Business News of Wednesday, 9 May 2012

Source: myjoyonline

No dividend for UT Bank shareholders

Shareholders of UT Bank will not enjoy dividend this year. This is as a result of moves to plough back some of last year's profit to recapitalize the bank.

This was announced to shareholders at the bank's Annual General Meeting in Accra on Tuesday.

According to Chief Executive Officer of UT Bank, Prince Kofi Amoabeng in an interview with Joy Business disclosed that the decision was also influenced by a directive from the Bank of Ghana.

"The regulator says we looked at your books and you have not met the Ghc60 million capital requirement, so what do you mean you are paying dividend when you have not recapitalized, it does not make sense to us..." Kofi Amoabeng added.

Meanwhile UT Bank has secured $10 million dollars from Dutch investment firm DEG as part of it recapitalization bid. This adds up to the $15 million from IFC, the private sector arm of the World Bank.

UT Bank now expects to pay up state capital of almost Ghc 80 million by June 2012.