#1४ GHANA STOCK EXCHANGE CalBank FY 2022 & Q1 2023 Results Presentation May 2023 GSE Facts-Behind-the-Figures CalBank CalBank#2CalBank Management | Today's presenters Philip Owiredu Managing Director Carl Selasi Asem Deputy Managing Director Joejo Wodow-Hammond, Group Head, Operations Thomas Boansi-Sarpong Executive Head, Admin. & Finance Philip Duodu Fynn, Group Head, Treasury Barbara Banson Chief Risk Officer Brigid Ofosuhene Head, Strategy & Performance Peter Fordjor Group Head, Consumer & Retail Banking Dzifa Amegashie Head - Corporate & Investor Relations CalBank 2#3CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Results Retail Performance Our Strategy 3 CalBank#4CalBank Snapshot | Our core values R E D M We are RESPONSIBLE We commit to deliver our products and services within sound financial, social and ethical practices We are EFFECTIVE We provide effective solutions for managing our clients banking needs. We serve with knowledge, professionalism and education We are DECISIVE We make sound decisions based on risk, local market knowledge., opportunity and timing CalBank#5CalBank Snapshot | Shareholding Current Shareholding Structure Source: GSE Market Data As at 13th April, 2023 30% 33% 3% 3% 3% 28% SSNIT Arise BV Kuwait Inv. Allan Gray Frank Adu Others MARKET STATISTICS1 Current Share Price (GHS) Market Capitalization (GHS mn) YTD Performance 52-Week High (GHS) 52-Week Low (GHS) 0.50 313.29 -23.08 0.91 0.50 CalBank LO 5#6CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Results Retail Performance Our Strategy 6 CalBank#7Prevailing Macroeconomic Headwinds | Impacts on Ghana's financial sector Globally, major economic declines, persistent inflation and uncertainties emanating from Russian-Ukraine war & China's economic slowdown Adverse changes to local economic conditions have led to tight financing conditions in domestic financial markets. Inflation rate 01 Growth in interest rates March 2023 March 2022 Y-o-Y Percentage Points 45.00% 19.40% 25.6 Interest rate 91-day bill 18.88% 12.82% 6.06 03 Monetary policy rate 29.50% 17.00% 12.5 Ghana reference rate¹ 25.76% 14.50% 11.26 Public debt (USD bn)² 58.20 43.90 32.57% Given the upside risks to inflation, impending legislative approval of new tax measures and the excess liquidity support to counter the shocks from the DDEP, the MPC moved to increase the MPR to 29.5% 02 Tightening MPR and liquidity management Increases in cost of funds coupled with tightening monetary policy translating into higher lending rates to borrowers with concomitant impact on NPLs in the near term. Also, squeezing liquidity from banks which could be deployed into revenue generating vehicles Economic downgrade The S&P and Fitch downgrades led to a loss of investor confidence in Ghana and made the Ghanaian market unattractive to foreign money market managers. Expected successful IMF bailout by HY 2023 will provide some policy credibility and restore investor confidence. 04 Rising inflation and currency depreciation The Bank of Ghana revised its end-2023 inflation forecast to 28.5%, up from the previous forecast of 25%, underscoring the need for the policy rate hike to re-align with the new 12-months outlook on inflation. Reported "Haircut" on GOG papers Preliminary assessment of the impact of the DDEP on the banking sector, points to significant losses on account of impairment of banks' holdings in GoG bonds. The impact of the DDEP is moderated by the timely introduction of regulatory reliefs by the Bank of Ghana. Fiscal deficit (% of GDP)³ -8.10% -9.20% |(1.10) 05 Source: BoG Summary of Economic and Financial Data - July 2022 1As at April 2023 2As at November 2022 3As at December 2022 7 CalBank#8Macro Headwinds | Import cover & commodities TRADE BALANCE (USD Billions) FEB. 2022 0.2 FEB. 2023 0.8 CHANGE 265.8%⭑ GROSS INTERNATIONAL RESERVES (USD Billions) FEB. 2022 9.5 FEB. 2023 5.9 CHANGE 37.9% IMPORT COVER (Months) FEB. 2022 4.2 FEB. 2023 2.8 Despite the mixed performance in the prices of Ghana's major commodities, the trade balance improved