Monday, June 21, 2010

New UT Bank unveiled on GSE

UT Financial Services Limited (UTFSL) has listed 91 million additional shares to acquire UT Bank, and changed its name on the Ghana Stock Exchange to UT Bank Limited.

By this, over 300 million shares have now been issued to raise some additional capital, which will be injected into the bank, in order to meet the GH¢60 million minimum capitalisation requirement stipulated by the Bank of Ghana in 2010.

Among the benefits in the merger and acquisition, is also to increase customer base of the bank, access to cheaper lending, balance sheet leverage, to meet future capital requirement, as well as technological improvement.

It would also enable the bank to create more employment and provide more capital investment to improve the Small and Medium-scale Enterprises (SMEs) sector.
It also marks the completion of the merger process between UTFSL and UT Bank which aims at making the Bank more competitive in the industry of 26 banks.

UT Holdings which presently holds 70 percent of the share holding structure has operated UT Collection, UT Properties, UT Logistics and UT International alongside UT Financial Services, giving its target market clientele balanced financial products to choose from.

In November last year, UT Holdings acquired 51 percent stake in BPI Bank to become the majority stakeholder. BPI Bank was formerly controlled by Hopaco Ventures of Malaysia at 93 percent and the rest by Social Security and National Insurance Trust (SSNIT).

The CEO of UT Bank, Captain (rtd.) Prince Kofi Amoabeng explaining to B&FT said: “The merger of the two companies will position UT Bank as a vibrant lending bank more especially to the (SMEs) which constitute over 85 percent of the country’s business sector.

“It would also change the face of banking in the country through fast, efficient and respectful delivery of service, maintaining the core proposition of loan in less than 48 hours.”

“Our hope is to make banking accessible to the general public and ensure transparency in the Banks operations.”

Amoabeng assured investors of good management and high returns on their shares.

UTFS, which was recently voted the Most Respected Company and its CEO Voted the Most Respected CEO by its peers is also ranked fifth on the Ghana Club 100, started of as a finance house-a non bank financial institution in 1997.Over 13 years, the company carved a niche for itself as a fast and efficient provider of financial solutions delivering superior loans.

Its net worth improved by 52 percent over 2007 to GH¢16.8 million in 2008, out of which GH¢3 million was raised from an Initial Public Offer.

Other key performance indicators also showed improved performance including total assets, which went up by 68 percent to GH¢ 127.8 million, profit before tax up by 28 percent to GH¢7.6 million and interest income, a 17 percent growth. Business loans grew by 24 percent and auto loans, by 253 percent.

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