[ 2015-07-29 ]

UT Bank rules out takeover despite challenging times
UT Bank has ruled out a possible sale of the bank
despite current challenges facing the financial
institution.

The indigenous bank recorded a half-year loss of
over 30 million Ghana cedis for 2015, prompting
reports in sections of the media that the
development could result in foreign investors
coming in to help the bank recapitalize.

However, Chief Executive of the bank, Prince
Amoabeng, says the reports are untrue.

“There is no intention to hand over UT Bank to
anybody at all…I think what we have on the table
now is getting aggressive…and [restoring]
confidence in the shareholders”, he said.

He said firm plans have been put in place to
forestall further loss revenue.

“We’re achieving for the first two months,
better than projected. So that is something that
gives a lot of confidence and we have the staff on
board. We’ve gone to look for their views and
we’ve implemented [their] suggestions. It is not
just me or top management saying ‘this is going
to work’. This [plan] is what all of UT says is
going to work”, he underscored.

The SME bank reported a GHS 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% during the period.

Total deposits increased by 29% from GHS
889million to GHS 1.2billion while total assets
increased by 44% from GHS 1.4billion to GHS
2billion.

The asset growth was driven mainly by the sharp
cedi depreciation during the first half of the
year.

“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 GHS 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 GHS 2.4million loss, 91% better than
recorded in the first quarter, and in the Month of
June recorded a GHC 1.3 million profit after
tax”, Mr Amoabeng said.

Source - MyjoyOnline

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