in the first two months of 2023 mainly on the back of higher export volumes Ghana's Gross International Reserves declined by 37.9% y/y in February 2023. CHANGE 50.0%↓ The decline in GIR led to an associated 50.0% y/y decline in import cover to 2.8 months in February 2023 compared to 4.2 months in February 2022. COMMODITY (USD) Price 14TH Apr. 2023 Price 14th Apr. 2022 % Chg. Crude oil/barrel Gold/ounce Cocoa/ton 86.34 2,037.49 3,021.00 111.70 1,973.71 2,647.00 -22.70% 3.23% 14.13% Brent crude oil dipped by 22.70% y/y to USD 86.34 per barrel in as at 14th April, 2023 from USD 111.70 per barrel. In contrast gold and cocoa prices recorded some gains, driven largely by weak US dollar and expectation of further interest rate hikes by the Federal Reserve Bank 8 CalBank#94.0 Mar- 20 6.0 8.0 10.0 - Jul-20 12.0 14.0 16.0 Nov- 20 18.0 Macro Headwinds | Local currency performance • • The Cedi has experienced some pressure since October 2022, reflecting concerns about the DDEP, further sovereign rating downgrades, and seasonal demand pressures. However, the progress made on the DDEP and positive sentiments, thereafter improved sentiments and helped reverse some of the losses. By March, 2023, the Ghana cedi depreciated by 22.1%, 23.5%, and 23.1% against the US Dollar, the Pound, and Euro, respectively Mar- 21 Jul-21 Nov- 21 USD GBP EUR Mar- 22 2721 Jul-22 Nov- 22 の Mar- 23 CalBank#10• Macroeconomy | IMF engagement & developments IMF Engagement • On 1st July 2022, government announced that it will engage with the International Monetary Fund (IMF) on a support package. • Ghana's engagement with IMF will seek to provide balance of payment support following COVID-19 induced challenges and the Russian- Ukraine crisis. IMF program may help re-anchor expectations through implementation of reforms to restore creditworthiness, and eventually lead to Ghana regaining access to international capital markets. Government expects the loan of USD 3.0bn to be approved by end of Q2 2023 Due to recent macroeconomic shocks, the government revised the FY2022 macro-fiscal targets 1 Previous 5.8% Overall Real GDP growth 3.7% 2 3 Non-oil Real GDP Growth I Fiscal Deficit (% of GDP) 4.3% 6.6% Previous 5.9% Previous: 7.4% 4 5 Year-end Inflation Previous 28.5% 8.0% Previous: ≥ 4 months Gross Forex Reserves ≥ 3 months 10 CalBank#11CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Results Retail Performance Our Strategy 11 CalBank#12Banking sector | Overview Developments in the banking sector broadly reflected the challenging operating environment in 2022 on account of macroeconomic conditions, and the recent implementation of the Domestic Debt Exchange Programme (DDEP) which all 23 universal banks participated in. Indicator Dec-22 Dec-21 Year-on-Year Change Key Ratios CAR NPL RoE RoA 16.60% 19.60% -3.00% 14.80% 15.20% -0.40% 14.60% 20.60% -6.00% 3.10% 4.50% -1.40% (GHS billion) Total Assets 221.00 179.80 22.90% Loans 70.00 53.80 30.20% Deposits 157.90 121.10 30.40% Source: Bank of Ghana Monetary Policy Report, Summary of Economic and Financial Data 12 CalBank#13Banking sector | Financial soundness indicators Key financial soundness indicators remained broadly sound, supported largely by the regulatory reliefs provided by the Bank such as the reduction in CAR to 10.0% from 13.0% as of FY 2022, and losses from the DDEP1 are to be reflected in the computation of CAR over a period of up to 3 years 55.0% 35.0% Solvency 21.9% 17.5% RWA/Total Assets CAR 21.1% 19.6% 14.7% 84.3% Efficiency* Total Cost-to-Gross Income 87.5% 81.2% 80.0% 79.8% 56.0% 51.1% 52.0% 58.6% 57.5% 15.0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 18.2% Non-Performing Loans Ratio 15.2% 14.3% 14.5% Profitability Ratios ■ROE ■ROA 14.8% 21.2% 19.9% 20.6% 18.5% 14.6% LLLLI 4.8% 3.4% 4.3% 3.1% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Source: Bank of Ghana Monetary Policy Report, Summary of Economic and Financial Data 'Domestic Debt Exchange Programme *includes impairment charge 13 CalBank#14Banking sector | Credit analysis Cash and bank