UTRAK Savings and Loans PLC, a Ghanaian non-bank financial institution, has reported a significant increase in losses for the year ended December 31, 2025, highlighting ongoing profitability and capitalisation pressures in the sector.

According to the company’s audited financial statements, UTRAK recorded a loss before taxation of GH¢14.55 million in 2025, compared to GH¢10.73 million in 2024. After tax, the net loss widened to GH¢12.02 million from GH¢7.92 million the previous year.

Financial performance overview

Despite the widened loss, the company demonstrated strong growth in core revenue lines:

Net interest income rose 27% to GH¢9.79 million from GH¢7.70 million, driven by higher interest income which increased from GH¢8.68 million to GH¢15.57 million.
Operating income grew to GH¢11.62 million, up from GH¢9.15 million.
Customer deposits surged 51% to GH¢80.35 million, reflecting continued customer confidence.
Loans and advances to customers grew substantially to GH¢41.59 million from GH¢24.01 million.

However, these gains were offset by sharply higher operating expenses, particularly employee benefits (GH¢14.79 million) and other operating expenses (GH¢10.72 million), which together pushed total operating expenses to GH¢25.51 million.

The company’s total assets expanded by 32% to GH¢102.69 million, supported by increased deposits and new share capital inflows.

Balance sheet and capital position

Shareholders’ equity improved modestly to GH¢19.53 million from GH¢16.55 million, largely due to a GH¢15 million deposit for shares. Retained earnings, however, remain deeply negative at GH¢(68.14) million.

A major concern highlighted in the report is the company’s Capital Adequacy Ratio (CAR), which stood at a negative -12% at year-end — well below the Bank of Ghana’s minimum requirement of 10%. The auditors flagged this as a key risk to the company’s going-concern status.

Auditor’s emphasis and key audit matters

In their independent auditor’s report, J.A. Abrahams & Co. issued an unmodified opinion but included an Emphasis of Matter regarding the low CAR and the company’s ability to continue as a going concern. The auditors noted that UTRAK’s future depends on improving profitability, strengthening liquidity, and enhancing investment portfolio performance.

Key audit matters focused on:

Loan impairment provisions
Compliance with minimum capital and statutory reserve requirements
Property, plant and equipment revaluation

The company transferred funds to the credit risk reserve in line with regulatory requirements.

Directors’ position

The Board of Directors, led by figures including Dr. K.K. K. (signed), described the state of affairs as “satisfactory” despite the losses. They cited the improvement in net worth and strong deposit growth as positive indicators. No dividend was declared for the year.

The Directors reaffirmed the going concern basis, stating that shareholders are expected to inject additional capital to support operations. The company also spent GH¢15,500 on Corporate Social Responsibility initiatives.

Outlook

UTRAK Savings and Loans PLC continues to expand its loan book and deposit base in a challenging macroeconomic environment. However, persistent losses and regulatory capital shortfalls remain critical issues that management must address urgently to restore stability and meet Bank of Ghana requirements.

The full audited financial statements and notes are available in the company’s 2025 Annual Report.