bshbvbj - Opportunity International Savings and Loans...2017/12/06 · In 2013, it introduced housing loans for the micro segment of its clients and empowerment loan for the disabled

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Opportunity International Savings and loans Annual Report 2016 01

Content CORPORATE INFORMATION 2

About Us 3

Board Chairman’s Statement 6

Board of Directors 8

ChiefExecutiveOfficer’sMessage 12

Executive Committee 14

Products and Services 19

Product Innovations 20

Financial Statements 22

•Independent Auditor’s 24

•NotesFormingPartOfThe Financial Statements 31

Photo Gallery 38

Financial Statements 40

GeographicalSpread&Delivery Channels 83

Contact and Branches 85


CORPORATE INFORMATIONBOARD OF DIRECTORS Mr. Frazer D. Hume ChairmanMr. Daniel Ato Kwamina Mensah Mr. Kwasi Yirenkyi Mr. Katey Assem Ms. Maria Koramoa Mr.HerveLeopoldDenisSarteauMadamJaneGortonNelsonMr.KwameOwusu-BoatengCEO SOLICITOR/SECRETARY RosemarySeneadza AUDITORS KPMG13 Yiyiwa DriveAbelenkpeP.O. Box GP242Accra COUNTRY OF INCORPORATION Ghana REGISTERED OFFICE OpportunityInternationalSavings&LoansLimitedBuildingNo.D765/3KwameNkrumahAvenueAccra, Ghana BANKS Access Bank Ghana LimitedAgriculturalDevelopmentBankLimitedCAL Bank LimitedEcobank Ghana LimitedFidelity Bank (Ghana) LimitedGCB Bank LimitedUniversal Merchant Bank Ghana LimitedZenith Bank (Ghana) LimitedUnited Bank for Africa Ghana LimitedNationalInvestmentBankLimitedCapital Bank Limited

02 Opportunity International Savings and loans Annual Report 2016

About Us Opportunity International Savingsand Loans Limited, (Opportunity International) is a leading savingsand loans institution in Ghana. Opportunity International is at the forefront of deliveringtransformational financial servicesto help transform the lives of clients. It was licensed by the Bank of Ghana in June 2004. Opportunity International Savings and Loanslimited isan implementingpartnerof Opportunity International.

Since its inception, OpportunityInternational has focused its key activities on themarginalized, thepoor and those who are excluded from mainstream banking. Itoperates a business model that is not only transformational, but also profitable,sustainableandveryfastgrowing. It places a premium on

understandingtheneedsofitsclientsandtheircapacity.OpportunityInternationalprovidessoundfinancialeducationandsupport,usingtheindividualapproachtolendingwhilepromotingasavingsculturebyofferinginnovativedepositproducts.Itassistsmicro,smallandmediumsizebusinesseswhichformthebackboneofmostdevelopingeconomies.

In2009,thecompanydiversifieditscreditportfoliotoprovidefinancialservicestosmallholderfarmers,agrobusinessesandentrepreneursintheagrovaluechain.Toachievethis,OpportunityInternationalcollaborateswithvariousspecialistsinextensionservicesdeliveryandofftakerswhileleveragingontechnologytoimpactthelivesofGhanaianfarmersthroughhighyieldsresultinginhighincomes.In2013, it introducedhousing loans for themicrosegmentof itsclientsandempowerment loanfor the disabled in society. In 2014, it introduced institutional lendingwith the focus on supportMicrofinanceinstitutionstoaccesscreditandbuildtheircapacities.

Opportunity Internationalhas44outletsacrossthecountry.AsofDecember2016, the institutionhadabout472,329clientsofwhich53,958are loanclients. LoanportfoliowasGHS93.8MillionandclientdepositbalanceswereGHS124.7Million.ThismakesOpportunity International,oneofthelargestsavingsandloanscompaniesinthecountry.IthaswonseveralawardsincludingBestinSocialPerformanceManagement;CommitmenttoProfessionalisminMicrofinanceIndustry,PillarsofMicrofinance,theBestnon-bankfinancialinstitutionfortheyear2013awardedbyCharteredInstituteofMarketing-Ghana,andPanAfricanLeadershipMeritAward(PAMA)in2015.

OpportunityInternationalattributesitsachievementstoitsembeddedvaluescoupledwiththehighlytrained, committed and skilled employees.

Itmakessignificantinvestmentinthetrainingandprofessionaldevelopmentofitsstaff.Furtherit


provides a friendly and an enablingenvironment for its staff to thrive andachieve both personal and Institutional goals.Opportunity Internationalderivesits sustainable competitive advantagethroughitsqualitystaff.

Opportunity values the commitment to serve the economically disadvantagedwhile exhibiting humility, respect, andintegrity to one another and to ourcustomers, and good stewardship ofour resources. The bottom line is that lives are transformed for the better.Byleveragingontechnology,OpportunityInternational has been able to maximize operational efficiencies. This has beendone in conjunction with an expansive national branch network comprising44 brick and mortar outlets, 4 Mobile Vans, 19 Automated Teller Machines (ATMs)andseveralPointofSale(POS)devices located across the length andbreadth of Ghana. E-zwich and MTNMobile Money, Money Gram, Western Union,Samba,TopConnect,Transfastand Ria Money Transfer are also part of theremittanceserviceswhichassistsourclientsandstakeholdersintransferringmoneyfromonelocation to theother.Recently it addedOpportunityMobile, a cell phonebankingapplication forFundsTransfer,BalanceEnquiry,AirTimeTop-Up,andInternal/localRemittances.

Ourvalue-basedtransformationalbanking,goodcustomerserviceanduniqueproductlinesetsusapart from our competitors. Client satisfaction is at the centre of that we do. Opportunity wishes to acknowledge the support of its clients and assure them of its continuedcommitment;notonlytowardsthegrowthoftheirbusinesses,butalsotheirpersonaldevelopmentintheareaoffinancialliteracy.Weaimtocontinuetodesigninnovativeproductstomeetthefinancialneeds of our clients.

Opportunityremainstruetoitscommitmenttobuildingastrongsavingscultureinthecommunitieswithfinancialliteracytraining.

OpportunityisalsoamemberofGhanaMicrofinanceNetwork(GHAMFIN)andGhanaAssociationofSavingsandLoansCompanies(GHASALC).

VISIONOur vision is a world in which all people have the opportunity to achieve a life free from poverty, with dignityandpurpose.

MISSIONByprovidingfinancialsolutionsandtraining,weempowerpeopleparticularlythoselivinginpovertyto transform their lives, their children’s futures and their communities.


VALUES• Commitment• Humility• Respect• Integrity• Stewardship• Transformation WHAT WE DOWithadeepappreciationof thebankingneedsof theunder-privilegedentrepreneur,Opportunitymakesavailabletoourclientsarangeofproductsandservicessuchas:• Channelsofsavingsforthelessprivileged• Transformationalloansforthelessprivileged• SMEloansforbusinessgrowth• Remittanceservices• Businesstraining• Microinsurance• Mobilebankingforruraloutreachandpenetration• E-bankingproducts

OPENING DOORS TO TRANSFROM LIVESOpportunity’sproductsandservicesarebuiltuponourcorevaluesandarespecifically tailoredtomeet the needs of our clients.

