• Home
  • Business
  • Asset position at liquidation was ¢437.4m, not ¢1.3bn; bad loans were ¢869.6m – UT Bank Inventory Report discloses
Image

Asset position at liquidation was ¢437.4m, not ¢1.3bn; bad loans were ¢869.6m – UT Bank Inventory Report discloses

An Inventory Report of the assets and liabilities of UT Bank has disclosed that the revised asset position of UT Bank as of August 14, 2017, was approximately ¢437.4 million.

The report conducted by Receivers, Vish Ashiagbor and Eric-Nana Nipah of accounting and auditing firm, PWC, however, said that the defunct bank’s records will continue to be reviewed to ascertain its accurate asset position.

“The assets and liabilities of UT Bank were approximately ¢1.3 billion and ¢1.9 billion respectively as of 14 August 2017. We conducted a preliminary asset quality assessment on take over and made adjustments in line with available information. The revised asset position of UT Bank as of 14th August 2017 was approximately ¢437.4m. We continue to review the Bank’s records to ascertain its accurate asset position”.

The report further said its initial Asset Quality Review indicated that ¢869.6 million of UT Bank’s total assets were impaired.

“However, from our initial assessment and Asset Quality Review, we have adjusted the value of UT Bank’s Assets to ¢437.4 million. This value includes asset balances purchased by GCB per the Purchase and Assets Agreement.”

Day one cash after liquidation lower by ¢85,000

According to the Receivers, the physical cash counted (¢10.6m) on day one was ¢85,000 lower than the amounts stated in the General Ledger.

“On Day 1, we performed a physical count of cash held in vaults at the Bank’s head office and branch network (28 branches). Cash counts were done in conjunction with GCB and BoG representatives. Total cash counted was the cedi equivalent of ¢10.6m (approximately ¢85,000 lower than the ¢10.7 million stated in the Management Account and General Ledger (“GL”)”.

Bank maintained 14 foreign accounts

UT Bank maintained 14 foreign currency accounts (nostro accounts) with various correspondent Banks.

Per the management records of the bank as of revocation date, the report said UT Bank maintained 14 foreign currency accounts (Nostro Accounts) with nine correspondent banks. The cedi equivalent of balances in these accounts was approximately ¢33.9 million as of 14 August 2017.

Only ¢231m out of ¢1.2bn of loans recoverable

The report said at the time of the revocation of license, UT Bank had Loans and Advances of approximately ¢1.2 billion, accounting for approximately 88% of the bank’s total assets as of August 14, 2017.

The report further pointed out that a review of the loan book suggests that only ¢231 million of net Loans and Advances was recoverable.

The adjustment of ¢919 million represented loans that were classified as non-performing (loss) according to the records of UT Bank.

Related Posts

Genesis Energy,Desert Tech. announce clean energy alliance

Genesis Energy Holding, a Pan-African leader in clean energy infrastructure, and Desert Technologies Industries Factory CJSC, a Saudi-based…

Mouka reaffirms raw material leadership in Africa

Mouka, Nigeria’s leading manufacturer of quality sleep solutions and a proud member of the Dolidol International group, has…

Agboola advocates stronger cross-border infrastructure

Flutterwave CEO and Founder, Olugbenga “GB” Agboola , has called for accelerated investment in Africa’s cross-border payment infrastructure…

Munga increases stake in Equity Group by over $1.2m

Equity Group founder, Peter Munga, has made a strong return to the lender’s shareholder register, purchasing 3.64 million…