balances replaced net advances as the second largest component of total assets, with an increased share to 27.7% from 20.0% during the review period, partly due to increases in the Cash Reserve Ratio Investment portfolio continue to dominate the asset mix as a result of higher interest rates on these instruments compared to rates on money market instruments¹ 7.4% 7.3% 7.7% 7.5% 8.9% 1.1% 0.9% 0.8% 0.3% 0.3% 30.2% 31.0% 28.0% 26.2% 27.6% 66.5% 68.2% 70.9% 75.3% 76.4% 36.6% 35.8% 38.0% 43.1% 46.2% 32.4% 30.9% 28.3% 26.0% 27.7% 24.4% 23.3% 24.0% 21.2% 20.0% FY18 FY19 Cash and Due from Banks ■Net Advances FY18 FY20 FY21 FY22 ■Investments Other Assets* Source: Bank of Ghana Monetary Policy Report, * Other Assets include Other Assets and Fixed Assets ■Bills FY19 FY20 Securities FY21 FY22 ■Shares & Other Equities 14 CalBank#15Banking sector | Credit analysis Local private enterprises are the largest contributor to NPL's (76.4%) 7.9% 1.6% 1.9% 0.0% 2.1% 9.2% Government ■ Public inst. Public Ent 8.6% 1.0% 4.2% 0.2% 3.2% OFO Dec - 2021 FPE ■LPE Dec - 2022 6.4% ■Government Public inst. ■ Public Ent ■FPE ■LPE ■ Households ■ Households 77.2% Others 76.4% ■ Others Source: Bank of Ghana Monetary Policy Report, January 2023 FPE Foreign Private Enterprises LPE Local Private Enterprises 15 CalBank#16Banking sector | Credit analysis Allocation of credit to local private enterprises has increased marginally within the period Share of Total Credit (Dec-2021) 22.9% 2.9% 1.9% 2.7% 5.2% Share of Total Credit (Dec - 2022) 2.2% 4.5% 1.3% 9.1% 20.2% ■Government Public inst. GHS 53.9bn ■ Public Ent GHS 69.4bn ■ FPE ■LPE 55.3% ■ Households 59.3% ■ Others Source: Bank of Ghana Monetary Policy Report, January 2023 FPE Foreign Private Enterprises LPE Local Private Enterprises 3.1% 9.4% ■Government ■ Public inst. ■ Public Ent ■ FPE ■LPE Households Others 16 CalBank#17Banking sector | Competitor benchmarking FY2022 Total Assets (GHS Bn) EGH GCB 25.91 21.49 ABSA 17.10 SCB 10.37 ACCESS 10.06 ZBL 9.66 CAL⭑ 9.23 ADB 7.74 FBL 7.43 SOGEGH 6.60 RBGH 5.11 Loans & Advances (GHS Bn) EGH 8.87 ABSA 5.90 GCB CAL⭑ 5.48 3.19 SOGEGH 3.10 SCB 2.05 RBGH 1.96 ZBL 1.86 ACCESS 1.64 FBL 1.49 Source: Company filings Total Deposits (GHS Bn) EGH 22.27 GCB 17.78 ABSA 11.30 ZBL 8.43 SCB 8.30 ACCESS 7.50 CAL* 6.73 FBL 6.31 ADB 5.92 SOGEGH 4.24 RBGH 4.07 Net Profit (GHS Mn) 111.07 SOGEGH 34.35 ADB -0.16 FBL -0.43 ABSA EGH -15.30 -61.13 RBGH -297.78 SCB -338.14 ACCESS -419.77 ZBL -593.40 GCB -809.81 CAL⭑ 17 CalBank#18Banking sector | Competitor benchmarking FY2022 Return on Equity 10.18% SOGEGH 3.53% ADB -0.02% FBL -0.57% EGH -8.70% RBGH -20.07% ABSA -22.54% SCB -29.69% GCB -33.34% ACCESS -42.73% ZBL -155.22% CAL NPL Ratio (%) ACCESS 3.38 Z BL 3.80 EGH 9.65 CAL⭑ 11.70 FBL 12.00 SCB 12.04 SOGEGH 13.48 ABSA 15.96 RBGH 19.85 GCB 20.59 ADB 23.81 Source: Company filings Return on Assets SCB SOGEGH RBGH ADB 0.00% FBL -0.06% EGH -2.51% ABSA -2.76% GCB -3.36% ACCESS -4.35% ZBL -8.84% CAL Capital Adequacy CAR (%) ACCESS ZBL 36.93 36 SCB 22.9 RBGH 21.25 ABSA 19.47 FBL 18 GCB 17.86 EGH 15.03 SOGEGH 13.95 CAL* 12.70 ADB 10.92 CalBank 18#19Banking sector | Competitor benchmarking 1Q2023 Total Assets (GHS Bn) EGH 28.43 GCB 24.28 ABSA 18.82 SCB 12.88 ZBL 10.80 ACCESS 10.41 CAL⭑ 10.25 SOGEGH 7.59 FBL 7.45 RBGH 5.94 Loans & Advances (GHS Bn) EGH 9.92 GCB 6.39 ABSA 5.28 CAL* 3.57 SOGEGH 3.25 SCB 2.51 RBGH 2.13 ACCESS 2.02 FBL 1.69 ZBL 1.34 Source: Company filings Total Deposits (GHS Bn) EGH 24.00 GCB 20.12 ABSA 14.23 SCB 10.44 ZBL 9.31 ACCESS 7.79 CAL* 7.50 FBL 6.29 RBGH 4.89 SOGEGH 4.77 Net Profit (GHS Mn) ABSA 256.87 SCB 297.51 ZBL 217.31 GCB 186.32 ACCESS 169.62 SOGEGH 73.55 CAL* 63.06 RBGH 51.24 FBL 45.70 EGH -7.99 CalBank 19#20Banking sector | Competitor benchmarking 1Q2023 Annualized Return on Equity (%) SCB ZBL 78.48% 72.46% ACCESS 57.31% ABSA 46.42% CAL* 43.36% GCB 34.11% RBGH 27.18% SOGEGH 25.28% FBL 18.01% EGH -1.12% NPL Ratio (%) ACCESS 2.92 ZBL 5.05 EGH 8.19 FBL 9.00 CAL⭑ 11.20 SCB 14.67 SOGEGH 14.85 ABSA 18.21 RBGH 18.94 GCB 20.20 Source: Company