OUR STAFFOpportunityhaswell-trainedanddedicatedstaffwhoupholdourvaluesandexpressthemthroughthe way they interact with our clients.

OUR BUSINESS PRIORITIES• Becomingasustainableprovideroffinancialservicestomicro,smallandmedium entrepreneursinGhana;• Becomingachampionofpovertyalleviationviamicroenterprisestimulationandwealth creationamongthelessprivileged.• BecomingaleaderinthemicrofinanceindustryinGhanaandtheAfricancontinentinterms ofclientorientedproductsandserviceswithhighoutreach,impactandsustainability.

THE OPPORTUNITY DIFFERENCEOpportunitydelightsinthetruthandgivesGodalltheglory!


Board Chairman’s Statement Distinguished Shareholders,OnbehalfofOpportunityInternationalSavingsandLoans(OISL)Board,Ipresenttoyoutheannualreportfor2016.IusethisopportunitytothanktheexecutivemanagementofOISLfortheirdedicatedeffortswhichresulted inthestrong financial resultsachieved. Iwould like to thankthe board members for their dedication and leadership, providingstrategicguidancetothemanagementteam.

Capital StructureIn the year under review, shareholders stated capital remainedatGH¢18.64million.ThetotalequityhasgrownfromGHS29.4MillionintheprioryeartoGHS33Millionin2016,asa resultof theconsistentprofit retentionatOISL over the past years,with 2016 as no exception.The capital adequacy ratio of 14.83%, is comfortablyabovetheregulatoryrequirement,andprovidesastrongfoundation for the company.

GovernanceTheBoard isdedicated toensuringeffectivecorporategovernance and sound risk management practiceswhich are of fundamental importance in the industry. The adherence to good corporate governance principles continues to be the basis of the company,therebyhelpingtheBoardtofulfilltheirsupervisoryrole.

TheBoardhasbeenvigilantandresponsivetothechangingregulatoryframeworkandlaws,ensuringthatthecompanypoliciesarealignedtothebestpracticeinthefinancialservicessectorinGhana.ThelevelofcompliancewithregulatorystandardshasbeenattestedbythegoodreportsreceivedfromtheCentralBankandotherregulatorybodies.

Strategic Developments TheshareholdersandtheBoardhaveundertakenastrategicreviewoftheoperationsofthecompany,theoutcomeofwhichwasadecisionin2016toseeknewinvestors,toallowforthefurthergrowthandexpansionofthecompany.Thisprocessisongoingandthereisnothingonthehorizonthatcanbereportedatthetimeofwriting.Inthemeantimeitremainsbusinessasusual,withtheprospectsforthecompanyin2017remaininggood.

Outlook for the Year 2017Theyear2017 isapost-electionyear,withnormalpeaceandstability continuing inGhana.Thiscreates a positive environment for business, which the company is ready to embrace. As our clients createtheeconomicactivityandgrowthinGhana,thecompanywillbeabletosupportwithawiderangeoffinancialservices.

ForOpportunityInternationalSavingsandLoans,theyear2017willbeayearofgrowthfordigitalbanking,enhancementtothecellphonebankingapplication,linkingtheATMnetworktotheGhananationalswitch,allofwhichwillofferclientsnewwaystoaccesstheirbankingneeds.Loansanddepositproductswillbecoretotheservicesthecompanywilloffer,uniquelytailoredandproviding


the solutions that clients need.

IamveryoptimisticaboutthefutureoftheCompany.Thegoalofreachingover1MillioncustomersinGhanaby2020iswithinsight.

AcknowledgementOnbehalfoftheBoardofDirectors,IwishtothankourShareholdersandotherStakeholdersforthefirmconfidenceandsupportgiventothecompanyovertheyears.Iwouldalsoliketoexpressmysinceregratitudetotheloyalemployeesatalllevelsfortheircontributiontothegrowthandbusinessperformancefor2016.

IwouldalsoliketothankourloyalclientswhohavetrustedOpportunityInternationalSavingsandLoanswiththeirsavings,havecometothecompanyfortheirbankingneedsandfortheirenthusiasticsupport for the work we do across Ghana. We intend to remain close to all our clients and be a part oftheircommunitiesandfamilies,helpingthemtobuildlivesofdignityandpurpose,reachingtheirgoalsandaspirations.

Thank you.

……………………………Frazer D. Hume


Board of Directors Frazer D. Hume, Board ChairmanFrazer D. Hume is an experienced Senior International BankingExecutive, with proven skills in Business Leadership, BankingOperationsandRiskManagement.Heisaconfidentanddynamicbusiness leader. He has over 30 years’ experience in a variety of roles with Opportunity International, Barclays Bank Plc and International Bank of Qatar. His last 20 years have been spent in the international bankingbusinessesinAfrica,MiddleEastandEasternEurope.

For a period of 17 years, before 1994, he gained experience inavarietyofroleswhichincludedcustomerfacingbranchbankingandregionalheadofficeoperations intheUKaswellasoffshore

bankinginJersey,ChannelIslands.FromAugust1994-December2005,Frazerplayedseveralrolesin Barclays Bank PLC.

FromJanuary2006toSeptember2008,FrazerworkedatInternationalBankofQatar,Q.S.C.Doha-QatarasHeadofOperations/ChiefOperationOfficerandthenasChiefRiskOfficerinABSAGroupSouthAfrica–BarclaysBankMozambiquefromJanuary2009–December2010.He iscurrently theboardchairman,CEOandbusiness leaderofOpportunityBankSerbia (OBS)whereheisprimarilyresponsibleforallaspectsofrisk,governanceandcontrol,aswellasbusinessdirection and performance.

Kwame Owusu-Boateng, Chief Executive OfficerKwame has 16 years professional experience which coversInternationalTradeFinance,BankingOperations,MicroFinance,andExecutiveManagement.HejoinedOpportunityInternationalSavings and Loans in 2006 from a private International TradeFinancefirm.

Kwame joined Opportunity International as the first BranchOperations Officer. By dint of hard work and his level ofexcellence, he was promoted through the positions of BranchOperations Manager, Branch Manager, Regional Manager andChiefRelationshipOfficerfrom2009to2012.HewasappointedasactingCEOin2012andwasconfirmedbytheBoardasthefirstlocalCEOofOpportunityInternationalSavingsandLoansinAugust2013.

Hiskeystrengthsare indrivingsales,OperationsManagement,andEffectiveLeadership.Hehastheskillofbuildingsuccessfulteamsandenergizingthemtoachievegreatresultsandheisapeopleperson with the ability to spot and develop talents.

