CAL BANK LIMITED

2015 ANNUAL RESULTS PRESENTATION Investor & Analyst Presentation ANNUAL REPORT PRESENTATION | 2015 Disclaimer

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. ANNUAL REPORT PRESENTATION | 2015 Outline

Overview of CAL Bank Limited

Operating Environment

Full-Year 2015 Financial Highlights

Review of Full-Year 2015 Financial Performance

Strategy and Outlook CAL BANK AT A GLANCE

2015 ANNUAL REPORT PRESENTATION ANNUAL REPORT PRESENTATION | 2015 Management

Mr. Frank Adu Mr. Philip Owiredu Managing Director Executive Director

Mr. Joseph Ofori-Teiko Mr. Charles Amoah General Manager Assistant General Manager ANNUAL REPORT PRESENTATION | 2015

CAL Bank Limited

THE BANK AT A GLANCE SHAREHOLDING STRUCTURE DANIEL OFORI FRANK BRAKO CENTUM 2.5% ADU, JR EXOTICS CAL Bank Limited is an indigenous bank established in 2.2% 2.7% FRONTAURA Ghana in 1990, listed on the Ghana Stock Exchange 3.0% SSNIT . Focus: corporate banking, asset-backed retail lending, 33.2% ICAM treasury, corporate finance, asset management, 3.9% brokerage . Subsidiaries: 3 wholly owned

. Network: OTHERS 25.8% ‐ 25 branches, ADP I HOLDING 4 ‐ 93 ATMs, 27.7% ‐ 15 corresponding banks PARTNERS . Headcount: 751 employees . Issued Shares: 548.26 million . Market cap: GHS 548.26 million¹ . Public Float: 36.74%

1. As at 31st December, 2015 OPERATING ENVIRONMENT

2015 ANNUAL REPORT PRESENTATION ANNUAL REPORT PRESENTATION | 2015 Ghana Scorecard

Provisional estimate of GDP growth as at 3Q2015 - 3.6%

GROSS DOMESTIC  Agriculture - 3.2% PRODUCT  Industry - 3.6%  Services - 4.9%

• Headline inflation of 17.7% in December 2015 up marginally from 17.0% in December INFLATION 2014 • January 2016 recorded an inflation rate of 19.0%

• The foreign exchange market experienced increased volatility in the first half of 2015, resulting in a 26.2% depreciation of the local currency against the US dollar. • The trend however moderated in the last quarter of 2015 as foreign exchange inflows improved amid policy tightness. Foreign inflows from the Cocoa loan and Eurobond FOREIGN EXCHANGE issue summing up to about USD 2.8 billion provided a strong buffer to the foreign exchange market. • Consequently, the cedi appreciated by 14.5% during the second half of 2015. • Cumulatively, the cedi depreciated by 15.7% on a year–on-year basis in 2015, a much slower pace than the 31.3% depreciation recorded in 2014.

• Monetary policy rate is currently 26.0% up from 21% in January 2015. The Monetary POLICY RATE Policy Committee (MPC) maintained the rate at its last meeting in January 2016.

CEDI-DENOMINATED • The Government of Ghana paid a 24.75% yield on 5-year domestic bond sold at 5-YEAR GoG BOND ISSUE GHc746.4m.

UPCOMING • The next MPC Meeting will be from Friday, March 18 to Monday March 21,2016 DEVELOPMENTS ANNUAL REPORT PRESENTATION | 2015 Ghana & Banking Sector Scorecard

29 LICENSED BANKS IN OPERATION BANKS’ BALANCE SHEET TOTAL ASSETS GHS 63.30 BILLION¹ 3 14 12 up by 23.1% from December 2014 GOVERNMENT FOREIGN LOCAL PRIVATE

• 2 new banks licensed in 2015: GN Bank and First National Bank (FNB) NET LOANS & ADVANCES • First Capital Plus Bank rebranded to Capital Bank in 2015 GHS 27.09 BILLION¹ up by 23.1% from December 2014 CREDIT CONDITIONS

