Business News of Wednesday, 9 December 2015
Izwe loans, a non-bank financial institution, has announced that its loan defaulters have started making payments on their debts, a sign that there was high hope to recover such loans., the Director of Izwe Africa, Mr Dave Fichardt has said.
He observed that the company had bad loans in its books, which went a long way to affect the operations of the company.
Mr Fichardt announced this when the company took its turn at the Facts Behind the Figures series organised by the Ghana Stock Exchange (GSE) in Accra.
The Director added that the company experienced forex losses of about $14 million due to the instability of the cedi.
However, he said its net interest income, which comprised interest income and expenses, dwindled.
Its fee and commission income and expenses as well as credit loss expenses reduced during the year under review, he added.
As of September 2015, he said the money lending company?had grown a loan book of more than GH120 million and a retail deposit base of over GH?60 million.
Additionally, he said its GH¢80 million note programme was listed on the Ghana Alternative Market (GAX) of the GSE.
The Managing Director of Izwe Loans, Mr Raymond K. Bismarck, said the institution had applied to the Central Bank to open a savings and loans (S & L) company in the country.
“All the needed documents have been filed, with the necessary approvals given. We’re expecting that by the beginning of next year we’ll start operating fully as a savings and loans company.”
“We’ll be couching our identity and will be operating differently from other companies,” he said.
Mr Bismarck added that entering the S&L sector would give it much flexibility and ability to innovate, as that does not happen with the note programme it offered to its numerous consumers.
The opening of S&L company would enable the institution to introduce various insurance products to serve customers, by making good use of our call centres that we have established.
For his part, the Managing Director of the GSE, Mr Kofi Yamoah, commended the Izwe Loans, for its initiatives and opening up online applications for its customers.