filings Annualized Return on Assets (%) SCB ZBL 9.24% 8.05% ACCESS 6.52% SOGEGH 3.88% RBGH 3.45% GCB 3.07% CAL* 2.46% FBL 2.45% ABSA 1.21% EGH -0.11% ZBL ACCESS SCB 21.86 RBGH 19.23 GCB 18.5 ABSA 18.34 FBL 18 SOGEGH 14.15 EGH 13.04 CAL⭑ 10.50 CAR (%) 34.34 32.18 20 CalBank#21CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Results Retail Performance Our Strategy 21 CalBank#22CalBank | FY 2022 Financial highlights Source: Company filings 26.2% from GHS 469.5mn Net interest income 28.1% from GHS 276.2mn Non-funded income GHS 592.7mn GHS 198.6mn 415.2% from GHS 337.5mn Profit Before tax GHS 1.1bn 42.4% from GHS 2.2bn Loans GHS 3.2bn 8.0% from GHS 10.Obn Total assets GHS 9.3bn 6.8% from GHS 6.3bn Total deposits GHS 6.7bn 1,260bps from 25.1% Capital Adequacy 12.5% 50bps from 11.2% NPL ratio 11.7% 22 22 CalBank#23CalBank | Q1 2023 Financial highlights Source: Company filings 4.6% from GHS 146.3mn Net interest income 13.9% from GHS 58.6mn Non-funded income GHS 153.Omn GHS 66.7mn 0.5% from GHS 96.2mn Profit Before tax GHS 96.7mn 32.0% from GHS 2.7bn Loans GHS 3.6bn 4.4% from GHS 10.7bn Total assets GHS 10.3bn 25.8% from GHS 5.9bn Total deposits GHS 7.5bn 1,190bps from 22.4% Capital Adequacy 10.5% 200bps from 9.2% NPL ratio 11.2% 23 CalBank#24CalBank | Summarized Group income statement Amount in GHS 000's Q1 2023 Q1 2022 YOY% FY2022 FY2021 YoY % Interest Income 325,085 283,349 14.7% 1,282,278 980,671 30.8% Interest Expense (172,052) (137,032) 25.6% (689,183) (511,124) Net Interest Income 153,033 146,317 4.6% 593,095 469,547 Net Fees and Comm. 24,020 20,818 15.4% 82,908 51,852 Net Trading Income 42,697 37,764 13.1% 114,773 192,634 34.8% 26.3% 59.9% (40.4%) Other Operating Income 410 369 11.1% 888 Operating Income 220,160 205,268 7.3% Net Impairment Loss (2,011) (14,423) (86.1%) 791,664 (1,451,244) Operating expenses (121,434) (93,457) (28.4%) (412,596) (243,456) (69.5) Total Operating (123,445) (109,032) 13.2% (1,863,840) (325,831) Expense 31,690 (97.2%) 745,723 6.2% (82,375) (1,661.6%) (356.6%) (417.7%) . • Q1-2023 Highlights an Operating Income: Q1-2023 Total income increased by 7.3% over prior year income of GHS 205.3mn, largely driven by increase in loans and advances and increased yields for the comparative periods. Net commissions and fees increased by 15.4% to GHS 24.0mn due to enhanced credit activities and sustained growth in our digital banking services. Operating expenses: Amidst rising inflation and local currency depreciation, operating expenses rose sharply by 28.4% in Q1 2023 over prior year. We expended a total of GHS 121.4 million. Net Impairment Loss: Credit loss expense decreased from GHS 14.4 million in Q1-2022 to GHS 2.0 million in Q1-2023. This represents a recovery from the FY 2022 fair value provision on the bank's bond portfolio and other government credit exposures following the domestic debt exchange programme Profitability: Profit before tax in Q1-2023 increased marginally by 0.5% to GHS 63.0 million over the same quarter last year. The return to profitability in the first quarter reflects a recovery from the GHS 809.8 million loss recorded at the end of FY 2022 arising largely out of the adverse impact of the bank's participation in the domestic debt exchange programme. Profit Before Tax 96,715 96,236 0.5% (1,072,176) 337,517 Income Tax (33,659) (33,521) 0.4% 262,366 (114,665) 328.8% Profit After Tax 63,056 62,715 0.5% (809,810) 222,852 (463.4%)#25CalBank | Summarized Group balance sheet Amount in GHS 000'S Q1 2023 Q1 2022 YOY% FY2022 FY2021 YoY % Cash and Cash Equivalents 1,639,644 1,575,645 4.1% 2,008,870 1,307,701 53.6% Q1-2023 Highlights Group's balance sheet grew to GHS 10.25 billion in Q1 2023 from GHS 9.25 billion at the end of FY 2022. Investment Securities 3,685,715 4,777,133 (22.8%) 2,699,301 4,974,002 (45.7%) • Loans and Advances to Customers 3,573,698 2,706,441 32.0% 2,239,520 42.5% 3,190,359 Non-pledged Trading Assets 43,938 847,023 (94.8%) 47,001 672,509 (93.0%) • Other Assets 691,394 399,541 73.0% 599,975 433,217 38.5% 616,286 Fixed Assets 416,419 48.0% Investment Securities decreased by 22.8% on the back the impairment provisions following the domestic debt exchange programme. Loans & Advances increased by 32.0% to GHS3.6 billion from GHS2.7 billion as we took advantage of business growth opportunities in the market. 