In the financial year of 2023, Izwe Savings and Loans experienced a setback, reporting losses of GH¢206,440. This marked a stark contrast to the previous year’s profit of GH¢1.07 million in 2022.
The losses incurred in 2023 were primarily attributed to several factors:
- Impairment losses on loans and advances amounted to GH¢2.9 million.
- Depreciation on right-of-use-assets led to a loss of GH¢1.8 million.
- A decline in net interest income also contributed to the financial downturn.
Despite these challenges, Izwe Savings and Loans saw growth in their total assets, which increased from GH¢381.25 million in 2022 to GH¢480.1 million in 2023. However, total liabilities also rose from GH¢330.1 million to GH¢419.7 million during the same period.
Moreover, total deposits surged from GH¢106.4 million in 2022 to GH¢190.9 million in 2023, while loans and advances expanded from GH¢119.2 million to GH¢136.6 million.
Despite the financial setbacks, the Board of Directors expressed confidence in the company’s ability to sustain its operations in the foreseeable future. They assured stakeholders that Izwe Savings and Loans had sufficient financial resources and access to borrowing facilities to meet its cash requirements.
The Board affirmed that they had thoroughly reviewed the company’s financial position and found it to be sound. They were not aware of any significant changes that could negatively impact the company or any non-compliance with statutory or regulatory requirements.
Additionally, the Board disclosed that the company employed 131 individuals by the end of the reporting year, compared to 123 in 2022, with related salaries and wages amounting to GH¢14.5 million, up from GH¢13.9 million in 2022.
Regarding corporate governance, the Board assured stakeholders that Izwe Savings and Loans adhered to all internal control aspects of good corporate governance principles. They emphasized their responsibility in ensuring the preparation of accurate financial statements and maintaining an effective system of risk management.
Furthermore, the financial statements were prepared in accordance with International Financial Reporting Standards, adopted by the International Accounting Standards Board, and complied with relevant laws and regulations, including the Companies Act 2019 and the Banks and Specialized Deposit-Taking Institutions Act, 2016.
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