Izwe Savings and Loans records GH¢206,440 losses in 2023
Izwe Savings and Loans has posted losses of GH¢206,440 for the 2023 financial year.
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This compares to a profit after tax of GH¢1.07 million recorded in 2022.
The 2023 losses was as a result of impairment losses on loans and advances which led to a loss of GH¢2.9 million, depreciation on right-of-use-assets which led to a loss of GH¢1.8 million and and a decline in net interest income.
The company’s total assets increased from GH¢381.25 million in 2022 to GH¢480.1 million in 2023, with total liabilities also increasing from GH¢330.1 million to GH¢419.7 million within the same period.
Total deposits also grew from GH¢106.4 million in 2022 to GH¢190.9 million in 2023, while loans and advances also grew from GH¢119.2 million to GH¢136.6 million within the same period.
Despite the poor financial results, the Board of Directors said it believes the company had adequate financial resources to continue in operation for the foreseeable future and accordingly the financial statements have been prepared on a going concern basis.
“The directors have satisfied themselves that the company is in a sound financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements.
“The directors are not aware of any new material changes that may adversely impact the company. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the company,” the report on the financial statement indicated.
The directors also indicated that as end of the reporting year, the total number of employees of the company was at 131, compared to 123 in 2022, with related salaries and wages pegged at GH¢14.5 million, compared to GH¢13.9 million in 2022.
Corporate governance
The Board of Directors also confirmed that the company had complied with all the internal control aspects of the principles of good corporate governance.
“The directors are also responsible for such internal control to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and maintaining adequate accounting records and an effective system of risk management
“The financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by international Accounting Standards Board and comply with the Companies Act 2019: (Act 992) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).” the report stated.
