CAL BANK LIMITED HALF YEAR 2016 INTERIM RESULTS PRES ESENTATI ENTATION ON August 17, 2016
D I S C L A I M E R 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 enabling users understand the inherent potential of the business. It is therefore not a solicitation to buy or sell the stock. The information contained herein is subject to change and neither the bank nor its staff is under any obligation to notify you or make public any announcement with respect to such change. Users are hereby advised to exercise caution in attempting to rely on this information and carry out further research before reaching conclusions regarding their investment decisions. H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
TA B L E O F C O N T E N T S INTRODUCTION & HIGHLIGHTS Dzifa Amegashie, Head of Investor Relations 1H16 FINANCIAL PERFORMANCE Philip Owiredu, Executive Director QUESTION & ANSWER Moderated by IC Securities (Ghana) Limited CLOSING REMARKS Dzifa Amegashie, Head of Investor Relations H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
S P E A K E R S Mr. Philip Owiredu Mr. Joseph Ofori-Teiko Executive Director General Manager Mr. Charles Amoah Assistant General Manager Ms. Dzifa Amegashie Investor Relations H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
INTRODUCTION & HIGHLIGHTS
I N T R O D U C T I O N & H I G H L I G H T S Operating Environment CAL Bank Limited Overview H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
O P E R AT I N G E N V I R O N M E N T : G H A N A M A C R O “ S N A P S H O T ” I N F L AT I O N P O L I C Y R AT E C U R R E N C Y 18.4 26.0 3.3 P E R C E N T P E R C E N T P E R C E N T Maintained at 26.0% since November Currently 16.7% (July 2016) down from The Ghana Cedi depreciated by 3.3% 2015. Up from 22.0% in June 2015 17.1% in June 2015 & down from its against the USD in 1H16 compared to peak of 19.2% in March 2016. 26.1% in 1H15 G D P G R O W T H R AT E P U B L I C D E B T I N T E R B A N K R AT E 4.9 66.6 25.5 P E R C E N T P E R C E N T P E R C E N T Real GDP grew by 4.9% (y-o-y)¹ in Total public debt as a percent of GDP in Interbank lending rate in June 2016, up 1Q16 compared to 4.5% recorded for May 2016, marginally down from 67.9% from 24.1% in June 2015 1Q15. in June 2015 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N Source: MPC Release – July 2016, Ghana Statistical Service, BoG 1. Year-on year estimates compare current economic developments with that of the same period in the previous year. There is little or no influence of seasonal variations
O P E R AT I N G E N V I R O N M E N T : B A N K I N G S E C T O R BANKING SECTOR UPDATES BANKING SECTOR OVERVIEW¹ T O T A L T O T A L T O T A L A S S E T S D E P O S I T S A D V A N C E S » In 1H16, the banking sector had 30 operating banks up from 29 in 1Q16. Sovereign Bank, an indigenous bank, began operations in 2Q16: 66.1 42.7 31.4 ᗌ 14 foreign B I L L I O N B I L L I O N B I L L I O N ᗌ 3 government ᗌ 13 local banks Annual growth of 17.7% Annual growth of 19.3% Annual growth of 11.3% » Ghana Home Loans, a leading mortgage financing company in Ghana, was issued with a provisional banking license by the Bank of Ghana (BoG) in I N D U S T R Y I N D U S T R Y I N D U S T R Y July 2016. The license paves way for Ghana Home C A P I T A L N O N - A V E R A G E A D E Q U A C Y P E R F O R M I N G L E N D I N G Loans to begin operations as a universal bank and R A T I O L O A N S R A T E also grow the company. 16.6 19.3 32.7 » Treasury Bills Market: June 16 (%) June 15 (%) % ∆ P E R C E N T P E R C E N T P E R C E N T 91-day rate 22.8 25.2 9.5% 182-day rate 24.6 25.9 5.0% Down from 17.9% in Up from 14.6% in January Up from 29.0% in June January 2016 2016 2015 1-year rate 23.0 22.5 2.2% 1. All figures as at May 2016 unless otherwise indicated H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N 2. June 2016 Source: MPC Release – July 2016, Ghana Statistical Service, BoG