He is a graduate from theUniversity ofCapeCoast,Ghanawith aBSCdegree.Additionally hegraduatedwithanExecutiveMBAfromKwameNkrumahUniversityofScienceandTechnologyinKumasi,Ghana.Kwamehas attended various executive programs, someofwhich includes TheBoulderMicrofinanceTrainingProgram inTurin,acertificateprogram inStrategicManagement inMicro Finance fromHarvardBusinessSchool,Boston, and has also attended theAfricanBoardFellowshipprogramorganizedbyAccionInternational.


Maria KoramoaMaria is a bankerwith expertise inmicrofinance and small andmedium enterprise (SME) development. She is the CountryManagerofOikocreditGhana.MariaholdsanMBAdegreeinInternationalBankingandFinancefrom the University of Birmingham (UK), B.A. (Hons) degree inEconomics & Sociology and a Diploma in Education from theUniversity of Cape Coast. She worked previously as AssociateConsultant in Microfinance/Trainer with Pentax ManagementConsultancyServices,Accra,andalsoasShort-termConsultantforSPEEDGhana.

Katéy AssemKatéy Assem serves as an Executive Director of the ChicagoStateUniversityFoundation.Previously,hewasViceChancellorforInstitutionalAdvancementandExecutiveDirectoroftheNorthCarolina Central University Foundation. Mr. Assem also served as Vice President for Advancement and Research at Fort Valley State University and as Chief Executive Officer of the FVSUFoundation. Before joining FVSU, he was Chief AdvancementOfficer and Executive Director of the Chicago State University(CSU)Foundation.

Mr.AssemreceivedhisBachelorofSciencedegree inStatisticsfromtheUniversityofGhana,LegonandMastersofSocialWorkfromtheUniversityofNorthCarolinaatChapelHillandholdsaCertificateinFundraisingManagement(CFRM)fromtheIndianaUniversity-PerdueUniversityFundraisingSchool.Hewasalso,aFulbrightScholarwiththeCouncilofInternationalProgramsinChicago,Illinois.

Hehasover28yearsexperienceworkinginhumanservices,juvenilejusticeandeducationwherehehasdesignedRitesofPassageprogramsforcommunitycenters,churchesandjuvenilecorrectionalinstitutions. He has authored or co-authored numerous articles and two books onworkingwithchildrenandfamiliesinfostercareandadoption.HeiscurrentlycompletingamanuscriptonRitesofPassage.

Herve SarteauHerve Sarteau has held several positions including seniorpartnerwithCarValInvestors,managinginvestmentsinavarietyofassetclassesacross theglobe.Mr.Sarteau joinedCargillin1993 in theStrategyandBusinessDevelopmentgroup inMinneapolis,andjoinedCVI in1996tostarttheParisoffice.HemovedtoLondonin1998andassumedresponsibilityofthe European business in 1999.

Prior to joiningCargill,Mr.Sarteaumanagedacquisitionandstrategyprojects forHewlett-Packard’sEuropeanoperationsoutofGeneva,Switzerland,andworkedonawiderangeofconsultingprojectsforAndersenConsultingintheUnited


States,FranceandSwitzerland.Mr.SarteauholdsanMBAfromINSEADandMSc.inElectricalEngineeringfromINPGinGrenoble,France.

Mr. Sarteau also holds the following positions OI US board director, OTI board director, OISL(Ghana)andBOM(Mozambiquebanksboarddirector(Centralbanksapproved),MemberofseveralcommitteesacrosstheUS,NetworkandlocalAfricanboards(ALCO,AuditandRisk,etc)andBoardofGovernorsmemberandsupporteroftheorganizationsince2002.

Jane NelsonOver the past six years Jane Nelson has collaborated withnumerous organizations responding to the HIV/AIDS crisis inAfrica.HerworkhastakenhertoCongo,SouthAfrica,Zambia,Rwanda,Malawi,UgandaandEthiopia.Someoftheorganizationsshe has partnered with include World Vision, Hope International, WorldHelp,AfricaMinistriesNetwork,Opportunity International,Bridge 2 Rwanda, Pura Vida Partners and Stanford UniversityInstituteofDesign.

Janehasextensiveexperienceinfinanceandmarketing.Havingworked with a major financial institution during the period ofbanking deregulation, she gained first-hand experience in

managingbusinessesduringperiodsofrapidchange.ShehasservedatherchurchasTreasurer,ElderandCampaignChairfora$20mmcapitalfundscampaignforlandacquisition.Janealsoserveson the board of Pura Vida Partners.

JanegraduatedfromSanDiegoStateUniversitywithaBSinMarketing.

Daniel Ato Kwamina MensahDaniel Ato KwaminaMensah has been in the banking industrysince1985.HepreviouslyworkedasanEducationist,wherehetaughtatthevariouslevelsoftheeducationalstructure.Mr. Mensah was employed as a Research Economist by the National Investment Bank in 1985. In 1990, he was drafted tobepart of a Team that effectively introducedcorporatebankingservices and transformed commercial banking activities of theNationalInvestmentBank.HewasalsotheLiaisonOfficerfortheCentre for the Development of Industry – an EU/ACP industrialpromotionwingfortheNorth-Southco-operation.

InJuly1993,hewasappointedastheExecutiveSecretary/ChiefExecutiveOfficeroftheGhanaAssociationofBankers,apositionhehasoccupiedtodate.AstheChiefExecutiveOfficeroftheGhanaAssociationofBankers,heisresponsibleforthedaytodaymanagementoftheAssociation’sSecretariatandistheliaisonbetweenalllicensedbanksandallotherexternalinstitutionsincludingtheWestAfricanBankersAssociation,GovernmentandtheBankofGhana.HehasovertheyearsinitiatedthoughtleadershipactivitiestosupporteffortsofthebankingindustryinshapingGhana’seconomy.

Mr.MensahholdsaB.A(Hons)degreeinEconomicswithPoliticalSciencefromtheUniversityof


Ghana,anMSc(Econs)degreeinInternationalTradeandFinancefromtheUniversityofIbadanandanMBAdegreefromtheGhanaInstituteofManagementandPublicAdministration(GIMPA).

He is aMemberof theChartered InstituteofMarketing,Ghana.He is also a Fellowofboth theCharteredInstituteofBankers(FCIB)andtheInstituteofLoanandRiskManagement(FILRM).

Kwasi Yirenkyi Kwasi Yirenkyi is currently the Managing Director of StarwinProductsLimited,apharmaceuticalmanufacturingcompanylistedon theGhanaStockExchange.He is responsible for theoveralldirection of the company.

He also holds a position as the treasurer of the Pharmaceutical Manufacturers Association of Ghana.

PriortohisManagingDirectorrole,Kwasiwasaseniorcorporatemanager with Merchant Bank Ghana Limited, now UniversalMerchantBank,from2000to2007.Hehashadfurtheremploymentwith Deloitte and Touche Management Consultants as well as

Empretec Ghana, a business development company.

