The Chief Executive Officer of UT Bank, Mr Prince Kofi Amoabeng, has said the bank is working assiduously to turn around its fortunes.
The assurance comes after the listed bank recorded losses in the first half of 2015.
The bank posted a loss of GH¢30.6 million 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 which was up 30 per cent during the period.
At a press conference in Accra, Mr Amoabeng said, “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.”
The bank, he added, was, therefore, focusing on issues such as loan recovery; risk management, effective cost management, and capital raising to enable it to recover fully from the losses. “I must reiterate that UT bank remains committed to supporting the SMEs by helping them to address the risks that they face”, he said.
The year 2014 was very challenging for the bank as tough macro-economic conditions and the protracted energy crisis continue to negatively affect the operations and performance of the business sector, especially its core segment, Small and Medium Enterprise (SMEs).
“The first three months were particularly challenging with the bank recording a GH¢28 million loss during that period. We have witnessed a vast improvement, as the results of the implementation of our turnaround plan kicked in. In the second quarter, from April to June, we recorded a GH¢2.4 million loss, 91 per cent better than recorded in the first quarter, and in the month of June recorded a GH¢1.3 million profit after tax,” he said.
Total deposits, he said, increased by 29 per cent from GH¢889 million to GH¢1.2 billion while total assets increased by 44 per cent from GH¢1.4 billion to GH¢2 billion. Mr Amoabeng said the bank was able to reduce its losses in the second quarter of 2015 by GH¢26 million which was a sign that it was on its way to profitability.
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