UT Bank Bounces Back

UT Bank Limited reported a GH¢30.6 million loss in the first half of this year largely due to 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.

Total deposits 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.

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

Commenting on the company's performance, Prince Kofi Amoabeng, Chief Executive Officer (CEO) of UT Bank Ltd, stated that 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 SMEs.

'The first three months were particularly challenging, with the bank recording a GH¢28 million loss during that period. We have since witnessed a vast improvement as the result of the implementation of our turnaround plan. From April to June, we recorded a GH¢2.4 million 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.'

'We are focusing more on issues such as loan recovery, risk management, effective cost management, and capital rising, among others. I must reiterate that UT Bank remains committed to supporting the SMEs by helping them address the risks that they face.'

Stephen Antwi-Asimeng, UT Banks Chief Operating Officer noted: 'We believe that the worst is behind us and we are excited about the opportunities and prospects going forward as we execute our strategies.'

Gillian Slater, UT Banks Chief Financial Officer, stated that 'we anticipate a reduction of our cost of funds in the second half of 2015 based on improvement 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 we will conclude on these in a timely manner.'

A business desk report