CalBank Denies Boardroom Firings, Outlines Strategic Overhaul Amid Profit Return
CalBank PLC has clarified recent changes at its executive and board level following reports suggesting the bank had dismissed key figures as part of efforts to address previous impairments.
In a statement issued on Monday, September 30, 2024, CalBank denied that any directors had been fired, attributing recent departures to the natural expiration of board tenures and statutory governance cycles.
The bank confirmed that three independent non-executive directors, Mr. Ben Barth, Dr. Cynthia Forson, and Mr. Richard Arkutu, retired at the institution’s 2024 Annual General Meeting (AGM) on September 4, following the conclusion of their terms.
Barth chose not to seek renomination, while the tenures of Dr. Forson and Arkutu ended. CalBank described their contributions as “exceptional” and affirmed that no dismissals had taken place, contrary to claims in recent media reports.
Delays in the reappointment of directors, the bank noted, were due to an injunction filed by two minority shareholders aimed at halting the consideration of certain AGM resolutions. CalBank is preparing for an Extraordinary General Meeting (EGM) to appoint new directors and restore the board to full strength.
Until then, the remaining directors include:
– Joe Mensah (Chairman)
– Kofi Osafo-Maafo
– Kweku B. Korsah
– Solomon Asamoah
– Nana Otuo Acheampong
– Carl Selasi Asem (Managing Director)
CalBank is grappling with a series of legacy challenges, including impairments linked to bad loans, which the current board has worked to resolve. The bank has initiated a strategic overhaul, aimed at repositioning itself for sustainable growth.
Key measures include:
– Enhanced Risk Management: The bank has strengthened its credit and market risk frameworks, a move it says has prevented new loans from turning bad under the current board’s tenure.
– Provisions for Troubled Accounts: The board has prioritized transparency by making necessary provisions for troubled legacy accounts, allowing the bank to focus on rebuilding its financial position.
– Non-Performing Loan Recovery: Aggressive efforts to recover non-performing loans have been put in place, stabilizing the bank’s financial footing.
– Restructuring Deposit Base: CalBank has also transformed its deposit profile, attracting more stable, long-term funds that have improved its liquidity and balance sheet.
– Management Reshuffle: In June 2024, several senior management figures were either reassigned or terminated as part of the board’s commitment to transparency and accountability. Among the new appointments is Carl Selasi Asem as Managing Director, alongside other key hires aimed at bolstering the retail division.
Return to Profitability and Positive Outlook
Despite the challenges posed by legacy issues, CalBank reported a return to profitability in the first half of 2024. The bank’s improved risk management and tighter financial controls are expected to support sustained growth throughout the year. CalBank’s board credits its strategic decisions—including enhanced risk oversight and the right provisioning for bad accounts—for the positive turnaround in its financial performance.
Looking ahead, the bank remains focused on continuing its transformation while maintaining strong governance. The upcoming EGM will introduce new board members, adding expertise to guide the bank’s growth trajectory in an increasingly competitive market.
Poised for Future Success
As CalBank continues to rebuild, it is positioning itself for long-term growth and market leadership. With an emphasis on corporate governance, innovation, and operational excellence, the bank is confident in delivering value to its stakeholders. The strategic restructuring, combined with fresh leadership, is expected to solidify CalBank’s position as a leading player in Ghana’s banking sector.
