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ANNUAL REPORT

ANNUAL GENERAL MEETING 2013 INFORMATION BOOKLET UT BANK VISA Life’s journey will take you many places. go explore and do business with your card. • DEBIT CARD • GIFT CARD • YOUTH CARD • PREPAID CARD

Scan to watch NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Annual General Meeting (AGM) of UT Bank Limited will be DATED at Accra this day 21st Day of March 2014. held at the National Theatre, Accra, Ghana on Thursday 17th April 2014 at 10:00am to transact the following business: BY ORDER OF THE BOARD Ordinary Business Ordinary Resolutions

1. TO CONSIDER and adopt the statement of Accounts of the Company for the year ended 31st MARY KESSIE (MRS.) December 2013 together with the Reports of the Directors and Auditors thereon. Company Secretary 2. TO RE-ELECT Directors • To re-elect Mr. Martyn Mensah as a Director under Regulation 59 of the Company’s NOTE: A member entitled to attend and vote at the Meeting is entitled to appoint a proxy and Regulation and Section 298(D) of the Companies Code 1963, Act179. vote in his/her/its stead. A proxy need not be a member of the Bank. A proxy form is enclosed and 3. TO ELECT Mr. Andreas Voss as a Director of the Bank. for it to be valid for the purpose of the meeting it must be completed and deposited at the 4. TO FIX the remuneration of Directors. Registered Oﬃce of the Registrars of the Company, NTHC Limited, Martco House, No. D542/4 Okai Mensah Link , Adabraka, Accra P.O. Box 9563, Airport- Accra not less than 48 hours before the 5. TO AUTHORISE the Directors to approve the remuneration of the Auditors for the year ending meeting. 31st December 2013.

Special Business Special Resolutions 6. TO AUTHORISE the Directors of the Company to raise capital of up to GHS100million by way of rights issue and/or private placements on such terms and conditions as they may consider bene cial to the Bank and its shareholders, including providing speci c rights (such as Board representation) to certain categories of investors as they may consider appropriate and in the best interest of the Bank and its shareholders

7. TO AUTHORISE the Company in accordance with its Regulations and subject to Section 61 of the Companies Act, 1963(ACT 179), to make market purchases of the Company’s ordinary shares up to a maximum of 5 percent of its issued share capital and to operate a share deals account for that purpose.

8. TO APPROVE the circulation of the Notice of General Meetings, Pro t & Loss Accounts, Balance Sheet, Reports and any other relevant information by print or electronic means. Gye Nyame: Omnipotence and immortality of God

1 UT BANK ANNUAL REPORT Introduction respectively in 2012 to 19.2% and 18.7% respectively in 2013. The Ghana required minimum. We also received medium term debt Fellow Shareholders, Ladies and Gentlemen, I welcome you to the 6th average rate on government securities were however comparatively funding from reputable companies such as the African Development Annual General Meeting of UT Bank higher than in the previous year. The 91-day and 182-day bill rates Bank, European Investment Bank and responsAbility Global CONTENTS averaged 21.9% in 2013 compared to 18.8% and 18.9% respectively. Micro nance Funds. Operating Environment Review We are happy to build relationships with institutions such as these The global economy began a recovery in the second half of 2013. This Financial Review who like us, support the growth of the SME sector. was due to increased demand in advanced economies which fueled a The Bank’s revenue lines remained strong in 2013. Interest income rebound in exports in the emerging markets. was GH¢188million, representing a 40% increase from the previous Corporate Governance year, while non-funded income increased from GH¢43million to We embarked on a number of developments to improve our corporate On the local front, the cost of doing business increased signi cantly, Notice of Annual General Meeting 1 Directors, Ocers and Registered Oce 16 GH¢53million. However, the 60% growth in interest expense, governance processes in line with internationally accepted standards. against the backdrop of increases in petroleum and utility prices as attributable to the higher average rate on government securities, The International Finance Corporation (IFC), as part of its Technical well as the energy crisis during the rst half of the year. Furthermore, Chairman’s Statement 3 Resolutions 17 negatively aected our nancial performance. Total income increased Advisory Services, conducted a review of our corporate governance in an eort to plug the hole in the expanding budget de cit, the by 19% to GH¢125million, a comparatively slower growth. structure during the year. This led to a number of changes including Government of Ghana increased its tax rates. CEO’s Statement 5 Proxy Form 18 Given the negative impact of the tough economic conditions on our the reconstitution of the board, and the subsequent appointment of Inﬂation stood at a year high of 13.5% at the end of 2013, clearly customers’ businesses, the Bank took a more prudent stance with Mrs. Linda Osei-Akoto as Lead Independent Director (LID) and Mr. Alex missing the targeted 7% to 11% range. This was driven by rising prices Directors’ Report 8 regard to our provisioning. We consequently increased the charge for Bernasko as Corporate Governance Lead Person (CGLP). In this new in housing, utilities and energy which increased by 35% year on year, doubtful debt to GH¢24million, an increase of 83%. capacity, Mrs. Linda Osei-Akoto will coordinate the activities of while prices in the transport sector shot up by 26% within the period Non-Executive Directors, and Mr. Bernasko is to ensure the Independent Auditors Report 9 The aforementioned resulted in a pro t before tax of GH¢13.4million under review. implementation of the IFC recommended amendments as well as the in 2013, representing a 48% drop compared to the previous year. Statement of Comprehensive Income The depreciation of the cedi, which seemed to have abated in 2013, continued development of our corporate governance structure. 10 Dividend picked up with renewed strength in the nal quarter. This was on the One of our principal shareholders DEG, ocially nominated Mr. Given our nancial performance, the Board of Directors took a tough back of a variety of factors including lower volumes on individual Andreas Voss, their Regional Director for West Africa, to represent Statement of Financial Position 11 decision not to pay out dividend in respect of the nancial year remittances and foreign direct investment as well as a decline in their interest on the Board. The addition of Mr. Voss to our team will ending 31st December 2013. receipts from the sale of gold and cocoa. By the end of the year, the be very bene cial as he brings along a vast experience in the global Statement of Changes in Equity 12 Supporting our Capital Adequacy is essential for our operation as a local currency had depreciated by 15% against the US Dollar. nancial industry and a boost to our quest to achieve international lending Bank, and a dividend payout would negatively aect this. Our Economic growth was slow for most part of the year partly due to the standards of professionalism. Statement of Cash Flow 13 The Adinkra symbols express various themes that nancial performance over 2013 is only temporary and I ask that, we political gridlock, however it picked up subsequently in the nal relate to the history, beliefs and philosophy of the as shareholders will grant the Bank every support during this period. Corporate Social Responsibility (CSR) Asante. They mostly have rich proverbial meaning quarter. Real GDP growth at the end of the year was therefore strong, Giving back to our society remains one of the key pillars upon which Notes to the Financial Statement 14 since proverbs play an important role in the Asante albeit down from 7.9% in 2012 to 7.4% in 2013. The main contributor Capital culture. our business is built. We exist because of our community, and it is to this growth was the oil sector, without which GDP growth would In December 2013, we received US$10million from Amethis Finance, The use of Proverbs is considered as a mark of wisdom. essential that we continually contribute to its development. Branch Locations have declined to 5.8%. a Paris based private equity rm dedicated to investing in Africa. 15 The Bank continued its nancial literacy workshops and clinics in Rates on government securities also trended downward during the The funds supported our capital, enabling us to close the year with a collaboration with the Ghana Chamber of Commerce and GIZ to train year. The 91-day and 182-day bill rates dropped from 23.1% and 23% Capital Adequacy Ratio of 12.2%, marginally above the Bank of our customers to become more ecient and prudent in managing