705,048 413,030 70.7% Total Assets 10,250,675 10,722,202 (4.4%) 9,250,554 10,039,979 (7.9%) Total Deposits 7,503,815 5,964,989 25.8% 6,734,696 6,308,385 6.8% 1,670,060 Borrowings 3,124,363 (46.5%) Other Liabilities 495,061 283,453 74.7% 1,610,950 2,214,267 (27.2%) 373,683 230,645 62.0% • Total Deposits of GHS 7.5 billion in Q1 2023 represents an GHS 800 million increase over the year-end 2022 deposits of GHS 6.7 billion. Our continuing digitalization agenda around payment platforms has resulted in a 20% growth in low-cost current and savings accounts deposits. Shareholders' Equity 581,739 1,317,920 (56.9%) 531,225 1,286,682 (58.7%) Total Liabilities and Shareholders' Equity 9,250,554 10,039,979 (7.9%) 10,250,675 10,722,202 (4.4%) . Borrowings decreased by 46.5% as a result of repayment of matured borrowings from our counter-parties during the review period. 25#26CalBank | Government of Ghana Debt Exchange program Classification of Local Currency Bonds held by CalBank KEY IMPACTS AMC (GHS'M) 9.4 FVTPL (GHS'M) 6.7 3,152.0 2,119.5 FV of LCY Bonds CV of LCY Bonds Classification of EuroBonds held by CalBank AMC (GHS'M) 8.4 FVTPL (GHS'M) 4.7 382.6 275.0 01 02 Local Currency Bonds. Impairment charges on Calbank's GoG LCY domestic bonds. were GHS 1,032.5 million. Impairment assessments were based on the guidance of IFRS 9 and the Institute of Chartered Accountants of Ghana (ICAG). New bonds were designated as collateral for current bonds as of 31/12/22. . Foreign Currency Bonds Eurobonds Impairment assessment of GHS 111.2 million on the GoG Eurobonds relied heavily on Ghana's Finance Ministry's pronouncement of a potential haircut on principal and interest. CV FV AMC = FV of FCY Bonds CV of FCY Bonds Carrying Value of the bond Face Value of the bond Amortizing Cost FVTPL= Fair Value Through Profit or Loss Statement CalBank 26#27CalBank | Capitalization Capital metrics remain within regulatory limits despite shocks from DDEP, currency and macro headwinds Tier 1 CAR FY 2020 FY 2021 FY 2022 27.5% Capital Adequacy Ratio 25.0% 20.3% 23.1% 9.5% 22.7% 22.3% 22.5% 20.0% CET 1 Plus conservation buffer 22.3% 25.1% 12.5% 16.7% 17.5% Total CAR 15.0% 25.1% 12.5% 12.5% 22.3% 25.1% 12.5% 10.0%- New Regulatory Minimum 10.0% 7.5% 5.0% FY18 FY19 FY20 FY21 FY22 CalBank Source: Company filings 27#28CalBank | Operating performance & profitability Profitability (GHS Mn) Operating Income Composition (GHS Mn) CAGR: 11.11% Total Income Net Profit 745.7 791.3 688.6 596.4 519.3 153.2 LLL 173.4 CAGR: 8.89% CAGR: 19.42% Non-funded income Net interest income 165.7 78.3 213.8 222.9 220.2 63.1 97.6 -809.8 276.2 145.3 592.7 522.9 518.1 469.5 421.6 67.1 153.0 FY18 FY19 FY20 FY21 FY22 Q123 FY18 FY19 FY20 FY21 FY22 Q123 Source: Company filings 28 CalBank#29CalBank | Operating performance & profitability Returns (%) ROE ■ROA 19.7% 17.8% 18.9% 17.3.2% 2.8% 2.5% 2.7% -8.8% -152.4% 43.9% 60.0% 58.0% 57.1% 2.4% 56.0% 54.0% 52.0% 50.0% Cost-to-Income (%) 59.3% 58.7% 54.7% 52.1% FY18 FY19 FY20 FY21 FY22 Q123 48.0% FY18 FY19 FY20 FY21 FY22 Source: Company filings 20 CalBank 29#30CalBank | Operating Income by Type Operating income by type (FY2021) Operating income by type (FY2022) Source: Company filings Net Trading Income 25.8% Other Income 4.2% Net Fees and Commissions 7.0% Net Interest Income 63.0% Net Fees and Commissions 10.5% Net Trading Income 14.5% Other Income 0.1% Net Interest Income 74.9% CalBank 30#31CalBank | Operating Income by Business line Operating income by business line (%) (FY2021) 42.4% Source: Company filings 0.9% ■ Corporate banking and project finance Operating income by business line (%) (FY2022) 1.0% 29.4% ■ Consumer and retail banking 26.0% ■ Treasury 27.3% ■ Custody 38.2% 31 Corporate banking and project finance 