cal bank limited - the vault full year unaudited 2014 results investor & analyst presentation....

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


> 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


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


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


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







Ghana Scorecard


• 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


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 2014 Key Performance Highlights


(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







Income Analysis 2012-2014


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


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


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


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


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


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


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


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


-

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


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







2015 Strategy & Outlook


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


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cal bank limited - the vault full year unaudited 2014 results investor & analyst presentation....

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