CalBank Plc delivered a remarkable financial rebound in the three months ended 31 March 2026. The bank’s group profit after tax jumped to GHS 106.8 million, more than triple the GHS 35.6 million recorded in the same period of 2025. This strong bottom-line growth was driven by a sharp rise in core banking income and improved operational efficiency.
On the income side, net interest income nearly doubled to GHS 171.1 million from GHS 86.3 million a year earlier, reflecting better margins and a more stable funding base. Net fees and commission income rose 52% to GHS 66.3 million, while net trading income soared 257% to GHS 89.3 million, boosted by foreign exchange and trading activities. Overall group revenue more than doubled to GHS 326.7 million. Although operating expenses increased, they grew at a slower pace than revenue, allowing the bank to convert the top-line growth effectively into higher profits. Earnings per share stood at GHS 0.1009.
The balance sheet also tells a story of renewed strength. Total group assets grew 13% to GHS 13.43 billion. Customer deposits increased by 14% to GHS 10.34 billion, indicating rising customer confidence. While loans and advances to customers were deliberately moderated to GHS 1.15 billion (down 48% from the prior year) as part of ongoing portfolio cleaning, the bank maintained healthy liquidity. Most importantly, non-performing loans fell dramatically from 45.5% to 15.1%, and the capital adequacy ratio improved from a negative -7.1% to a solid 17.2% — well above regulatory requirements. The common equity tier 1 ratio also turned positive at 15.3%, and the liquidity ratio stood at a comfortable 90.7%.
Cash flow performance was equally robust. The group generated GHS 1.45 billion in net cash from operating activities — a massive swing from a cash outflow of GHS 351.8 million in Q1 2025. This strong cash generation supported investment activities and left the bank with a healthy cash and cash equivalents balance of GHS 2.20 billion at quarter-end.
Market reaction and outlook for CAL shares
The results represent a clear positive catalyst for CAL shares on the Ghana Stock Exchange. Investors have been waiting for evidence of a sustainable turnaround, and this report delivers it on multiple fronts: sharply higher profits, cleaned-up asset quality, restored capital strength, and robust cash generation.
With non-performing loans now under control and a strong capital buffer in place, CalBank is well positioned to resume prudent lending growth in the coming quarters. Analysts expect the improved fundamentals to support higher valuations, potentially lifting the stock’s price-to-earnings and price-to-book multiples. The capital raise completed in 2025 has increased the share count, but the significantly higher absolute profit more than offsets this dilution for long-term shareholders.
Overall, the Q1 2026 results mark a confident step forward for CalBank. The bank’s management has demonstrated both discipline in cleaning the balance sheet and the ability to generate strong earnings momentum. Market watchers will now look to the next quarters for confirmation of sustained loan growth and further NPL reduction — developments that could drive continued positive momentum for CAL shares.