Utb AnnualReport09

TABLE OF CONTENTS
Core Values ................................................................................... 3 Statement of Directors’ Responsibilities ........................... 24
Financial Highlights .................................................................. 4 Independent Auditors’ Report ................................................. 25
Endorsements .............................................................................. 5 Income Statement ..................................................................... 26
Profile of UT ................................................................................. 6 Statement of Recognised Income and Expense .............. 26
Our Services and Products ..................................................... 8 Balance Sheet ............................................................................. 27
Board of Directors ...................................................................... 11 Statement of Cashflows .......................................................... 28
Chairman’s Statement .............................................................. 14 Notes to the Financial Statements ...................................... 29
Chief Executive’s Review ........................................................ 16 Corporate Social Responsibility ............................................ 55
Chief Operating Officers Report ........................................... 18 Clients’ Comments ..................................................................... 57
Director of Finance & Administration’s Report .............. 20 Offices ............................................................................................ 58
Directors’ Report ........................................................................ 23 Directors, Officers and Registered Offices ....................... 59
UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 1

2 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009
CORE VALUES
It’s about ...Integrity

We do what is right. We make commitments with care and deliver on our
promises.
...Professionalism
We’re a disciplined organisation and maintain high standards at all times.
We’re hard working, efficient and responsible.
...Respect
We respect ourselves. Everyone has value and we treat all with equal respect.
...”Stepping up to the plate”

We earn “our stripes” and creatively solve challenges. We’re confident,
committed and we deliver.
...Ubuntu
We nurture a culture of collaboration as together, everyone achieves more.
We’re a team!
...Saying “why not”

We create new opportunities by constantly pushing boundaries and challenging
the status quo. We are a learning organisation.

Earnings per share
KEY FINANCIAL HIGHLIGHTS 2009
2008
2007
2006
2005
0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
GHp
Cost to income ratio

2009 42%
2008 40%
2007 45%
STRONG DEPOSITS TOTAL ASSETS INTEREST INCOME LOANS AND ADVANCES

2006 42%
GROWTH +73% +66% +55% +41% 2005 46%
Dec 08 - Dec 09 0 40 45 50 55
Cost efficiency ratio

2009 50%
2008
Profit after tax up by 42%
49%
2007 45%
Profitability Return on Equity still strong (34%) 2006 50%
Net Worth up by 32% 2005 46%
0 40 45 50 55
Profit after tax

Average Assets up by 65%
Asset 2009
Growth in Assets due to increase in volume of business activities 2008
Quality 2007
Provision for Bad Debt down by 30%
2006
2005
0 1 2 3 4 5 6 7 8
GH¢ millions
Staff costs to total expenses below 40%
Efficiency
Cost to Income Ratio below 50% 2009
Net Worth
2008
2007
2006
2005
0 5 10 15 20 25
GH¢ millions

ENDORSEMENTS
2009 2007 2005

GIPC AWARDS BUSINESS & FINANCIAL SERVICES GIPC AWARDS
EXCELLENCE AWARDS
5th Best Company in Ghana 2nd Best Company in Ghana
Best Non-Bank Financial Institution Gold Award Best Non-Bank Financial Institution
2nd Best Financial Institution Outstanding Contribution to Economic & Social Best Financial Institution
Development of Ghana
2008 2006 2004

NATIONAL HONOURS: GIPC AWARDS
CIMG AWARDS 13th Best Company in Ghana
Order of The Volta Award conferred on the CEO by the
Best Non-Bank Financial Institution
President of Ghana
Marketing Man of the Year 2006 3rd Best Financial Institution
Mr Prince Kofi Amoabeng (CEO UT Financial Services)
2003
MOST RESPECTED CEO & COMPANY AWARD
The Chief Executive Officer of the company won the
most respected CEO Award for the year 2007 CIMG AWARDS
GIPC AWARDS
Outdoor Advert Of The Year 18th Best Company in Ghana
2ND MOST RESPECTED COMPANY AWARD UT Hand-cuff advert won the outdoor advert of the year Best Non-Bank Financial Institution
The company won the 2nd most respected company 3rd Best Financial Institution
award for the year 2007

PROFILE
The UT Story!
UT FINANCIAL SERVICES Ltd (formerly Unique Trust Financial Services) is the leading non bank Currently the UT Group comprises of the following operating companies:
financial institution in Ghana specialising in loans and investment. The company has for the
past decade committed itself to serving the needs of indigenous traders and business entities UT Bank
not being catered for by the Traditional Banks. A recent acquisition of BPI Bank Ghana Ltd gave birth to this company which operates as
a licensed universal banking institution offering a suite of banking products and services to
From humble beginnings as a privately owned company in Ghana, UT has evolved into a publicly customers.
owned company with shares listed and actively traded on the Ghana Stock Exchange.
UT Logistics
The initial focus of UT was centered on servicing the “unbanked” informal sector, but over the UT Logistics is the trading and logistics arm of UT Holdings. The company undertakes clearing
past few years, UT’s services have extended to cover the formal sector and providing stop gap and warehousing business activities. UT Logistics, in addition, trades in soft commodities and
loans and trade financing to SME’s. What sets UT apart in the financial services market is our provides collateral management services. They are also into Freight forwarding and clearing of
solid business structure, flexibility and timely delivery of financing to clients in less than 48 goods.
hours.
UT Properties
With over 300 staff members spread across Ghana, UT has become a household brand that This Company offers real estate services such as valuations and funding options. It offers
offers both the formal and informal sectors a partnership of value! A partnership that will assist advisory and consulting services aimed at acquisition, development and management of land
private individuals and businesses to achieve the success they aspire to. and real estate for Ghanaians in the Diaspora.
UT HOLDINGS UT Collections
The accelerated growth and success of the UT business created the need for the restructuring of This is the debt collection subsidiary of UT Holdings and specializes in the collection, management
the business into a Group with diverse but synergistic business that is able to offer value added and recovery of debt. The company provides innovative and professional debt collection services
services to clients through the operations of its subsidiary companies. and receivable solutions across a broad spectrum of industries.

PROFILE
“ From humble beginnings as a privately owned

company in Ghana, UT has evolved into a publicly
owned company with shares listed and actively
traded on the Ghana Stock Exchange.”
UT International Highlights of our Performance
UT Financial Services has over the past two years, opened branches in other countries in line UT has for the fourth time running been recognized as the Best Non-Bank Financial Institution
with its vision of having a presence in five countries outside Ghana by 2010. UT is taking an (2008, 2005, 2004 and 2003) by the Ghana Investment Promotion Center (GIPC) in its Club
African brand global! 100 rankings which represents the top 100 companies in Ghana. The same rankings rated UT
Financial Services the 2nd best financial and 2nd best indigenous institution as well as the 5th
UT Financial Services (Germany) best company in Ghana. In 2006 the company was recognized as the Best Financial Institution
In 2008, UT started operations in Hamburg, Germany as UT Logistics GmbH. The major products and 2nd Best Overall Company in Ghana. In the same year the CEO received the Marketing Man
being offered were acquisition and registration of land, building supervision and as well of the Year Award by the Chartered Institute of Marketing (CIMG).
providing travel assistance to Ghanaians in the diaspora. The name was changed to UT Financial
Services in 2009. During the celebration of Ghana’s 50th anniversary in 2007, UT won a Gold Award for its
contribution to the Social and Economic Development of Ghana.
UT Financial Services (Nigeria)
At the beginning of 2009, UT obtained a license to operate and replicate its services in Ikeja, In March 2008, UT won the second Most Respected Company, while its CEO won the most
Nigeria. Thus serving the needs of indigenous traders or business entities not being catered for Respected CEO in the maiden edition of Ghana’s Most Respected CEO and Company Awards.
by the Traditional Banks, by providing stop gap loans and trade financing to SME’s.

OUR SERVICES AND PRODUCTS
UT continues to deliver on its promise to provide

efficient and timely financial assistance in less
than 48 hours!
BUSINESS LOANS
Emergency Loans Working Capital Financing
Designed for distressed business men/women, these are loans required within 48hours to To improve working capital position for companies to strengthen their ability to carry on
forestall impending disaster from restricted cash flow trading, manufacturing, or other commercial activities .
Special Purpose Loans Import/Export Finance

This is designed to finance specific transactions such as supply of goods (LPO) or short-term For the payment of freight, acquisition of packaging materials, payment of taxes and duties
contracts/projects. Designed for Suppliers, General Merchants and Contractors. to facilitate quick loading/discharge of goods for export/import trade.
Stop Gap Loans Sika 24

While waiting for the disbursement of an approved loan or financing package from The product is designed to assist SIC policy holders who wish to access funds exceeding 60%
traditional banking or other source of funding, businessmen/women may avail themselves of of their contributions as commercial loans.
the opportunity to utilize this facility in order not to lose time on a transaction or project.

SOCIAL LOANS INVESTMENTS
E-Plan Saviour Plan
This is designed to assist salaried workers meet pressing personal financial obligations. This loan This product attracts interest rates of up to 3% above the prevailing Treasury Bill rate (91 days).
can be used for any purpose. It is structured for people who need a constant monthly yield, or require a regular return to
meet monthly expenditure.
Future Leaders Education Assistance Plan (FLEAP)
The FLEAP comes with LOWER INTEREST RATES for salaried workers to ease the burden of making Flexy Plan
immediate huge lump sum payments to school and institutions for their wards or themselves. This offers an interest rate of up to 5% above the Treasury Bill rate and matures every 91 days
as per the government T-bills.
Unique Car Loan
The Unique Car Loan is a 70/30 unrestricted car loan deal geared towards assisting salaried and Growth Plan
non salaried workers to own a car for personal or commercial use. UT finances 70% of the cost This is tailored to suit investors whose primary interest is capital growth. It offers interest rates
of the vehicle at a low interest rate following a 30% down payment by the client. up to 5% above the Treasury Bill rate. The minimum period of investment for this plan is 182
days to one year.
BUSINESS ADVISORY SERVICES

Business Financing, Investment Management, Organizational Restructuring and Portfolio
Management.

Our aspiration is to maintain our
position as the best non-bank
financial institution in Ghana.

BOARD OF DIRECTORS
From left to right: Justice Kusi-Minka Premo, Charles Aidoo, Capt. (RTD) Budu Koomson, Pearl Esua-Mensah, Prince Kofi Amoabeng,
Joseph Nsonamoah & Martyn Mensah.

JOSEPH NSONAMOAH PRINCE KOFI AMOABENG CAPT. (RTD) BUDU KOOMSON
Mr. Nsonamoah has been the Executive Chairman Born in 1952, Mr. Kofi Amoabeng is a retired military Captain Koomson, Chief Operation Officer, joined
of the Board since the inception of the company officer (Captain) and an investment consultant. UT Financial Services in 1999 as a Credit Manager
in 1997. He is also the CEO of Data Unique He graduated from the premier Business School and rose through the ranks to the position of
Group, an international information technology in Ghana; University of Ghana Business School General Manager-Operations and Director,
equipment and software company. He is a with a B.Sc Admin (Accounting). He is a fellow of Operations. Captain Koomson holds a ‘Certificat’
business executive with several years of business the Chartered Management Accountants (CMA- (Degree) in Industrial Personnel Management
development and management experience. He UK)and a member of Chartered Accountants CA from Germany. He has over 20 years experience
holds a degree in Finance and Accounting from (GH). From 1992-2003, he lectured at the Ghana in personnel management having worked as the
South Texas Junior College, (now University of Stock Exchange. He has extensive experience in Head of Logistics Department and subsequently
Houston Downtown Campus). managing businesses through excellent customer the Head of Personnel Department of Stockheim
relations, strategic and tactical business planning GMbH & Co KG at Dusseldorf International
as well as strategic partnerships. His Achievements Airport in Germany. He served in the Ghana
include Marketing Man of the Year 2006, Ghana’s Army and retired as a Captain. Captain Koomson
Most Respected CEO for 2007 and National was appointed to the UT Financial Services’
Honours for an Order of the Star of the Volta- Board in 2006.
Officer’s Division presented by the President of
Ghana in 2008.

