Izwe Savings and Loans PLC posted profit after tax of 8.62 million cedis for 2025, marking a dramatic turnaround from 444,000 cedis the previous year, according to unaudited financial statements released to the Ghana Stock Exchange.
The savings and loans company benefited from improved macroeconomic conditions including sharply declining inflation, strengthening currency and falling interest rates. Management attributed the performance to strategic cost containment measures, brand repositioning and tighter credit standards implemented throughout the year.
Administrative and operating expenses dropped 17 percent to 55 million cedis as the company pursued enhanced cost discipline. The reduction contributed directly to improved profitability despite a strategic decision to shrink the loan portfolio and overall asset base.
Net loans and advances to customers declined 8.87 percent to 367 million cedis compared with 403 million cedis in 2024. Raymond Bismarck, managing director, said the reduction reflected deliberate tightening of credit risk standards to improve portfolio quality and ensure long term sustainability.
Interest income totaled 156.68 million cedis for the year while interest expenses reached 91.56 million cedis, generating net interest income of 65.12 million cedis. Fee and commission income contributed 39.8 million cedis after deducting 14.43 million cedis in related expenses.
Credit loss expenses increased 4.82 percent despite management noting no material deterioration in credit quality during 2025. The company adopted conservative provisioning to strengthen its balance sheet and support responsible future credit expansion, according to the financial review.
Total assets declined 8.53 percent to 498.79 million cedis as management strategically optimized the balance sheet. Customer deposits remained stable at 293.32 million cedis, consistent with funding requirements and strategic objectives. The company maintained bilateral facilities of 1.91 million cedis alongside corporate notes totaling 48.27 million cedis.
Equity capital rose from 67.54 million cedis to 76.16 million cedis, reflecting improved profitability and previous shareholder support. The company received 16.3 million cedis from shareholders in 2024, demonstrating continued confidence in the business direction.
Earnings per share reached 4.27 cedis based on two million ordinary shares, substantially exceeding the 0.22 cedis recorded for 2024. Stated capital remained at 22.34 million cedis with statutory reserves of 18.86 million cedis.
Cash and cash equivalents increased to 29.69 million cedis from 22.34 million cedis, providing improved liquidity. Net cash flows from operating activities generated 49.33 million cedis while investing activities consumed 1.76 million cedis. Financing activities produced 26.24 million cedis after accounting for debt security movements.
Ghana’s economic recovery proved crucial to Izwe’s performance. Inflation plummeted from 23.8 percent in December 2024 to 5.4 percent by December 2025, the lowest level since the Consumer Price Index (CPI) rebasing in 2021. The sustained decline marked twelve consecutive months of disinflation.
The Ghana cedi appreciated 40.67 percent against the United States dollar throughout 2025, reversing depreciation experienced in 2024. The currency strengthening reduced import costs and eased pressure on businesses dependent on foreign inputs.
Interest rates declined significantly across money markets. The Monetary Policy Rate fell from 27 percent to 18 percent between December 2024 and December 2025. Interbank rates dropped from 27.04 percent to 15.66 percent while Treasury bill rates declined substantially, with 91 day rates reaching 11.09 percent.
Ghana’s economy expanded approximately 4 to 5 percent for the full year, with third quarter growth recorded at 5.5 percent year over year. The performance reflected continued recovery supported by fiscal discipline under the International Monetary Fund (IMF) programme, which provided a three billion dollar loan facility.
The banking sector remained sound, profitable and well capitalized despite challenges including elevated debt servicing costs and slower oil and gas production. Improved macroeconomic conditions fostered growth and stability within the financial services industry.
Carole Ramella, board chairperson, confirmed the unaudited financial results fairly present the company’s financial position and performance without misleading information or material omissions. The directors approved the statements in January 2026.
Izwe operates as a non bank financial institution licensed by the Bank of Ghana as a savings and loans company effective March 17, 2017. The license grants authority to receive and intermediate deposits alongside disbursing loans. The company focuses on providing microfinance and financial services across Ghana.
The institution maintains its registered office at Maestro Plaza, Kotobabi Main Road, Pig Farm in Accra. Recent developments include relocation of its head office to 12 Patrice Lumumba Street in the Airport Residential Area to enhance customer service experience.
Izwe achieved ISO 27001:2022 accreditation during 2025, reinforcing commitment to information security management, quality standards and customer data protection. The company operates multiple branches and sales centers across Ghana supported by dedicated field staff.
The savings and loans firm underwent brand repositioning in February 2024, reimagining its identity to better serve evolving customer needs. Products include Mobisave mobile banking, structured savings plans, investment vehicles and payroll loans with flexible repayment terms extending to 84 months.
Management plans to leverage technology for enhanced product offerings and improved customer experience throughout 2026. Strategic priorities include disciplined cost management, effective risk controls and sustainable risk adjusted growth initiatives.
The company belongs to Izwe Africa Holdings, which operates across Zambia, Kenya and Ghana with headquarters in Mauritius. African Micro Finance Equities serves as holding company with 89 percent equity stake. The group provides personal and business loans alongside savings and investment solutions.
Ghana’s improving macroeconomic outlook supports favorable prospects for 2026 according to management commentary. However, the company faces competitive pressures in the savings and loans sector alongside ongoing regulatory requirements and capital adequacy standards.
First quarter 2025 results previously released showed net profit of 248,000 cedis, reversing a 2.3 million cedi loss from the same period in 2024. The quarterly performance indicated early signs of recovery that accelerated throughout the year.
Full year audited financial statements for 2025 require completion before final certification. Independent auditors will review the figures and provide an opinion on whether they present fairly the financial position and performance in accordance with International Financial Reporting Standards (IFRS).
