Izwe Savings and Loans PLC has unveiled its unaudited financial results for the year ended December 31, 2024, showcasing a significant recovery from the previous year’s challenges.
The company, which operates under the regulations of the Ghana Stock Exchange, reported a profit after tax of GHS 518,000, a notable improvement from the GHS 206,000 loss recorded in 2023. This turnaround is attributed to strategic cost reductions, a successful brand relaunch, and a diversified product portfolio.
The company’s revenue surged to GHS 198.9 million in 2024, up from GHS 146.9 million in 2023, driven by a robust increase in net interest income, which rose to GHS 53.9 million from GHS 29.7 million the previous year. Fee and commission income also saw a healthy uptick, reaching GHS 36.4 million compared to GHS 33.3 million in 2023. However, credit loss expenses increased to GHS 20 million, reflecting a more conservative approach to managing credit risk.
On the balance sheet, Izwe’s total assets expanded by 17% to GHS 560.3 million, while net loans and advances to customers grew by 5% to GHS 404 million. The company’s deposit base also saw a substantial increase, rising by 63% to GHS 312 million, underscoring sustained customer confidence in the brand. Shareholders’ equity climbed to GHS 67.7 million, bolstered by an additional capital injection of GHS 16.3 million during the year.
Despite a 5% rise in administrative expenses, which reached GHS 62.5 million, the company managed to keep overheads in check through prudent cost management measures. Izwe’s liquidity position remained strong, with cash and cash equivalents standing at GHS 35.1 million at year-end.
Economic and Market
The financial performance comes against a backdrop of a stabilizing Ghanaian economy. After years of weak GDP growth, high inflation, and a depreciating local currency, market analysts are optimistic about the country’s economic prospects. Key reforms, fiscal discipline, and international support have contributed to this positive outlook. The successful December 2024 elections further reinforced Ghana’s reputation as a stable democracy and an attractive investment destination in Africa.
Notably, interest rates on government securities declined in 2024, with the 91-day Treasury bill rate falling to 28.65% from 29.35% in 2023. The exchange rate also stabilized, with the Ghana cedi trading at GHS 12.70 to the US dollar by the end of December 2024, down from GHS 15.50 in October. These developments have provided a more favorable environment for businesses, although Izwe, which has no foreign currency-denominated liabilities, has not been directly impacted by exchange rate fluctuations.
Strategic Outlook for 2025
Looking ahead, Izwe’s management is confident that the company will build on its 2024 momentum. The company plans to leverage technology to enhance customer experiences and ensure the accessibility and efficiency of its financial solutions. Cost management and risk controls will remain top priorities as Izwe seeks to expand its footprint across various sectors.
In a statement, the company’s directors expressed gratitude to stakeholders for their support and reaffirmed their commitment to transparency and accurate financial reporting. “We assure public market investors that our financial statements accurately reflect our operations without misleading information or omissions,” the statement read.
As Ghana’s macroeconomic environment continues to improve, Izwe Savings and Loans PLC is well-positioned to capitalize on emerging opportunities and deliver sustained growth in 2025 and beyond.