HehadhiseducationattheGeorgeMasonUniversityandtheSouthernNewHampshireUniversity,bothintheUnitedStatesofAmerica.


ChiefExecutiveOfficer’sMessageIamdelightedtopresenttoyoutheperformanceofOpportunityInternationalSavingsandLoansforthefinancialyearended31stDecember2016.FirstandforemostImustalludetothefactthatthe business had its fair share of the unfavorable macro- economic pressureswhichwascharacterizedbyhighlevelsofvolatilityintheareaofexchangerate,interestrateandinflationtherebyimpactingoncostandthedesiredabilitytogeneraterevenue.

Inspiteofthesechallenges, Iampleasedto informyouthattheinstitution roseup to theoccasion todeliveryetanothersterlingperformance through the effective and efficient utilization of ourhuman resources to implementouragreedstrategiesaswellastheexcellentmanagementofourassetsandliabilities.

Economic OutlookDuringtheperiodunderreview,theoverallmacro-economicoutlookofthecountrydidnotshowanyclearsignthatitwasoutofthewoods.Thoughitwasabitmodestcomparedtothelastthreeyearswhichwashitbyslowdowninglobalgrowthduetolowerglobaltradevolumes,anearcollapseinthe internationalcommoditymarket,andgenerallyhigher levelsof riskaversion from Internationalinvestors.Thepastyearsawsomemarginallevelofrecoveryduetosignificanttighteningofmonetaryandfiscalpolicies.

Inthefinalanalysis,this ledtosomestability inthecountry’seconomicconditionsthroughouttheyearwhichwasevidentintheimprovementintheinflationratetoclosetheyearat15.4percentdownfrom17.2percent,monetarypolicyrateat25.5percentfrom26percentandalargelystableforeignexchangerates.

Banking EnvironmentInthebankingindustry,totalassetsstoodatGHS80.9billionattheendof2016with17.4percentnon-performingloansleadingtoaprovisionofabout8.4percentasbaddebtsintheirbooks.

Client deposits ended the year 2016 atGHS51.4 billion, growing by 26.8 percentwith demanddeposits(currentandsavingsaccounts)growingmorethantimeorfixeddepositsasattheendoftheyearaccordingtothelatestsummaryofMacroeconomicandFinancialStabilityreportbytheBankofGhana.Whiledemanddepositsgrewby22.4percent,timedepositsshotupby15.5percent.

Financial PerformanceOurinstitutiondeliveredastrongfinancialperformanceinspiteofintensecompetitionandatoughoperating environment. This is evidenced by a profit after tax of GH¢5.56 million compared toGH¢1.87millioninthepreviousyear.Mostofourbusinesslinesrecordedgrowth,whichisreflectiveofourcalculatedeffort tocreatesustainablevalueandafocused implementationofourbusinessstrategy.The totalassetbaseof theCompanygrewby24% fromGH¢155.31million in2015 toGH¢192.06millionin2016.

Customer deposits grew by 26% to GHC124.70 million due to cognizant deposit mobilizationeffortduringtheperiod.Wemaintainedacontinuousfocusonenhancingthequalityofrelationshipmanagement,creditmonitoringandrecoveriestoeffectivelymanagethequalityofour loanbook.Thatnotwithstanding,specificandchallengingadvanceswereadequatelyprovidedforandrecovery


measuresputinplace.Ourcapitaladequacyratioremainedrelativelyhighat14.85%arisingoutofourincreasedearningsin2016.Wewill leverageonourstrongcapitalpositiontosustainplannedfuturegrowthofourbusiness.

Operational PerformanceBykeepingabreastwiththenewtrend inbankingtooffer thebestofproductsandservicesandconvenientbankingtodelightourcustomers,weintroducedamobilesolutiondubbed‘OpportunityMobile’toserveourcustomers.Thiseffectivelywillenablecustomersdoallbasictransactionsontheirphonesinthecomfortoftheirhomesandworkplaceswithoutcomingtothebankinghalls.TherapidgrowthinmobilebankingenrollmentislikelytohelptheinstitutionreachouttoOneMillioncustomersby theendof2020. Thiswill surely impactpositivelyon revenue, throughenhancedefficiencyanditsconsequentreductionincostsofservingclientsandclientsaccessingus.

Staffproductivityover theperiodwashighlycommendable,consideringthe fact that therewasadeliberate action to reduceheadcount,whichdid not affect theoverall productivity as hadbeenplanned. Staff capacity development remained largely on course, with a number of staff beingpromoted intopositionsofhigher responsibility,and into leadership,havinggone through themilloverthepastyears.Ourpeoplestrategywillcontinuetofocusonattractingthebesttalentsonthemarketanddevelopingtheircapacitiescontinuallywhilstensuringahighrateofretentiontofacilitatetheachievementofoursettargets.

ConclusionOnbehalfoftheManagement,Iwouldliketoappreciateourcustomersfortheircontinuedpatronageofourproductsandservicesandtoallstakeholdersforyourunwaveringbusinessrelationshipsandsupport. Finally, I would like to thank our able employees for their continued loyalty to the Company. Iampositivethatwithyourcontinuedsupport,2017willbeasuccessfulyear.

Thank you and God bless us all.


Executive Committee Kwame Owusu-Boateng, Chief Executive OfficerKwame has 16 years professional experience which coversInternationalTradeFinance,BankingOperations,MicroFinance,andExecutiveManagement.HejoinedOpportunityInternationalSavings and Loans in 2006 from a private International TradeFinancefirm.

Kwame joined Opportunity International as the first BranchOperations Officer. By dint of hard work and his level ofexcellence, he was promoted through the positions of BranchOperations Manager, Branch Manager, Regional Manager andChiefRelationshipOfficerfrom2009to2012.HewasappointedasactingCEOin2012andwasconfirmedbytheBoardasthefirst

localCEOofOpportunityInternationalSavingsandLoansinAugust2013.

Hiskeystrengthsare indrivingsales,OperationsManagement,andEffectiveLeadership.Hehastheskillofbuildingsuccessfulteamsandenergizingthemtoachievegreatresultsandheisapeopleperson with the ability to spot and develop talents.

He is a graduate from theUniversity ofCapeCoast,Ghanawith aBSCdegree.Additionally hegraduatedwithanExecutiveMBAfromKwameNkrumahUniversityofScienceandTechnologyinKumasi,Ghana.Kwamehas attended various executive programs, someofwhich includes TheBoulderMicrofinanceTrainingProgram inTurin,acertificateprogram inStrategicManagement inMicro Finance fromHarvardBusinessSchool,Boston, and has also attended theAfricanBoardFellowshipprogramorganizedbyAccionInternational.

Samuel Afful CA(ICAG)MrAffulistheDeputyChiefExecutiveOfficerandtheChiefFinancialOfficer ofOISLwith over twenty years ofwork experiencewithremarkablerecordsofaccomplishments.HehasbeeninOISLfortwelve years.