2 UT BANK ANNUAL REPORT

their business. As part of the programme, customers also received To this end, the Bank has undertaken major structural changes and Introduction we participated in transactions worth over US$200million Total current and savings accounts amounted to GH¢289million, free medical screening on conditions such as blood pressure, blood product innovations to improve our service delivery. The year 2013 was a challenging one for UT Bank, as the expected rise representing more than 100% growth over the previous year. Our compared to GH¢333million in 2012. Attracting cheap deposits was a sugar, cholesterol, Body Mass Index etc. In all, over 1,500 people in economic activity was not forthcoming until much later in the year. customers appreciate our speed for doing business and the varied challenge for most Banks during the year, particularly due to the Our aim is to return to you, our shareholders, at the next AGM with a The country experienced a political deadlock for a greater part of the solutions we oer for their complex needs. participated in the workshops and clinics. change in regulation, which allowed non-Bank financial institutions story of success; a story of a brand rejuvenated, demonstrating year, as a result of the main opposition party contesting the 2012 to hold deposits. We therefore had to rely on growing our expensive On the other hand we continued to struggle with high interest UT Bank once again championed its crusade of creating awareness exibility in our ability to recover quickly in the face of challenges. election results; this slowed government expenditure, causing a deposits to sustain our business. expenses; a symptom of our legacy of expensive deposits and high about breast cancer through its Pledge Pink Campaign. As a boost to Our next challenge is always our greatest and we are focused on build-up in debt owed to the private sector. interest rates on government securities. Although the rates on We also increasingly relied on external funds from reputable external the Campaign, the Bank acquired a mobile screening van at a cost of ensuring that your Bank stands rm in the face of economic Economic fundamentals remained challenging as witnessed in the government securities declined slightly during the year, the average nancial institutions. These funds were cheaper for us than our term about US$65,000. close to 8000 people were screened using this van uncertainties. We know that you- our shareholders trust us to deliver, rising ination, high interest rates on government securities, and the rates for 2013 were higher compared to the previous year. The rate on deposits which we price relative to Government securities. out of which 106 suspected cases of breast cancer were identified. and we will, Just like the Adinkra symbol Nyinkyim we remain sharp depreciation of the cedi. All of these had a far reaching impact the 91-day and 182-day bill averaged 21.9% in 2013 compared to Shareholders’ funds totaled GH¢129million in 2013. on the cost of doing business, particularly in the SME sector. Indeed The Bank also paid for the treatment of 48 women at various stages dynamic, innovative, tough, adaptable and resilient. 18.8% and 18.9% respectivelyin 2012. Our average cost of funds was when economic conditions are as tough as they were, it is the SME therefore 200bps higher at 12.5% compared to 10.5% in 2012. Our of the disease. Change Management sector which suers the most. total income grew by 19% to GH¢125million. Enhancing our customer service experience is the foundation upon We had another successful edition of the Chairman’s Christmas Day Thank you. We continued to invest in our e-business platforms and operating which we grow our brand. In 2013 we began an organizational Outreach, where about 2000 food packs and drinks were distributed Financial Highlights eciency in order to enrich our customer service oering. We restructuring with the goal of providing our customers a 360 degree to the needy on some major streets of Accra as well as inmates of the • Capital Adequacy Ratio of 12.2% (2012: 13.4%) completed our migration to the VISA platform, and now oer solution to their business needs. We now have three key business Senior Correctional Centre in Accra (previously called the Borstal • Total Assets grew by 35% to GH¢ 1.34billion customers a wide range of products including Debit, Prepaid, Gift and units namely Corporate, Business and Retail Banking. The Youth Cards.Our cards are veri ed by Visa and chip enabled, meaning Institute). Joseph Nsonamoah • Loans and Advances (net) increased by 35% to GH¢ 917million departments are further sub-categorized into sectors and niche Chairman • Interest Income was up by 40% to GH¢ 188million they cannot be cloned. These features make them among the most markets catering for the speci c needs of our customers. Sta were As its contribution to the development of Sports in Ghana, UT Bank • Interest Expense grew by 60% to GH¢ 116million secure in the world. Our internet Banking platform is currently assessed, realigned and empowered to maximize performance. The sponsored the Amidaus Professionals Football Club, a budding team • Non Funded Income increased by 23% to GH¢ 53million operational and adequately positions us to compete for larger Balance Score Card System has been introduced to continuously in the Ghana Premier League based in Tema, and two excellent golf • Operating Expenses grew by 34% to GH¢ 87million corporate and individual deposits. assess and ensure improved sta performance. tournaments. • Profit Before Tax was down by 48% to GH¢ 13million Furthermore, we opened two new branches: Tamale in the Northern With these changes in our business model we are con dent that our Our CSR activities were recognized by Industry, earning us the First Region and Suame in the Ashanti Region.These, in addition to our customers will experience the full bene ts of doing business with UT mobile Banking van, are enabling us to reach further into the Runner-up position in Corporate Social Responsibility at the 2013 Income Statement Analysis Bank. Ghanaian terrain. All these improvements came at a cost as our Ghana Banking Awards. We made a pro t before tax of GH¢13million, representing a 48% operating expenses for the year increased by 34% to GH¢87million.We Employees decline year-on-year. The decline in profitability was mainly due to a expect to reap the bene ts of these investments in the near future. Conclusion and Outlook Over time there has risen a need for the Bank to develop a way of sharp growth in interest expenses and higher provisioning made In spite of challenges in the macro-economic environment, which matching our needs as a business, the increasingly complex needs of during the year. Balance Sheet Analysis negatively impacted our nancial performance, we remain resolute in Our total assets crossed the one billion mark to GH¢1.34billion, up by our customers and the competencies of our employees. This concept came to full fruition with the establishment of our learning and our eorts to achieve our long term vision of rede ning banking. The growth in our net interest income remained strong year-on-year, 35% compared to 2012. Loans and advances continued to be the development department, the UT Academy. We do not expect 2014 to be any less challenging, considering the rising by 40% to GH¢188million mainly as a result of the growth in dominant asset line and grew by 35% to GH¢917million. We however improved the structure of our assets, investing more in liquid interest UT Academy’s mandate ranges from ensuring the right recruitment sharp Cedi depreciation and rising ination. We also recognize that our loan book. Non-funded income growth was equally impressive; it earning assets by growing our short term investments by 95% to and assessment process, developing training programmes, attracting cheaper deposits and improving the return on our assets grew by 23% to GH¢53million in 2013. Growth in this line stemmed GH¢120million. Short term investments therefore accounted for 9% of recommending professional courses for sta and running the Bank’s are essential to a stronger nancial performance. However, we are from increased transactional business and trade nance activities. UT total assets compared to 6% in the previous year. Graduate Development Programme, among others. All these fall con dent that the structures we have put in place will enable us Bank is indeed fast growing in the trade nance space. In 2013 alone On the liabilities end, our deposits grew by 15% to GH¢920million. within our long term strategy of being employer of choice and achieve our set targets. developing top notch employees.

Outlook As aforementioned, we have invested heavily in our e-business platform and expect that this will translate into faster and simpler services in 2014. The introduction of the mobile banking platform will serve as a foundation for implementing other branchless and agency banking products. The import of these to our business cannot be overemphasized in the light of the need for growth in cheap deposits. As part of our expansion drive we have commenced operations on Tamale, Suame, North Industrial Area, and East Legon. The East Legon branch is our rst virtual branch, providing 24 hour service. The branch will also house the newly created Private Banking and Wealth Management Units.

As we strive to improve our structure and operational processes in line with globally accepted standards, our Risk Management function is also being strengthened. Additionally, we continue to invest in the development of our sta to attain the highest standards.

