After years of grappling with a heavy burden of bad loans, CalBank PLC is signaling a careful but deliberate return to lending. However, this time, hard-earned lessons are shaping every decision to ensure that the indigenous bank does not return to the days of old. Speaking at the Facts Behind the Figures session, a platform created by the Ghana Stock Exchange, the bank revealed that its recovery efforts are beginning to pay off. The bank recorded a significant profit in the first quarter of 2026. Its non-performing loan (NPL) ratio, once an alarming 45.5%, has dropped sharply to 15.1%. At the same time, its capital adequacy ratio has strengthened to 17.2%, giving the bank more room to support businesses and economic activity. For a bank that had long struggled under the weight of defaulting loans, this marks a significant turnaround. READ ALSO How Poor Internet Connectivity Is Limiting Ghanaians’ Participation in the Digital Economy MTN Ghana Climbs to Gh¢6.28 As GSE Rally Strengthens on Banks and Heavy Telecom Trading Government To Revive Made In Ghana Fair To Boost Local Beverage Industry “As you all are aware, 2024-2025, we embark on a journey to restore our capital. Through this, we strengthen our capital position and, as we speak, with a capital adequacy ratio of 17.2 percent, giving us room to actually support future growth. But most importantly, asset quality is improving, with our current NPL ratio declining to 15.1% [from 45.5% last year] as a result of strong recovery efforts that we have undertaken,” the bank indicated. But the lesson is that CalBank says it is not rushing back into aggressive lending. Instead, management is emphasizing a more cautious and disciplined approach. This approach prioritizes quality over quantity. In practical terms, this means the bank will not simply increase lending volumes for the sake of growth. Rather, it will focus on giving loans to businesses and individuals with strong repayment capacity, credible financial records, and viable business models. It added, “As we remain focused on earning resilience, we also recognise the need to progressively expand the loanbook with a strong bias towards quality assets and disciplined risk management.” This “caution” reflects a shift in strategy. In the past, rapid loan expansion, sometimes without rigorous risk checks, contributed to the surge in bad loans. Now, CalBank is tightening its credit assessment processes, strengthening monitoring systems, and ensuring that loans are backed by realistic cash flow expectations, not just collateral. This means that for businesses seeking financing, there will be stricter requirements, such as clearer financial statements, stronger business plans, and more scrutiny before approval. Carl Asiem, Managing Director, Cal Bank While this may slow down access to credit for some, it ultimately aims to create a healthier banking environment where loans are sustainable and less likely to turn sour. The strategy also aligns with the bank’s broader goal of building resilience. By reducing bad loans and maintaining strong capital buffers, CalBank is positioning itself to withstand future economic shocks while still playing its role in supporting growth. Share this: Share on X (Opens in new window) X Share on Facebook (Opens in new window) Facebook Like this:Like Loading... Related