34.8% ■Consumer and retail banking Treasury ■Custody CalBank#32CalBank | Non-interest income Growing Fees and Commissions contribution to Operating Income Fees & Commission Income/ Operating Income (%) FY 2022 Contributions to Fees and Commission Income (%) 10.9% 10.5% 7.8% 7.0% will FY19 4.6% FY20 FY21 FY22 Source: Company filings 19.46% 26.60% 32.96% 20.98% Electronic Banking Income ■Trade Transactions ■Credit Related Fees and Comm ■ Others Q123 Electronic banking income has been making an increasing contribution to Fees and Commission Income as we deepen the adoption of digital channels and payment solutions. CalBank 32#33CalBank | Operating performance & profitability Net Interest Income and Margin Net Interest Income -Net Interest Margin 630 560 490 8.3% 8.6% 8.5% 7.8% 420 350 5.5% 5.1% 280 Source: Company filings 210 140 70 153 12.0% 9.0% 6.0% 3.0% 0 0.0% FY18 FY19 FY20 FY21 FY22 Q123 CalBank 33#34Source: Company filings LOANS | Loan portfolio Increase in loans driven by lending activity in key promising sectors 4,000.0 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 Net loan portfolio GHS mn) 30.7% 20.5% 2,423.0 2,920.0 -17.8% -6.7% FY18 FY19 FYZO 2,401.0 Net Loans 2,239.5 3,190.0 FY21 FY22 -Loan growth 50.0% 42.4% 40.0% 30.0% 20.0% 12.0% 10.0% 3,573.7 0.0% -10.0% -20.0% -30.0% Q123 CalBank 34#35LOANS | Diversified Loan Portfolio Loan Book Distribution by Sector (FY2021) Loan Book Distribution by Sector (FY2022) 7.1% 10.3% Commerce & Finance ■Construction 5.8% 10.0% ■Manufacturing 15.8% 16.8% ■Mining & Quarrying 17.7% Electricity, Gas & Water FY 2021 Agriculture, Forestry & Fishing FY 2022 9.9% 10.8% ■ Services 5.5% 1.6% ■ Government 5.7% 22.2% 4.3% ■Transport, Storage & Comm. ■ Others 1.9% 25.5% Source: Company filings ■Commerce & Finance ■Construction ■Manufacturing Mining & Quarrying 16.9% ■Electricity, Gas & Water Agric., Forestry & Fishing ■ Services 6.9% ■ Government ■Trans., Storage & Comm. ■ Others 2.4% 2.9% 35 CalBank#36I LOANS Key Credit metrics NPL Ratio contained at 11.7% due to enhanced credit risk management NPL Coverage Ratio (With Regulatory Reserve) 76.6% 51.1% 66.9% 55.7% 16.0% 81.9% 12.0% Non-performing loans ratio 10.0% 8.4% 8.0% 4.0% 13.5% 11.7% 11.2% 11.2% FY18 FY19 FY20 FY21 FY22 0.0% FY18 FY19 FY20 FY21 FY22 Q123 Source: Company filings CalBank 36#37I LOANS | Key Credit Metrics NPL Distribution by Sector (FY2021) 0.8% 22.6% 3.0% 4.3% 0.0% 0.0% 0.2% FY 2021 ■Commerce & Finance ■ Construction ■Manufacturing 23.4% NPL Distribution by Sector (FY2022) 7.5% 0.7% 12.2% ■Mining & Quarrying 36.4% Electricity, Gas & Water ■ Agric., Forestry & Fishing FY 2022 3.9% Services ■ Government 23.4% 9.3% Source: Company filings ■Transport, Storage & Comm. ■ Others 0.5% 44.9% ■Commerce & Finance ■Construction Manufacturing 6.6% Electricity, Gas & Water Agriculture, Forestry and Fishing ■Services Government ■Transport, Storage & Comm. ■ Others 37 CalBank#38CalBank | Deposits and funding mix Strong underlying deposit growth; increase of GHS 800mn in Q1-2023 over year end 2022 Total Deposits (GHS Mn) Total Deposits Deposit growth 8,000 50.0% 7,000 42.5% CAGR: 20.92% 6,000 GHS million 5,000 26.1% 4,000 22.5% 3,000 2,000 1,000 Source: Company filings 3,150.1 3,859.0 4,426.0 40.0% Funding Mix (GHS Mn) Total Deposits 1,286.6 Borrowing 581.7 531.2 1,670.1 2,214.3 1,611.0 1,132.8 974.8 2,098.2 30.0% 779.4 2,028.1 1,319.9 20.0% 7,503.8 6,734.7 14.7% 6,308.4 11.4% 6,308.4 6,734.7m 6.8% 4,426.0 10.0% 3,859.0 3,150.1 7,503.8 0.0% FY18 FY19 FY20 FY21 FY22 Q123 FY18 FY19 FY20 FY21 FY22 Q123 CalBank 38#39CalBank | Return & Dividend performance Return On Equity (%) 19.7% 17.8% 18.9% 17.3% -152.4% Dividend Per Share (GHS) 0.048 0.089 0.11 i ||| 0.11 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21* 0.0% FY17 Source: Company filings Dividend Yield (%) 4.7% 9.5% 13.9% 14.1% Dividend Payout Ratio (%) 19.6% 32.1% 32.2% 30.9% 0.0% FY18 FY19 FY20 FY21* FY17 FY18 FY19 FY20 FY21* 39 CalBank#40CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Results Retail Performance Our Strategy 