UT bank has secured shareholders approval to cede an extra 12 percent stake of the bank to German institution DEG. This was approved at the bank's Annual General Meeting.
DEG is expected to invest the cedi equivalent of $10million dollars as the proposed equity investment.
The implication on the shareholder structure is that UT holding’s 61 percent stake would now drop to 41.6percent.
IFC's earlier stake of 22 percent will also reduce to 19.2percent. The other minor shareholders also have their stakes diluted marginally.
Commenting on the latest development the CEO of the bank, Prince Kofi Amoabeng said the move will ensure the bank has the financial muscle to do business and also prepare against future recapitalization requirements from the Bank of Ghana.
“For this injection, we will hit about GHC78million. UT bank as one of the few Ghanaian banks, I think it is right for the banking community that part of the banking sector stays with the nationals,” he opined.
Meanwhile shareholders of the bank will not enjoy dividend from the bank despite an impressive financial year in 2011.
The bank's 2011 net profit rose to GH¢13.065 million from the GH¢9.300 million it recorded the previous year. Its total assets also grew by 38 per cent to GH¢712 million from GH¢517 million in 2010.
57% of the bank's loans went to Small and Medium Enterprises totaling about GH¢408 million up from GH¢210 million it saw in 2010.
Gross loan portfolio as at last year stood at GH¢499 million, an increase of 45 per cent over the previous year, attributable to increased loan disbursements.
Source: Citifmonline.com
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