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Prince Ko Amoabeng CEO

CHAIRMAN’s STATEMENT

Introduction respectively in 2012 to 19.2% and 18.7% respectively in 2013. The Ghana required minimum. We also received medium term debt Fellow Shareholders, Ladies and Gentlemen, I welcome you to the 6th average rate on government securities were however comparatively funding from reputable companies such as the African Development Annual General Meeting of UT Bank higher than in the previous year. The 91-day and 182-day bill rates Bank, European Investment Bank and responsAbility Global averaged 21.9% in 2013 compared to 18.8% and 18.9% respectively. Micro nance Funds. Operating Environment Review We are happy to build relationships with institutions such as these The global economy began a recovery in the second half of 2013. This Financial Review who like us, support the growth of the SME sector. was due to increased demand in advanced economies which fueled a The Bank’s revenue lines remained strong in 2013. Interest income rebound in exports in the emerging markets. was GH¢188million, representing a 40% increase from the previous Corporate Governance year, while non-funded income increased from GH¢43million to We embarked on a number of developments to improve our corporate On the local front, the cost of doing business increased signi cantly, GH¢53million. However, the 60% growth in interest expense, governance processes in line with internationally accepted standards. against the backdrop of increases in petroleum and utility prices as attributable to the higher average rate on government securities, The International Finance Corporation (IFC), as part of its Technical well as the energy crisis during the rst half of the year. Furthermore, negatively aected our nancial performance. Total income increased Advisory Services, conducted a review of our corporate governance in an eort to plug the hole in the expanding budget de cit, the by 19% to GH¢125million, a comparatively slower growth. structure during the year. This led to a number of changes including Government of Ghana increased its tax rates. Given the negative impact of the tough economic conditions on our the reconstitution of the board, and the subsequent appointment of Inﬂation stood at a year high of 13.5% at the end of 2013, clearly customers’ businesses, the Bank took a more prudent stance with Mrs. Linda Osei-Akoto as Lead Independent Director (LID) and Mr. Alex missing the targeted 7% to 11% range. This was driven by rising prices regard to our provisioning. We consequently increased the charge for Bernasko as Corporate Governance Lead Person (CGLP). In this new in housing, utilities and energy which increased by 35% year on year, doubtful debt to GH¢24million, an increase of 83%. capacity, Mrs. Linda Osei-Akoto will coordinate the activities of while prices in the transport sector shot up by 26% within the period Non-Executive Directors, and Mr. Bernasko is to ensure the The aforementioned resulted in a pro t before tax of GH¢13.4million under review. implementation of the IFC recommended amendments as well as the in 2013, representing a 48% drop compared to the previous year. The depreciation of the cedi, which seemed to have abated in 2013, continued development of our corporate governance structure. Dividend picked up with renewed strength in the nal quarter. This was on the One of our principal shareholders DEG, ocially nominated Mr. Given our nancial performance, the Board of Directors took a tough back of a variety of factors including lower volumes on individual Andreas Voss, their Regional Director for West Africa, to represent decision not to pay out dividend in respect of the nancial year remittances and foreign direct investment as well as a decline in their interest on the Board. The addition of Mr. Voss to our team will ending 31st December 2013. receipts from the sale of gold and cocoa. By the end of the year, the be very bene cial as he brings along a vast experience in the global Supporting our Capital Adequacy is essential for our operation as a local currency had depreciated by 15% against the US Dollar. nancial industry and a boost to our quest to achieve international lending Bank, and a dividend payout would negatively aect this. Our Economic growth was slow for most part of the year partly due to the standards of professionalism. nancial performance over 2013 is only temporary and I ask that, we political gridlock, however it picked up subsequently in the nal as shareholders will grant the Bank every support during this period. Corporate Social Responsibility (CSR) quarter. Real GDP growth at the end of the year was therefore strong, Giving back to our society remains one of the key pillars upon which albeit down from 7.9% in 2012 to 7.4% in 2013. The main contributor Capital our business is built. We exist because of our community, and it is to this growth was the oil sector, without which GDP growth would In December 2013, we received US$10million from Amethis Finance, essential that we continually contribute to its development. have declined to 5.8%. a Paris based private equity rm dedicated to investing in Africa. The Bank continued its nancial literacy workshops and clinics in Rates on government securities also trended downward during the The funds supported our capital, enabling us to close the year with a collaboration with the Ghana Chamber of Commerce and GIZ to train year. The 91-day and 182-day bill rates dropped from 23.1% and 23% Capital Adequacy Ratio of 12.2%, marginally above the Bank of our customers to become more ecient and prudent in managing

UT BANK ANNUAL REPORT 3

their business. As part of the programme, customers also received To this end, the Bank has undertaken major structural changes and Introduction we participated in transactions worth over US$200million Total current and savings accounts amounted to GH¢289million, free medical screening on conditions such as blood pressure, blood product innovations to improve our service delivery. The year 2013 was a challenging one for UT Bank, as the expected rise representing more than 100% growth over the previous year. Our compared to GH¢333million in 2012. Attracting cheap deposits was a sugar, cholesterol, Body Mass Index etc. In all, over 1,500 people in economic activity was not forthcoming until much later in the year. customers appreciate our speed for doing business and the varied challenge for most Banks during the year, particularly due to the Our aim is to return to you, our shareholders, at the next AGM with a The country experienced a political deadlock for a greater part of the solutions we oer for their complex needs. participated in the workshops and clinics. change in regulation, which allowed non-Bank financial institutions story of success; a story of a brand rejuvenated, demonstrating year, as a result of the main opposition party contesting the 2012 to hold deposits. We therefore had to rely on growing our expensive On the other hand we continued to struggle with high interest UT Bank once again championed its crusade of creating awareness exibility in our ability to recover quickly in the face of challenges. election results; this slowed government expenditure, causing a deposits to sustain our business. expenses; a symptom of our legacy of expensive deposits and high about breast cancer through its Pledge Pink Campaign. As a boost to Our next challenge is always our greatest and we are focused on build-up in debt owed to the private sector. interest rates on government securities. Although the rates on We also increasingly relied on external funds from reputable external the Campaign, the Bank acquired a mobile screening van at a cost of ensuring that your Bank stands rm in the face of economic Economic fundamentals remained challenging as witnessed in the government securities declined slightly during the year, the average nancial institutions. These funds were cheaper for us than our term about US$65,000. close to 8000 people were screened using this van uncertainties. We know that you- our shareholders trust us to deliver, rising ination, high interest rates on government securities, and the rates for 2013 were higher compared to the previous year. The rate on deposits which we price relative to Government securities. out of which 106 suspected cases of breast cancer were identified. and we will, Just like the Adinkra symbol Nyinkyim we remain sharp depreciation of the cedi. All of these had a far reaching impact the 91-day and 182-day bill averaged 21.9% in 2013 compared to Shareholders’ funds totaled GH¢129million in 2013. on the cost of doing business, particularly in the SME sector. Indeed The Bank also paid for the treatment of 48 women at various stages dynamic, innovative, tough, adaptable and resilient. 18.8% and 18.9% respectivelyin 2012. Our average cost of funds was when economic conditions are as tough as they were, it is the SME therefore 200bps higher at 12.5% compared to 10.5% in 2012. Our of the disease. Change Management sector which suers the most. total income grew by 19% to GH¢125million. Thank you. Enhancing our customer service experience is the foundation upon We had another successful edition of the Chairman’s Christmas Day We continued to invest in our e-business platforms and operating which we grow our brand. In 2013 we began an organizational Outreach, where about 2000 food packs and drinks were distributed Financial Highlights eciency in order to enrich our customer service oering. We restructuring with the goal of providing our customers a 360 degree to the needy on some major streets of Accra as well as inmates of the • Capital Adequacy Ratio of 12.2% (2012: 13.4%) completed our migration to the VISA platform, and now oer solution to their business needs. We now have three key business Senior Correctional Centre in Accra (previously called the Borstal • Total Assets grew by 35% to GH¢ 1.34billion customers a wide range of products including Debit, Prepaid, Gift and units namely Corporate, Business and Retail Banking. The Youth Cards.Our cards are veri ed by Visa and chip enabled, meaning Institute). Joseph Nsonamoah • Loans and Advances (net) increased by 35% to GH¢ 917million departments are further sub-categorized into sectors and niche Chairman • Interest Income was up by 40% to GH¢ 188million they cannot be cloned. These features make them among the most markets catering for the speci c needs of our customers. Sta were As its contribution to the development of Sports in Ghana, UT Bank • Interest Expense grew by 60% to GH¢ 116million secure in the world. Our internet Banking platform is currently assessed, realigned and empowered to maximize performance. The sponsored the Amidaus Professionals Football Club, a budding team • Non Funded Income increased by 23% to GH¢ 53million operational and adequately positions us to compete for larger Balance Score Card System has been introduced to continuously in the Ghana Premier League based in Tema, and two excellent golf • Operating Expenses grew by 34% to GH¢ 87million corporate and individual deposits. assess and ensure improved sta performance. tournaments. • Profit Before Tax was down by 48% to GH¢ 13million Furthermore, we opened two new branches: Tamale in the Northern With these changes in our business model we are con dent that our Our CSR activities were recognized by Industry, earning us the First Region and Suame in the Ashanti Region.These, in addition to our customers will experience the full bene ts of doing business with UT mobile Banking van, are enabling us to reach further into the Runner-up position in Corporate Social Responsibility at the 2013 Income Statement Analysis Bank. Ghanaian terrain. All these improvements came at a cost as our Ghana Banking Awards. We made a pro t before tax of GH¢13million, representing a 48% operating expenses for the year increased by 34% to GH¢87million.We Employees decline year-on-year. The decline in profitability was mainly due to a expect to reap the bene ts of these investments in the near future. Conclusion and Outlook Over time there has risen a need for the Bank to develop a way of sharp growth in interest expenses and higher provisioning made In spite of challenges in the macro-economic environment, which matching our needs as a business, the increasingly complex needs of during the year. Balance Sheet Analysis negatively impacted our nancial performance, we remain resolute in Our total assets crossed the one billion mark to GH¢1.34billion, up by our customers and the competencies of our employees. This concept came to full fruition with the establishment of our learning and our eorts to achieve our long term vision of rede ning banking. The growth in our net interest income remained strong year-on-year, 35% compared to 2012. Loans and advances continued to be the development department, the UT Academy. We do not expect 2014 to be any less challenging, considering the rising by 40% to GH¢188million mainly as a result of the growth in dominant asset line and grew by 35% to GH¢917million. We however improved the structure of our assets, investing more in liquid interest UT Academy’s mandate ranges from ensuring the right recruitment sharp Cedi depreciation and rising ination. We also recognize that our loan book. Non-funded income growth was equally impressive; it earning assets by growing our short term investments by 95% to and assessment process, developing training programmes, attracting cheaper deposits and improving the return on our assets grew by 23% to GH¢53million in 2013. Growth in this line stemmed GH¢120million. Short term investments therefore accounted for 9% of recommending professional courses for sta and running the Bank’s are essential to a stronger nancial performance. However, we are from increased transactional business and trade nance activities. UT total assets compared to 6% in the previous year. Graduate Development Programme, among others. All these fall con dent that the structures we have put in place will enable us Bank is indeed fast growing in the trade nance space. In 2013 alone On the liabilities end, our deposits grew by 15% to GH¢920million. within our long term strategy of being employer of choice and achieve our set targets. developing top notch employees.

