UTBank to remain tough on defaulting customers – Mr Amoabeng

By Charles Benoni Okine

The Chief Executive Officer of UT Bank, Mr Prince Kofi Amoabeng, has stated that the bank will not be lenient with customers who deliberately refuse to redeem the loans they take from the bank.

“We will be considerate to all our customers as we have always done but we will not countenance those who refuse to pay back the loans they take and yet attempt to run away from us when the time is due for them to pay”, he said.

Mr Amoabeng said this when the bank, also the 2011 Bank of the Year at the last Ghana Banking Awards organized by Corporate Initiative Ghana (CIG),  took its turn at the ‘Facts Behind the Figures Session’ at the Ghana Stock Exchange (GSE) to explain the performance of the bank during the year 2012.

“What we need to understand is that the bank takes deposit from people and that is what it on lends to those who want it and, therefore we cannot allow some few people to take the loan and refuse to pay because when that happens, what do we give back to the depositors when they want their money”, he added.

Mr Amoabeng explained that there are instances where customers who have any difficulties come to negotiate with the bank and in some instances, we have been forced to add more for them to overcome their challenge and come back to pay us and we think that is the right thing to do”.

He said the bank lends a total of GhC40 million as loans for various reasons and noted that these monies have to be recovered to enable to enable others also benefit.

UTBank, then UT Financial Services, has made a mark as far as loans are concerned and that, Mr Amoabeng said will not change anytime.

He said the bank will embark on a massive branding exercise to make its image more solid.

The bank posted a profit before tax of GH¢26.7 million for 2012 against GH¢17.3 million recorded in 2011.

It also grew its total assets by 38.5 per cent to GH¢987 million while non-performing loans also reduced from 13.9 per cent in 2011 to 11.9 per cent in 2012.

The bank’s income also grew by 32.6 per cent from 2011 pushing their total income to GH¢105million.

Meanwhile, shareholder’s funds increased by 109.8 per cent from GH¢61 million to GH¢128 million in 2012 and the bank consequently declared a dividend of 2.00ghp per share.