AVERAGE LENDING RATES² NPLs 38.3% BILLION¹ Up from 33.85% in Jan 2015 GHS 4.52 Up from GHS 2.72 billion in December 2014

CREDIT TO PRIVATE SECTOR CREDIT TO HOUSEHOLDS GROWTH GROWTH NPL RATIO 6.3% -8.1% 14.9%¹ Compared to 21.0% in Dec 2014 Compared to 23.7% in Dec 2014 Up from 11.2% in Dec 2014

1. Source: MPC report- January 2016 2. Source: Trading economics CAL BANK FULL-YEAR 2015 FINANCIAL PERFORMANCE

2015 ANNUAL REPORT PRESENTATION ANNUAL REPORT PRESENTATION | 2015 Summarized Income Statement FY 2015

(GHS ‘000) FY 2015 3Q 2015 FY 2014 ΔY/Y

Interest Income 466,822 333,056 355,027 32%

Interest Expense (218,192) (157,131) (170,943) 28%

Net Interest Income 248,630 175,925 184,084 35%

Fees and Commission Income 69,841 52,826 54,921 27%

Fees and Commission Expense (4,511) (3,592) (3,019) 49%

Net Fees & Commissions 65,330 49,234 51,902 26%

Net Trading Income 70,699 59,359 76,337 (7%)

Other Income 16,357 9,015 12,755 28%

Operating Income 400,997 293,533 324,942 23%

Credit Loss Expense (35,677) (17,440) (20,478) 74%

Net Operating Income 365,320 276,093 304,464 20%

Total Operating Expense (144,031) (107,171) (106,067) 36%

Profit Before Tax 221,308 168,978 198,533 11%

Income Tax Expense (44,005) (42,122) (45,454) (3%)

National Fiscal Stabilisation Levy (11,065) (8,364) (9,928) 11%

Profit-After-Tax 166,238 118,492 143,151 16% ANNUAL REPORT PRESENTATION | 2015

Income Analysis

NET INTEREST INCOME and NET INTEREST MARGIN ANALYSIS NON-FUNDED INCOME TOTAL 300.0 14.0%

FY 1 5 65.3 70.6 16.3 152.2m

12.2% 12.0% GHS millions GHS 250.0 FY 1 4 51.9 76.3 12.6 140.8m 10.2% 10.0% 10.1% 200.0 9.9% 9.5% 75.3m FY 1 3 29.7 31.2 14.4 8.0%

150.0 FY 1 2 25.8 13.9 8.9 48.6m 6.0%

100.0 4.0% FY 1 1 14.6 10.5 4.4 29.6m

50.0 2.0% Net Fees & Commissions Net Trading Income Other Income

Income type CAGR (%)

41.4 41.4 84.6 143.7 184.1 248.6 - 0.0% Net Fees & Commissions 45.3% FY 11 FY 12 FY 13 FY 14 FY 15 Net Trading Income 60.9% NII NIM Other Income 39.1% ANNUAL REPORT PRESENTATION | 2015 Credit Loss Expense and NPLs

CREDIT LOSS EXPENSE NON PERFORMING LOANS

120.0 12.0%

35.7 35.7

Millions GHS GHS

100.0 9.7% 10.0% GHS GHS Millions

7.9% 80.0 8.0%

6.2% 5.5% 20.5 20.5

60.0 6.0%

17.5 17.5 17.5 17.5

5.1%

11.5 11.5 40.0 4.0%

20.0 2.0%

42.6 42.6 39.1 80.7 85.2 103.3 - 0.0% FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 NPLs NPL Ratio ANNUAL REPORT PRESENTATION | 2015

Profit Drivers

COST-TO-INCOME-RATIO COST OF FUNDS

60.0% 24.0% 50.9% 50.0% 20.0% 18.7% 17.8% 17.0% 40.0% 16.5% 36.6% 35.9% 16.0% 33.8% 32.6%

30.0% 12.0% 10.4%

20.0% 8.0%

10.0% 4.0%

0.0% 0.0% FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 ANNUAL REPORT PRESENTATION | 2015 Summarized Balance Sheet FY 2015

