cal bank limited - the vault ghs 27.09 billion¹ up by 23.1% from december 2014 npls ghs 4.52...
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C A L B A N K L I M I T E D
2 0 1 5 A N N U A L R E S U LT S P R E S E N TAT I O NI n v e s t o r & A n a l y s t P r e s e n t a t i o n
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Disclaimer
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.
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Outline
Overview of CAL Bank Limited
Operating Environment
Full-Year 2015 Financial Highlights
Review of Full-Year 2015 Financial Performance
Strategy and Outlook
2 0 1 5 A N N U A L R E P O R T P R E S E N T A T I O N
CAL BANK AT A GLANCE
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Management
Mr. Frank AduManaging Director
Mr. Philip OwireduExecutive Director
Mr. Joseph Ofori-TeikoGeneral Manager
Mr. Charles AmoahAssistant General Manager
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
CAL Bank Limited
SSNIT33.2%
ADP I HOLDING 427.7%
OTHERS25.8%
ICAM3.9%
FRONTAURA3.0%
DANIEL OFORI2.5%
FRANK BRAKO ADU, JR
2.2%
CENTUM EXOTICS
2.7%
PARTNERS
SHAREHOLDING STRUCTURETHE BANK AT A GLANCE
CAL Bank Limited is an indigenous bank established inGhana in 1990, listed on the Ghana Stock Exchange
Focus: corporate banking, asset-backed retail lending,
treasury, corporate finance, asset management,
brokerage
Subsidiaries: 3 wholly owned
Network:‐ 25 branches,‐ 93 ATMs,‐ 15 corresponding banks
Headcount: 751 employees
Issued Shares: 548.26 million
Market cap: GHS 548.26 million¹
Public Float: 36.74%
1. As at 31st December, 2015
2 0 1 5 A N N U A L R E P O R T P R E S E N T A T I O N
OPERATING ENVIRONMENT
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Ghana Scorecard
GROSS DOMESTIC PRODUCT
INFLATION
POLICY RATE
CEDI-DENOMINATED5-YEAR GoG BOND ISSUE
FOREIGN EXCHANGE
Provisional estimate of GDP growth as at 3Q2015 - 3.6%
Agriculture - 3.2%
Industry - 3.6%
Services - 4.9%
• Monetary policy rate is currently 26.0% up from 21% in January 2015. The Monetary Policy Committee (MPC) maintained the rate at its last meeting in January 2016.
• The Government of Ghana paid a 24.75% yield on 5-year domestic bond sold at GHc746.4m.
• The foreign exchange market experienced increased volatility in the first half of 2015,resulting in a 26.2% depreciation of the local currency against the US dollar.
• The trend however moderated in the last quarter of 2015 as foreign exchange inflowsimproved amid policy tightness. Foreign inflows from the Cocoa loan and Eurobondissue summing up to about USD 2.8 billion provided a strong buffer to the foreignexchange market.
• Consequently, the cedi appreciated by 14.5% during the second half of 2015.
• Cumulatively, the cedi depreciated by 15.7% on a year–on-year basis in 2015, a muchslower pace than the 31.3% depreciation recorded in 2014.
• Headline inflation of 17.7% in December 2015 up marginally from 17.0% in December2014
• January 2016 recorded an inflation rate of 19.0%
UPCOMING DEVELOPMENTS
• The next MPC Meeting will be from Friday, March 18 to Monday March 21,2016
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Ghana & Banking Sector Scorecard
12LOCAL PRIVATE
3GOVERNMENT
14 FOREIGN
2 9 L I C E N S E D B A N K S I N O P E R A T I O N
NPL RATIO
14.9%¹Up from 11.2% in Dec 2014
TOTAL ASSETS
GHS 63.30 BILLION¹
up by 23.1% from December 2014
NET LOANS & ADVANCES
GHS 27.09 BILLION¹
up by 23.1% from December 2014
NPLs
GHS 4.52 BILLION¹Up from GHS 2.72 billion in December 2014
1. Source: MPC report- January 20162. Source: Trading economics
• 2 new banks licensed in 2015:GN Bank and First National Bank (FNB)
• First Capital Plus Bank rebranded to Capital Bank in 2015
C R E D I T C O N D I T I O N S
AVERAGE LENDING RATES²
38.3%Up from 33.85% in Jan 2015
B A N K S ’ B A L A N C E S H E E T
CREDIT TO PRIVATE SECTOR GROWTH
6.3%Compared to 21.0% in Dec 2014
CREDIT TO HOUSEHOLDS GROWTH
-8.1%Compared to 23.7% in Dec 2014
2 0 1 5 A N N U A L R E P O R T P R E S E N T A T I O N
CAL BANK FULL-YEAR 2015 FINANCIAL PERFORMANCE
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Summarized Income Statement FY 2015
(GHS ‘000) FY 2015 3Q 2015 FY 2014 ΔY/Y
Interest Income 466,822 333,056 355,027 32%
Interest Expense (218,192) (157,131) (170,943) 28%