PEARL ESUA-MENSAH JUSTICE KUSI-MINKA PREMO MARTYN MENSAH CHARLES AIDOO
Mrs. Pearl Esua-Mensah is a fellow of the Justice Premo was appointed to the UT Board of He is the Country Director and founder of Mr Aidoo is a Director of Mechanical Llyod
Association of Chartered Certified Accountants Directors in 2004. He is the Managing Partner Steadman Group Ghana Ltd, a joint-venture Company Limited, Ghana. He is a Chartered
(ACCA) and holds an MBA from the Manchester of Minkah-Premo and Co, a law firm which business within the Africa-wide Steadman Accountant by profession with over 36 years
Business School. She joined UT Financial Services specializes in legal, investment and property Group. He serves on the African Board of the extensive work experience. He worked with a
in 2004 as Financial Controller rising to the consultancy. His work experience includes parent company. He presently serves as the number of companies in different capacities.
position of General Manager a year later and is working for the State Insurance Corporation, Executive Director of Strat-Afrique Development His working life started as senior accountant
now the Director of Finance and Administration. Kwaku Baah & Co and Kokroko Ventures. He Ltd, a South African based firm of international with Coopers and Lybrand in UK and later in
She has extensive experience in accounting holds an LLM Law degree from the Ghana School corporate strategy advisors. He holds an MBA Accra. He was the deputy chief internal Auditor
and financial management. She worked as of Law. He was called to the Ghana Bar in in project management and a B.Sc. (Hons) for the defunct GNTC Ghana and deputy chief
a Group Financial Accountant and Group 1982. His areas of specialization are Litigation, in Electrical & Electoral Engineering. He was accountant for Ghana Cargo Handling limited. He
Reporting Accountant for Parity Group PLC and Corporate Legal Services, Good Governance, appointed to the UT Board in 2003. He is joined Mechanical Lloyd in 1979 as the Financial
Kantar Group both in the UK. She holds a BSc. Human Rights and Constitutional Law. presently the Managing Director of Kasapreko Controller and rose through the ranks to become
Administration degree from the University of Brewery Ltd, an innovator in the beverage the Director of Finance and Administration in
Ghana Legon. She was appointed to the Board manufacturing sector and currently ranked 1989 until his retirement in 2008 and became a
in 2006. the fourth best Company and best Indigenous Non-Executive Director of the company. He was
company in the Ghana Club 100 ratings. appointed to the Board of UT Financial Services
in April 2009.

CHAIRMAN’S REMARKS
The effects of the tough economic conditions in the country assets increased by 66%, this growth was due to increase in
and the global financial crisis in the last 12 months demanded volume of business activities.
exceptional effort by the whole team to stay on track. I am
happy to report to you that we have achieved and managed Dividends
to exceed our target for the year. Our core strategy for success Following the company’s good performance the board is
has been to grow our portfolio organically, and exercise strong proposing a final dividend of 30% of profit for the year;1.07ghp
financial management, particularly in debt collection and per share amounting to Gh¢2,254,843.31 The final dividend is
management of bad loans. payable to qualifying shareholders on the register.
We have also benefited from positive contribution from our Risk management and portfolio optimization
strategically positioned affiliated companies, which provide A business like ours can only succeed if risk and challenges
synergies to the UTFSL suite of products and services. are managed well. During the year, UT continued to
contain impairment loss and bad loans. More efficient risk
Business performance highlights management, and a particular focus on credit risk discipline,
Our loan portfolio increased by 63% to Gh¢125m (excluding has led to a current provision of 6.8% of bad debt. With other
advances to affiliated companies), business and social loans banks reporting provisions of 2%-8%, UT compares favourably.
increased by 46% and auto loans by 49% year on year. We are
very satisfied with this, considering the uncertain financial This is a remarkable achievement, considering that our main
climate in which it was achieved – when most financial client base consists of supposed ‘high risk’ customers. Our low
houses were constraining their lending. bad debt provision confirms that our financial management
systems are indeed working.
Overall profit was slightly ahead of our expectations at
Gh¢7.5m and 42% above last year. More importantly, the However, we would like to see this figure reduce even further
quality of our loan portfolio increased with the current charge and are working on innovative means to achieve this.
for bad debt down by 30%.
Corporate Social Responsibility
The branch expansion program was implemented in record At UT CSR is about giving back to society. This goes beyond
time and within budget. This is a reflection of our operational making donations to the poor, it is an integral part of our
efficiency – and commitment to our vision and brand wealth creation process aimed at enhancing our business, and
excellence. The four new branches contributed Gh¢1.1m to enables us make positive changes in all the communities we
total revenue and Gh¢124,000 to bottom line profit Our total are a part of, and impact society in general.

“Our low bad debt provision confirms that our
financial management systems are indeed working.”
We continually contribute to the economic and social development of Ghana to promote quality and start to make some capital gains. The change of government and initial scepticism and
of life for our cherished employees, their families, the local community and society at large and uncertainty surrounding the Ghanaian economy was another challenge we faced this year. The
last year was no exception. This we do through philanthropic donations, capacity building for cedi depreciated against most major currencies and resulted in investor panic. In some cases,
our staff and the business community and most importantly, discharging our tax obligations as this led to credit flight and demand for higher rates of return on investment borrowings. UT was
good corporate citizens. able to offer competitive rates to investors, which contributed to high interest expense in our
accounts.
We allocated about Gh¢150,000 to Corporate Social Responsibility activities. This was spent
on workplace volunteering, donations to a number of institutions including the Ghana Heart Outlook
Foundation and two major referral hospitals, providing educational assistance to a number of We enter 2010 after a year of change and unprecedented challenges in both our industry and
children and financial literacy for SMEs. our company, but I am confident the measures we have taken to reposition UTFSL this year
will enable us take maximum advantage of the opportunities that will arise with the obvious
Employees upturn in the economy this year. The economy has stabilized and there is now real potential for
The number of employees for the company averaged 346 for the year, up 30 from last year. The growth.
dedication, professionalism and enthusiasm of our employees at every level of the company
never fails to impress me. On behalf of the board, I would like to thank all our employees who 2010 has begun with a lot of promise with the rapid drop in base interest rates. Despite this,
worked extremely hard, often meeting very demanding deadlines with great enthusiasm, for growth this year is not expected to be either smooth or straight. We will build on a number of
their contribution to the success of the company. This has ensured that we remain the leaders strengths: a strong business model with appropriate scale and leading market positions, talented
in our industry. people, and above all thousands of loyal clients who value the services that we provide. By doing
our best, we will take the actions that will deliver sustainable returns for our shareholders once
Our challenges again.
UT’s impressive performance in 2009 was not all plain sailing, and we have faced some
difficulties. I am confident that through the leadership of the executive management and continued
commitment and determination of our people UTFSL will meet and again exceed its targets for
Two major challenges were share price pressure and the increased cost of market borrowing: 2010.
Our share price dipped by 23% from its launch price of 30p. Thankfully, the majority of our
investors retained confidence in UT and helped to sustain our overall equity performance. At
the time of writing, our share price has recovered to 25p after an all-time low of 16p. We
believe this upward trend will continue and soon see our equity recover the 30p launch price Joseph Nsonamoah

CEO STATEMENT
Our aspiration is to maintain our position as the best non-bank meltdown, but the fact of the matter is that we were not
financial institution in Ghana. A demanding goal, but one we immune. Credit has to be given to financial institutions in this
have achieved over the years by focusing on the key factors country for steering us out of this crisis. Some neighboring
that deliver value for our shareholders. We are constantly countries suffered, the leading non-bank financial institution
reviewing our processes to ensure we stay at the top and be in Nigeria closed down but at UT, we rode the storm because
unsurpassable. we have built solid processes around us.
Staff When the cost of market borrowing hit the roof early in the
Our staff helped us achieve this goal by living the core values year, due to the cedi depreciating against major currencies,
of the company. They showed respect to our customers and to we did not increase our lending rates.
each other. They demonstrated integrity and professionalism
at all times, stepped up to the plate when required and showed We rather looked in-house to contain the cost. We kept our
the spirit of togetherness (Ubuntu). And, last but not the least, expenditure well below budget by introducing cost cutting
they always asked “why not” when customers are turned away measures.
by other financial institutions.
Day by day and year by year we continue to strengthen
These core values are what makes UT truly unique and as long and elevate our standards and most often attain levels of
as our staff continue to live our values, we will forever be excellence that become the reference point for other financial
successful. institutions in Ghana. We have built a lean, disciplined and
focused organisation that has proven highly capable of
Challenges in 2009 overcoming the challenges financial institutions face given
2009 was really a challenging year and as CEO, l am proud of any set of circumstances.
what we achieved in such a turbulent year of financial crisis.
The effects of the crisis was likened to natural disasters such Synergies from Affiliates
as hurricanes and tsunamis largely because initially it defied UT Group’s formation of the subsidiaries has been a journey
the several interventions which were introduced to stem it’s which has evolved and not just for altruistic reasons, but
tide; it’s effects swept over the world’s financial system with because of our realisation that great organizations that outlast
scant regard for regional or national boundaries and sent a successive cycles of harsh economic conditions and remain in
number of developed economies into recession. leadership positions over the long term all have one thing in
common. They are Built to Last on values and standards that
Some may argue that Ghana was isolated from the economic are founded on excellence.

“ These core values are what makes UT truly unique
and so long as our staff continue to live our
values, we will forever be successful.”
UT has nurtured strategic business units at the group level. Future Clearly, the terrain is changing and we have to change with
These business units continue to provide strong performance There are significant challenges ahead of us as a non-bank the times. We are hopeful we can find the understanding and
thus enhancing the overall profitability of our organisation. and we have to put ourselves in a position to be ahead of the consensus of our shareholders to bring UT Financial Services
Our affiliated companies contributed Gh¢7m to our revenues. game. and UT Bank together in order to take the business to a higher
UT Logistics contributed strongly to our interest income and level.
also leveraged its relationship with clients to support the Regulatory Challenges
provision of services such as loans, through effective collateral • Changes in regulation for non-banks require that non- I sincerely thank you for showing faith in us and I want you to
management of client’s requirements and UT services. This banks are treated as second tier banks and this is not trust our judgement that we are steering the company in the
helps maintain a timely disbursement of client loans within what UT aspire to. We always have to be among the right direction.
our 48 hour promise. best and not second class citizens as some will call it.
• There is also the loss of flexibility in the banking
UT Bank, a newcomer to the group has been an effective regulations which will hamper our activities somewhat.
partner in the areas of foreign transactions with the help of Competition
letters of credit, foreign currency requirements and related • The requirement for banks to have a minimum capital
banking services. It is interesting to note that over the past 5 has ensured there is liquidity in the system and this has
years, UT Financial Services has paid fees to the tune of Gh¢5m made banks encroach on ‘our’ market. Major banks Prince Kofi Amoabeng
to banks. are now paying attention to the Small and Medium
scale Enterprises. The very group of people they turned
As principal participants in the financial services industry their back on but because of our success, they are
we strongly believe that we can perform these services and competing with ‘cheap’ funding.
thus capture these revenues in-house. Hitherto we have been • The number of non-banks in the country is now more
unable to capture these funds as we did not have a banking than 70. When UT first began its operations 13 years
license. ago, the number of non-banks was less than 5.

STATEMENT BY CHIEF OPERATIONS OFFICER
Each year has its own challenges and 2009 definately had Typical of UT, when the going got tough, we got more brazen.
some! If we were not going to forget 2008 in a hurry, then Whiles others recoiled from lending and played it safe, we took
2009 came with a smile “you aint seen nothing yet”! the mental posture to aggressively lend. Interest charges were
reduced, normally good clients who hit unexpected challenges
The Backdrop were generously accommodated etc. etc.
• Political uncertainty and skepticism
• Virtual halt in economic activity Now, having taken that posture, we needed to inform,
• Apprehension in the business community encourage and reassure the borrowing public to come out and
• Depreciation of the Cedi face the situation instead of hunkering down. UT organized
• Capital flight/higher borrowing rates nine (9) public finance seminars targeted at three (3) different
• Crime … name it!! segments in Accra, Kumasi and Takoradi. The results were
amazing when they overcame their apprehensions and decided
All this was set against an optimistic budget to achieve 59% to brave the odds. Our loan portfolio grew from GH¢98m to
growth in portfolio size and 25 % in profits now that we GH¢138m (including advances to affiliates), a whopping 41%.
had the elections behind us. As it turned out, survival itself
became an issue. Loan portfolio by branch
Across board, businesses were not being paid for services

already rendered on borrowed money, clients could not
replenish their stocks because of exchange rate volatility,
inflation was snapping at everyone’s heels etc. etc. Otherwise
good and loyal clients were defaulting on their loans. It was
the classic anticlimax after the highs of November/December
2008. There was general despondency and fear amongst our
client base.
The Challenge, The Plan

The challenge was not so much what was happening that
was important, (it was a given) but rather how we responded
and reacted to it!! This demanded flexibility in mind and
adaptability of our processes to the challenge at hand.