He is a Chartered Accountant and a member of the Institute of Chartered Accountants, Ghana (ICAG) with eight years postqualificationexperience.HealsoholdsExecutiveMBAinFinanceandaBachelor’sDegreeinAccounting.HisfieldofspecialtyisintheareaofFinance,Accounting,Auditing,StrategyandControl.

Kofi Obeng-Berkyaw, Chief Operating OfficerKofi has 21 yearsworking experience in commercial banking,micro-finance and over 10 years’experienceinexecutivemanagementpositions. Mr.Obeng-BerkyawstartedhiscareerasaClerkandrosethroughtherankstothepositionofabranchOperationsManager intheAgriculturalDevelopmentBank(thebiggestBankdedicatedtoAgricultureinGhana)whereheworkedfor14years.


KofijoinedOpportunityInternationalSavingsandLoansin2007astheBranchManagerfortheAccrabranch.Hewasthenpromotedin2008tothepositionofHeadofBankingOperations.

KofiwasfurtherpromotedtotheroleoftheActingChiefOperationsOfficeroftheinstitution.Keyamonghisachievementsinthisrolewasthesettingupofthecentralizeddataunit,automationofmanymanual processes, introducing new policies and procedures toensureanefficientandwellcontrolledenvironmentinOISL.HeiscurrentlytheconfirmedChiefOperationsOfficeroftheinstitution.

HeisaproductoftheUniversityofGhanawithB.A.HonsdegreeandalsoholdsacertificatefromBoulderInstituteofMicroFinance

andaMasters’degreeinMarketingwiththeMethodistUniversityCollegeofGhana.

Albert Appiah, Chief Relationship OfficerAlbertiscurrentlytheChiefRelationshipOfficerinchargeofSalesand with supervisory responsibilities over branch administration. Albert has been with Opportunity International since 2004 and has risenthroughoperationalranksofmanagingbranchesaswellasdepartmental/productteamswithsuccess.

HeisskilledpractitionerinthemicrofinanceindustryandhasoveradecadeworkingexperiencegarneredfromtimewithSinapiAbaTrust and others.

Albert has a passion for harnessing manpower potential inachievinggrowthplanswhileclientservicedeliveryhasbeenthe

cornerstone of his success.

AlbertholdsadegreeinBankingandFinanceaswellasaqualificationinaccountingfromtheInstituteofCharteredAccountants(Ghana).HealsoholdsanMBAinBankingandFinancefromUniversityofCapeCoastthroughKingsUniversityCollege,Ghana.

Abena Aboagyewaa Nsiah Adjei, Deputy Chief Relationship OfficerAbenahas18yearsofexperienceinMicroFinance.ShehasbeenwithOISLsinceitsinceptionin2004.

Abena joinedOISL as Loans Supervisor and then promoted toBranch Relationship Manager, Branch Manager, and RegionalRelationship Officer for Northern Sector, Head of ISME for theNorthernSectorandAreaHeadforCentral-WestArea.Currently,AbenaistheDeputyChiefRelationshipOfficerinchargeofdrivingsales.

PriortojoiningOpportunityInternational,sheworkedwithSinapiAbaTrustfor5yearsasaLoanOfficer,LoanSupervisorandYouthApprenticeshipCoordinatorforOI-Networkfrom2002-2004.

SheholdsanMBAinStrategicManagement&ManagementConsultingandadegreeinLawandGeographyfromKwameNkrumahUniversityofScienceandTechnology.


Vivian Akofa Selase Mottey, Head of TransformationVIVIANAKOFAMOTTEY(HeadofTransformation)VivianAkofaSelaseMottey,HeadofTransformationVivianhas15years of professional experience as a Microfinance Practitionerand Management Consultant and 20 Years’ experience in thePublicService.

She joined Opportunity International Savings and Loans (OISL)in2008asaBranchRelationshipManagerandrosethroughtheranks to become the Northern Sector Area Manager, TrainingManager,SeniorTransformationManager,HeadofMicroBusiness(SouthernSector)andcurrentlyHeadofTransformation.

BeforejoiningOISL,VivianwastheChairpersonofAssociationofFinancialNGOs(ASSFIN)MidZone(BrongAhafo/AshantiRegions),BranchManagerofAPED(nowVisionFund)responsibleforBrongAhafo/AshantiRegions,ConsultingPartnerwithIBSConsultingAllianceandProjectAdministrator/Accountant of SANKOFA Programme (rural development wing of African Centre for HumanDevelopment).

Vivian holds a Commonwealth ExecutiveMBA fromKNUST, a B.Sc. Administration (AccountingOption) fromUniversityofGhanaandanACCAFoundationCertificate fromIPSandCertificate inFinancialManagementfromUSDAGraduateSchool,WashingtonDC,USA.

Patrick Kyei, Head of MarketingPatrickhasover20years’experienceinMarketing,Sales,branding,delivery channels, product and business development and researchinMicrofinanceandCommercialbusinessenvironment.

Hisgreatestassetishispassionforbuildingbusinessesthroughstaffmotivationandmentorship.PatrickjoinedOISLin2006andhasworkedindifferentrolesasMarketingManagerandHeadofCommunication.In2010,hewasappointedasHeadofChangeManagementandSpecialProjectswhenOISLwentthroughcriticalchallenges.Withhischangemanagementskills,hesupportedtheleadership team to turn the company around.

PriortojoiningOISL,PatrickworkedwithseveralorganizationsinUKandGhana.Currently,heistheHeadofMarketingresponsibleformarketing,businessandproductdevelopmentandresearch.HeisalsoinstrumentalindevelopingBusinessPlanandfundingproposalforexternaldonors.

PatrickholdsaMaster’sDegreeinMarketingfromLondonMetropolitanUniversity(formerlycalledUniversityofNorthLondon).

Ebenezer Cofie-Baidoo, Head of Human ResourcesEbenezer has over eight (8) years of experience in Human Resources Management. He joinedOpportunityInternationalSavingsandLoansLimitedinJanuary2008asanHROperationsOfficerwithresponsibilityforCompensationandBenefits.HewaslaterthatyearpromotedtothepositionofHR Business Partner for the Operations Division until 2010, when he became HR Business Partner forHeadOfficeSupportFunctionsandtheNorthernSectorofthebusiness.


Prior to joining OISL Ebenezer worked as a Human ResourcesConsultantatShawbellConsulting.

Ebenezer’s motivation to work for OISL stems from the joy inhearing thesuccessstoriesofournumerousclientswhose liveshave been impacted by the services rendered to them by our very dedicated staff on a daily basis. This drives him to domore toensure more lives are touched.

He graduated from the University of Ghana with a Degree inPsychology in 2000. He further pursued his masters at thesameUniversity and graduatedwith anM.Phil. in Industrial andOrganizationalPsychology.

Mr. Francis Takyi, Chief Risk OfficerMr. Francis Takyi has over fifteen years’ experience in banking.HejoinedOpportunityInternationalasaBranchManagerin2008andworkedthroughtheranksatvarioussectionsoftheinstitutionatmanagerial levels,includingBranchManagement,Operations,Finance,andRiskManagement.