(GHS ‘000) FY 2015 3Q 2015 FY 2014 ΔY/Y

Investments in Government Securities 291,868 956,491 409,217 (29%)

Loans and Advances to Customers 1,805,285 1,529,894 1,337,205 35%

Other Assets 1,133,597 439,803 890,053 27%

Fixed Assets 133,750 107,006 78,917 69%

Total Assets 3,364,500 3,033,194 2,715,392 24%

Total Deposits 1,602,832 1,397,099 1,395,841 15%

Borrowings 1,113,452 998,543 827,455 35%

Other Liabilities 128,717 163,397 92,555 39%

Shareholders Equity 519,499 474,155 399,541 30%

Total Liabilities and Shareholders Equity 3,364,500 3,033,194 2,715,392 24%

Earnings per share (GHS per share) 0.3032 0.2161 0.2611 16%

Dividends per share (GHS per share) 0.0970 N/A 0.0810 20%

Return on Assets (%) 4.9 5.2 5.3 (8%)

Return on Equity (%) 32.0 33.3 35.8 (11%)

Capital Adequacy Ratio (%) 21.4 20.1 21.8 (2%)

Cost-to-Income Ratio (%) 35.9 36.5 32.6 10% ANNUAL REPORT PRESENTATION | 2015 Growing Asset Base 2011-2015

TOTAL ASSET MIX

TOTAL ASSETS Cash & Bank Balances Other Assets 2015 7% 26% 4,000.0

3,500.0 GHS GHS Millions

Loans & 3,000.0 Investments Advances 9% 54%

2,500.0 Property & Equipment 4% 2,000.0 Cash & Bank Balances 2014 Other Assets 9% 1,500.0 24%

1,000.0 Investments 15%

500.0 Loans & Advances

49%

1,162.9 1,162.9 1,564.1 2,715.4 3,364.5 809.4 809.4 Property & - Equipment FY 11 FY 12 FY 13 FY 14 FY 15 3% ANNUAL REPORT PRESENTATION | 2015 Loan Portfolio

LOAN DISTRIBUTION BY CUSTOMER TYPE LOAN DISTRIBUTION BY SECTOR

Mining & Miscellaneous Manufacturing Quarrying 4% 100% 2% Government 2015 3% Services

4.7% 7%

10%

9.2%

10.6% 16.3% 90% 12.5% Transport, Storage Electricity, Gas & & Communication Water 3% 80% 26%

70% Agriculture <1% 60% Construction 20% Commerce & 50% Finance 21%

40% Mining & Miscellaneous Quarrying 5% Government

2014 3% 14% 30% Services Manufacturing 12% 3% Transport, Storage 20% & Communication Electricity, Gas & 2% Water 10% 17%

Agriculture

90.8% 87.5% 83.7% 95.3% 89.4% <1% 0% FY 11 FY 12 FY 13 FY 14 FY 15

TOTAL 411 m 747m 980 m 1,337m 1,806m Construction Commerce & LOANS 25% Finance Corporate Retail 19% ANNUAL REPORT PRESENTATION | 2015 Deposit Portfolio 2011-2015

DEPOSIT MIX BY CURRENCY DEPOSIT MIX BY TYPE

100.0%

90.0%

30.6% 120.0% 25.1%

80.0% 27.0%

34.3%

32.6%

3.9%

5.1% 4.3%

100.0% 3.1%

70.0% 5.2%

60.0%

80.0% 50.5%

50.0% 43.3%

46.9%

48.9% 48.5% 60.0%

40.0%

69.4%

74.9%

65.7%

73.0% 67.4% 30.0% 40.0%

20.0%

46.0%

52.4% 50.0% 20.0% 45.6% 10.0% 46.3%

0.0% 0.0% FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 CUSTOMER CUSTOMER DEPOSITS 586.8m 706.7m 799.2m 1,348.2m 1,544.5m DEPOSITS 586.8m 706.7m 799.2m 1,348.2m 1,544.5m Current Time Savings Local Currency Foreign Currency ANNUAL REPORT PRESENTATION | 2015 Branch Expansion & Deposit Growth