“Typical of UT,
With the business terrain dire, we naturally had to tighten our Four new branches (Cape Coast, Koforidua, Ho, and Sunyani)
controls to ensure that what went out came back (or was at were opened in record time and within budget and in line with
least adequately secured). Training was intense as ever. At UT, our expansion programme. The four new branches contributed
we train, train and train again until processes and procedures
become second nature. Monitoring and client interactions
GH¢1.1m to total revenue and GH¢124,000 to bottom line
profits. when the going
were intensified which actually reassured good clients and
also gave us early warning signs of difficulties. This was The results were satisfying and impressive – 42% increase in got tough, we
got more brazen.
rewarded with an impressive drop of 30% in provision for bad profit after tax and actually slightly ahead of our expectations
debts to 6.8% in 09! This compares favourably with banks at GH¢7.5m!
that have provisions in the range of 4% - 15% (considering
where we are coming from). The Outlook
Having taken a battering in 2009, we are quietly optimistic While others
recoiled from
Having positioned ourselves exactly in the opposite direction that things are pointing in the right direction for the economy
(lend instead of holding back), reassured our borrowing public in 2010. The economy seems to have stabilized, treasury bill
(target groups) and put in measures to protect the monies, rates are going down, the currency is appreciating against
it was time to put the final piece of the jigsaw to the plan –
branch expansion (reach out to the people)!!
major currencies, and the expected commencement of the oil
industry by the end of 2010.The challenge will be for UT to
lending and
Results
reposition itself to take maximum advantage of whatever the
system throws up. played it safe,
CUMMULATIVE PROVISIONS
2008
2009
Conclusion
I would like to take this opportunity to thank each and
we took the
mental posture to
10.0%
9.0% every individual member of staff for their grit, tenacity and
8.0% performance towards the continuing success of UT. To you I
aggressively lend.”
7.0% say Ayekoo! To our shareholders and partners I say we continue
6.0%
to have unflinching faith in you and for your continued belief,
5.0%
4.0% trust and support we thank you with gratitude.
3.0%
2.0% Thank you.
1.0%
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
They say no…we say why not! Capt. (Rtd) Budu Koomson

STATEMENT BY DIRECTOR, FINANCE & ADMINISTRATION
5 Year Profit Before Tax

When we presented our results last year, the effects of the 8 000
global economy was beginning to hit our economy in general 7 000 7,521
GH¢ thousands
and our industry in particular. Nonetheless we said we were 6 000
confident heading into 2009, we were entering the year 5 000 5,300
4 000 4,372
strong and expected to exit stronger.
3 000
2 000 2,583
2009 was a tough year by any measure and UTFSL’s 2,031
1 000
performance is indicative of the discipline we apply to our
0
strategy and operations.
2005 2006 2007 2008 2009
In the last five years we have increased our pretax profits by

almost 800%, quadrupled our earnings per share, profit after REVENUE AND MARGINS
tax and Net worth. Our strong 2009 results continued this Average cost of borrowing in 2009 doubled from the position
record of superior performance. at end of the year 2008. This meant that margins were
drastically reduced; we needed high increases in revenue
Last year, despite an environment that remains challenging to counter the high cost of borrowing. We achieved that by
and our first year as a listed company, we made excellent improving productivity and reducing cost. We grew our loan
progress in delivering and exceeding our promises to our portfolio by Gh¢53m, (46% on last year), generating income
stakeholders. of over Gh¢67m (55% increase). Four new branches were set
up during the year contributing Gh¢1.1m to total revenue.
For shareholders we have delivered profitability and growth in
value, for customers we have delivered excellent service and PROFIT
new products, for communities we have provided assistance With a low net margin growth, cost and operational
where it counts and for employees, we have worked together efficiency was key. Strategies employed ensured that our
to ensure a safe and satisfying working environment. costs of operations were minimized so that costs increased
by only 20% against 55% increase in revenue. Impairment
loss was also reduced by about 30% despite the rapid growth
A STRONG FINANCIAL PERFORMANCE IN A DIFFICULT in portfolio size. This together meant our cost of operations
ECONOMIC CLIMATE dropped by 2.6% year on year leading to a 42% increase in
In the year 2009, we achieved a net profit after tax of profit after tax. We remain committed to controlling costs in
Gh¢7.5m, a 42% increase on the previous year. 2010.

“ For shareholders we have delivered profitability and
growth in value, for customers we have delivered
excellent service and new products...”
RISK MANAGEMENT
In 2009, we rolled out a new software program to manage loan This year a sum of GH¢150,000 was donated to our usual It is both admirable and impressive that our employees come
process flow and monitoring to ensure high efficiency in the institutions like Ghana National Trust Fund, Society for the to work everyday and face the challenges head on. This is an
lending process and delivery within our 48 hour target. This in Blind, Ghana heart foundation and we continue to maintain excellent demonstration of their skill and loyalty in a difficult
addition to tight credit risk discipline reduced bad debt by 30% the emergency ward of 37 military hospital. This year we time. With the set up of four (4) new branches, staff strength
and a current provision of 6.8% (9% last year). added the DVLA Police Clinic. Orphanages and child caring increased by 30 to 346 in the year under review.
charities that benefited include Family Outreach Ghana
Investing In Communities and Fostering Opportunity where we helped them build a two classroom school block; CONCLUSION
Our commitment is to help communities thrive and enable Hope for Kids – we funded the cost of education for 10 bright A difficult economic climate made the 2009 fiscal year a
people around us achieve their potential and continue to drive underprivileged kids in tertiary institutions, International Aids challenging one for UTFSL and our entire industry. But our core
our work. and Disease Awareness project, etc. values – “Integrity”, “Stepping up to the plate” and our “Why
not” attitude have served the company well.
Four new branches were opened this year outside Accra We participated in 2 major volunteering activities, one with
providing employment for 30 people and extending our services United Way Ghana where in addition to donating money and Although the 2010 economic climate is likely to remain
to entrepreneurs in these areas. other items, staff joined a team of volunteers to take part in challenging, our opportunities are greater than ever. UTFSL is
activities like painting and cleaning at Nima; we also fed in a great position to continue leading our industry. We will
Financial literacy training was run for two industries; Transport 3,000 homeless people on the streets of Accra on Christmas continue to deliver innovations that help people lead more
Owners and Small Business owners in the three main regions day. productive, more creative and more connected lives.
in which we operate.
Our support of community initiatives continued throughout the EMPLOYEES

year, but our need to cut expenses has led to a re-evaluation Employees and company leaders responded to difficult economic
of some projects and greater orientation of in-kind support climate by sharpening UTFSL’s focus on our most important
encouraging volunteering and staff contribution towards some opportunities for growth and on founding opportunities to cut
charitable initiatives. cost. Pearl Esua-Mensah

UT FINANCIAL SERVICES LTD
Financial Statement
09
DIRECTORS’ REPORT
The Directors have the pleasure in submitting to the members of the company, their report together with the audited financial statements for the year
ended 31 December, 2009.
Principal activities Results for the year GH¢’000

The company is engaged in short-term financing, discounting and factor
financing, export financing and borrowing from the market. The financial results of the company are set out below:
There was no change in the nature of the company’s business during the year The net profit for the year after tax is 7,521
under review.
From which is deducted transfer to statutory reserve of (1,799)
Directors interest
The directors have no interest in contracts entered into by the company. To which must be added the balance brought forward on
Income Surplus Account of 9,876
Auditors Leaving a balance on the Income Surplus Account

In accordance with section 134 (5) of the Companies Code, the Auditors, before dividend of 15,598
Messrs Deloitte and Touche, continue in office as Auditors of the Company.
From which is deducted 2008 dividends paid of GHp1.0
per share amounting to (2,120)
On behalf of the board Leaving a balance to be carried forward on the Income 13,478
surplus account of
Director Director:
1st March 2010 1st March 2010

STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The directors are responsible for preparing financial statements for each financial period which give
a true and fair view of the state of affairs of the company at the end of the financial year and of the
profit or loss of the company for that year.
In preparing those financial statements, the directors are required to:
• Select suitable accounting policies and then apply them consistently

• Make judgments and estimates that are reasonable and prudent
• State whether the applicable accounting standards have been followed.
• Prepare the financial statements on a going concern basis unless it is inappropriate to presume
that the company will continue in business.
The directors are responsible for ensuring that the company keeps accounting records which disclose
with reasonable accuracy the financial position of the company and which enables them to ensure
that the financial statements comply with International Accounting Standards. They are responsible
for taking such steps as are reasonably open to them to safeguard the assets of the company, and to
prevent and detect fraud and other irregularities.

INDEPENDENT AUDITORS REPORT
To the members of UT Financial Services Limited
We have audited the accompanying financial statements of UT Financial Services Limited on Opinion
pages 8 to 48 which comprise the balance sheet as at 31 December, 2009, and income statement, In our opinion, the company has kept proper accounting records and the financial statements
statement of changes in equity and cashflow statement for the year then ended, together with are in agreement with the records in all material respects and give in the prescribed manner,
the summary of significant accounting policies and other explanatory notes, and have obtained information required by the Companies Code, 1963 (Act 179). The financial statements give a
all information and explanations which, to the best of our knowledge and belief, were necessary true and fair view of the financial position of the company as at 31 December 2009, and of its
for the purposes of our audit. financial performance and cash flow for the year then ended and are drawn up in accordance
with the International Financial Reporting Standards.
Directors’ responsibility for the financial statements
The directors are responsible for the preparation and fair presentation of these financial statements Report on other legal and regulatory requirements
in accordance with the Companies Code, 1963 (Act 179). These responsibilities include: designing, The Ghana Companies Code, 1963 (Act 179) requires that in carrying out our audit work we
implementing and maintaining internal control relevant to the preparation and fair presentation consider and report on the following matters. We confirm that:
of financial statements that are free from material misstatement, whether due to fraud or error; i. we have obtained all the information and explanations which to the best of our knowledge and
selecting and applying appropriate accounting policies; and making accounting estimates that belief were necessary for the purposes of our audit;
are reasonable in the circumstances. ii. in our opinion proper books of accounts have been kept by the company and its subsidiaries,
so far as appears from our examination of those books; and
Auditors’ responsibilities iii. the balance sheet and income statement of the company are in agreement with the books of
Our responsibility is to express an opinion on these financial statements based on our audit. accounts.
We conducted our audit in accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit The Financial Institution (Non Bank) Law 1993 (PNDCL328) section 23(2), requires that we state
to obtain reasonable assurance as to whether the financial statements are free from material certain matters in our report. We hereby state that:
misstatement. The accounts give a true and fair view of the state of affairs of the company and its results for
the period under review;
An audit involves performing procedures to obtain audit evidence about the amounts and We were able to obtain all the information and explanation required for the efficient performance
disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, of our duties as auditors;
including the assessment of the risks of material misstatement of the financial statements, The company’s transactions are within its powers; and The company has complied with the
whether due to fraud or error. In making those risk assessments, the auditor considers internal provisions in the Financial Institution (Non Bank) Law 1993 (PNDCL328) section 23(2).
control relevant to the entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness Chartered Accountants
of accounting estimates made by management, as well as evaluating the overall presentation of Accra, Ghana
the financial statements.
March 1, 2010
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

INCOME STATEMENT STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 December 2009 For the year ended 31 December 2009
2009 2008 2009 2008
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Interest Income 7 67,612 43,568 Income and expense recognised directly in equity:
Interest Expense 8 ( 36,738) (14,803) Net change in fair value of available for
_______ _______ sale financial
Net Interest Income 30,874 28,765 Assets (Note 27 (i)):
Gains recognised directly through equity - 10
Net Fees and Commissions Income 9 1,187 416
Other Operating Income 10 3,213 4,604 Profit for the Year 7,521 5,300
_______ _______ _______ _______
Operating Income 35,274 33,785 Total recognised income and expense for the Year 7,521 5,310
_______ _______
Operating Expenses 11 (16,996) (14,074)
Impairment loss and bad debt 13 (8,573) (12,161)
_______ _______
Profit before taxation 9,705 7,550
Taxation 15(i) (2,184) (2,250)
_______ _______
Profit for the Year 7,521 5,300
_______ _______
Basic earnings per share 30(ii)
(Ghana Cedi per share) GH¢0.04 GH¢0.03
Diluted earnings per share 30(ii)

(Ghana Cedi per share) GH¢0.04 GH¢0.03

BALANCE SHEET
As at 31 December 2009
2009 2008 2009 2008

Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets Current Liabilities

Cash 18 397 213 Borrowing 25 165,275 95,747
Due from other Banks and Financial 39,490 10,395 Interest Payable and other Liabilities 24 23,226 7,520
Loans and Advances 19(i) 138,281 98,116 Due to other Banks and Financial
Other Assets 22 22,943 9,841 Institutions - 6,253
_______ _______ Deferred income 26 1,015 980
201,111 118,565 Tax 16 59 40
Non current assets _______ _______
Medium-term Investments in other 61 61 189,575 110,540
securities _______ _______
Property and equipment 20 6,921 4,504 Non Current liabilities
Lease property 3,786 4,593 Deferred Tax 17 67 405
Intangible assets 21 42 100 _______ _______
_______ _______ Total Liabilities 189,642 110,945
Total Assets 211,921 127,823
Total Liabilities and Shareholder’s _______ _______
Equity Equity 211,921 127,823
Stated capital 27(ii) 4,000 4,000 _______ _______
Income Surplus 27(ii) 13,478 9,876 Net Assets Value per Share
Statutory Reserve Fund 27(v) 3,511 2,383 (Ghana Cedis per share) 30(i) 0.11 0.08
Other Reserves 27(v) 1,290 619
_______ _______ These financial statements were approved by the Board of Directors on 1st March
Total Shareholders’ Fund 22,279 16,878 2010 and signed on its behalf by:
Director Director

