The Ghana Stock Exchange (GSE) has halted the trading of shares of UT Bank Limited as a result of the bank's failure to submit its financial results, effective January 03, 2017.
The GSE indicated that the non submission of financial results is in contravention of GSE Listing Rules. "This has become necessary due to the non-submission of financial results to the market. Parts VI and VII of the GSE Listing Rules stipulate the continuing listing obligations and disclosure policy of material information for listed companies, including financial results."
The GSE further indicated that the halt in trading shall remain effective until the company submits a press release, which may be referring to the press release of its financial results. "The halt in trading will remain in force pending the submission of a press release by the company."
Checks by Doobia indicate that the last financial results submitted by the bank were its Q3 2015 financial statements, which reported negative earnings of GHS27.27 million and a Capital Adequacy Ratio (CAR) of 8.7%. It is important to note that the bank's CAR of 8.7% is below the central bank's minimum statutory CAR of 10.0%, which may be behind moves to recapitalize the bank via a hybrid capital raising exercise (rights issue and private placement).
The bank's market valuation collapsed in 2016 as the share price dropped by 70.00%y/y to close the year at GHS0.03 per share due to the uncertainty surrounding the announcement of its earnings figures.