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Prince Ko Amoabeng CEO

their business. As part of the programme, customers also received To this end, the Bank has undertaken major structural changes and Introduction we participated in transactions worth over US$200million Total current and savings accounts amounted to GH¢289million, free medical screening on conditions such as blood pressure, blood product innovations to improve our service delivery. The year 2013 was a challenging one for UT Bank, as the expected rise representing more than 100% growth over the previous year. Our compared to GH¢333million in 2012. Attracting cheap deposits was a sugar, cholesterol, Body Mass Index etc. In all, over 1,500 people in economic activity was not forthcoming until much later in the year. customers appreciate our speed for doing business and the varied challenge for most Banks during the year, particularly due to the Our aim is to return to you, our shareholders, at the next AGM with a The country experienced a political deadlock for a greater part of the solutions we oer for their complex needs. participated in the workshops and clinics. change in regulation, which allowed non-Bank financial institutions story of success; a story of a brand rejuvenated, demonstrating year, as a result of the main opposition party contesting the 2012 to hold deposits. We therefore had to rely on growing our expensive On the other hand we continued to struggle with high interest UT Bank once again championed its crusade of creating awareness exibility in our ability to recover quickly in the face of challenges. election results; this slowed government expenditure, causing a deposits to sustain our business. expenses; a symptom of our legacy of expensive deposits and high about breast cancer through its Pledge Pink Campaign. As a boost to Our next challenge is always our greatest and we are focused on build-up in debt owed to the private sector. interest rates on government securities. Although the rates on We also increasingly relied on external funds from reputable external the Campaign, the Bank acquired a mobile screening van at a cost of ensuring that your Bank stands rm in the face of economic Economic fundamentals remained challenging as witnessed in the government securities declined slightly during the year, the average nancial institutions. These funds were cheaper for us than our term about US$65,000. close to 8000 people were screened using this van uncertainties. We know that you- our shareholders trust us to deliver, rising ination, high interest rates on government securities, and the rates for 2013 were higher compared to the previous year. The rate on deposits which we price relative to Government securities. out of which 106 suspected cases of breast cancer were identified. and we will, Just like the Adinkra symbol Nyinkyim we remain sharp depreciation of the cedi. All of these had a far reaching impact the 91-day and 182-day bill averaged 21.9% in 2013 compared to Shareholders’ funds totaled GH¢129million in 2013. on the cost of doing business, particularly in the SME sector. Indeed The Bank also paid for the treatment of 48 women at various stages dynamic, innovative, tough, adaptable and resilient. 18.8% and 18.9% respectivelyin 2012. Our average cost of funds was when economic conditions are as tough as they were, it is the SME therefore 200bps higher at 12.5% compared to 10.5% in 2012. Our of the disease. Change Management sector which suers the most. total income grew by 19% to GH¢125million. Thank you. Enhancing our customer service experience is the foundation upon We had another successful edition of the Chairman’s Christmas Day We continued to invest in our e-business platforms and operating which we grow our brand. In 2013 we began an organizational Outreach, where about 2000 food packs and drinks were distributed Financial Highlights eciency in order to enrich our customer service oering. We restructuring with the goal of providing our customers a 360 degree to the needy on some major streets of Accra as well as inmates of the • Capital Adequacy Ratio of 12.2% (2012: 13.4%) completed our migration to the VISA platform, and now oer solution to their business needs. We now have three key business Senior Correctional Centre in Accra (previously called the Borstal • Total Assets grew by 35% to GH¢ 1.34billion customers a wide range of products including Debit, Prepaid, Gift and units namely Corporate, Business and Retail Banking. The Youth Cards.Our cards are veri ed by Visa and chip enabled, meaning Institute). Joseph Nsonamoah • Loans and Advances (net) increased by 35% to GH¢ 917million departments are further sub-categorized into sectors and niche Chairman • Interest Income was up by 40% to GH¢ 188million they cannot be cloned. These features make them among the most markets catering for the speci c needs of our customers. Sta were As its contribution to the development of Sports in Ghana, UT Bank • Interest Expense grew by 60% to GH¢ 116million secure in the world. Our internet Banking platform is currently assessed, realigned and empowered to maximize performance. The sponsored the Amidaus Professionals Football Club, a budding team • Non Funded Income increased by 23% to GH¢ 53million operational and adequately positions us to compete for larger Balance Score Card System has been introduced to continuously in the Ghana Premier League based in Tema, and two excellent golf • Operating Expenses grew by 34% to GH¢ 87million corporate and individual deposits. assess and ensure improved sta performance. tournaments. • Profit Before Tax was down by 48% to GH¢ 13million Furthermore, we opened two new branches: Tamale in the Northern With these changes in our business model we are con dent that our Our CSR activities were recognized by Industry, earning us the First Region and Suame in the Ashanti Region.These, in addition to our customers will experience the full bene ts of doing business with UT mobile Banking van, are enabling us to reach further into the Runner-up position in Corporate Social Responsibility at the 2013 Income Statement Analysis Bank. Ghanaian terrain. All these improvements came at a cost as our Ghana Banking Awards. Nkyinkyim: Playing many roles. (Dynamism) We made a pro t before tax of GH¢13million, representing a 48% operating expenses for the year increased by 34% to GH¢87million.We Employees Initiative, Toughness, Adaptability, Resoluteness decline year-on-year. The decline in profitability was mainly due to a expect to reap the bene ts of these investments in the near future. Conclusion and Outlook Over time there has risen a need for the Bank to develop a way of sharp growth in interest expenses and higher provisioning made In spite of challenges in the macro-economic environment, which matching our needs as a business, the increasingly complex needs of during the year. Balance Sheet Analysis negatively impacted our nancial performance, we remain resolute in Our total assets crossed the one billion mark to GH¢1.34billion, up by our customers and the competencies of our employees. This concept came to full fruition with the establishment of our learning and our eorts to achieve our long term vision of rede ning banking. The growth in our net interest income remained strong year-on-year, 35% compared to 2012. Loans and advances continued to be the development department, the UT Academy. We do not expect 2014 to be any less challenging, considering the rising by 40% to GH¢188million mainly as a result of the growth in dominant asset line and grew by 35% to GH¢917million. We however improved the structure of our assets, investing more in liquid interest UT Academy’s mandate ranges from ensuring the right recruitment sharp Cedi depreciation and rising ination. We also recognize that our loan book. Non-funded income growth was equally impressive; it earning assets by growing our short term investments by 95% to and assessment process, developing training programmes, attracting cheaper deposits and improving the return on our assets grew by 23% to GH¢53million in 2013. Growth in this line stemmed GH¢120million. Short term investments therefore accounted for 9% of recommending professional courses for sta and running the Bank’s are essential to a stronger nancial performance. However, we are from increased transactional business and trade nance activities. UT total assets compared to 6% in the previous year. Graduate Development Programme, among others. All these fall con dent that the structures we have put in place will enable us Bank is indeed fast growing in the trade nance space. In 2013 alone On the liabilities end, our deposits grew by 15% to GH¢920million. within our long term strategy of being employer of choice and achieve our set targets. developing top notch employees.