STATEMENT OF CASH FLOWS
For the year ended 31 December 2009
2009 2008 2009 2008

GH¢’000 GH¢’000 GH¢’000 GH¢’000
Profit before tax for the year 9,705 7,550 Cash flows from financiing activities
Adjustments for: Bank overdraft - (851)
Depreciation and amortisation 1,426 1,012 Short term loan (6,253) 5,174
Profit on sale of property and equipment (88) (16) Dividend (2,120) (2,000)
Changes in other reserves - (536) Equity - 3,000
_______ _______ _______ _______
11,043 8,010 Net cash from financing activities (8,373) 5,323
Change in loans and advances (40,165) (40,925) _______ _______
Change in other assets (13,102) (1,440) Increase (decrease) in cash and cash equivalents 29,279 6,730
Change in borrowings 69,528 39,918 Analysis of changes in cash and cash equivalents
Change in other payables 15,706 843 during the year
Change in deferred income 35 671 Cash and cash equivalents at 1 January 10,608 3,878
_______ _______ Increase (decrease) in cash and cash equivalents 29,279 6,730
43,045 7,077 _______ _______
Tax paid (2,503) (1,826) Cash and cash equivalents at 31 December 39,887 10,608
_______ _______ _______ _______
Net cash used in operating activities 40,542 5,251 Analysis of cash and cash equivalents during
the year
Cash flows from investing activities
Purchase of property, plant and equipment (3,833) (2,398) Cash 397 213
Changes in lease property and equipment 807 (1,500) Cash with other banks and financial institutions 39,490 10,395
Proceeds from sale of property and equipment 136 54 _______ _______
_______ _______ 39,887 10,608
Net cash used in investing activities (2,890) (3,844) _______ _______

NOTES TO THE FINANCIAL STATEMENTS | For the year ended 31 December 2009
1. REPORTING ENTITY
UT Financial Services Limited (UTFSL) is a non-bank financial institution incorporated in Ghana. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
The address and registered office of the company can be found on page 2 of the annual report. to accounting estimates are recognised in the period in which the estimate is revised if
The company operates under the Financial Institutions (Non-Banking) Law 1993, (P.N.D.C.L. the revision affects only that period or in the period of the revision and future periods
328) and Non-Banking Financial Institutions (Bank of Ghana) Rules. if the revision affects both current and future periods. In particular, information
about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in
2. BASIS OF PREPARATION the financial statements are described in notes.
a. Statement of Compliance
The financial statements have been prepared in accordance with International Financial 3. SIGNIFICANT ACCOUNTING POLICIES
Reporting Standards (IFRS) and its interpretations adopted by the International The accounting policies set out below have been applied consistently to all periods presented
Accounting Standards Board (IASB). in these financial statements by the company and in preparing an opening balance sheet at 1
January 2009.
b. Basis of measurement
The financial statements are presented in Ghana cedis which are the company’s a. Revenue Recognition
functional currency, rounded to the nearest thousand. They are prepared on the Interest income and expense on financial assets and liabilities held at amortised cost,
historical cost basis except for the following assets and liabilities that are stated at their are recognised in the income statement using the effective interest method.
fair value: financial instruments that are fair value through profit or loss and financial
instruments classified as available-for-sale. An explanation of how the transition to ains and losses arising from changes in the fair value of financial assets and liabilities
G
IFRS has affected the reported financial position, financial performance and cash flows held at fair value through profit or loss, as well as any interest receivable or payable,
of the company is provided in note 36 of the financial statements. is included in the income statement in the period in which they arise. Gains and
losses arising from changes in the fair value of available-for-sale financial assets,
c. Use of estimates and judgement other than foreign exchange gains and losses from monetary items, are recognised
The preparation of financial statements in conformity with IFRS requires management directly in equity, until the financial asset is derecognised or impaired at which time
to make judgement, estimates and assumptions that affect the application of policies the cumulative gain or loss previously recognised in equity is recognised in the income
and reported amounts of assets, liabilities, income and expenses. The estimates and statement. Dividends are recognised in the income statement when the company’s
associated assumptions are based on historical experience and various other factors right to receive payment is established.
that are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgement about carrying values of assets and liabilities that b. Interest income and Expense
are not readily apparent from other sources. Actual results may differ from these The effective interest rate is the rate that discounts estimated future receipts or
estimates. payments through the expected life of the financial instruments or, when appropriate,

a shorter period, to the net carrying amount of the financial asset or financial liability. plant and equipment, derecognised available for sale financial assets, and foreign
The effective interest rate is established on initial recognition of the financial asset or exchange differences.
liability and is not revised subsequently. When calculating the effective interest rate;
the company estimates cash flows considering all contractual terms of the financial e. Foreign Currency
instrument but does not consider future credit losses. The calculation includes all fees Foreign currency transactions are translated into the company’s functional currency
received or paid between parties to the contract that are an integral part of the effective using the exchange rates prevailing at the dates of the transactions. Foreign exchange
interest rate, transaction costs and all other premiums or discounts. Transactions costs gains and losses resulting from the settlement of such transactions, and from the
are incremental costs that are directly attributable to the acquisition, issue or disposal translation at year-end exchange rates of monetary assets and liabilities denominated
of a financial asset or liability. in foreign currencies, are recognised in the income statement. Non-monetary assets
and liabilities are translated at historical exchange rates if held at historical cost or
The recognition of interest income ceases when the payment of interest or principal exchange rates at the date the fair value was determined if held at fair value, and the
is in doubt, and does so automatically if principal or interest payments are 90 or more resulting foreign exchange gains and losses are recognised in the income statement or
days late. Thereafter, interest is included in income only when it is received. shareholders’ equity as appropriate.

When a financial asset or a group of similar financial assets have been written down as f. Leases
a result of impairment, interest income is recognised using the rate of interest used to (i) Classification
discount the future cash flows for the purpose of measuring the impairment loss. Leases that the company assumes substantially all the risks and rewards of ownership
of the underlying asset are classified as finance leases. Upon initial recognition the
Interest income and expense on financial assets and liabilities held at fair value through leased asset is measured at an amount equal to the lower of its fair value and present
profit or loss is recognised in the income statement in the period they arise. value of the minimum lease payments. Subsequent to initial recognition, the leased
asset is accounted for in accordance with the accounting policy applicable to that
c. Fees and commissions asset.
Fees and commission income and expenses that are an integral part of the effective
interest rate on financial instruments are included in the measurement of the effective Other leases are classified as operating leases.
interest rate.
(ii) Lease Payments
Other fees and commission income are recognised as the related services are performed. Payments made under operating leases are charged to the income statement on a
straight-line basis over the period of the lease. When an operating lease is terminated
d. Other Operating Income before the lease period has expired, any payment required to be made to the lessor by
Other operating income comprises other income including bad debt recovered, interest way of penalty is recognised as an expense in the period in which termination takes
on savings accounts with other financial institutions, profit on disposal of property, place.

inimum lease payments made under finance leases are apportioned between the
M (v) Initial Recognition
finance expense and as reduction of the outstanding lease liability. The finance expense Purchases and sales of available for sale financial assets are recognised at the trade date
is allocated to each period during the lease term so as to produce a constant periodic (the date the company commits to purchase or sell the asset). Loans and receivables
rate of interest on the remaining balance of the liability. are recognised when cash is advanced to customers or borrowers.

(iii) Leasehold property Financial assets and liabilities are initially recognised at fair value plus directly
The entity recognises assets leased out under a finance lease in the balance sheet as a attributable transaction cost except for those that are classified as at fair value through
receivable at an amount equal to the net investment in the lease. The receipts under profit or loss.
finance lease are allocated between the principal lease receipts and finance income.
The recognition of finance income is based on a pattern that reflects a constant periodic (vi) Subsequent measurement
rate of return on entity’s outstanding net investment in the finance lease. Available for sale financial assets are subsequently measured at fair value with the
resulting changes recognised in equity. The fair value changes on available for sale
g. Financial assets and liabilities financial assets are recycled to the income statement when the underlying asset is
(i) Categorisation of financial assets and liabilities sold, matured or derecognised. Financial assets and liabilities classified as at fair
The company classifies its financial assets in the following categories: loans and value through profit or loss are subsequently measured at fair value with the resulting
receivables and available-for-sale financial assets. Financial liabilities are classified as changes recognised in the income.
either held at fair value through profit or loss, or other financial liabilities (measured
at amortised cost). Management determines the categorisation of its financial assets Loans and receivables and other liabilities are subsequently carried at amortised cost
and liabilities at initial recognition. using the effective interest method, less impairment loss.

(ii) Loans and receivables (vii). Derecognition
Loans and receivables are non-derivative financial assets with fixed or determinable Financial assets are derecognised when the right to receive cash flows from the
payments that are not quoted in an active market. financial assets has expired or where the company has transferred substantially all
risks and rewards of ownership. Any interest in the transferred financial assets that is
(iii) Available for sale financial assets created or retained by the company is recognised as a separate asset or liability.
Available-for-sale assets are those non-derivative financial assets that are designated
as available for sale or are not classified as financial assets at fair value through profit Financial liabilities are derecognised when the contractual obligations are discharged,
or loss, loans and receivable and held to maturity. cancelled or expire.
(iv) Financial liabilities measured at amortised cost

This relates to all other liabilities that are not designated at fair value through profit or loss.

(viii) Fair value measurement (xi) Identification and measurement of impairment
The determination of fair values of quoted financial assets and financial liabilities The company assesses at each balance sheet date whether there is objective evidence
in active markets are based on quoted market prices or dealer price quotations. If that a financial assets or group of financial assets are impaired. A financial asset or
the market for a financial asset or financial liability is not actively traded or unlisted a group of financial assets is impaired and impairment losses are incurred if, and only
securities, the company establishes fair value by using valuation techniques. These if, there is objective evidence of impairment as a result of one or more events that
techniques include the use of arms’ length transactions, discounted cash flow analysis, occurred after the initial recognition of the asset (a “loss event”), and that loss event
and valuation models and techniques commonly used by market participants. (or events) has an impact on the estimated future cash flows of the financial asset or
group of financial assets that can be reliably estimated.
The value produced by a model or other valuation technique may be adjusted to
allow for a number of factors as appropriate, because valuation techniques cannot Objective evidence that financial assets are impaired can include default or delinquency
appropriately reflect all factors market participants take into account when entering by a borrower, restructuring of a loan and other observable data that suggests adverse
into a transaction. Management believes that these valuation adjustments are changes in the payment status of the borrowers.
necessary and appropriate to fairly state financial instruments carried at fair value on
the balance sheet. The company first assesses whether objective evidence of impairment exists individually
for financial assets that are individually significant, and individually or collectively
(ix) Offsetting for financial assets that are not individually significant. If the company determines
Financial assets and liabilities are set off and the net amount presented in the balance that no objective evidence of impairment exists for an individually assessed financial
sheet when, and only when, the company has a legal right to set off the amounts and asset, whether significant or not, it includes the asset in a group of financial assets
intends either to settle on a net basis or to realise the asset and settle the liability with similar credit risk characteristics and collectively assesses them for impairment.
simultaneously. Assets that are individually assessed for impairment and for which an impairment
loss is or continues to be recognised, are not included in a collective assessment of
Income and expenses are presented on a net basis only when permitted by the impairment.
accounting standards.
If there is objective evidence that an impairment loss on a loan and receivable has been
(x) Amortised cost measurement incurred, the amount of the loss is measured as the difference between the asset’s
The amortised cost of a financial asset or liability is the amount at which the financial carrying amount and the present value of estimated future cash flows (excluding future
asset or liability is measured at initial recognition, minus principal repayments, plus credit losses that have not been incurred), discounted at the asset’s original effective
or minus the cumulative amortisation using the effective interest method of any interest rate. The carrying amount of the asset is reduced through the use of an
difference between the initial amount recognised and the maturity amount, minus any allowance account and the amount of the loss is recognized in the income statement.
reduction for impairment. If a loan and receivable has a variable interest rate, the discount rate for measuring any
impairment loss is the current effective interest rate determined under the contract.

