CalBank, GCB Bank and Société Generale Ghana are the banking stocks to watch in 2020.
These stocks are currently trading below their book values but generating high returns relative to their peers.
Analysts are hopeful these stocks will exceed expectations.
“We expect CalBank’s earnings momentum to remain strong, driven by strong low-cost deposit mobilisation through the agency banking module along with robust loan book expansion targeting the SME sector”, Databank Research pointed out.
The bank secured a US$108 million term facility from OPIC and Citi bank in December 2019 to fund its loan book expansion.
On the other hand, Société Generale Ghana should see a stronger loan book expansion and profitability aided by efficiency gains from its ongoing digitisation drive.
The bank’s expansion into the retail market could be supported by its strong brand equity.
Also, GCB Bank’s bottom line is projected to grow at 39% for 2020.
The key drivers include aggressive loan book expansion, strong low-cost deposit mobilisation through agency banking and efficiency gains from digitisation.
Cal, GCB and Société Generale are trading at 95 pesewas, GHS4.85 and 73 pesewas per share.
The banking stocks listed on the GSE are Access, ADB, Cal, Ecobank Ghana, Ecobank Transnational Incorporated, GCB, Republic Bank, Stanchart, Société Generale and Trust Bank Gambia.