UT Bank
UT Bank

UT Bank, an indigenous financial entity has made major turnaround in its business operations in the country in spite of the losses it recorded in the first half of the year, a statement released here says.

UT Bank
UT Bank

Total deposits of the bank increased by 29 percent from GH?889 million to GH? 1.2 billion while total assets increased by 44 percent from GH? 1.4 billion to GH? 2 billion.

Prince Kofi Amoabeng, Chief Executive Officer (CEO) of UT Bank Ltd said, ?The year 2015 has been very challenging for the bank as the tough macro-economic conditions and the protracted energy crisis continue to negatively affect the operations and performance of the business sector especially our core segment, the SMEs.

The first three months were particularly challenging, with the bank recording a GH? 28million loss during that period. We have since witnessed a vast improvement, as the results of the implementation of our turnaround plan kick in. In the second quarter, from April to June, we recorded a GH? 2.4million loss, 91 percent better than recorded in the first quarter, and in the Month of June recorded a GH? 1.3 million profit after tax.?

He added that ?Our turnaround plan is two tiered, with a broader plan of business transformation aimed at better positioning UT Bank to withstand external shocks, and a more narrow plan which addresses directly, the internal challenges we have identified as a business. We are focusing more on issues such as loan recovery, risk management, effective cost management, and capital raising among others. I must reiterate that UT Bank remains committed to supporting the SMEs by helping them address the risks that they face.?

Chief Operating Officer for UT Bank, Stephen Antwi-Asimeng, remarked, ?We believe that the worst is behind us and we are excited about the opportunities and prospects going forward as we execute our strategies. The early results of our plan give us confidence and we will continue on the current trajectory. I am personally excited to be working at UT Bank at this stage of the bank?s development.?

Gillian Slater, UT Bank?s Chief Financial Officer stated ?We anticipate a reduction of our cost of funds in the second half of 2015 based on improvements in our funding mix. Our capital raising is also underway and will contribute to the lowering of our cost of funds. We obtained shareholders? approval to raise capital through the issuance of both preference and ordinary shares. In both instances we have received strong expressions of interest and are hopeful that we will conclude on these in a timely manner?.

She concluded, ?The turnaround for the bank has begun, and we ask our shareholders and stakeholders to expect great things from UT Bank. We will end the year with a stronger, more liquid balance sheet ready for a strong performance in 2016.?

UT Bank reported a GH? 30.6million loss in the first half of this year largely on account of high interest expenses which negatively impacted its results and dampened the positive effects of interest income that recorded a strong growth of 30 percent during the period.

UT Bank Limited commenced business as a finance house in 1997 under the name UT Financial Services before evolving into a universal bank in June 2010 after acquiring BPI Bank. UT Financial Services, a listed company on the Ghana Stock Exchange (GSE), rebranded as UT Bank in 2010.

With an annual turnover in excess of United States Dollars (USD) 70m, over 700 staff and 30 branches nationwide including two full function mobile vans (?Bank on Wheels?), UT Bank is one of the fastest growing indigenous banks in Ghana with a strong SME focus.

The bank is publicly listed and owned by local institutions and individuals, together with leading Development Finance institutions, IFC and the German DEG having become shareholders in 2012.

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