T he calculation of the present value of the estimated future cash flows of a collateralised h. Cash and cash equivalents
financial asset reflects the cash flows that may result from foreclosure, less cost for Cash and cash equivalents include notes and coins on hand, and highly liquid financial
obtaining and selling the collateral, whether or not foreclosure is probable. For the assets with maturities less than three months. Cash and cash equivalents are carried
purposes of a collective evaluation of impairment, financial assets are grouped on the at amortised cost in the balance sheet.
basis of similar credit risk characteristics (i.e. on the basis of the company’s grading
process which considers asset type, industry, geographical location, collateral type, i. Loans and receivables
past due status and other relevant factors). These characteristics are relevant to the This is mainly made up of placements with Banks and other financial institutions and
estimation of future cash flows for group of such assets being indicative of the debtors’ loans and advances to customers. Loans and receivables are carried in the balance
ability to pay all amounts due according to the contractual terms of the assets being sheet at amortised cost, i.e. gross receivable less impairment allowance.
evaluated.
j. Investments
Future cash flows in a group of financial assets that are collectively evaluated for This comprises investments in listed medium term securities such as quoted stocks.
impairment are estimated on the basis of the historical loss experience for assets with Investments in securities are categorised as available-for-sale financial assets and
credit risk characteristics similar to those in the company. Historical loss experience carried in the balance sheet at fair values.
is adjusted on the basis of current observable data to reflect the effects of current
conditions that did not affect the period on which the historical loss experience is k. Property, Plant and Equipment (PPE)
based, and to remove the effects of conditions in the historical period that do not exist (i) Recognition and measurement
currently. Items of property, plant and equipment are measured at cost less accumulated
depreciation and impairment losses.
If in a subsequent period, the amount of the impairment loss decreases and the decrease
can be related objectively to an event occurring after the impairment was recognised Cost includes expenditures that are directly attributable to the acquisition of the asset.
(such as an improvement in the debtor’s credit rating), the previously recognised The cost of self-constructed assets includes the cost of materials and direct labour, and
impairment loss is reversed by adjusting the allowance account. The amount of the any other costs directly attributable to bringing the asset to a working condition for its
reversal is recognised in the income statement. intended use.” Purchased software that is integral to the functionality of the related
equipment is capitalised as part of that equipment.
Impairment losses on available-for-sale financial assets are recognised by transferring
the difference between the amortised acquisition cost and current fair value out of When parts of an item of property, plant and equipment have different useful lives,
equity to the income statement. When a subsequent event causes the impairment loss they are accounted for as separate items (major components)”
on an available for sale financial asset to decrease, the impairment loss is reversed
through the income statement. However, any subsequent recovery in the fair value of (ii) Subsequent costs
an impaired available for sale financial asset is recognised directly in equity. The cost of replacing part of an item of property or equipment is recognised in the

carrying amount of the item if it is probable that the future economic benefits embodied Software acquired by the company is stated at cost less accumulated amortisation and
within the part will flow to the company and its cost can be measured reliably. The accumulated impairment losses.
costs of the day-to-day servicing of property and equipment are recognised in the
income statement as incurred. Subsequent expenditure on software assets is capitalised only when it increases the
future economic benefits embodied in the specific asset to which it relates. All other
(iii) Depreciation expenditure is expensed as incurred.
Depreciation is recognised in the income statement on a straight-line basis over the
estimated useful lives of each part of an item of property and equipment. Leased Amortisation is recognised in the income statement on a straight-line basis over the
assets are depreciated over the shorter of the lease term and their useful lives. Land is estimated useful life of the software, from the date that it is available for use. The
not depreciated. estimated useful life of software is three to five years.
The estimated useful lives for the current and comparative periods are as follows: m. Taxation
Leasehold land & Buildings Over the period of the lease Current tax is the expected tax payable on the taxable income for the year, using tax
Office Equipment 3 years rates enacted or substantively enacted at the balance sheet date, and any adjustment
Office furniture 5 years to tax payable in respect of previous years.
Motor vehicles 5 years
Plant & machinery 5 years n. Deferred Taxation
Software 3 years Deferred tax is provided using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial reporting
Depreciation methods, useful lives and residual values are reassessed at the reporting purposes and the amounts used for taxation purposes.
date.
Deferred tax is not recognised for the following temporary differences: the initial
Gains and losses on disposal of PPE are determined by comparing proceeds from recognition of goodwill, the initial recognition of assets or liabilities in a transaction
disposal with the carrying amounts of PPE and are recognised in the income statement that is not a business combination and that affects neither accounting nor taxable profit,
as other income. and differences relating to investments in subsidiaries to the extent that they probably
will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that
A full year’s depreciation is charged in the year of purchase but none in the year of are expected to be applied to the temporary differences when they reverse, based on the
disposal. laws that have been enacted or substantively enacted by the reporting date.

l. Intangible assets A deferred tax asset is recognised only to the extent that it is probable that future
(i) Software taxable profits will be available against which the asset can be utilised. Deferred tax

assets are reviewed at each reporting date and are reduced to the extent that it is no is amortised over the life of the financial guarantee. The financial guarantees are
longer probable that the related tax benefit will be realised. subsequently carried at the higher of the amortised amount and the present value of
any expected payment (when a payment under the guarantee has become probable).
o. Post Balance Sheet Events
Events subsequent to the balance sheet date are reflected in the financial statements t. Employee benefits
only to the extent that they relate to the year under consideration and the effect is (i) Defined contribution plans
material. Obligations for contributions to defined contribution pension plans are recognised as
an expense in the income statement when they are due.
p. Dividend
Dividend income is recognised when the right to receive income is established. Dividend (ii) Termination benefits
payable is recognized as a liability in the period in which they are declared. Termination benefits are recognised as an expense when the company is demonstrably
committed, without realistic possibility of withdrawal, to a formal detailed plan to
q. Amounts due to Banks and borrowings terminate employment before the normal retirement date. Termination benefits for
This is made up of amounts due to other financial institutions and medium term voluntary redundancies are recognised if the company has made an offer encouraging
borrowings. They are categorised as other financial liabilities and carried in the balance voluntary redundancy, it is probable that the offer will be accepted, and the number of
sheet at amortised cost. acceptances can be estimated reliably.
r. Provisions (iii) Short-term benefits

A provision is recognised if, as a result of a past event, the company has a present Short-term employee benefit obligations are measured on an undiscounted basis and
legal or constructive obligation that can be estimated reliably, and it is probable that are expensed as the related service is provided.
an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that A provision is recognised for the amount expected to be paid under short-term cash
reflects current market assessments of the time value of money and, where appropriate, bonus or profit-sharing plans if the company has a present legal or constructive
the risks specific to the liability. obligation to pay this amount as a result of past service provided by the employee and
the obligation can be estimated reliably.
s. Financial guarantees
Financial guarantees are contracts that require the company to make specified u. Impairment on non-financial assets.
payments to reimburse the holder for a loss it incurs because a specified debtor fails to The carrying amount of the company’s non-financial assets other than deferred tax
make payment when due in accordance with the terms of a debt instrument. assets, are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists then the asset’s recoverable amount is
Financial guarantees are initially recognised at their fair value, and the fair value estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its risks and rewards that are different from those of other segments. The company’s primary
recoverable amount. The recoverable amount of an asset is the greater of its value format for segment reporting is based on geographical segments.
in use and its fair value less costs to sell. In assessing value in use, the estimated
future cash flows are discounted to their present value using pre-tax discount rate that y. New standards and interpretations not yet adopted.
reflects current market assessment of the time value of money and risks specific to the A number of new standards, amendments to standards and interpretations are not yet
asset. Impairment losses are recognised in the income statement. effective for the year ended 31 December 2009, and have not been applied in preparing
these financial statements. These are disclosed as follows:
Impairment losses recognised in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is a. IAS 1 presentation of financial statements becomes mandatory for the company’s
reversed if there has been a change in the estimates used to determine the recoverable financial reporting period ending 31 December 2009. This will require the presentation
amount. An impairment loss is reversed only to the extent that the asset’s carrying of all non-owner changes in equity in a single statement of comprehensive income
amount does not exceed the carrying amount that would have been determined, net of (which will include the current income statement) and owner changes in equity in
depreciation or amortisation, if no impairment loss had been recognised. the statement of changes in equity. Reclassification adjustments and income tax
relating to each component of other comprehensive income must be disclosed on
v. Ordinary share capital. the face of the statement of comprehensive income. Currently this component is
(i) Share issue costs the available-for-sale fair value gains/losses reserve.
Incremental costs directly attributable to the issue of an equity instrument are deducted b. IFRS 8 Operating Segments introduces the “management approach” to segment
from the initial measurement of the equity instruments. reporting. IFRS 8, which becomes mandatory for the company’s 2009 financial
statements, will require the disclosure of segment information based on the internal
w. Earnings per share. reports regularly reviewed by the company’s Chief Operating Decision Maker in
The company presents basic and diluted earnings per share (EPS) data for its ordinary order to assess each segment’s performance and to allocate resources to them.
shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary Currently the company presents segment information in respect of its geographical
shareholders of the company by the number of ordinary shares outstanding during the segments (see note 6). Under the management approach, the company will present
period. The company has no convertible notes and share options which could potentially segment information in respect of its geographical segments.
dilute its EPS and therefore the company’s Basic and diluted EPS are essentially the c. Revised IAS 23 Borrowing Costs removes the option to expense borrowing costs
same. and requires that an entity capitalise borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset as part of the cost
x. Segment Reporting. of that asset. The revised IAS 23 will become mandatory for the company’s 2009
A segment is a distinguishable component of the company that is engaged either in financial statements and will constitute a change in accounting policy for the
providing products or services (business segment), or in providing products or services company. In accordance with the transitional provisions the company will apply
within a particular economic environment (geographical segment), which is subject to the revised IAS 23 to qualifying assets for which capitalisation of borrowing costs

commences on or after the effective date. determine whether the entity receives the services that entitle the counterparty
d. IAS 27 Consolidated and Separate Financial Statements will become mandatory to a share-based payment are non-vesting conditions. Non-vesting conditions are
for the company’s 2010 financial statements. This amendment relates mainly to taken into account in measuring the grant date fair value and thereafter there is no
accounting for changes in the non-controlling (minority) interest in a subsidiary “true-up” for differences between expected and actual outcomes. These changes
and the loss of control in a subsidiary: will have no impact on the company’s financial statements.
e. Acquisitions of additional non-controlling equity interests after a business i. IFRS 3 Business Combinations will become mandatory for the 31 December 2010
combination are accounted for as equity transactions. Disposals of equity interests financial statements. This standard requires all future transaction costs relating
while retaining control are accounted for as equity transactions. to business combinations to be expensed and contingent purchase consideration
f. Transactions giving rise to a loss of control, through sale or otherwise, will result recognised at fair value at acquisition date. For successive share purchases, any
in a gain or loss being recognised in profit or loss. The gain or loss includes a gain or loss for the difference between the fair value and the carrying amount of the
remeasurement to fair value of any retained equity interest in the investee. previously held equity interest in the acquiree must be recognised in profit and loss.
The amendments to IAS 27 also require that losses (including negative “other It is not expected to have any impact on the company’s financial statements.
comprehensive income” as detailed in the revised IAS 1 have to be allocated to the
non-controlling interest even if doing so causes the non-controlling interest to be
in a deficit position. All these amendments have to be applied prospectively. 4. CONTINGENT LIABILITIES AND COMMITMENTS

This standard is not expected to have any impact on the company’s financial (i) Contingent Liabilities 2009 2008
statements. GH¢’000 GH¢’000
g. IAS 32 Financial Instruments: Presentation and IAS 1 (Presentation of Financial Pending Legal Suits:
Statements: Puttable Financial Instruments and Obligations Arising on Liquidation There are currently no pending suits against the company
will become mandatory for the 31 December 2009 financial statements. This (2008: Nil)
amendment requires certain puttable instruments that meet the definition of a (ii) Commitments for Capital Expenditure
financial liability to be classified as equity if and only if they meet the required Under Contract:
conditions. It is not expected to have any impact on the financial statements. There were no outstanding commitments for capital
h. IFRS2 amendment Share based payment: vesting conditions and cancellations will expenditure not provided for in the financial
become mandatory for the 31 December 2009 financial statements and applies statements at 31st December,2009
retrospectively. The amendments apply to equity-settled share-based payment
transactions and clarify what are vesting and “non-vesting conditions”. Vesting (iii) Unsecured Contingent Liabilities and Commitments
conditions are now limited to service conditions (as defined in the current IFRS 2 1,206 7,953
and performance conditions. Non-vesting conditions are conditions that do not ===== =====

5. SOCIAL RESPONSIBILITY COST Operating Expenses (15,108) (1,888) - (16,996)
An amount of GH¢152,942 (2008: GH¢224,000) was spent as part of social responsibility of the Impairment Loss (8,227) (346) (8,573)
company on institutions such as The Ghana Heart Foundation, Family Outreach International, -------- --------- -------- --------
Hope for Kids, Ghana National Trust Fund and the 37 Military Hospital just to mention a few. Profit before taxation 7,545 2,160 - 9,705
Taxation - - (2,184) (2,184)
--------- --------- --------- ---------
6. SEGMENTAL REPORTING Profit after Taxation 7,545 2,160 (2,184) 7,521
Segmental information is presented in respect of the company’s geographical segments. The ===== ===== ===== ======
company is organised into two main geographical segments: Greater Accra and Other regions.
Some of the company’s corporate costs are managed centrally and standardised basis are used
to allocate these costs to the geographical segments on a reasonable basis. 7. INTEREST INCOME
(i) Classification
2009 2008
Geographical region GH¢’000 GH¢’000
Greater Other Business Loans 66,036 42,342

Accra Regions Unallocated Total Social Loans 1,576 1,226
GH¢’000 GH¢’000 GH¢’000 GH¢’000 ------- -------
67,612 43,568
Interest Income 61,076 6,536 - 67,612 ===== =====
Interest Expense (33,695) (3,043) - (36,738)
--------- --------- -------- -------- (ii) Categorisation
Net Interest Income 19,670 3,493 - 23,163 Loans and receivables 67,612 43,568
Fees and Commissions Income 1,022 165 - 1,187 ===== =====
Other Operating Income 10,188 736 - 10,924
--------- --------- -------- -------- Included under interest income on loans and receivable is a total amount of GH¢7,787,130
Operating Income 30,880 4,394 - 35,274 (2008: GH¢5,115,336) accrued on impaired financial assets.


