UT bank announces 60% rise in profits after tax

Business News of Saturday, 20 April 2013

Source: Joy Online

Ghana Cedis 19Nov2010

UT bank has announced a 54% increase in profits before tax and a 60% increase in profits after tax, on the basis of which it declared 2Gp dividend per share, while its earnings per share increased marginally from 43Gp in 2011 to 46Gp last year.

Pearl Esua-Mensah explained that the rather slow growth in earnings per share was attributable to the increase in the bank’s shares mid last year.

Total shareholders fund therefore stood at GHC128 million, which is 109% higher than what it was at the beginning of the year, according to Mrs. Esua-Mensah.

She said total asset however increased by 38% to GHC987 million, and shot the bank to number in the industry, from number 23 and couples of years bank.

Customer deposits increased from GHC545million in 2011 to GHC797million last year, while the bank’s loans and advances portfolio increased 43.1% to GHC618million.

Interest income increased 34% but was neutralized by interest expenses which increased by 44% due to the government Treasury Bills rate.

“We however made up for it with 59.9% increase in net income commissioning and 25.7% increase in other operating incomes,” Mrs. Esua-Mensah noted.

She said while non-funded income grew 47.4%, operating expenses also went up by 36.7%, which was higher than expected, but the 60% profits after tax compensated for that.

The bank also reduced its non-performing loans from 13.9% in 2011 to 11.9%, and on the back of the private placement last year, its capital went up by another GHC46 million.

Mrs. Esua-Mensah said over the period under review, the bank won several laurels including Bank of the Year, Most Respected Bank of the Year after just three years of operations, and also won several other awards, plus it was first runner up in several other categories at the Ghana Banking Awards.

“Our CEO, Mr. Prince Kofi Amoabeng has also remained the Most Respected CEO of the Year for three consecutive years and he was also the first Jonnie Walker Walk with the Giants Ambassador last year,” she said.

She assured shareholders of a aggressive improvement in performance in 2013, branch network expansion, increased trade finance lines, which has already risen from GHC20million to GHC100million last year alone.