30 1,800

1,544.5 1,600 25 Millions GHS 1,348.2 1,400

20 1,200

1,000

15 799.2 706.7 800

586.8 10 600

400 5

200

18 19 20 21 25 0 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Branch Network Customer Deposits

CAGR 8.6% CAGR 27.4% ANNUAL REPORT PRESENTATION | 2015

Funding Mix

11.4%

11.2%

24.5%

30.5%

33.1%

13.0%

18.6%

22.2%

18.4%

19.3%

75.6%

68.4%

53.3%

51.3% 47.6%

FY 11 FY 12 FY 13 FY 14 FY 15

TOTAL 809.3m 1,162.9m 1,564.1m 2,715.4m 3,364.5m ASSETS Deposits Equity Borrowing ANNUAL REPORT PRESENTATION | 2015 Capital

RETURN ON AVERAGE EQUITY CAPITAL ADEQUACY RATIO

50.0% 41.7% 25.0% 37.8% 40.0% 34.8% 36.2% 21.8% 30.0% 22.5% 21.4% 20.2% 20.0% 20.0% 19.4% 20.0% 10.0% 11.6% 0.0% 17.5% FY 11 FY 12 FY 13 FY 14 FY 15

15.0% RETURN ON AVERAGE ASSETS 12.5% 8.0% 6.9% 6.7% 5.5% Regulatory Minimum: 10% 6.0% 5.2% 10.0%

4.0% 2.6% 7.5%

2.0% 5.0% 0.0% FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 ANNUAL REPORT PRESENTATION | 2015 Share Price Chart

1.20 5,000,000

4,500,000 1.10 4,000,000

1.00 3,500,000

3,000,000 0.90 2,500,000 0.80 2,000,000

0.70 1,500,000

1,000,000 0.60 500,000

0.50 - Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Volume Traded Price (GHS)

Min Price: GHS 0.77 Max Price: GHS 1.15 End of Period Price: GHS 1.00 ANNUAL REPORT PRESENTATION | 2015 Pricing Evolution

PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO

5.69x

1.85x

4.11x

1.39x

4.03x

3.87x

3.30x

1.06x

1.00x 0.79x

FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 STRATEGY & OUTLOOK 2015 ANNUAL REPORT PRESENTATION ANNUAL REPORT PRESENTATION | 2015 Strategy & Outlook

• Develop e-payment platforms with emphasis on digital channels. • Leverage on growing card schemes to offer diversified card services for enhanced customer experience, positively impacting on our customer base and translating into increased deposits. Retail Banking • Promote financial inclusion by deploying digital solutions to offer branchless banking services. • Refresh existing products and services by leveraging on enhanced technology to improve customer experience and market competitiveness.

• Employ cutting-edge technology to deliver enhanced tailor-made solutions for our corporate customers to offer them Corporate convenience and real-time banking. Banking • Enhance forex generating capacity to ensure we meet forex needs of our customers. • Enhance relationship management and product knowledge to ensure we meet forex needs of customers

• Implement a comprehensive performance management and reward systems. • Deepen staff skills and knowledge. People+ • Develop and implement structured career progression and succession planning program. • Enhance organizational competence. • Implement workplace health and safety program.

• Leverage on growth in digital and mobile technology to develop cutting edge solutions that will offer customers convenience and also reach out to the unbanked. Technology • Enhance transaction and process efficiency through technology. • Continuous and sustained investments in technology to ensure development of up-to-date, efficient products and services.

• Enhance loan monitoring and early-detection toolkits to improve quality of loan portfolio. Risk Management & • Maintain low NPL ratio. • Continuously develop risk management and compliance culture amongst staff through training and other staff Compliance engagements. • Ensure adherence to regulatory requirements and best practice compliance procedures. THANK YOU Q&A

2015 ANNUAL REPORT PRESENTATION