40 CalBank#41CalBank PLC - Confidential (Third Parties) CalBank | Digital channels' performance Growing our digital footprint, creating value. CHANNELS UNITS FY 2021 FY 2022 Y-O-Y(FY 22 on FY21) Subscriptions 134 151 POS Count 156,989 137,476 12.69% -12.43% Value GHS 46,723,823 50,073,949 7.17% Subscriptions DEBIT CARDS Count 39,149 2,071,523 54,869 40.15% 2,338,670 12.90% Value GHS 1,206,239,765 1,679,390,791 39.23% Subscriptions 102 104 1.96% ATM ATM Count 88 1,825,641 1,891,598 3.61% Value GHS 1,171,820,106 1,453,573,190 24.04% Subscriptions MOBILE BANKING Count 290,041 5,360,251 361,961 24.80% 6,352,191 18.51% Value GHS Subscriptions 3,998,837,596 4,081,933,726 2.08% 30,010 40,191 33.93% INTERNET BANKING Count 12,952 26,549 104.98% WWW. Value GHS 43,383,889 75,730,570 74.56% CalBank#42CalBank | Digital banking income Growing contribution of Digital banking income DECEMBER 2021 GHS DECEMBER 2022 GHS Growth Digital Banking Gross Income 10,351,960.96 17,106,837.33 65% ATM 00 00 *771# 42 CalBank#43CalBank | App features & retail metrics Significant growth across all digital channels Airtime Purchase ✓ Bank to Wallet Wallet to Bank Shell Card Top Up ✓ CalPay Wallet Loads ✓ CalPay Wallet to CalPay Wallet ✓MVISA Inter Account Transfers (CAL) ✓ Intra Account Transfers ✓ Ach Transfers ✓ GIP Transfers ✓ Shopping Bank to Other CalPay Wallet MOBILE APP PERFORMANCE - #TRANSACTIONS DEC 2021 DEC 2022 2,558,889 TRANSACTIONS MOBILE APP PERFORMANCE GHS VALUE DEC 2021 DEC 2022 Y/Y Y/Y 1,898,990,179 2,877,858,364 51.54% GHS VALUE GHS VALUE 3,503,100 36.89% TRANSACTIONS 43 CalBank#44CalBank | Retail channels ATW *771# CalPay VISA ● CalPay is an online merchant solution which allows merchants to receive payments from their customers via Payment cards, Mobile Money, CalBank accounts and CalPay wallets. This service can be deployed to merchant's websites or in-shop to generate invoices. Our POS Terminals allow easy payment collections for our agents, SME and Corporate customers. We are expanding to provide 4G network POS terminals which can be integrated to customers' cash registers for better sales reconciliations and monitoring. CalBank ATMs are strategically located and equipped to effectively serve our customers. With *771# (our USSD Banking) customers can open a CalBank account, transfer funds, buy airtime for yourself, family & friends, pay your bills, pay for your flights and check your account balance all on your phone CalBank App- This is the Banking application designed for individuals to perform various transactions. This app can be used y both customers and non-customers as no Bank account is required Users can link their cards and momo wallets to transact QGhQR CalBank is a partner for the GHQR service. With the CalBank GHQR service, merchants are able to accept payments using the QR codes offered by the Bank. Customers are also able to make payments directly from 0000 0000 0000 0000 0000 12700 We offer various payment card types to various customers to suit various needs. The card offerings of the Bank currently include: 1. Visa Calssic debit 2. Visa Gold debit 3. Visa signature debit 4. Visa Prepaid G StoPay CalBank is a partner for the GhanaPay service. Currently the Bank has setup and continues to setup agents for GhanaPay. Retails customers of the Bank are also able to register for the GhanaPay service and select the bank as the settlement Bank 44 CalBank#45CalBank | Retail channels >))) The CalBank Contactless Payment Allows merchants and customers to accept payments with the Scan, Pay and Go option for instant payments across the country using this service. The CalBank Agent Banking Channels allows customers to perform banking transactions at agents within their localities. We currently have over 300 agents across 10 regions of Ghana WUG Ria CalBank is an Agent for various remittance companies and offer these services to customers as well Current remittance partners are Western Union, Moneygram and RIA API Banking at your fingertips anytime, anywhere CalBank API Banking Services