4 UT BANK ANNUAL REPORT

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Prince Ko Amoabeng CEO

CEO’s STATEMENT

UT BANK ANNUAL REPORT 5

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Prince Ko Amoabeng CEO

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Adinkrahene: Greatness, Royalty

Prince Ko Amoabeng CEO

6 UT BANK ANNUAL REPORT Introduction respectively in 2012 to 19.2% and 18.7% respectively in 2013. The Ghana required minimum. We also received medium term debt Fellow Shareholders, Ladies and Gentlemen, I welcome you to the 6th average rate on government securities were however comparatively funding from reputable companies such as the African Development Annual General Meeting of UT Bank higher than in the previous year. The 91-day and 182-day bill rates Bank, European Investment Bank and responsAbility Global averaged 21.9% in 2013 compared to 18.8% and 18.9% respectively. Micro nance Funds. Operating Environment Review We are happy to build relationships with institutions such as these The global economy began a recovery in the second half of 2013. This Financial Review who like us, support the growth of the SME sector. was due to increased demand in advanced economies which fueled a The Bank’s revenue lines remained strong in 2013. Interest income rebound in exports in the emerging markets. was GH¢188million, representing a 40% increase from the previous Corporate Governance year, while non-funded income increased from GH¢43million to We embarked on a number of developments to improve our corporate On the local front, the cost of doing business increased signi cantly, GH¢53million. However, the 60% growth in interest expense, governance processes in line with internationally accepted standards. against the backdrop of increases in petroleum and utility prices as attributable to the higher average rate on government securities, The International Finance Corporation (IFC), as part of its Technical well as the energy crisis during the rst half of the year. Furthermore, negatively aected our nancial performance. Total income increased Advisory Services, conducted a review of our corporate governance in an eort to plug the hole in the expanding budget de cit, the by 19% to GH¢125million, a comparatively slower growth. structure during the year. This led to a number of changes including Government of Ghana increased its tax rates. Given the negative impact of the tough economic conditions on our the reconstitution of the board, and the subsequent appointment of Inﬂation stood at a year high of 13.5% at the end of 2013, clearly customers’ businesses, the Bank took a more prudent stance with Mrs. Linda Osei-Akoto as Lead Independent Director (LID) and Mr. Alex missing the targeted 7% to 11% range. This was driven by rising prices regard to our provisioning. We consequently increased the charge for Bernasko as Corporate Governance Lead Person (CGLP). In this new in housing, utilities and energy which increased by 35% year on year, doubtful debt to GH¢24million, an increase of 83%. capacity, Mrs. Linda Osei-Akoto will coordinate the activities of while prices in the transport sector shot up by 26% within the period Non-Executive Directors, and Mr. Bernasko is to ensure the The aforementioned resulted in a pro t before tax of GH¢13.4million under review. implementation of the IFC recommended amendments as well as the in 2013, representing a 48% drop compared to the previous year. The depreciation of the cedi, which seemed to have abated in 2013, continued development of our corporate governance structure. Dividend picked up with renewed strength in the nal quarter. This was on the One of our principal shareholders DEG, ocially nominated Mr. Given our nancial performance, the Board of Directors took a tough back of a variety of factors including lower volumes on individual Andreas Voss, their Regional Director for West Africa, to represent decision not to pay out dividend in respect of the nancial year remittances and foreign direct investment as well as a decline in their interest on the Board. The addition of Mr. Voss to our team will ending 31st December 2013. receipts from the sale of gold and cocoa. By the end of the year, the be very bene cial as he brings along a vast experience in the global Supporting our Capital Adequacy is essential for our operation as a local currency had depreciated by 15% against the US Dollar. nancial industry and a boost to our quest to achieve international lending Bank, and a dividend payout would negatively aect this. Our Economic growth was slow for most part of the year partly due to the standards of professionalism. nancial performance over 2013 is only temporary and I ask that, we political gridlock, however it picked up subsequently in the nal as shareholders will grant the Bank every support during this period. Corporate Social Responsibility (CSR) quarter. Real GDP growth at the end of the year was therefore strong, Giving back to our society remains one of the key pillars upon which albeit down from 7.9% in 2012 to 7.4% in 2013. The main contributor Capital our business is built. We exist because of our community, and it is to this growth was the oil sector, without which GDP growth would In December 2013, we received US$10million from Amethis Finance, essential that we continually contribute to its development. have declined to 5.8%. a Paris based private equity rm dedicated to investing in Africa. The Bank continued its nancial literacy workshops and clinics in Rates on government securities also trended downward during the The funds supported our capital, enabling us to close the year with a collaboration with the Ghana Chamber of Commerce and GIZ to train year. The 91-day and 182-day bill rates dropped from 23.1% and 23% Capital Adequacy Ratio of 12.2%, marginally above the Bank of our customers to become more ecient and prudent in managing

Outlook As aforementioned, we have invested heavily in our e-business platform and expect that this will translate into faster and simpler REPORTS AND FINANCIAL services in 2014. The introduction of the mobile banking platform will serve as a foundation for implementing other branchless and agency banking products. The import of these to our business cannot be overemphasized in the light of the need for growth in cheap deposits. As part of our expansion drive we have commenced operations on Tamale, Suame, North Industrial Area, and East Legon. The East Legon STATEMENTS branch is our rst virtual branch, providing 24 hour service. The branch will also house the newly created Private Banking and Wealth 2013 Management Units. UT BANK ANNUAL REPORT As we strive to improve our structure and operational processes in line with globally accepted standards, our Risk Management function is also being strengthened. Additionally, we continue to invest in the development of our sta to attain the highest standards.

We are optimistic that the measures we have implemented will yield the desired results in the coming year.

God bless us all

Prince Ko Amoabeng CEO

DIRECTORS' REPORT

The Directors have the pleasure in submitting to the members of the Bank, their report together with the nancial statement for the year ending 31 December 2013.

Principal activities The Bank is licensed to carry out universal banking business in Ghana. There was no change in the nature of the Bank's business during the year under review.

Results for the year Dec. 2013 The nancial results of the bank are set out below: GH¢'000

The net pro t for the year before tax is 13,418 From which is deducted taxation of (3,661) ------giving a pro t for the year after taxation of 9 ,757

To which must be added the balance brought forward on income surplus account of 16,206 ------25,963 Transfer to statutory and credit risk reserves (5,085) ------Leaving a balance on the income surplus account of 20,878 Dividend paid (9,522) ------Leaving a balance to be carried forward on the income surplus account of 11,356 ======Auditors In accordance with section 134 (5) of the Companies Code, 1963 (Act 179) the Auditors, Messrs Deloitte and Touche, continue in oce as Auditors of the Bank.

On behalf of the board

………………………...... …. …...... ………………………. Joseph Nsonamoah Prince Ko Amoabeng

8 UT BANK ANNUAL REPORT Statement Of Directors' Responsibilities Director for approval by shareholders. His pro le appears below: The Governance And Strategy Committee The Directors are responsible for preparing nancial statements for The Governance and Strategy Committee is made up of of two (2) each nancial year which give a true and fair view of the state of Non-Executive Directors and one (1) Executive Director namely Mr. aairs of the bank at the end of the nancial year and of the pro t or Andreas Voss Joseph Nsonamoah, Mr. Martyn Mensah, and Mr. Prince Amoabeng. loss of the bank for that year. The duties of the Committee are to review the composition of the Andreas Voss is the Regional Director Board annually and make recommendations were considered In preparing those nancial statements, the directors are required to: for DEG, West Africa. He joined DEG in necessary to ensure that the Board comprises a majority of 2006 as an Analyst and later became • Select suitable accounting policies and then apply them Non-Executive Directors with an appropriate mix of skills and consistently an Investment Manager. He rose experience. It is also responsible for recommending strategies for the through the ranks and is now Vice Bank and for ensuring that the Bank upholds good corporate • Make judgments and estimates that are reasonable and prudent President. He is a key account for new governance principles in all its operations. • State whether the applicable accounting standards have business in West Africa and heads the been followed DEG West Africa regional oce based The HR, Performance And Remuneration in Accra. Before joining the Africa Committee Prepare the nancial statement on the going concern basis unless Department he worked in portfolio Management in East Europe. He The HR, Performance and Remuneration Committee is made up of it is Inappropriate to presume that the Bank will continue in has investment experience in various deals and industries. Prior to business three (3) Non-Executive Directors namely Mr. Joseph Nsonamoah, Mr. joining DEG, Andreas worked in corporate and project nance with Martyn Mensah, Mrs. Linda Osei- Akoto. German commercial banks. Andreas has a degree in economics with The Directors are responsible for ensuring that the Bank keeps focus on international management as well as training in Banking and The Committee is responsible for reviewing all HR Policies to ensure accounting records which disclose with reasonable accuracy the Business Administration. that employees are treated fairly and work in very conducive nancial position of the Bank and which enables them to ensure environments. High standards of health and safety are upheld and that the nancial statement comply with International Financial Commitees of The Board promoted at the work place. It is also responsible for setting Reporting Standards. The Board has delegated various aspects of its work to the following performance indicators for the Bank and determining the framework They are responsible for taking such steps as are reasonably open to committees: for remuneration of the Bank's Chairman and Executive Directors. The safeguard the assets of the Bank, and to prevent and detect fraud HR, Performance and Remuneration Committee also reviews and and other irregularities. The Audit, Risk and Compliance Committee approves the remuneration packages, incentive plans and sta bonuses for the Bank. The Audit, Risk and Committee comprises three Non-Executive The Board members namely Mr. Charles Aidoo (Chairman), Mr. Martyn Mensah UT Bank has a seven (7) member Board. The Chairman is a and Mrs. Linda Osei Akoto, an Independent Non-Executive Director. Non-Executive Director who is a separate individual from the Chief The Heads of Internal Audit, Risk Management and Compliance are Executive Oﬃcer. The Board consists of ﬁve (5) Non-Executive ordinarily in attendance at the meetings. Directors two (2) of whom are Independent Directors. The The two The Committee is responsible for authorizing, directing and reviewing Independent Directors do not have any signi cant shareholding the programme of the Internal Audit Unit, reviewing the Bank's interest or any special business relationship with the Bank. compliance with nancial and risk management control systems as well as reviewing the current statutory and audit reports. It also Election of Board Member reviews signi cant nancial and other risk exposures and the steps Mr. Andreas Voss was nominated by DEG principal Shareholders of the management takes to monitor, control, and report such exposures. Bank in accordance with the Bank’s Regulations Section 59(B) as a