Net Interest Income 248,630 175,925 184,084 35%
Fees and Commission Income 69,841 52,826 54,921 27%
Fees and Commission Expense (4,511) (3,592) (3,019) 49%
Net Fees & Commissions 65,330 49,234 51,902 26%
Net Trading Income 70,699 59,359 76,337 (7%)
Other Income 16,357 9,015 12,755 28%
Operating Income 400,997 293,533 324,942 23%
Credit Loss Expense (35,677) (17,440) (20,478) 74%
Net Operating Income 365,320 276,093 304,464 20%
Total Operating Expense (144,031) (107,171) (106,067) 36%
Profit Before Tax 221,308 168,978 198,533 11%
Income Tax Expense (44,005) (42,122) (45,454) (3%)
National Fiscal Stabilisation Levy (11,065) (8,364) (9,928) 11%
Profit-After-Tax 166,238 118,492 143,151 16%
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Income Analysis
NET INTEREST INCOME and NET INTEREST MARGIN ANALYSIS NON-FUNDED INCOME
41
.4
84
.6
14
3.7
18
4.1
24
8.6
10.2%
10.1%
12.2%
9.9% 9.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
50.0
100.0
150.0
200.0
250.0
300.0
FY 11 FY 12 FY 13 FY 14 FY 15
GH
S m
illio
ns
NII NIM
29.6m
48.6m
75.3m
140.8m
TOTAL
152.2m
Income type CAGR (%)
Net Fees & Commissions 45.3%
Net Trading Income 60.9%
Other Income 39.1%
14.6
25.8
29.7
51.9
65.3
10.5
13.9
31.2
76.3
70.6
4.4
8.9
14.4
12.6
16.3
F Y 1 1
F Y 1 2
F Y 1 3
F Y 1 4
F Y 1 5
Net Fees & Commissions Net Trading Income Other Income
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Credit Loss Expense and NPLs
CREDIT LOSS EXPENSE
11
.5
17
.5
17
.5
20
.5
35
.7
F Y 1 1 F Y 1 2 F Y 1 3 F Y 1 4 F Y 1 5
GH
S M
illio
ns
NON PERFORMING LOANS
42
.6
39
.1
80
.7
85
.2
10
3.3
9.7%
5.1%
7.9%
6.2% 5.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-
20.0
40.0
60.0
80.0
100.0
120.0
FY 11 FY 12 FY 13 FY 14 FY 15
GH
S M
illio
ns
NPLs NPL Ratio
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Profit DriversCOST-TO-INCOME-RATIO
50.9%
36.6%
33.8% 32.6%
35.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
FY 11 FY 12 FY 13 FY 14 FY 15
COST OF FUNDS
10.4%
16.5%
17.8%
18.7%
17.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
FY 11 FY 12 FY 13 FY 14 FY 15
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Summarized Balance Sheet FY 2015
(GHS ‘000) FY 2015 3Q 2015 FY 2014 ΔY/Y
Investments in Government Securities 291,868 956,491 409,217 (29%)
Loans and Advances to Customers 1,805,285 1,529,894 1,337,205 35%
Other Assets 1,133,597 439,803 890,053 27%
Fixed Assets 133,750 107,006 78,917 69%
Total Assets 3,364,500 3,033,194 2,715,392 24%
Total Deposits 1,602,832 1,397,099 1,395,841 15%
Borrowings 1,113,452 998,543 827,455 35%
Other Liabilities 128,717 163,397 92,555 39%
Shareholders Equity 519,499 474,155 399,541 30%
Total Liabilities and Shareholders Equity 3,364,500 3,033,194 2,715,392 24%
Earnings per share (GHS per share) 0.3032 0.2161 0.2611 16%
Dividends per share (GHS per share) 0.0970 N/A 0.0810 20%
Return on Assets (%) 4.9 5.2 5.3 (8%)
Return on Equity (%) 32.0 33.3 35.8 (11%)
Capital Adequacy Ratio (%) 21.4 20.1 21.8 (2%)
Cost-to-Income Ratio (%) 35.9 36.5 32.6 10%
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Growing Asset Base 2011-2015
TOTAL ASSETS
TOTAL ASSET MIX
80
9.4
1,1
62
.9
1,5
64
.1
2,7
15
.4
3,3
64
.5
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
FY 11 FY 12 FY 13 FY 14 FY 15
GH
S M
illio
ns
20
15
20
14 Cash & Bank
Balances9%
Loans & Advances
49%Property & Equipment
3%
Investments15%
Other Assets24%
Cash & Bank Balances
7%
Loans & Advances
54%
Property & Equipment
4%
Investments9%
Other Assets26%
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Loan Portfolio
LOAN DISTRIBUTION BY SECTOR
89
.4%
90
.8%
87
.5%
83
.7%
95
.3%
10
.6%
9.2
%
12
.5%
16
.3% 4
.7%
FY 11 FY 12 FY 13 FY 14 FY 15
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Corporate Retail
LOAN DISTRIBUTION BY CUSTOMER TYPE
411 m 747m 980 m 1,337mTOTAL LOANS
1,806m
20
15
20
14
Agriculture<1%
Commerce & Finance
19%
Construction25%
Electricity, Gas & Water17%
Manufacturing3%
Mining & Quarrying
3%
Miscellaneous5% Government
14% Services12%
Transport, Storage & Communication
2%
Agriculture<1%
Commerce & Finance
21%
Construction20%
Electricity, Gas & Water26%
Manufacturing3%
Mining & Quarrying
2%
Miscellaneous4%
Government7%
Services 10%
Transport, Storage & Communication
3%