8. INTEREST EXPENSE 11. OPERATING EXPENSES
2009 2008 2009 2008
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Market borrowing 36,738 14,803 Staff Cost (Note 12) 6,420 5,327
===== ==== Advertising and Marketing 1,189 1,598
Total interest expenses on financial liabilities held at amortised cost was GH¢36,738,000 (2008 Administrative 5,482 4,327
GH¢14,803,000). Training 170 73
Depreciation and amortisation 1,426 1,011
9. FEE AND COMMISSION INCOME Directors’ Emoluments 216 282
2009 2008 Auditors’ Remuneration 50 50
GH¢’000 GH¢’000 Donations and Sponsorship 153 224
Other costs 1,890 1,182
Fee and Commission Income 1,187 416 ------- -------
=== === 16,996 14,074
The company currently does not incur any fee and commission expense. ===== =====
12. STAFF COST

10. OTHER OPERATING INCOME 2009 2008
2009 2008 GH¢’000 GH¢’000
GH¢’000 GH¢’000
Wages, Salaries, Bonus and Allowances 4,309 3,334
Bad Debt recovered 1,257 1,698 Social Security Cost 429 330
Interest on savings 312 404 Pension and Retirement Benefit 139 119
Exchange gain 366 - Other Staff Cost 1,543 1,544
Profit on disposal of property, plant and equipment 88 16 ------- -------
Other income 1,190 2,486 6,420 5,327
------- ------- ===== =====
3,213 4,604
==== ==== The average number of persons employed during the year was 343 (2008: 287).

13. IMPAIRMENT LOSS & BAD DEBT ------- --------- ---------
2009 2008 Total at December 31 2009 61 178,168 178,168
GH¢’000 GH¢’000 ===== ====== ======
Cash and balances - 213 213
Specific impairment 2,990 6,637 Due from other Banks and
Portfolio impairment 571 406 Financial institutions - 10,395 10,395
Bad Debt 5,012 5,118 Loans and Advances - 98,116 98,116
--------- --------- Investment in Equity 61 - 61
Impairment loss 8,573 12,161 --- ------- -------
===== ===== Total at December 31 2008 61 108,724 108,724
During the year 25% (Ghc1,257,000) of bad debt written off in 2008 (GHc5,118,000) was == ===== =====
recovered in 2009.
Financial
14. FINANCIAL INSTRUMENTS CLASSIFICATION SUMMARY Liabilities
Financial instruments are classified between four recognition principles: held at fair value Measured at Total
through profit or loss (comprising trading and designated), available-for-sale, held-to-maturity Amortised Carrying
and loans and receivables. These categories of financial instruments have been combined for Cost Amount
presentation on the face of the balance sheet. GH¢’000 GH¢’000
The company’s classification of its principal financial assets and liabilities are summarised Due to other Banks and
below: Financial institutions - 6,253
Total Borrowings 165,275 95,747
Available Loans & Carrying -------- --------
for Sale Receivables Amount Total at December 31 2009 165,275 102,000
GH¢’000 GH¢’000 GH¢’000 ====== ======
Due to other Banks and
Cash - 397 397 Financial institutions 6,253 6,253
Due from other Banks and Borrowings 95,747 95,747
Financial institutions - 39,490 39,490 -------- --------
Loans and Advances - 138,281 138,281 Total at December 31 2008 102,000 102,000
Investment in Equity 61 - 61 ====== ======

The fair values of financial assets and liabilities disclosed above, approximates their carrying The income tax for the year is based on a tax rate of 22% on profit before tax. The tax liabilities
values. up to 2007 have been agreed with the Internal Revenue Service.
15. TAXATION (iii) Tax recognised directly in equity

2009 2008 Current tax credited/charged directly to equity for the year was Nil (2008: GH¢ Nil)
GH¢’000 GH¢’000
(i) Income tax expense (iv) Reconciliation of effective tax rate
Analysis of taxation charge in the year:
Current Tax [Note 15(ii)] 2,522 1,942 2009 2008
Deferred Tax [Note 17] (338) 308 GH¢’000 GH¢’000
------- ------- The charge for taxation based upon
2,184 2,250 the profits for the year comprises: 2,334 1,942
===== =====
Current tax on income for the year
(ii) Taxation Payable Adjustments in respect of prior periods 188 -
Payments ------- ------
Balance at during Charge for Balance at Total current tax 2,522 1,942
1/1/09 the year the year 31/12/09 Deferred tax:
GH¢’000 GH¢’000 GH¢’000 GH¢’000 Origination/reversal of temporary differences (338) 308
Income Tax:- ------- -------
2007 (76) - - (76) Tax on profits on ordinary activities 2,184 2,250
2008 116 (305) 188 (1) ===== =====
2008 - (2,000) 2,091 91
---- ------- ------ ---- Effective tax rate 23% 30%
40 (2,305) 2,279 14
=== ===== ==== === The effective tax rate for the year is higher than the standard rate of corporation tax in Ghana,
23% in 2009 (2008: 30%).
National Fiscal Stabilization levy - (198) 243 45
---- ------- ------ ----
40 (2,503) 2,522 59
=== ===== ==== ===

The differences are explained below: 17. CASH
2009 2008 2009 2008
GH¢’000 GH¢’000 GH¢000 GH¢000
Profit before tax 9,705 7,550 Cash in hand 397 213

=== ===
Tax at 22% (2008:25%) 2,135 1,888
Non-deductible expenses 10,291 302
Tax exempt revenues (88) (17) 18. LOANS AND ADVANCES
Capital allowances (610) (211) i. Net Loans
Deferred tax (338) 308 2009 2008
Other (9,206) (20) GH¢000 GH¢000
------- -------
Current tax charge 2,184 2,250 Gross Loans and Advances 167,429 119,777
===== ===== Impairment loss (29,148) (21,661)
-------- ---------
The income tax for the year is based on a tax rate of 22% on profit before tax. Net Loans and Advances 138,281 98,116
====== ======

16. DEFERRED TAXATION
2009 2008 ii. Key ratios on Loans and Advances
GH¢’000 GH¢’000
a. Loan loss provision ratio is 17% (2008: 18%).
Balance at 1 January 405 97 b. Gross non-performing loan ratio is 20% (2008: 21%).
(Released)/Charged for the year (338) 308 c. Ratio of fifty (50) largest exposure (gross funded and non-funded) to total exposures
------ ------ is 50% (2008: 54%).
67 405
===== =====

iii. Analysis by Business Segments v. Movement in the company’s impairment loss allowance were as follows
2009 2008
GH¢000 GH¢000 Loans and receivables
Agriculture, Forestry and Fishing 45,196 31,026 (i) Loans and advances
Manufacturing 5,346 3,670 2009 2008
Construction 14,143 9,709 GH¢000 GH¢000
Electricity, Gas and Water 2,708 1,859 Balance at 1 January 21,661 9,500
Commerce and Finance 56,191 38,574 Net increase/(decrease) in provisions 8,573 12,161
Transport, Storage and Communication 18,585 12,758 ------- -------
Other Services 12,781 8,774 Balance at 31 December 30,234 21,661
Miscellaneous 12,480 8,289 ===== =====
--------- ---------
Gross Loans and Advances 167,429 114,659 19. PROPERTY PLANT AND EQUIPMENT
Impairment loss (29,148) (16,543)
--------- --------- At At
Net Loans and Advances 138,281 98,116 1 Jan Additions Disposals Transfer 31 Dec
====== ====== GH¢000 GH¢000 GH¢000 GH¢000 GH¢000
Cost
iv. Analysis by Type of Customer Leasehold, land and building 2,678 948 - - 3,626
2009 2008 Plant and machinery 168 49 - - 217
GH¢000 GH¢000 Office equipment 1,087 632 - - 1,719
Furniture and fittings 442 138 - - 580
Individuals 23,702 16,271 Motor vehicles 2,215 1,704 (279) - 3,640
Private Enterprises 143,727 98,388 WIP 361 284 - - 645
--------- --------- ------ ------ ------ ------ ------
Gross Loans and Advances 167,429 114,659 6,951 3,755 (279) - 10,427
Impairment loss (29,148) (16,543) ==== ==== ==== ==== ====
--------- ---------
Net Loans and Advances 138,281 98,116
====== ======

Depreciation 20. INTANGIBLE ASSETS
At Charge for At 2009 2008
1 Jan the year Disposals 31 Dec GH¢’000 GH¢’000
GH¢000 GH¢000 GH¢000 GH¢000 Cost
Cost Balance at 1 January 356 337
Leasehold, land and building 286 211 - 497 Additions 78 19
Plant and machinery 126 40 - 166 ----- -----
Office equipment 728 262 - 990 Gross value at 31 December 434 356
Furniture and fittings 264 95 - 359 === ===
Motor vehicles 1,043 682 (231) 1,494 Amortisation
------ ------ ------ ------ Balance at 1 January 256 131
2447 1290 (231) 3,506 Charge for the year 136 125
==== ==== ==== ==== ---- -----
At 31 December, 2009 6,921 Balance at 31 December 392 256
==== === ===
At 31 December, 2008 4,504 Carrying amount 42 100
==== === ===
(ii) Profit on disposal of Property and Equipment arose as follows:
21. OTHER ASSETS
2009 2008 2009 2008
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Gross value 279 232 Sundry Debtors 4,323 4,017

Accumulated depreciation (231) (194) Converted Collaterals 14,518 4,690
----- ------ Leasehold property 350 -
Net book value 48 38 Payments for assets undelivered 539 -
Proceeds from sale (136) (54) Prepayments 2,387 910
Release of Provision - - Amount due from officers 826 224
---- --- ------ ------
Profit on disposal (88) (16) 22,943 9,841
=== === ==== ====

22. DIVIDENDS 24. BORROWING
2009 2008 2009 2008
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Ordinary Dividend 2,120 2000 Short-term Loan - 5,000

Payments during the year (2,120) (2000) Market Borrowing 165,275 90,747
------- ------- ------- -------
Balance at 31 December - - 165,275 95,747
===== ===== ===== =====

The Directors are recommending a dividend of GHp 1p/share for ordinary shares (2008; GHp Market Borrowing represents borrowing on the local market with interest rates bench marked
1p/share) amounting to GH¢2,256,300 (2008: GH¢2,120,000). against the 91-day Government Treasury Bill rate.
23. INTEREST PAYABLE AND OTHER LIABILITIES

2009 2008 25. DEFERRED INCOME
GH¢’000 GH¢’000 2009 2008
GH¢’000 GH¢’000
Accrued Interest Payable 16,617 5,540
Sundry Creditors 5,346 1,437 Deferred Commitment fee 177 240
Accruals 1,263 543 Deferred Administration fee 838 740
------ ------ ---- ----
23,226 7,520 1,015 980
==== ==== === ===
Accrued interest payable relates to market borrowing. Interest is usually payable on maturity.