UT BANK ANNUAL REPORT 9 INDEPENDENT AUDITORS' REPORT

. Independent Auditors' Report circumstances, but not for the purpose of expressing an opinion on the - The Bank has generally complied with the provisions in the To the members of UT Bank Ghana Limited eectiveness of the entity's internal control. An audit also includes Banking Act 2004(Act 673) and the Banking (Amendment) Act evaluating the appropriateness of accounting policies used and the 2007 (Act 738). We have audited the accompanying nancial statements of UT Bank reasonableness of accounting estimates made by management, as well Ghana Limited on pages 9 to 53 which comprise the statement of as evaluating the overall presentation of the nancial statement. Chartered Accountants nancial position as at 31 December 2013, statement of Accra, Ghana comprehensive income, statement of changes in equity and We believe that the audit evidence we have obtained is sucient and Licence No. ICAG/F/026 statement of cash ow for the year then ended, together with the appropriate to provide a basis for our audit opinion. summary of signi cant accounting policies and other explanatory notes, and have obtained all information and explanations which, to Opinion In our opinion, the nancial statements give a true and fair view of the the best of our knowledge and belief, were necessary for the purposes ……………………………………………………… 2014 of our audit. nancial position of the Bank as at 31 December 2013, and of its nancial performance and statement of cash ow for the year then Andrew Opuni-Ampong Directors' Responsibility For The Financial ended and are drawn up in accordance with the International Practising Certi cate: Licence No. ICAG/P/1132 Statement Financial Reporting Standards (as issued by the IASB and in the The Directors are responsible for the preparation and fair manner required by the Companies Code, 1963 (Act 179), and the presentation of these nancial statements in accordance with the Banking Act, 2004 (Act 673), as amended by the Banking Amendment Companies Code, 1963 (Act 179). These responsibilities include: Act, 2007 (Act 738). designing, implementing and maintaining internal control relevant to the preparation and fair presentation of nancial statements that are Report On Other Legal and Regulatory free from material misstatement, whether due to fraud or error; Requirements selecting and applying appropriate accounting policies; and making The Ghana Companies Code, 1963 (Act 179) requires that in carrying accounting estimates that are reasonable in the circumstances. out our audit work we consider and report on the following matters. Auditors' Responsibilities We con rm that: Our responsibility is to express an opinion on these nancial i. i. we have obtained all the information and explanations which to statements based on our audit. We conducted our audit in the best of our knowledge and belief were necessary for the accordance with International Standards on Auditing. Those purposes of our audit; standards require that we comply with ethical requirements and plan ii. in our opinion proper books of accounts have been kept by the Bank, and perform the audit to obtain reasonable assurance as to whether so far as appears from our examination of those books; and the nancial statement are free from material misstatement. iii. The balance sheet (statement of nancial position) and Pro t and An audit involves performing procedures to obtain audit evidence loss (statement of comprehensive income) of the Bank are in about the amounts and disclosures in the nancial statements. The agreement with the books of accounts. procedures selected depend on the auditor's judgement, including The Banking Act 2004 (Act 673) section 78 (2) requires that we state the assessment of the risks of material misstatement of the nancial certain matters in our report. We hereby state that: statement, whether due to fraud or error. In making those risk - The accounts give a true and fair view of the state of aﬀairs of the Dono ntoaso (Nnonnowa): Unity, Concord, assessments, the auditor considers internal control relevant to the bank and its results for the year under review; Strength entity's preparation and fair presentation of the nancial statement - We were able to obtain all the information and explanation are to design audit procedures that are appropriate in the required for the ecient performance of our duties as auditors; - The Bank’s transactions were within its powers; and

10 UT BANK ANNUAL REPORT STATEMENT OF COMPREHENSIVE INCOME

Statement of Comprehensive Inc ome For the year ending 31 December 2013 Note Dec. 2013 Dec. 2012 GH¢'000 GH¢'000

Interest income 4 187 , 8 8 8 13 4 ,1 1 0 Interest expense 5 (116,2 3 1 ) (7 2 ,6 2 1 ) ------Net interest income 7 1 , 6 5 7 6 1 ,4 8 9

Net fees and commissions income 6 3 4 , 8 6 5 2 9 ,7 5 3 Other operating income 7 1 8 , 0 5 1 1 3 ,4 2 1 ------Operating income 124 , 5 7 3 10 4 ,6 6 3

Operating expenses 8 (87 , 0 4 5 ) (6 4 ,8 0 2 ) Impairment charge 10 (24 , 1 1 0 ) (1 3 ,1 5 3 ) ------Pro t before taxation 1 3 , 4 1 8 2 6 ,7 0 8

Taxation 11(i) ( 2 , 9 8 0 ) ( 5 ,7 7 7 ) National Stabilization Levy 11(ii) ( 6 8 1 ) ------Pro t for the year 9 , 7 5 7 2 0 ,9 3 1 Other comprehensive income ------Total comprehensive income 9,757 20,931 ======

Basic earnings per share 0 . 0 2 0 . 0 4 Diluted earnings per share 0 . 0 2 0 . 0 4

UT BANK ANNUAL REPORT 11 STATEMENT OF FINANCIAL POSITION

Statement of Financial Position As at 31 December 2013 Dec. 2013 Dec. 2012 Note GH¢'000 GH¢'000 Assets Cash and balances with Bank of Ghana 14 103 , 8 3 5 9 2 ,1 4 7 Due from other Banks and nancial institutions 15 7 3 , 6 3 9 5 2 ,5 7 9 Loans and advances (Net) 16 917 , 0 5 3 67 9 ,6 4 8 Other assets 19 5 6 , 5 3 3 5 4 ,7 2 0 Income tax assets 11(iii) 2 , 0 6 1 2 7 8 Investment securities 20 135 , 2 9 6 6 8 ,9 8 8 Goodwill 25 1 0 , 3 9 7 1 0 ,3 9 7 Property, plant and equipment 17 3 0 , 4 2 6 2 1 ,0 3 3 Intangible assets 18 7 , 0 9 6 7 ,1 1 5 ------Total assets 1,336,336 98 6 ,9 0 5 ======Current Liabilities Customer deposit and current account 22 920 , 2 6 1 79 7 ,7 8 2 Interest payable and other liabilities 21 1 1 , 7 3 7 3 0 ,7 7 6 Due to other banks and nancial institutions 23 124 , 7 0 3 2 ,0 0 0 Deferred income 24 293 2,665 ------Total current liabilities 1,056,994 83 3 ,2 2 3 ------Non current term liabilities Deferred tax 13 4 4 7 6 0 7 Term debt 26 150 , 2 2 5 2 4 ,6 4 0 ------150 , 6 7 2 2 5 ,2 4 7 ------Total liabilities 1,207,666 85 8 ,4 7 0 Shareholders' Funds ------Stated capital 8 5 , 2 7 5 8 5 ,2 7 5 Income surplus 27(iii) 1 1 , 3 5 6 1 6 ,2 0 6 Statutory reserve fund 27(iv) 3 0 , 3 4 1 2 5 ,4 6 2 Credit risk reserves 27(v) 1 , 6 9 8 1 ,4 9 2 ------Total shareholders' fund 128 , 6 7 0 12 8 ,4 3 5 ------Total liabilities and shareholders' fund 1,336,336 98 6 ,9 0 5 ======Net assets value per share 0.28 0.17

These nancial statements were approved by the Board of Directors and signed on its behalf by:

……………………………. ……………………………. Director Director

12 UT BANK ANNUAL REPORT STATEMENT OF CHANGES IN EQUITY

Statement of Changes In Equity For the year ended 31 December 2013

Attributable to equity holders Stated Income Statutory Credit risk capital surplus reserve reserves Total GH¢'000 GH¢'000 GH¢'000 GH¢'000 GH¢'000

Balance at 1 January 2012 36,0 0 0 8 ,5 3 9 1 4 ,9 9 6 1 ,6 9 4 6 1 ,2 2 9 Total comprehensive income - 2 0 ,9 3 1 - - 2 0 ,9 3 1 Transfer (from)/to reserve 3 ,0 0 0 (1 3 ,2 6 4 ) 1 0 ,4 6 6 ( 2 0 2 ) - Shares issued 46,2 7 5 - - - 4 6 ,2 7 5 ------Balance at 31 December 2012 85,2 7 5 1 6 ,2 0 6 2 5 ,4 6 2 1 ,4 9 2 12 8 ,4 3 5 ======