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Deposit Portfolio 2011-2015
DEPOSIT MIX BY TYPE
65
.7%
74
.9%
73
.0%
67
.4%
69
.4%
34
.3%
25
.1%
27
.0%
32
.6%
30
.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
FY 11 FY 12 FY 13 FY 14 FY 15
Local Currency Foreign Currency
CUSTOMER DEPOSITS 586.8m 706.7m 799.2m 1,348.2m 1,544.5m
DEPOSIT MIX BY CURRENCY
50
.0%
52
.4%
46
.0%
45
.6%
46
.3%
46
.9%
43
.3%
48
.9%
50
.5%
48
.5%
3.1
%
4.3
%
5.1
%
3.9
%
5.2
%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
FY 11 FY 12 FY 13 FY 14 FY 15
Current Time Savings
586.8m 706.7m 799.2m 1,348.2m 1,544.5mCUSTOMER DEPOSITS
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Branch Expansion & Deposit Growth
18
19
20
21
25
586.8
706.7
799.2
1,348.2
1,544.5
0
5
10
15
20
25
30
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Branch Network Customer Deposits
GH
S M
illio
ns
CAGR 27.4%CAGR 8.6%
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Funding Mix
75
.6%
68
.4%
53
.3%
51
.3%
47
.6%
13
.0%
18
.6%
22
.2%
18
.4%
19
.3%
11
.4%
11
.2%
24
.5%
30
.5%
33
.1%
F Y 1 1 F Y 1 2 F Y 1 3 F Y 1 4 F Y 1 5
Deposits Equity Borrowing
809.3m 1,162.9m 1,564.1m 2,715.4mTOTAL ASSETS
3,364.5m
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Capital
RETURN ON AVERAGE EQUITY CAPITAL ADEQUACY RATIO
11.6%
20.0% 19.4%
21.8%21.4%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
FY 11 FY 12 FY 13 FY 14 FY 15
Regulatory Minimum: 10%
20.2%
34.8%37.8%
41.7%36.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
FY 11 FY 12 FY 13 FY 14 FY 15
RETURN ON AVERAGE ASSETS
2.6%
5.2%
6.9% 6.7%
5.5%
0.0%
2.0%
4.0%
6.0%
8.0%
FY 11 FY 12 FY 13 FY 14 FY 15
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Share Price Chart
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Volume Traded Price (GHS)
Min Price: GHS 0.77Max Price: GHS 1.15End of Period Price: GHS 1.00
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Pricing Evolution
PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO
4.1
1x
4.0
3x
5.6
9x
3.8
7x
3.3
0x
F Y 1 1 F Y 1 2 F Y 1 3 F Y 1 4 F Y 1 5
0.7
9x
1.0
0x
1.8
5x
1.3
9x
1.0
6x
F Y 1 1 F Y 1 2 F Y 1 3 F Y 1 4 F Y 1 5
2 0 1 5 A N N U A L R E P O R T P R E S E N T A T I O N
STRATEGY & OUTLOOK
A N N U A L R E P O R T P R E S E N T A T I O N | 2 0 1 5
Strategy & Outlook
People+
Technology
Risk Management & Compliance
• Implement a comprehensive performance management and reward systems.
• Deepen staff skills and knowledge.
• Develop and implement structured career progression and succession planning program.
• Enhance organizational competence.
• Implement workplace health and safety program.
• Employ cutting-edge technology to deliver enhanced tailor-made solutions for our corporate customers to offer themconvenience and real-time banking.
• Enhance forex generating capacity to ensure we meet forex needs of our customers.
• Enhance relationship management and product knowledge to ensure we meet forex needs of customers
• Leverage on growth in digital and mobile technology to develop cutting edge solutions that will offer customers
convenience and also reach out to the unbanked.
• Enhance transaction and process efficiency through technology.
• Continuous and sustained investments in technology to ensure development of up-to-date, efficient products and
services.
• Enhance loan monitoring and early-detection toolkits to improve quality of loan portfolio.
• Maintain low NPL ratio.
• Continuously develop risk management and compliance culture amongst staff through training and other staffengagements.
• Ensure adherence to regulatory requirements and best practice compliance procedures.
Retail Banking
CorporateBanking
• Develop e-payment platforms with emphasis on digital channels.
• Leverage on growing card schemes to offer diversified card services for enhanced customer experience, positivelyimpacting on our customer base and translating into increased deposits.
• Promote financial inclusion by deploying digital solutions to offer branchless banking services.
• Refresh existing products and services by leveraging on enhanced technology to improve customer experience andmarket competitiveness.
2 0 1 5 A N N U A L R E P O R T P R E S E N T A T I O N
THANK YOUQ&A
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