In 2013 he was appointed by the Opportunity International Network,USA,astheirRegionalRiskDirectorforAfrica,wherehewasinstrumentalinbuildingtheriskmanagementcapacitywithinOpportunity International African risk teams through training,business risk reviewsand regular interactionswith the local riskteams,until2016whenhewasagainseconded toOpportunity

InternationalSavingsandLoansLtd,Ghanaasaresultofbusinessrestructuring.HealsosupportedOpportunityBankMalawiin2015asitsChiefRiskOfficerwhilststillworkingastheRegionalRiskDirector.

PriortojoiningOpportunity,FrancisworkedwithProCreditSavingsAndLoansCo.Ltd.astheHeadofFinancedepartment.HealsoworkedwithHFCBank,Ghana,wherehewasinchargeofoperationsandcreditatoneofitsflagshipbranches,AccraCentralBranch.

HeholdsadegreeinAccountingandEconomicsfromtheUniversityofGhana,LegonandanMBAinFinancefromtheMethodistUniversityCollege,Ghana.HeisfinalprofessionallevelstudentoftheCharteredInstituteofBankersGhana,andapartqualifiedofACCA.

Rosemary Seneadza, Head of LegalRosemarySeneadzaisalawyerwhohasavastwealthofexperienceworking indifferentdisciplines.Prior toembarkingonacareer inlaw,shegraduatedwithaBScdegreefromtheUniversityofGhana.She then had a stint at teaching where she sharpened hercommunication, interpersonal and people development skills.

Subsequently,shewentontopursueadegree inLaw(LLB)andgainedherQualifyingLawCertificateQLC)fromtheGhanaSchoolofLaw.ShepassedtheBarexamwithanelectiveinBankingLaw.ShewentintoprivatepracticeunderthetutelageofMr.Anthony


Forson,theVicePresidentoftheGhanaBarAssociationinhischamber,T.Forson&Co.wheresheengagedinresearch,courtroomlitigationandgainedin-depthknowledgeinvariousareasofthelaw,includingCommercial,BankingandCorporateLaw.

ShejoinedOpportunityInternationalinJanuary2012asaLegalAssociateandhassincebeenhoningherskillsinsolvingproblemswithinthelegalframeworkoftheindustry.

Augustine Ayinbisah (Chief Internal Auditor)Mr. Ayinbisah is a Chartered Accountant and a member of the Institute of Chartered Accountants, Ghana(ICAG). He holds an MBAinAccountingandFinancefromtheUniversityofProfessionalStudies,Accra.(UPSA)Hehasoverten(10)years’experienceinAudit, Finance, Accountancy and Taxation.

HejoinedOpportunityInternationalin2017,astheChiefInternalAuditor, from Akuapem Rural Bank Limited where he held the key positions of Head of Internal Audit and later as Head of Finance.

He began his careerwith Egala Atitso & Associates (CharteredAccountants and Business Advisors) as a trainee Accountant and

bydintofhardworkrosetobecomeanAuditSupervisor/Manager.

Hehasadiversebackground inAudit,Accountancy,FinanceandTaxation.HehasprovidedTaxConsultancyServicesinthepastandledAuditteamstoAuditmajorcorporationsandcompaniessuchasGhanaNationalPetroleumCorporation(GNPC),GhanaCivilAviationAuthority(GCAA),StateEnterprisesCommission,ExperTravel&ToursLtd,CBElectricLtd,Engineers&PlannersLimited,Darbem Clinic etc.

Hehasexperience inDonor fundedprojectAudits, having ledAudit teams toAudit FoodCropsDevelopmentProject(FCDP),AllianceforReproductiveHealthRights(ARHR),andSENDGhanaetc.fundedbyvariousdonorsincludingtheWorldBank,AfricanDevelopmentBankandDANIDA.

Joshua Ninson, Anti-Money Laundering Reporting OfficerJoshua started his career with Opportunity International as a Relationship officer in 2006 after his National Service. He hasoccupiedvariouspositionssuchasDepositMobilizationMonitoringofficer,DepositMobilizationSupervisorandInternalAuditor.

He was appointed as the Anti-Money Laundering ReportingOfficerin2013andwasconfirmedbytheBoardin2015.Joshuahas extensive experience in microfinance in areas of Anti-Money laundering and terrorism financing (AML/TF), audit, riskassessment, compliance and operational risk.

JoshuaholdsaBachelorofCommercedegreefromUniversityofCapeCoast. He is a Chartered Financial Economist from the Association of CertifiedCharteredEconomists(ACCE/AAFM-USA),DueDiligenceCertifiedandamemberofAssociationofCertifiedCompliance Professional in Africa (ACCPA).


SAVINGS PRODUCTSavings AccountAn interest bearing account for you to depositcash and withdraw anytime without notice.• MinimumopeningamountisGH¢10.00• EarninterestonbalanceoverGH¢200.00

Current AccountA demand deposit account for you to deposit and withdraw cash anytime without notice.• MinimumopeningamountisGH¢20.00• Wegiveyoupersonalizedchequebook

Susu DepositAdaily savings account for customerswhodonot have time to come to the bank. Our deposit mobilisationofficerswalktoyourdoorstepsdailytocollectyoursavings.• DailyContributions• Flexiblewithdrawaloptions• Opportunitytoaccessourloanproducts

Fixed Term DepositAfixedinterestbearingaccountforaprescribedperiod.• MinimumamountofGH¢500.00• Youearncompetitiveinterestrates.

LOAN PRODUCTSGroup LoansLoans for groups of micro entrepreneurs forbusiness expansion.• Nocollateralisrequired• Accesstofreetraininginfinancialliteracy,• Leadershipandcommunitydevelopment trainingetc.• Groupguaranteeisrequired.

Adehye Group LoansLoansforloyalgrouploanclientsin4thcycleandbeyondwhowanttomaintaintheirgroup.

Adehye Individual LoansLoans for loyal group loan clients in 4th cyclewithoutbeinginagroup.• Nocollateralandguarantorrequired

Individual LoansWorkingcapitalforindividualbusinessexpansion.• MinimumLoanofGH¢500.00• Maximumrepaymentperiodof12months• Guarantorisrequired

Susu LoansLoans for Susu deposit clients after a requiredperiod of contribution• Repaywithsmallamountondailybasis

Small and Medium Enterprise (SME) LoansWorking capital for Small and Medium Scaleentrepreneurs• MinimumLoanofGH¢10,000.00• Maximumrepaymentperiodof36months

School Improvement LoansShort and medium term finance for privateschools.• Maximumrepaymentperiodof36months

School Fees LoansLoans for payment of ward’s school fees and relatedexpenses.Clientsin5thcycleandabovedo not need guarantor(s) if the amount is notmore than GH¢1000.00

Empowerment LoansLoansforthephysicallychallengedentrepreneurfor business expansion at concessionary rate.

