CAL Bank PLC – Earnings Report
CAL Bank PLC: Non-Funded Income Strengthens the Earnings Recovery Narrative
CAL Bank PLC (CAL) recorded strong year-on-year earnings growth in 9M-2026, supported by higher net interest income, increased non-funded income and improved cost efficiency. The expansion in customer deposits also strengthens the outlook for funded income and net interest margin.
We maintain our BUY rating on CAL Bank PLC, with a 12-month target price of GHS1.05 per share, implying 44% upside potential.
The Bank’s 9M-2026 profit after tax (PAT) increased 39.40% year-on-year to GHS321.67 million, achieving 76.4% of our FY-2026 forecast. This performance was supported by a 70.56% increase in net interest income (NII), doubled non-funded income and improved cost efficiency.
CAL Bank Investment Rationale
Our investment case for CAL Bank is supported by four key factors:
- Improved net interest income: The recovery in current account and savings account (CASA) deposits provides access to cheaper funding sources, supporting NII growth.
- Optimal earning asset mix: Substantial nominal growth in investment securities supports a balance between the Bank’s risk and returns profile.
- Greater earnings diversification: Stronger non-funded income generation, particularly from trading income and fees and commissions, improves earnings diversification.
- Improved earnings visibility: Sustained earnings growth is expected to support return on equity and overall shareholder value.
CAL Bank Q3 2026 Earnings Analysis
CAL Bank recorded GHS164 million in net interest income in Q3-2026, representing a 49% year-on-year increase from GHS110 million in Q3-2025. However, NII declined 8% quarter-on-quarter from GHS178 million in Q2-2026 and was 18% below our Q3-2026 estimate of GHS201 million.
Net fees and commissions increased to GHS75 million, up 78% year-on-year and 9% quarter-on-quarter. The result exceeded our estimate of GHS55 million by 35%.
Net trading income stood at GHS56 million, increasing 164% year-on-year but declining 48% quarter-on-quarter. It was also 63% above our Q3-2026 estimate of GHS35 million.
| GHS’mn | Q3-2025 | Q2-2026 | Q3-2026 | Y/Y | Q/Q | Q3-2026E | Variance |
|---|---|---|---|---|---|---|---|
| Net Interest Income | 110 | 178 | 164 | 49% | -8% | 201 | -18% |
| Net Fees & Commission | 42 | 69 | 75 | 78% | 9% | 55 | 35% |
| Net Trading Income | 21 | 108 | 56 | 164% | -48% | 35 | 63% |
| Operating Income | 174 | 359 | 297 | 71% | -17% | 315 | -6% |
| Impairment (loss)/gains | 34 | 4 | (4) | -112% | -198% | (19) | -80% |
| Operating Expense | 136 | 166 | 170 | 25% | 2% | 168 | 1% |
| Tax Expense | 25 | 68 | 33 | 30% | -52% | 43 | -25% |
| Net Profit | 47 | 129 | 91 | 95% | -29% | 85 | 7% |
| EPS (GHS/share) | 0.04 | 0.03 | 0.02 | -50% | -29% | 0.02 | 7% |
Operating Income and Non-Funded Income Performance
CAL Bank’s operating income increased 71% year-on-year to GHS297 million in Q3-2026, although it declined 17% quarter-on-quarter from GHS359 million. Operating income was 6% below our estimate of GHS315 million.
The growth in operating income was supported by higher net interest income and stronger non-funded income. Net fees and commissions increased to GHS75 million, while net trading income reached GHS56 million.
Despite the year-on-year improvements, the quarter-on-quarter declines in net interest income and trading income moderated the overall growth in operating income relative to Q2-2026.
Impairment, Operating Expenses and Tax
The Bank recorded an impairment gain of GHS4 million in Q3-2026, compared with impairment losses of GHS34 million in Q3-2025 and GHS4 million in Q2-2026. The Q3-2026 result was also different from our estimate of a GHS19 million impairment gain.
Operating expenses increased 25% year-on-year to GHS170 million and rose 2% quarter-on-quarter from GHS166 million. This was broadly in line with our Q3-2026 estimate of GHS168 million, exceeding it by 1%.
Tax expense declined 52% quarter-on-quarter to GHS33 million, although it remained 30% higher year-on-year. The reported figure was 25% below our estimate of GHS43 million.
CAL Bank Net Profit and EPS
CAL Bank reported Q3-2026 net profit of GHS91 million, compared with GHS47 million in Q3-2025 and GHS129 million in Q2-2026. This represents 95% year-on-year growth and a 29% quarter-on-quarter decline.
Net profit was 7% above our Q3-2026 estimate of GHS85 million.
Earnings per share (EPS) stood at GHS0.02, compared with GHS0.04 in Q3-2025 and GHS0.03 in Q2-2026. EPS declined 50% year-on-year and 29% quarter-on-quarter, although it was 7% above our Q3-2026 estimate.
CAL Bank Outlook and Target Price
We maintain our BUY rating on CAL Bank PLC, with a 12-month target price of GHS1.05 per share, implying 44% upside potential.
The Bank’s 9M-2026 PAT of GHS321.67 million represents 76.4% of our FY-2026 forecast, supported by higher net interest income, doubled non-funded income and improved cost efficiency.
Our investment case remains centred on the recovery in CASA deposits and the resulting support for funded income and net interest margin, the Bank’s investment securities portfolio, stronger non-funded income generation and improved earnings visibility.
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