26. CAPITAL AND RESERVES Purchase of own shares - - - - -
(i) Reconciliation of movement in capital and reserves Transfer (from)/to reserve - (1,799) 1,128 671 -
Transfer to income - - - - -
Stated Retained Statutory Credit Dividends to equity holders - (2,120) - - (2,120)
Capital Earnings Reserve Reserves Total ------ ------ ------ ------ ------
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 Balance at 31 December 2009 4,000 13,478 3,511 1,290 22,279
==== ==== ==== ==== ====
Balance at
1 January 2008 - restated 1,000 7,371 1,588 1,145 11,104 (ii) Stated Capital
Total recognised income 2009 2008
and expenses - 5,300 - 10 5,310 No of Shares Proceeds No of Shares Proceeds
Additional equity 3000 - 795 - 3,795 ‘000 GH¢000 ‘000 GH¢000
Transfer (from)/to reserve - (795) - - (795) (a). Ordinary Shares
Transfer to income - - - (536) (536) Authorised
Dividends to equity holders - (2,000) - - (2,000)
------ ------ ------ ------ ------ No. of Ordinary Shares of
Balance at no par value 750,000 15,000,000
31 Dec 2008 restated 4,000 9,876 2,383 619 16,878 ====== ========
==== ==== ==== ==== ====
Issued and Fully Paid

CAPITAL AND RESERVES 2009 2008
(i) Reconciliation of movement in capital and reserves No of Shares Proceeds No of Shares Proceeds
‘000 GH¢000 ‘000 GH¢000
Stated Retained Statutory Credit
Capital Earnings Reserve Reserves Total Issued for Cash Consideration 210,733 4,000 210,733 3,765
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 Transferred from Income
Balance at Surplus Account - - - 235
1 January 2009 - restated 4,000 9,876 2,383 619 16,878 -------- ------- ---------- ------
Total recognised income Total Stated Capital 210,733 4,000 210,733 4,000
and expense - 7,521 - - 7,521 ====== ===== ======= ====

There is no share in treasury and no call or installment unpaid on any share.
Amounts due from associated companies at the Balance Sheet date were as follows:
(iii) Retained Earnings
This represents the residual of cumulative annual profits that are available for distribution to Loans and Advances 27,110 19,494
shareholders. ===== ====
(v) Statutory Reserve

This represents amounts set aside as a non-distributable reserve from annual profits in accordance 28. FINANCIAL RISK MANAGEMENT
with section A of the Non-Banking Financial Institutions Business (BoG) Rules, 2000. (i) Introduction and Overview
The company has exposure to the following risks from its use of financial instruments:
(v) Other Reserves
This comprises fair value gains on available-for-sale investment of Nil (2008: GH¢10,000) • Credit Risk
and an amount of GH¢671,456 (2008: GH¢609,000) set aside from income surplus account to • Liquidity Risk
meet minimum requirements of statutory impairment allowance for non-performing loans and • Market Risks
advances. • Operational Risks.
This note presents information about the company’s exposure to each of the above risks,
27. RELATED PARTY TRANSACTIONS the company’s objectives, policies and processes for measuring and managing risk, and the
i. Directors, Officers and other Employees: company’s management of capital.
The following are Loan Balances due from Related Parties: Risk management framework
2009 2008 The Board of Directors has overall responsibility for the establishment and oversight of the
GH¢’000 GH¢’000 company’s risk management framework. The Board has established a risk management committee
compromising chief executive officer, finance manager, director of finance and administration
Directors 50 40 and investment manager who are responsible for developing and monitoring the company’s risk
Officers and other Employees 776 184 management policies. The committee meets monthly to review reports from credit managers,
---- ---- liquidity management, markets situation and operations. The Board of Directors meets regularly
826 224 to review the report of this committee.
=== ===
The company’s risk management policies are established to identify and analyse the risks faced by
ii. Associated companies: the company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions, flows. In any decision relating to the raising of provisions, the company attempts to balance
products and services offered. The company, through its training and management standards and economic conditions, local knowledge and experience, and the results of independent asset
procedures, aims to develop a disciplined and constructive control environment, in which all employees reviews. Where it is considered that there is no realistic prospect of recovering an element of
understand their roles and obligations. an account against which an impairment provision has been raised, than that amount will be
written off.
The company’s Compliance and Internal Audit unit (CIA) is responsible for monitoring compliance
with the company’s risk management policies and procedures, and for reviewing the adequacy A portfolio impairment provisions is held to cover the inherent risk of losses, which although
of the risk management framework in relation to the risks faced by the company. not identified, are known through experience to be present in any loan portfolio. The portfolio
impairment provision is set with reference to past experience using loss rates, and judgmental
(ii) Credit Risk factors such as the economic environment and the trends in key portfolio indicators.
Credit risk management
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial Set out below is an analysis of various credit exposures.
instrument fails to meet its contractual obligations, and arises principally from the company’s
loans and advances to customers. Analysis by credit grade of loans and advances
The Credit Committee (CC), made of branch managers and the Director of Operations, has Loans and Receivables
responsibility for credit risk issues. The Relationship Managers submit monthly performance 2009 2008
reports of major loans to the CC for review to ensure that potential delinquent loans are GH¢’000 GH¢’000
identified and monitored to ensure the customers don’t default. Loan applications have various Impaired loans
approval limits depending on the amount being granted. Commensurate collaterals are also Individually impaired 17,855 32,313
obtained for facilities granted to ensure that the company recovers all amounts loaned in the Allowance for impairment -7,716 -20,516
events of customer defaults. ------- -------
Impaired loans, net of individual provisions 10,139 11,797
A facility is considered to be in default when payment is not received on the due date. Facilities ===== =====
that are overdue by more than 90 days are considered delinquent. Those accounts are monitored Loans past due but not impaired
closely to ensure that the amounts granted are recovered. Past due up to 30 days 2,693 1,148
Past due 31-60 days 6,907 2,945
Loans are designated as impaired and considered non-performing where recognised weakness Past due 61-90 days 4,409 1,880
indicates that full payment of either interest or principal becomes questionable. Where any ------- -------
amount is considered uncollectible, an individual impairment provision is raised, being the 14,009 5,973
difference between the loan carrying amount and the present value of estimated future cash ===== =====

Loans neither past due nor impaired 114,704 81,490 and generally are not updated except when a loan is individually assessed as impaired.
Less: Portfolio impairment provision (571) (1,144)
------- ------- An estimate of the fair value of collateral and other security enhancements held against
Total net loans 138,281 98,116 financial assets is shown below
===== =====
Loans and Receivables
Analysis of credit concentration risk 2009 2008
The concentration of loans and advances by business segment and customer types are disclosed GH¢’000 GH¢’000
in Note 19 (iii) and 19 (iv) respectively. Investment securities are held largely in Government
instruments. Against impaired assets 23,424 2,885
Against not impaired assets 192,548 135,964
Maximum credit exposure -------- --------
At 31 December 2009, the maximum credit risk exposure of the company in the event of other 215,972 138,849
parties failing to perform their obligations is detailed below. No account has been taken of any ====== ======
collateral held and the maximum exposure to loss is considered to be the instruments’ balance
sheet carrying amount or, for non-derivative off-balance sheet transactions, their contractual (ii) Liquidity risk
nominal amounts. The company defines liquidity risk as the risk that the company either does not have sufficient
financial resources available to meet all its obligations and commitments as they fall due, or
2009 2008 can access them only at excessive cost.
GH¢’000 GH¢’000
It is the policy of the company to maintain adequate liquidity at all times, and for all currencies.
Loans and advances 167,429 119,777 Hence the company aims to be in a position to meet all obligations, to repay investors on
Unsecured contingent liabilities and commitments 1,206 7,953 demand, to fulfil commitments to lend and to meet any other commitments.
-------- --------
168,635 127,730 Liquidity risk management is the responsibility of the Director of Finance and Administration
====== ====== who is assisted by the Finance Manager. This is to ensure that cash balances do not go below
some minimum threshold. She is also responsible for both statutory and prudential liquidity.
Fair value of collateral held These responsibilities include the provision of authorities, policies and procedures.
The company holds collateral against loans and advances to customers in the form of mortgage
interests over property, vehicles and other registered securities over assets, and guarantees. The Director of Finance and Administration has primary responsibility for compliance with
Estimates of fair value are based on the value of collateral assessed at the time of borrowing, regulations with the company’s policy and maintaining a liquidity crisis contingency plan.

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
A substantial portion of the company’s assets are funded by market borrowings. These borrowings Net liquidity Gap
diversified by maturity, and represent a stable source of funds. Lending is normally funded by
liabilities in the same currency. Total Assets 108,740 33,450 57,775 7,015 206,980
Total Liabilities 82,761 24,180 58,334 - 165,275
The Director of finance and administration also oversees the structural foreign exchange and ------- ------- ------- ------- -------
interest rate exposures that arise within the company. These responsibilities are managed Net Liquidity Gap (2009) 25,979 9,270 (559) 7,015 41,705
through the provision of authorities, policies and procedures that she co-ordinates. She also ------- ------- ------- ------- -------
monitors compliance with company ratios. Net Liquidity Gap (2008) 3,921 9,179 6,254 8,881 -
===== ===== ===== ===== =====
An analysis of various maturities of the Bank’s assets and liabilities is provided below.
(iii) Market risks
Maturities of financial instruments Management of market risk
The company recognises market risk as the exposure created by potential changes in market
0-3 months 3-6 months 6-12 months over 1 year Total 2009 prices and rates, such as interest rates, equity prices and foreign exchange rates. The company
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 is exposed to market risk arising principally from customer driven transactions.
Assets
Due from other Banks Market risk is governed by the Director of Finance and Administration who is assisted by the
and Financial Institutions 39,490 - - - 39,490 Financial Controller. The company has policies on market risk and limits are proposed within the
Loans and Advances 69,250 33,450 57,775 6,954 167,429 terms of agreed policy.
Investment in Equity Shares - - - 61 61
------- ------- ------- ------- ------- Limits are also approved within delegated authorities and exposures monitored against these
108,740 33,450 57,775 7,015 206,980 limits. Additional limits are placed on specific instruments and currency concentrations where
------- ------- ------- ------- ------- appropriate. Sensitivity measures are used in addition as risk management tools.
Liabilities
Due to other Banks Foreign Exchange Exposure
and Financial Institutions - - - - - The company’s foreign exchange exposures comprise foreign currency translation exposures.
Borrowings 82,761 24,180 58,334 - 165,275 Currently the company engages in very limited foreign currency transactions which mean low
------- ------- ------- ------- ------- foreign currency risk exposure.
82,761 24,180 58,334 - 57,759
0-3 months 3-6 months 6-12 months over 1 year Total 2009 Exchange rate analysis

The company operates wholly within Ghana and its assets and liabilities are carried in local interest rates. Interest rate risk is managed principally through monitoring interest rate gaps
currency. The Company is exposed to the risk that the value of the financial instrument will and by having pre-approved limits for repricing bands. This is supervised by the Director of
fluctuate due to changes in foreign exchange rates. The company’s currency posistion and Finance and Administration.
exposure are managed within the exposure guideline stipulated by the Bank of Ghana. This
position is reviewed on a daily basis by management. (iv) Operational risks
Operational risk is the risk of direct or indirect loss due to an event or action resulting from the
The exchange rates used for translating the major foreign currency balances at the year end failure of internal processes, people and systems, or from external events. The company seeks
were as follows: to ensure that key operational risks are managed in a timely and effective manner through a
2009 2008 framework of policies, procedures and tools to identify assess, monitor, control and report such
GH¢’ GH¢’ risks.
US Dollar 1.434 1.2107
GB Pound 2.3115 1.7549 The company’s compliance and internal audit unit has been established to supervise and direct
EURO 2.0687 1.7057 the management of operational risks across the company. It is also responsible for ensuring
NGN 0.0088 0.0088 adequate and appropriate policies, procedures are in place for the identification, assessment,
monitoring, control and reporting of operational risks.
Foreign exchange risk - Appreciation/depreciation of GHS against other countries.
(v) Compliance and regulatory risk
The Foreign exchange risks sensitivity analysis is based on the following assumptions: Compliance and Regulatory risk includes the risk of non-compliance with regulatory requirements.
• Foreign exchange exposures represent net currency positions of all currencies other than The company’s Compliance and Internal Audit function is responsible for establishing and
Ghana Cedis (GH¢) maintaining an appropriate framework of the company’s compliance policies and procedures.
• The currency risk sensitivity analysis is based on the assumption that all net currency Compliance with such policies and procedures is the responsibility of all managers.
positions are highly effective
• The base currency in which the bank’s business is transacted is Ghana Cedis (GH¢). (vi) Capital management
The Central Bank sets and monitors capital requirements for the company.
A best case scenario 5% weakening of the cedi against the above currencies at 31 December
would have had the equal but opposite effect on the above currencies to the amounts shown In implementing current capital requirements the Central Bank requires the company to
above, on the basis that all other variables remain constant. maintain a prescribed ratio of total capital to total risk-weighted assets.
Management of Interest Rate Exposure The company’s policy is to maintain a strong capital base so as to maintain investor, and market
The principal risk to which non-trading portfolios are exposed is the risk of loss from fluctuations confidence and to sustain future development of the business. The impact of the level of capital
in the future cash flows or fair values of financial instrument because of a change in market on shareholders’ return is also taken into consideration, and the company recognises the need

to maintain a balance between the higher returns that might be possible with greater gearing (i) Dividend and net assets per share
and the advantages and security afforded by a sound capital position. Dividend and net assets per share are based on 210,735,500 (2008: 210,735,500) ordinary shares
in issue during the year.
The entity has complied with all externally imposed capital requirements throughout the period.
(ii) Basic and diluted earnings per share
There have been no material changes in the entity’s management of capital during the period. The calculation of basic and diluted earnings per share at 31 December 2009 was based on
the profit attributable to ordinary shareholders of GH¢7,521,000 (2008: GH¢5,300,000) and
210,732,500 (2008: 210,732,500) shares in issue.
29. DIRECTORS’ SHAREHOLDING
The Directors named below held the following number of shares in the Bank as at 31 December 31. NUMBER OF SHAREHOLDERS
2009: The company had 10,982 ordinary shareholders at 31st December 2009 distributed as follows:
2009 2008 (i) Ordinary Shares