Stated Income Statutory Credit risk capital surplus reserve reserves Total GH¢'000 GH¢'000 GH¢'000 GH¢'000 GH¢'000

Balance at 1 January 2013 85,2 7 5 1 6 ,2 0 6 2 5 ,4 6 2 1 ,4 9 2 12 8 ,4 3 5 Total comprehensive income - 9 ,7 5 7 - - 9 ,7 5 7 Transfer (from)/to reserve - ( 5 ,0 8 5 ) 4 ,8 7 9 2 0 6 ( 0 ) Dividend paid - ( 9 ,5 2 2 ) - - ( 9 ,5 2 2 ) ------Balance at 31 December 2013 85,2 7 5 1 1 ,3 5 6 3 0 ,3 4 1 1 ,6 9 8 12 8 ,6 7 0 ======

UT BANK ANNUAL REPORT 13 STATEMENT OF CASH FLOW

Statement of Cash Flow

For the year ended 31 December 2013 Dec. 2013 Dec. 2012 Note GH¢'000 GH¢'000 Pro t before tax 1 3 , 4 1 8 2 6 ,7 0 8 Adjustments for: Depreciation and amortisation 17 & 18 7 , 7 1 1 4 ,5 2 5 Loss on disposal 17 5 5 ------2 1 , 1 3 4 3 1 ,2 3 8 Increase in loans and advances (237,4 0 5 ) (204 ,4 1 6 ) Increase in other assets ( 2 , 0 9 3 ) 2 2 ,7 0 4 Increase in customer deposit and current account 122 , 4 7 9 25 1 ,9 7 4 Due to other banks and nancial institutions 122 , 7 0 3 (4 2 ,9 7 0 ) Decrease in interest payable & other payables (19 , 0 3 9 ) (1 7 ,6 4 0 ) Increase in de ned bene t obligation - ( 2 8 9 ) (Decrease)/increase in deferred income ( 2 , 3 7 2 ) 2,028 ------5,407 4 2 ,6 2 9 Tax paid 11 (iii) ( 5 , 3 3 4 ) ( 4 ,6 8 6 ) ------( 5 , 3 3 4 ) ( 4 ,6 8 6 ) ------Net cash (used in)/generated from operating activities 7 3 3 7 ,9 4 3 Investing activities ------Purchase of property, plant and equipment and software (17 , 2 8 1 ) (1 1 ,0 1 0 ) Changes in lease property and equipment - 2 ,0 6 0 Proceeds from sales of property, plant & equipment 2 0 1 1 9 4 Purchase of Investment securities (66 , 3 0 8 ) (3 7 ,5 0 8 ) Additional Shares - 4 6 ,2 7 5 ------Net cash used in investing activities (83 , 3 8 8 ) 1 1 Financing activities ======Dividend paid ( 9 , 5 2 2 ) - Increase in term debt 125 , 5 8 5 1 3 ,3 0 1 ------Net cash generated from nancing activities 116 , 0 6 3 1 3 ,3 0 1 ------Increase in cash and cash equivalents 32,748 51,255 Cash and cash equivalents at 1 January 144,726 93,471 Increase in cash and cash equivalents 32,748 51,255 ------Cash and cash equivalents at 31 December - 177 , 4 7 4 14 4 ,7 2 6 ======Analysis of cash and cash equivalents during the year Cash 103,835 92,147 Cash with other banks and nancial institutions 73,639 52,579 ------177,474 144,726 ======

14 UT BANK ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS

Notes To The Financial Statements liquidity at all times, and for all currencies. Hence the Bank aims to Regulatory Breaches be in a position to meet all obligations, to repay investors on demand, The Bank did not breach any regulatory requirement during the year. For the year ending 31 December 2013 to ful l commitments to lend and to meet any other commitments. Contingent Liabilities and Commitments Reporting Entity Market Risk The Bank recognises market risk as the exposure created by potential (i) Contingent liabilities UT Bank Ghana Limited is a listed company which operates the changes in market prices and rates, such as interest rates, equity services of banking under the supervision of the Bank of Ghana. The Pending legal suits: There are currently no pending suits prices and foreign exchange rates. The Bank is exposed to market risk against the bank (December 2012: Nil) address and registered oﬃce of the Bank is 25B Manet Towers, P.O. arising principally from customer driven transactions. Market risk is (ii) Commitments for capital expenditure Box 14776, Accra, Ghana. governed by the General Manager Risk Management who is assisted Under contract: There were no outstanding commitments Signi cant Accounting Estimates And Assumptions by the market risk manager. The Bank has policies on market risk and limits are proposed within the terms of agreed policy. for capital expenditure not provided for The detail accounting estimates and assumptions which form part of in the nancial statement at 31 the annual report and have been consistently applied can be found in Operational Risk December 2013 the annual nancial statement which are available for inspection at Operational risk is the risk of direct or indirect loss due to an event or the Bank's Head Oﬃce at 25B Manet Towers, Airport City, Accra and action resulting from the failure of internal processes, people and Dec. 2013 Dec. 2012 on our website: www.utbankghana.com systems, or from external events. The Bank seeks to ensure that key GH¢'000 GH¢'000 operational risks are managed in a timely and eective manner (iii) Contingent liabilities and commitments through a framework of policies, procedures and tools to identify Unsecured Contingent liabilities Quantitative Disclosures assess, monitor, control and report such risks and commitments 117 , 4 2 7 152 , 3 8 0 Dec. 2013 Dec. 2012 Compliance and Regulatory Risk ======Capital Adequacy Ratio 12.16% 13.42% Compliance and Regulatory risk includes the risk of non-compliance Non Performing Loans 10.92% 11.86% with regulatory requirements. The Bank's Compliance and Internal Audit function is responsible for establishing and maintaining an Social Responsibility Cost Qualitative Disclosures appropriate framework of the Bank's compliance policies and An amount of GH¢161,000 (2012: GH¢181,284) was spent as part of The Bank has exposure to the following risks from its use of nancial procedures. Compliance with such policies and procedures is the corporate social responsibility of the Bank on institutions such as The instruments: responsibility of all managers. Ghana Heart Foundation, Family Outreach International, Hope for Kids, Ghana National Trust Fund, Enablis business launchpad, and the The board of directors has overall responsibility for the establishment 37 Military Hospital just to mention a few. Credit Risk and oversight of the bank's risk management framework. Credit risk is the risk of nancial loss to the Bank if a customer or counterparty to a nancial instrument fails to meet its contractual Breach of statutory limits Dec. 2013 Dec. 2012 obligations, and arises principally from the Bank's loans and advances Minimum Liquidity Reserve Nil Nil to customers. Penalty For Breach Limits Nil Nil Liquidity Risk The Bank de nes liquidity risk as the risk that the Bank either does not have sucient nancial resources available to meet all its obligations Capital Commitments and commitments as they fall due, or can access them only at The Bank had no commitment for capital expenditure as at 31 excessive cost. It is the policy of the Bank to maintain adequate December 2013 (2012: Nil).