Agric Micro and SME Loans Micro, small and medium scale finance forfarming and Agric related businesses such asirrigation,agro-marketingandprocessing,Agricequipmentandtransportation.

Salary LoansShort and medium term finance for salariedworkers.Maximumrepaymentperiodof36months.

Church LoansShortandmediumtermloanstoassistinchurchdevelopment. Maximumrepaymentperiodof36months

Ahoto Housing LoansHousing loans for small and medium scaleentrepreneurs, farmers and salaried workers. Therearetwomaintypes:Homeimprovementandbuildinginstagesloans.


Products and Services

Product Innovations (AgricultureFinanceModel,EducationFinanceModelandTechnologyPlatforms Agricultural Finance Model

Coordinating with all stakeholders in theagricultural value chain is essential to thesuccess of the farmer and Opportunity’s agriculturalfinanceinitiative

• Providingfarmerswiththerightsize loanfortherightamountandtypeof inputs.

• Providingsavingsaccountstopreclude side-selling.

• Partneringwithcommercialextension service providers.

• PilotedMEOSforhouseholdmapping andprofilingfornewclients


Education Finance Model: Ourmodelcreatessustainablegenerationalimpacttobreakthecycleofpovertyby:

ImprovingAccess Enablingparentsto Schoolloanstoeducationandthe consistentlykeep Schoolfeeloansqualityofeducationin alloftheirchildren Savingspoor communities in school accounts

Education Finance Products

• OISLcurrentlyhastheMasterCardandCAT programssupportingEducationfinance.

• ActiveSchoolloans–195schoolswithavalue ofGHS466,731

• Schoolfeesloans–675loanswithavalueof GHS729,800

Technology Platforms• EnterpriseOpenSky:providesameansofmakingtransactions inthefieldoperateseamlesslywithT24.• E-Mobilization:enhancesaccountcreditingofdaily mobilizationsfrompettytradersandclientswillingtosave.• AgricDataCapture:enablesthecapturingof mappinginformationandSPMdataassociatedwithlending and deposit activities with farmers.• Nation-widee-paymentplatform(e-Zwich):theprovisionof debitcardstoclientstofacilitateaccesstofunds24/7.• OpportunityMobile:Flagshipcellphonebankingsolution whichaffordsclientstheopportunitytodocorebanking transactions on their phones• OpportunityCash:ProprietaryATMofferingwhichis integratedwithGhIPPS,e-Zwichandgh-linksharedplatforms


Financial StatementsOPPORTUNITY INTERNATIONAL SAVINGS AND LOANS LIMITEDFor the year ended 31 December 2016 REPORT OF THE DIRECTORS TO THE MEMBERS OF OPPORTUNITY INTERNATIONAL SAVINGS AND LOANS LIMITED

Report of the DirectorsTheDirectorsinsubmittingtotheshareholdersthefinancialstatementsoftheCompanyfortheyearended31December2016reportasfollows:

Directors’ Responsibility StatementThe Company’s directors are responsible for the preparation of financial statements that give atrueandfairviewofOpportunityInternationalSavingsandLoansLimited,comprisingstatementoffinancialpositionat31December2016,and thestatementsofcomprehensive income,changesinequityandcashflowsfortheyearthenended,andthenotestothefinancialstatementswhichincludeasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,inaccordancewithInternationalFinancialReportingStandards,andinthemannerrequiredbytheCompaniesAct,1963(Act179),andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738).Inaddition,thedirectorsareresponsibleforthepreparationofdirectors’report.

The directors are also responsible for such internal control as the directors determine is necessary toenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror,andformaintainingadequateaccountingrecordsandaneffectivesystemofriskmanagement.

ThedirectorshavemadeanassessmentoftheCompany’sabilitytocontinueasagoingconcernandhavenoreasontobelievethebusinesswillnotbeagoingconcern.

Theauditorisresponsibleforreportingonwhetherthefinancialstatementsgiveatrueandfairviewinaccordancewiththeapplicablefinancialreportingframework.Financial Report and Dividend

ThefinancialresultsoftheCompanyfortheyearended31December2016aresetoutintheattachedfinancialstatements,highlightsofwhichareasfollows:

31 December 2016 2015 GH¢ GH¢

Profitbeforetaxationis 8,368,209 3,352,377

fromwhichisdeductedtaxationof (2,807,555) (1,483,904)

givingaprofitaftertaxationfortheyearof 5,560,654 1,868,473

lessnettransfertostatutoryreservefundandotherreservesof (3,025,199) (1,016,261)

leavingabalanceof 2,535,455 852,212

whichwhenaddedtoabalancebroughtforwardonretained 1,718,615 866,403

earningsofgivesabalanceof 4,254,070 1,718,615


Asindicatedabove,inaccordancewithSection29(a)oftheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738),anamountofGH¢2,780,327wastransferredtothestatutoryreservefundfromprofitfortheyear,bringingthecumulativebalanceonthestatutoryreservefundtoGH¢7,687,438attheyearend.The directors do not recommend the payment of dividend.

Nature of BusinessTheprincipalactivitiescarriedoutbytheCompanyincludetheprovisionofmicrofinancefacilitiesin the formof loans to thegeneralpublic,with theemphasison lending to those insocietywithlimited incomeswhowouldnotordinarilyqualify fora loan fromatraditionalbank.TheCompanyalsoacceptsdepositsofvarioustypesincludingcurrentaccounts,savingsaccountsandentersintocontractsforfixeddeposits.

TheCompanyislicensedtooperatethebusinessofasavingsandloanscompany.TherewasnochangeinthenatureoftheCompany’sbusinessduringtheyear.

Holding CompanyThemajorityshareholderoftheCompany,OpportunityTransformationInvestmentsholds75.95%ofthe stated capital of the company

AuditorTheauditor,KPMG,willcontinueinofficeinaccordancewithSection134(5)oftheCompaniesAct,1963(Act179).

Approval of the Financial StatementsThefinancialstatementsoftheCompanywereapprovedbytheboardofdirectorson30March2017andweresignedontheirbehalfby:

KwameOwusu-BoatengDanielAtoKwaminaMensah

.......................................………. ……....….............…………… DIRECTOR DIRECTOR


INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOF OPPORTUNITY INTERNATIONAL SAVINGS AND LOANS LIMITEDOpinionWehaveaudited thefinancialstatementsofOpportunity InternationalSavingsandLoansLimited(“theBank”),which comprise the statement of financial position at 31December 2016, and thestatementsofcomprehensive income,changesinequityandcashflowsfortheyearthenended,andnotestothefinancialstatementswhichincludeasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages9to75.

Inouropinion,thesefinancialstatementsgiveatrueandfairviewofthefinancialpositionofOpportunityInternationalSavingsandLoansLimitedat31December2016,andofitsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardsandinthemannerrequiredbytheCompaniesAct,1963(Act179)andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738).