Ordinary Shares Number of
Joseph Nsonamoah 60,698,900 60,219,750 Range of shares Shareholders Holding Percentage
Prince Kofi Amoabeng 60,698,900 60,219,750
Aidoo Charles 500,000 - 1 - 1,000 5,919 4,286,145 2.03
Esua-Mensah Pearl 233,400 233,400 1,001 - 5,000 3,489 8,955,375 4.25
Captain Budu Kweku Koomson 224,200 224,200 5,001 - 10,000 795 6,579,364 3.12
Premo Justice Kusi-Minkah 173,300 173,300 10,001 - 20,000 384 6,190,362 2.94
Mensah Martyn Andrew Kofi 168,300 168,300 20,001 - 30,000 99 2,628,711 1.25
30,001 - 40,000 103 3,647,358 1.73
------------- -------------- 40,001 - 50,000 30 1,473,500 0.70
121,738,700 121,238,700 Over 50,000 163 176,971,685 83.98
========= ========== ------- ------------- -------
10,982 210,732,500 100.00
===== ========= =====
30. NUMBER OF SHARES IN ISSUE
In May 2008, a resolution was passed to consolidate the authourised shares of the company
from 15,000,000,000 to 750, 000,000.

32. EMPLOYEE BENEFITS BBGN/Databank Balance Fund 999,000 0.48
(i) Defined Contribution Plans Kek Insurance Brokers Ltd 700,000 0.33
(a) Social Security Teachers Fund 700,000 0.33
Under a national pension scheme, the company contributes 12.5% of employee’s Mould-Arbenser Mariel Mrs 666,000 0.32
basic salary to the Social Security and National Insurance Trust (SSNIT) for employee Mould Alex Mr. 666,000 0.32
pensions. The company’s obligation is limited to the relevant contributions, which Mega African Capital Ltd 666,000 0.31
were settled on due dates. The pension liabilities and obligations, however, rest with Nanka-Bruce Richard Dr. 650,000 0.30
SSNIT. BBGN/ELAC Shareholders Fund 650,000 0.30
Aidoo Charles Mr. 500,000 0.24
(b) Provident Fund Bediako Kwaku Mr. 500,000 0.24
The company has a provident fund scheme for staff under which the entity contributes Ben-Ahmed Musah Mr. 500,000 0.24
5% of staff basic salary. The entity’s obligations under the plan is limited to the ------------ -------
relevant contributions and these are settled on due dates to the Fund Manager. 155,682,163 73.88
========= =====
33. DETAILS OF SHAREHOLDERS AT 31 DECEMBER 2009

(i) Details of 20 Largest Ordinary Shareholders at 31 December 2009 34. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The following sets out the UT’s basis of establishing fair values of the financial instruments
disclosed under note 15.
Name of Number of Percentage (%)
Shareholder Shares held holding Loans and advances to customers
Loans and advances are net of provisions for impairment. The estimated fair value of loans and
Nsonamoah Joseph Mr. 60,698,900 28.8 advances represents the discounted amount of estimated future cash flows expected to be received.
Amoabeng Prince Capt. 60,698,900 28.8 Expected cash flows are discounted at current market rates to determine fair value.
Databank Brokerage Ltd 11,695,900 5.55
BBGN/Epack Investment Fund Ltd/Zenith Bank 6,666,600 3.16 Investment securities
UTFSL ESOP 4,000,000 1.89 Investment securities with observable market prices, including debt are fair valued using that
BBGN/ELAC Policy Holders Fund 2,300,000 1.09 information. Equity instruments held that do not have observable market data are presented
BBGN/Unilever Pension 1,200,000 0.57 at cost. Debt securities that do not have observable market data are fair valued by either
BBGN/SAS Fortune Fund 1,000,000 0.48 discounting cash flows using the prevailing market rates for debts with a similar credit risk and
Databank Financial Services 1,000,000 0.48 remaining maturity or using quoted market prices for securities with similar credit, maturity

and yield characteristics.
Borrowings
The estimated fair value of fixed interest bearing deposits and other borrowings without quoted
market prices is based on discounting cash flows using the prevailing market rates for debts
with a similar credit risk and remaining maturity.

Our CSR involvement included noteworthy donations and
sponsorships that directly benefited under-privileged sectors. We
remain committed to contributing some of our pre-tax profit to
corporate social responsibilities.

“ We aim to give our clients the platform to create
and experiment in pursuit of business opportunities
and to achieve success through excellence. ”

“UT came to our rescue when we were at the verge of collapse, when everything was down, but
UT was able to rescue us. In fact UT has been very helpful to us. They have made a huge impact
on our business.”
Emmanuel Adu-Poku, Marketing Manager and Accountant – JB Plazar- Real Estate Developers and Motor Dealers

OFFICES
UT FINANCIAL SERVICES HEAD OFFICE UT HOLDINGS

25B Manet Towers 48 Kwame Nkrumah Avenue,
Airport City, Accra Adabraka
P. O. Box CT 1778 P.O. Box 14776, Accra
Cantonments, Accra Tel: 021-610300
Tel: 021 740740 Fax: 021-663055 / 662606
AFFILIATED COMPANIES/OFFICES
ACCRA KANESHIE OBUASI SUNYANI UT COLLECTIONS UT FINANCIAL SERVICES,
Knutsford Avenue 2nd floor, Fisherman’s House Doce House, African Lodge Hospital 2nd Floor, Sam Bennet hardware. 2nd Floor, Swanzy Shopping GERMANY
Near former UTC Building, Opposite Hansonic Junction Junction Opposite the stadium Arcade. WANDSBEKER CHAUSSEE 126
Central Accra Tel: (233)021-242860 / 242957 / Tel: 0582-43180-5 Tel: 061- 27462 / 1 P.O. Box GP 14776, Accra 22089 HUMBURG
Tel: (233)021-665222/672718 242952 / 242379 Fax: 0582-43184 Fax: 061- 27463 Tel: 021-689571 / 0202013885 DEUTSCHLAND
Fax/Tel: (233)021-665626 Fax: (233)021-242397 E-mail: enquiries@utcollections. E-mail: info@utlogistics.de/
OSU SWANZY com enquiries@utfinancialservices.
ADABRAKA KOFORIDUA Behind the Trust Hospital, Osu R.E. 2nd floor, Swanzy Arcade com
48 Kwame Nkrumah Avenue, 1st floor , Linda Dor Building P. O. Box GP 14776, Accra Tel: (233)021-689571 / 689572 UT PROPERTIES Tel: 0040-40-6690-766720 /
Adabraka Agartha Street, adj Fire Service. Tel. (233) 021-774955/780046 Fax: (233)021-689573 2nd Floor Hollywood Building, 766722
P.O. Box 14776, Accra Tel: 081-24431-3/ 24250-1/ 24267 Fax: (233)021-774603/780593 Madina Zongo Junction,
Tel: 021-610300 - Fax: 081-24268 TAKORADI Opposite Akuapem Station. UT FINANCIAL SERVICES,
Fax: 021-663055 / 662606 TEMA 1st floor, Shippers Council Building Tel: 021-521333/6 Fax: 021- NIGERIA
KUMASI 2nd Floor Denis House Chapel Hill. 521324 15 Bola Abiola Street
CAPE Prempeh 1st Street, Adum Harbour Road, Community 1, Tema Tel: (233) 031-27188 E-mail: enquiries@utproperties. Off Allen Avenue
Tantri Road, Near Kasapa Office Opposite STC, adjacent to Japan Tel: (233)022-210788 / 210785 Fax: (233) 21819 com Ikeja Nigeria
Tel: 042-31716/31724 Motors from KMA Fax /Tel: (233)022-210786 Website: www.utproperties.com Tel: 234 804302 2454
Fax: 04231994 P. O. Box KS 9347,Kumasi TARKWA Email: enquiries@
Tel: (233)051- 40067/ 32956 / SPINTEX 2nd Floor, SIC Building UT LOGISTICS utfinancialservices.com
HO 39254 2nd Floor HFC Building, Adjacent to 32 Commercial Street 2nd Floor Denis House
1st Floor SIC Building, Fax: (233)051-21734 Baatsona Total. Adjacent Ghana Commercial Bank Harbour Road
Opposite Goil Filling Station Tel: 021- 816761 / 3 Tel: 0362-22598 / 22600 Community 1, Tema
Tel: 091- 27733/ 27749/27760 MADINA Fax: 021- 816765 Fax: 0362-22599 Tel: (233)022-210788 / 210785
Fax: 091- 27565 2nd Floor Hollywood Building, Fax /Tel: (233)022-210786
Madina Zongo Junction, E-mail: enquiries@utlogistics.
Opposite Akuapem Station. com
Tel: 021-521333/6 Fax: 021-521324

DIRECTORS, OFFICERS AND REGISTERED OFFICES
BOARD OF DIRECTORS
Joseph Nsonamoah - Chairman
COMPANY SECRETARY | EDEM YANKSON Prince Kofi Amoabeng - Chief Executive Officer
UT FINANCIAL SERVICES LTD Capt. (Rtd) Budu Koomson - Executive Director
P. O. Box GP 14776, Accra Pearl Esua-Mensah - Executive Director
Justice Kusi-Menka Premo - Non Executive Director
Martyn Mensah - Non Executive Director
Charles Aidoo - Non Executive Director
REGISTERED OFFICE
48 Kwame Nkrumah Avenue
P. O. Box 14776
Accra
AUDITORS SOLICITORS
Deloitte & Touche Chartered Accountants Rosemary Sahnoon
P. O. Box GP 453 Gwendy Bannerman
Accra
TAX CONSULTANTS BANKERS

Andah & Andah UT Bank Ltd
C645/3 Barclays Bank Ltd
Crescent Asylum Down Standard Chartered Bank Ltd
P.O. Box AN 5845 Zenith Bank Ltd
Accra

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Utb AnnualReport09

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TABLE OF CONTENTS

Core Values ................................................................................... 3 Statement of Directors’ Responsibilities ........................... 24

Financial Highlights .................................................................. 4 Independent Auditors’ Report ................................................. 25

Endorsements .............................................................................. 5 Income Statement ..................................................................... 26

Profile of UT ................................................................................. 6 Statement of Recognised Income and Expense .............. 26

Our Services and Products ..................................................... 8 Balance Sheet ............................................................................. 27

Board of Directors ...................................................................... 11 Statement of Cashflows .......................................................... 28

Chairman’s Statement .............................................................. 14 Notes to the Financial Statements ...................................... 29

Chief Executive’s Review ........................................................ 16 Corporate Social Responsibility ............................................ 55

Chief Operating Officers Report ........................................... 18 Clients’ Comments ..................................................................... 57

Director of Finance & Administration’s Report .............. 20 Offices ............................................................................................ 58

Directors’ Report ........................................................................ 23 Directors, Officers and Registered Offices ....................... 59

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 1

It’s about ...Integrity

...”Stepping up to the plate”

...Saying “why not”

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 3

Cost to income ratio

STRONG DEPOSITS TOTAL ASSETS INTEREST INCOME LOANS AND ADVANCES

GROWTH +73% +66% +55% +41% 2005 46%

Cost efficiency ratio

Net Worth up by 32% 2005 46%

Profit after tax

4 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

2009 2007 2005

2008 2006 2004

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 5

6 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

“ From humble beginnings as a privately owned

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 7

UT continues to deliver on its promise to provide

Special Purpose Loans Import/Export Finance

Stop Gap Loans Sika 24

8 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

BUSINESS ADVISORY SERVICES

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 9

10 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 11

12 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 13

14 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 15

16 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 17

Across board, businesses were not being paid for services

The Challenge, The Plan

18 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 19

5 Year Profit Before Tax

In the last five years we have increased our pretax profits by

20 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

Our support of community initiatives continued throughout the EMPLOYEES

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 21

Principal activities Results for the year GH¢’000

Auditors Leaving a balance on the Income Surplus Account

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 23

In preparing those financial statements, the directors are required to:

• Select suitable accounting policies and then apply them consistently

24 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009

UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009 25

Diluted earnings per share 30(ii)

26 UT FINANCIAL SERVICES LTD ANNUAL REPORT 2009