UT BANK ANNUAL REPORT 15 BRANCH LOCATION

ABOSSEY OKAI HAATSO KUMASI (SUAME) SPINTEX ROAD - BAATSONA Opposite the Abossey Okai Haatso Market Complex, Accra Pit 13, Block Y, Tarkwaa Maakro White House, Spintex Road Central Mosque, Accra Tel: +233 302 520688/501751/501743 Suame Batsonaa, Accra Tel: +233 302 676612/3, 676615 Fax: +233 302 520689 Tel: +233 3220 36705 Tel: +233 302 816011 Fax: +233 302 676614 Fax: +233 302 816765 HO MADINA ACCRA Civic Center, Opposite STC 2nd Floor, Hollywood Building SUNYANI Knutsford Avenue Tel: +233 3620 27733/27749 Madina Zongo Junction, Accra New Melcom Building Near the former UTC Building Fax: +233 3620 27565 Tel: +233 302 521333/6 Opposite the stadium Central Accra Fax: +233 302 521324 Tel: +233 3520 24352/9 Tel: +233 302 665222/672718 INDUSTRIAL AREA Fax: +233 3520 27463 Fax: +233 302 665626 16/17 Dadeban Road, Block 5 MAKOLA Industrial Area, North Kaneshie, Accra Makola Market, Kimberley Avenue - TAKORADI (LIBERATION ROAD) ADABRAKA Okaishie Liberation Road 48 Kwame Nkrumah Avenue KANESHIE Tel: +233 302 664866/7, 669104 Former Farrouk Building Adabraka, Accra Ground Floor Fax: +233 302 664894 Tel: +233 3120 28228/28558 Tel: +233 302 610300 Kaneshie Market Complex Building Fax: +233 3120 30744 Fax: +233 302 662640 Accra NIMA Tel: +233 302 242957 Opposite the Grand Mosque, Accra TAMALE AIRPORT - MANET Fax: +233 302 242952 Tel: +233 302 254448/9, 220486 House No. 1 Ext. 4, Aboabo, Tamale 25B Manet Towers, Airport City Fax: +233 302 233302 Tel: +233 3730 28028/9 P.O. Box CT 1778, Cantonments, Accra KOFORIDUA Tel: +233 302 740740 Linda Door Plaza OBUASI TARKWA Fax: +233 302 783253 Opposite Barclays Bank Near Shell Filling Station, Ground Floor Email: [email protected] Tel: +233 3420 24251/24432/24249 Mangoase Former UAC Building Website: www.utbankghana.com Fax: +233 3420 24250 Tel: +233 3225 43182/3 SAG Street Fax: +233 3225 43180 Tel: +233 3123 22598/22600 ASHAIMAN KUMASI (ADUM) Fax: +233 3123 22599 Adjacent Ghana Commercial Bank Addo Kuour Clinic Building OSU Ashaiman High Street Opposite A-Life supermarket Behind the Trust Hospital TEMA Tel: +233 303 310304/310316 Adum Osu R.E. Accra Dennis House Tel: +233 3220 33065/44238/ Tel: +233 302 774955/780046 Harbour Road, Community 1 CAPE COAST 44275 Fax: +233 302 769375 Tel: +233 303 210785/8 Tantri Road, Near Expresso Oce Fax: +233 3220 33030 Fax: +233 303 210786 Tel: +233 3321 31716/31724 SPINTEX ROAD - PALACE Fax: +233 3321 31994 KUMASI (STC) Ground Floor TEMA COMMUNITY 2 Prempeh, 1st Street, Adum Palace Hypermarket Complex Former PEP Stores EAST LEGON Opposite STC, Adjacent Japan 77 Spintex, Accra Opposite Comm. 2 Police Station 24 Lagos Avenue Motors from KMA Tel: +233 302 816785-7 Tel: +233 303 214050/210154 East Legon P.O. Box KS 9347, Kumasi Fax: +233 303 214069 Tel: +233 302 501043 Tel: +233 3220 40067/32956/39254 Fax: +233 3220 41317

16 UT BANK ANNUAL REPORT DIRECTORS, OFFICERS AND REGISTERED OFFICE

Directors: Joseph Nsonamoah - Chairman Prince Koﬁ Amoabeng - Chief Executive Oﬃcer Pearl Esua-Mensah - Executive Director Linda Osei Akoto - Non Executive Director Martyn Mensah - Non Executive Director Charles Sydney Aidoo - Non Executive Director Alex Bernasko - Non Executive Director Andreas Voss - Proposed New Director

Company Secretary: Mary Kessie

Registered oﬃce: 25B Manet Towers, Airport City, Accra P. O. Box CT 1778 Cantonmenst, Accra Tel: 0302 740 740

Solicitor: Gwendy Bannerman

Auditors: Deloitte & Touche Chartered Accountants 4 Liberation Road P.O. Box GP 453 Accra

Tax Consultants: BakerTilly Andah & Andah C 645/3 4 Crescent Asylum Down P. O Box AN 5845 Accra, Ghana

Bankers: Bank of Ghana Ghana International Bank PLC BHF-Bank Aktiengesellschaft Standard Chartered Bank Mmomudwan: Unity

UT BANK ANNUAL REPORT 17 RESOLUTIONS

Board Resolutions 4. To Approve the remuneration of Directors 8. To Approve the circulation of the Notice of General Meetings, The Board of Directors will be proposing the following resolutions, In accordance with Section 194 of the Companies Act, 1963 (Act Pro t & Loss Accounts, Balance Sheets, Reports and any other which will be put to the Annual General Meeting 2014: 179), the Board will request that shareholders approve the relevant information by print or electronic means remuneration of Directors Ordinary Resolutions 1. To Consider and Adopt the Statement of Accounts 5. To Authorise the Directors to x the Remuneration of the The Board will propose for consideration of the 2013 Accounts, and Auditors reports of the Directors and Auditors thereon, as a true and fair view In accordance with Section 134(5) of the Companies Code, 1963 of the state of aairs of the Company for the year ended the 31st day (Acts 179) Deloite & Touche will continue in office as auditors of the of December 2013. Company. The Board would request that they are authorized to x the fees of the auditors. 2. To Re-Elect Directors The following Directors, Mr. Martyn Mensah and Mr. Charles Sydney Special Resolutions Aidoo will retire in accordance with Section 298(D) of the Companies 6. To Authorise the Directors of the Company to raise capital Code 1963, Act 179 and Regulation 59 of the Company’s Regulation. In view of the changing nature of the Ghanaian economy, it is imperative that the Bank has adequate nancial muscle in order to Mr. Martyn Mensah who is eligible for re-election, has offered himself compete eectively and to realize further value for its shareholders. to be re-elected as a Director of the Bank. The Board will propose that, Directors be authorized to raise capital of up to GHS100million by way of rights issue and/or private Mr. Charles Sydney Aidoo who is eligible for re-election has expressed placements on such terms and conditions as they may consider his desire to resign as a Director of the Bank. bene cial to the Bank and its shareholders, including providing speci c rights (such as Board representation) to certain categories of investors as they may consider appropriate and in the best interest of 3. To Elect a Director the Bank and its shareholders. Mr. Andreas Voss was nominated by DEG principal Shareholders of the Bank in accordance with the Bank’s Regulations Section 59(B) that 7. To Authorise the Company to Purchase its Own Shares “at any time when the shares in the Company and the Share In accordance with Section 61 of the Companies Act, 1963(ACT 179) Equivalents held by DEG represent, at least five per cent (5%) of the and the Bank’s Regulations 12(A) to make market purchases of the issued ordinary shares of the Company, DEG shall have the right to Company’s ordinary shares up to a maximum of 5 percent of its issued nominate one (1) Director.” The Board will recommend to members to share capital and to operate a share deals account for that purpose. approve the election of Mr. Andreas Voss.

18 UT BANK ANNUAL REPORT PROXY FORM

PROXY FORM AGAINST FOR I/WE ……………………………………………………………………………… being a Member of the above-named 1. TO CONSIDER and Adopt the Statement of Accounts of the Company hereby appoint...... or failing him the Chairman of the Company for the year ended the 31st day of December 2013 together with the Reports of the Directors and Auditors thereon Meeting as my/our Proxy to vote on my/our behalf at the Annual General Meeting (AGM) of the Company to be held on Thursday 17th April 2014 at 10.00 a.m. in the forenoon at the National Theatre, Accra. 2. TO RE - ELECT Mr. Martyn Mensah as Director of the Bank.

DATED THE ...... DAY OF …………………, 2014 3. TO ELECT Mr. Andreas Voss as a Director of the Bank.

…………………………………………… 4. TO FIX the remuneration of Directors. MEMBER

5. TO AUTHORISE the Directors to x the fees of the Auditors THIS PROXY FORM SHOULD NOT BE COMPLETED AND SENT TO THE REGSITRARS IF THE MEMBER WILL BE ATTENDING THE MEETING. For the year ending 31st December 2014. In case of a Body Corporate, this Proxy Form should be completed by the signature of a duly authorised oﬃcer and should be accompanied by a Resolution in accordance with Section 165 of the Companies 6. TO AUTHORISE the Directors of the Company to raise Code , 1963 (Act 179). capital of up to GHS100million by way of rights issue and/or private placements on such terms and conditions as they may To be valid, this Proxy Form must be lled up, signed and lodged (together with any authority under consider bene cial to the Bank and its shareholders, including which it is signed) at the Registered Oce of the Registrars of the Company , NTHC Limited , Martco House, No.D 542/4 Okai Mensah Link , Adabraka, Accra, P.O.Box 9563, Airport-Accra not less than 48 providing speci c rights (such as Board representation) to hours before the meeting. certain categories of investors as they may consider appropriate and in the best interest of the Bank and its shareholders.

NOTE: 7. TO AUTHORISE the Company in accordance with its Regulations This Form is to be used in favour of/against the Resolutions set out in the Agenda. and subject to Section 61 of the Companies Act, 1963(ACT 179), Please indicate with an “X” in the spaces above how you wish your vote to be cast. Unless otherwise to make market purchases of the Company’s ordinary shares up instructed, the Proxy will vote as he/she thinks t. to a maximum of 5 percent of its issued share capital and to operate a share deals account for that purpose.

8. TO APPROVE the circulation of the Notice of General Meetings, Pro t & Loss Accounts, Balance Sheets, Reports and any other relevant information by print or electronic means.

UT BANK ANNUAL REPORT 17 Scan to watch