GAT: Bailed out banks are now posting super profits
GAT was set up in 2019 to inject fresh capital into some five banks namely National Investment Bank (NIB), Prudential Bank, Universal Merchant Bank(UMB), Agriculture Development Bank and OmniBank to meet re-capitalisation deadline
Eric Nana Otoo, the managing director of the Ghana Amalgamated Trust (GAT) has said all the five banks that were bailed out in 2019 to meet the central bank’s minimum capital requirement are now performing well.
It comes two years after GAT was set up in 2019 to inject fresh capital into some five banks namely, National Investment Bank (NIB), Prudential Bank, Universal Merchant Bank (UMB), Agriculture Development Bank and OmniBank to meet Bank of Ghana’s deadline for re-capitalisation.
Speaking to Kwaku Nhyira-Addo on The Asaase Breakfast Show on Friday (24 December), Otoo said the bailed out banks are now posting super profits.
“The good thing is that since GAT invested we have seen a major improvement in the financials of the banks and that is the basis upon which government is thinking GAT could be turned into a permanent structure to assist other companies as well,” Otoo said.
“In the case of Prudential, we invested in Prudential in 2019, and in that year Prudential made a profit after tax of GHC26 million. In 2021, Prudential is looking to make profit, that would be I think that is quarter three, that is September a profit of over GHC60 million. They are on track to make total profit of this year of about GHC80 million that is nearly four times the profit of Prudential when we went in two years ago.”
He added: “In the case of ADB, profit in 2019 after tax was GHC15 million. In 2020 that went up GHC65 million, so nearly over four times and in 2021 ADB is likely to make profit after tax of over GHC100 million. The other banks are also seeing improvement, so again it is a win-win for all stakeholders.”
He said the introduction of GAT has saved the banking industry some 6,000 direct jobs.
About GAT
Incorporated under the Companies Act as a public limited liability company on December 17, 2018, Ghana Amalgamated Trust Plc (GAT) is a special purpose investment vehicle established by the Ghana Government to support selected indigenous banks.
It is primarily set up to raise funds to recapitalise selected indigenous Ghanaian banks that needed assistance to meet the new minimum capital requirements of the Bank of Ghana and to help transform these banks to become more competitive in the industry.
Fred Dzakpata
Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa, and 106.9 in Walewale
Follow us on Twitter: @asaaseradio995
#AsaaseRadio
#TheVoiceofOurLand
