.
Net fees, commissions and trading income almost doubled to GHS323.3 million, compared with GHS162.7 million in the first half of 2025, highlighting stronger activity across its retail and commercial banking businesses.
Perhaps more telling was the changing composition of earnings.
Net impairment gains contributed just GHS7 million to profit during the review period, a sharp decline from approximately GHS154 million a year earlier. That shift suggests profitability is now being driven mainly by normal banking operations rather than recoveries from impaired assets.
Mr. Asem described this as a sign of healthier earnings quality.
"These results have been driven by the strength of our underlying banking franchise rather than one-off recoveries, reinforcing the quality and sustainability of our earnings," he said.
Balance sheet expands as customer confidence grows
CalBank also recorded solid growth in its balance sheet.
Total assets increased by 30 per cent to GHS13.9 billion from GHS10.7 billion at the end of June 2025, while customer deposits grew by the same margin to GHS10.9 billion.
The bank attributed the increase in deposits to sustained customer confidence, continued brand strength and the expansion of its retail and commercial banking operations.
Asset quality also improved significantly.
The non-performing loan ratio declined to 10.10 per cent from 51.60 per cent a year earlier, reflecting what management described as disciplined credit risk management and successful balance sheet remediation efforts.
Following its recapitalisation in 2025, CalBank further strengthened its financial position. Its Capital Adequacy Ratio improved to 18.17 per cent from negative 7.6 per cent at the end of June last year, while liquidity remained robust.
Looking ahead, Mr. Asem said the bank intends to build on the momentum recorded during the first six months of the year.
"We remain focused on disciplined execution and are confident that the momentum we have built positions us to deliver an even stronger performance in the second half of 2026," he said.
CalBank said it will continue to prioritise prudent risk management, deepen customer relationships and execute its long-term strategy to deliver sustainable value for shareholders.
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