With this service, we have been able to extend banking services (payout) leveraging advanced system interfaces to FinTechs and Leading Organizations. CalBank Cardless Withdrawal Services The Cardless Withdrawal Service enables customers to carry out transactions on ATMs across CalBank channels without using Cards. The service is available across 10 regions in Ghana The CalBank Online Banking service offers customers unfettered access to their Bank accounts and transact as well. This service is web based and can be accessed by both individuals, SME or corporate customer anywhere in the world 45 CalBank#46CalBank Snapshot AGENDA Economic & Key Developments Business Sector Financial Result Retail Performance Our Strategy 46 CalBank#47CalBank | Strategic priorities VISION Driving execution momentum to ensure resilience and sustainability To be the preferred bank for customer experience and innovation| Our Priorities MISSION To be an innovative and customer focused bank, providing bespoke financial services and value to our stakeholders FORWARD: Represents both the future direction of the business and the progressive manner in which it will deliver its offering and proposition CAPABILITIES: Strong development of the bank's internal processes, people, technology, risk management and customer service offerings TOGETHER: Represents the whole and covers the customers, investors including and the staff, wider community to which the bank is responsible 47 CalBank#48CalBank | Sustainability & ESG management 2023 In 2023, we will continue to make giant leaps into sustainable banking as we galvanise human and financial resources to take our Environmental, Social and Governance (ESG) responsibilities to the next level. We are expanding the scope of our environmental and social management beyond our clients' business activities to cover our own internal footprint. Key highlights are: Energy Efficiency Installing solar energy infrastructure in our branches to replicate our Head Office energy efficiency Green Products and Services People, Talent and Diversity The Bank continues to place great value on opportunities to invest in and shape its employees with personal and professional development skills to enable them lead, both now and in the future. + Actively providing affordable financing options for Renewable Energy and Energy Efficiency projects under Sunref Programme Waste Management Piloting a waste segregation program to separate waste into various categories: Paper; Plastics/ bottles and Organic waste Financial Inclusion Providing mobile money services, agency banking services in sub urban areas. Purposeful deployment of new digital banking products to attract the women, the unbanked and underbanked Corporate Social Investment and Direct social investment activities in the areas of education, health, youth sports, women empowerment, and community infrastructure 48 CalBank#49CalBank | Strategic priorities & Key performance indicators 2023 Driving our execution momentum We owe a responsibility to our shareholders to run a sustainable bank. As such, our 2023 strategy takes into cognizance challenges in our operating environment and leverages the bank's core capabilities to build resilience and ensure sustainability. 2023 Restructuring and improving the 01 health of the balance sheet to build resilience and ensure 2021 2022 KPI Y-O-Y Q1 2023 (GHS'Bn) Target (GHS'Bn) Total Assets 7.9% 10.2 10.6 sustainability Deposits Advances 6.8% 7.5 7.7 48.6% 4.1 4.6 Enhancing customer 02 experience to sustain market share KPI (Ratios) 2023 FY 2022 Q1 2023 Target CASA/Total Deposits 62.6% 70.2% 65% - 68% Cost to Income 52.1% 55.8% 60% - 65% Driving a performance culture Return on Assets (8.8)% 2.4% 1.5% - 2% 03 and improving staff Return on Equity (152.4)% 43.9% 18% - 20% knowledge to become Non-performing employer of choice 11.7% 11.2% <10% loans 49 CalBank#50CalBank | Disclaimer This report was prepared by CalBank 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. 50 CalBank#51Thank You 51 CalBank