UT Bank Heads for 16-Month High on 2012 Performance: Accra Mover
UT Bank Ghana Ltd. (UTB), a lender in the West African nation, headed for its highest level in 16 months on bets of stronger financial performance this year.
The stock rose 2.7 percent to 38 pesewas by 1:55 p.m. in Accra, the capital, the highest level since August 2011.
“Changes made to the top shareholding structure this year increased the bank’s attractiveness to big corporate and institutional borrowers,” Randy Mensah, a stock trader with Ecobank Development Corp. in Accra, said by phone. “Coupled with UT’s experience in lending to small- and medium-sized companies, we are expecting remarkable growth in profit for this year,” he said without specifying a full-year earnings forecast.
The International Finance Corp. invested $15 million for a 20 percent stake in UT Bank this year. A $10 million equity investment and $5 million loan from Deutsche Investitions und Entwicklungsgesellschaft mbH, a Cologne-based company also known as DEG, bought a shareholding of about 13 percent in the African lender. The combined investment boosted UT Bank’s capital to 84 million cedis ($44 million) in July, compared with 60 million cedis required by the central bank.
UT Bank’s net income surged 57 percent to 13.5 million cedis in the nine months through Sept. 30, according to the company. Net interest income climbed to 46.9 million cedis from 37.8 million cedi a year earlier.
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