I N T R O D U C T I O N & H I G H L I G H T S Operating Environment CAL Bank Limited Overview H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
C A L B A N K L I M I T E D SHAREHOLDING STRUCTURE DANIEL OFORI FRANK BRAKO CENTUM EXOTICS CAL Bank SUBSIDIARIES EMPLOYEES 2.5% ADU, JR 2.7% 2.2% Limited 3 780 FRONTAURA 3.0% is an indigenous SSNIT 33.2% bank established ICAM in Ghana in 1990, 3.9% listed on the WHOLLY PROFESSIONAL Ghana Stock OWNED STAFF Exchange OTHERS 25.8% CHANNELS ADP I HOLDING 4 27.7% 26 93 15 PARTNERS Branches ATMs Active Corr. Banks ISSUED SHARES MARKET VALUE PUBLIC FLOAT 548.26 438.60 36.74 MILLION MILLION CEDIS¹ PERCENT 1. Share Price at 30 June 2016 – GHS 0.80 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1H16 FINANCIAL PERFORMANCE
1 H 1 6 F I N A N C I A L P E R F O R M A N C E 1H16 Performance of Listed Banks CAL 1H16 Performance Highlights CAL Share Price Performance for the period CAL Strategy and Outlook H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : P R O F I T - A F T E R - TA X G H S M I L L I O N S 211 196 188 151 150 79 73 66 26 17 16 13 EGH GCB SCB CAL SOGEGH HFC UTB N/A 1H15 1H16 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : T O TA L A S S E T S TOTAL ASSETS (GHS BILLIONS) 6.8 6.7 5.0 4.9 3.7 3.4 3.3 3.1 2.2 2.1 1.9 1.7 1.4 N/A EGH GCB SCB CAL SOGEGH HFC UTB 1H15 1H16 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S - N P L s NON PERFORMING LOANS RATIO (%) 51.7 26.3 20.7 20.2 17.5 16.4 15.4 13.1 9.0 6.9 6.1 1.5 N/A SCB HFC SOGEGH EGH GCB CAL UTB 1H15 1H16 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : S H A R E H O L D E R R E T U R N S - R O A R O A ( % ) 8.0% 7.5% 6.3% 6.2% 5.7% 5.1% 4.3% 4.0% 2.3% 2.2% 2.0% 1.4% N/A SCB GCB EGH CAL SOGEGH HFC UTB ROA 15 ROA 16 Using annualized 2016 figures H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : S H A R E H O L D E R R E T U R N S - R O E R O E ( % ) 53.4% 51.4% 49.4% 39.9% 39.4% 36.2% 26.3% 24.9% 20.0% 16.1% 12.7% 11.4% N/A SCB EGH GCB CAL SOGEGH HFC UTB ROE 15 ROE 16 Using annualized 2016 figures H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 P E R F O R M A N C E O F L I S T E D B A N K S : S T O C K R E T U R N S PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO 12.7x 11.5x 3.9x 3.1x 2.9x 7.8x 2.3x 6.6x 5.9x 5.6x 5.0x 1.7x 1.5x 1.4x 4.0x 1.3x 3.5x 3.5x 1.2x 1.1x 2.9x 0.9x 0.9x 0.0x SCB EGH SOGEGH GCB CAL HFC SCB EGH HFC GCB CAL SOGEGH 1H15 1H16 1H15 1H16 H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
1 H 1 6 F I N A N C I A L P E R F O R M A N C E 1H16 Performance of Listed Banks CAL 1H16 Performance Highlights CAL Share Price Performance for the period CAL Strategy and Outlook H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
C A L S U M M A R I Z E D G R O U P I N C O M E S TAT E M E N T 1 H 1 6 KEY ITEMS (GHS ‘000) 1H2016 1H2015 Δ Y/Y Interest Income 281,589 217,879 29.2% Interest Expense (137,254) (106,856) (28.4)% Net Interest Income 144,335 111,023 30.0% Fees and Commission Income 33,105 36,714 (9.8)% Fees and Commission Expense (1,759) (2,677) 34.3% Net Fees & Commissions 31,346 34,037 (7.9)% Net Trading Income 18,184 39,548 (54.0)% Other Income 5,943 6,591 (9.8)% Total Income 199,808 191,199 4.5% Credit Loss Expense (18,929) (11,136) (70.0)% Net Operating Income 180,879 180,063 0.5% Total Operating Expense (82,905) (67,894) (22.1)% Profit Before Tax 97,974 112,225 (12.7)% Income Tax Expense (26,841) (28,087) 4.4% National Fiscal Stabilization Levy (4,865) (5,529) 12.0% Profit-After-Tax 66,268 78,609 (15.7)% Trading income and fees and commissions fell considerably due to general slow down in trading activities Credit loss expense increased due to additional write-downs of specific corporate loans in the construction K E Y F A C T S sector Growth in operating expenses in line with inflation and increase in cost of goods and services H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N
Recommend
More recommend
