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19.04.2012 Business & Finance

UT Bank Pledges More Loans

By Daily Guide
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UT BANK continues to register itself as a formidable force in the banking industry with the provision of affordable and accessible loans to the small and medium-scale sector.

At 'Facts Behind The Figures,' an annual activity organised by the Ghana Stock Exchange (GSE) for listed companies to explain their performances, Kofi Amoabeng, CEO of UT Bank, said the bank's loans and advances went up by 45 percent to GH¢499 million in 2011, compared to GH¢345 million in 2010.

Its interest income also went up by 34 percent to GH¢100 million in 2011, compared to GH¢75 million in 2010, while non-funded income also increased by 157 percent to GH¢29 million in 2011, compared to GH¢11million in 2010.

UT Bank's profit-before-tax also swelled by 42 percent to GH¢17 million, compared to GH¢12 million in 2010.

'This rapid growth necessitated an increase in deposit to support the loan book. Our return on asset (ROA) of 2.4 percent is well above industry average of 1.89 percent (Bank of Ghana's report, September 2011). We expect it to increase further as we churn out more profits in the coming years,' he stated.

Total assets shot up by 38 percent to GH¢712 million compared to GH¢517 million in 2010.

'Our return-on-equity of 26 percent outperformed the annual treasury-bill rate while also our loan disbursement for the year almost doubled to GH¢408 million, with the SME sector being our major beneficiary, this goes to confirm we are indeed an SME Bank.'

Mr. Amoabeng further emphasised: 'SME is our traditional clientele base, made up of businesses that lack the appropriate structures for operations hence their peculiar needs for funding. These businesses have high potential growth if managed well and are the silent drivers of economic growth. Our corporate portfolio is also rapidly growing; by the close of 2011 loans disbursed was in excess of GH¢174 million, representing an increase of 145 percent.'

He continued that as UT strengthened its deposit mix by increasing current accounts, it stood to gain more income through placements.

The bank's consumer finance portfolio stood at GH¢4.5 million from a 2010 figure of GH¢553,000, representing a growth of 713 percent. This was driven primarily by strategic partnerships with various dealers in home appliances and the like.

The widening of the product base has also enabled the bank to optimize its earning assets at minimal default rates, as well as reduce risk concentration.

Mr. Amoabeng noted, 'We will continue with our innovative drive to satisfy clients with convenient products and services to ensure profitable relationships. We expect to be the bank for the average person to take advantage of the ensuing opportunities in the economy. As we are 'the unique bank for real people' providing flexible, different, refreshing and timely tailor-made solutions.'

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