Report on the Financial StatementsWe conducted our audit in accordance with International Standards on Auditing (ISAs). Ourresponsibilities under those standards are further described in the Auditor’s Responsibility section of ourreport.WeareindependentoftheBankinaccordancewiththeInternationalEthicsStandardsBoard forAccountants’CodeofEthics forProfessionalAccountants (IESBACode),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisfor our opinion.

Other InformationThe Directors are responsible for the other information. The other information comprises Corporate GovernanceinformationincludedinthefinancialstatementsandtheDirectors’ReportasrequiredbytheCompaniesAct,1963(Act179)andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007 (Act738)butdoesnot include the financial statementsandourauditor’sreport thereon.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressany form of assurance conclusion thereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard. Directors’ Responsibility for the Financial Statements ThedirectorsareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewithInternationalFinancialReportingStandardsandinthemannerrequiredbytheCompaniesAct,1963(Act179)andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738),andforsuchinternalcontrolasthedirectorsdetermineis


necessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatementswhether due to fraud or error.

Inpreparingthefinancialstatements,theDirectorsareresponsibleforassessingtheBank’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheDirectorseitherintendtoliquidatetheBankortocease operations, or have no realistic alternative but to do so.

TheDirectorsareresponsibleforoverseeingtheBank’sfinancialreportingprocess.

Auditor’s ResponsibilityOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithInternationalStandardsonAuditing(ISAs)willalways detect a material misstatement when it exists. Misstatements can arise from fraud or error andareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintainprofessionalscepticismthroughouttheaudit.Wealso:

Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheBank’sinternalcontrol.

Evaluate the appropriateness of accountingpolicies used and the reasonableness of accountingestimatesandrelateddisclosuresmadebymanagement.

Concludeon theappropriatenessof theDirectors’useof thegoingconcernbasisofaccountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditionsthatmaycastsignificantdoubtontheBank’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as agoingconcern.

Evaluate theoverall presentation, structureandcontentof the financial statements, including thedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsin a manner that achieves fair presentation.

WecommunicatewiththeDirectorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthat


weidentifyduringouraudit.

Report on Other Legal and Regulatory RequirementsCompliancewiththerequirementsofSection133oftheCompaniesAct,1963(Act179)andSection78oftheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738).Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwere necessary for the purpose of our audit.

Inouropinion,properbooksofaccounthavebeenkeptandthestatementsoffinancialpositionandcomprehensiveincomeareinagreementwiththebooksofaccount.

Non‑compliance with a section of Other reserveTheBank’stransactionswerewithinitspowersandtheBankgenerallycompliedwiththerelevantprovisionsoftheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738).

Theengagementpartnerontheauditresulting inthis independentauditor’sreport isNathanielD.Harlley(ICAG/P/1056).

KPMG

.................................................................Forandonbehalfof:KPMG:(ICAG/F/2017/038)CHARTEREDACCOUNTANTS13YIYIWADRIVE,ABELENKPEP O BOX GP 242ACCRA

…………………………...2017


STATEMENTOFFINANCIALPOSITIONAS AT 31 DECEMBER Note 2016 2015 GH¢ GH¢AssetsCashandcashequivalents 16 32,319,743 13,115,957Investmentsecurities 17 45,295,441 25,992,859Duefromrelatedparty 18 3,663,269 3,663,269Loanstocustomers 19 86,641,194 89,684,649Propertyandequipment 20 10,169,047 13,849,751Intangibleassets 21 3,298,594 753,167Deferredtaxassets 22 - 4,723Otherassets 23 10,667,418 8,244,969

Total assets 192,054,706 155,309,344

Liabilities

Customers’deposits 24 124,704,293 98,741,874Borrowings 26 19,630,975 16,828,172Grants 27 5,929,195 2,849,028Currenttaxliabilities 14(a) 974,667 94,802Deferredtaxliabilities 22 313,745 -Otherliabilities 28 7,459,028 7,377,090

Total liabilities 159,011,903 125,890,966 EquityStatedcapital 29(a) 18,637,520 18,637,520Statutoryreserve 29(b) 7,687,438 4,907,111Creditriskreserve 29(b) 1,100,215 855,343Otherreserve 29(b) 1,363,560 294,214Depositforshares 29(b) - 3,005,575Retainedearnings 29(b) 4,254,070 1,718,615

Total Equity 33,042,803 29,418,378Total equity and liabilities 192,054,706 155,309,344

KwameOwusu-BoatengDanielAtoKwaminaMensah

.......................................………. ……....….............…………… DIRECTOR DIRECTORThefinancialstatementsoftheCompanywereapprovedbytheboardofdirectorson30March2017.


STATEMENTOFCOMPREHENSIVEINCOMEFOR THE YEAR ENDED 31 DECEMBER

Note 2016 2015 GH¢ GH¢Interestincome 7 59,718,878 52,026,544Interestexpense 7 (11,230,706) 7,239,827)Net interest income 48,488,172 44,786,717

Other operating income 8 12,484,292 7,492,215Other income 9 2,457,165 4,519,016

Net trading and other income 14,941,457 12,011,231

Revenue 63,429,629 56,797,948

Impairmentlossonfinancialassets 10 (3,269,947) (2,362,465)Personnelexpenses 11 (25,599,831) (26,809,184)Occupancycosts 12 (1,629,499) (1,504,810)Depreciationandamortization 20(a) (4,024,549) (3,440,026)Otherexpenses 13 (20,537,594) (19,329,086)

Profit before income tax 8,368,209 3,352,377

Incometaxexpense 14 (2,807,555) (1,483,904)

Profit after tax attributable to equity 5,560,654 1,868,473holders of the Company

Other comprehensive income, net of tax ‑ ‑

Total comprehensive income attributable 5,560,654 1,868,473to equity holders of the Company


STATEMENTOFCHANGESINEQUITYFOR THE YEAR ENDED 31 DECEMBER Stated Deposit Other Statutory Credit risk Retained Total Capital for Share Reserve Reserve Reserve Earnings GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢Balance as at 15,396,725 3,240,795 294,214 3,972,874 773,319 866,403 24,544,3301 January 2015Profitfortheyear - - - - - 1,868,473 1,868,473Transferfrom - - - - 82,024 (82,024) -credit risk reserve

Transferto - - 934,237 - (934,237) - -statutory reserve

Net transfers - - - 934,237 82,024 (1,016,261) -to reserves

Transferfrom 3,240,795 (3,240,795) - - - - -deposit for shares

Depositforshares - 3,005,575 - - - - 3,005,575

Total transactions 3,240,795 (235,220) - - - - 3,005,575with owners of the Company

Balance at 18,637,520 3,005,575 294,214 4,907,111 855,343 1,718,615 29,418,37831 December 2015

Balance at 18,637,520 3,005,575 294,214 4,907,111 855,343 1,718,615 29,418,3781 January 201

Profitfortheyear - - - - - 5,560,654 5,560,654

Regulatory and other reserves transfers

Transfertocreditriskreserve - - - - 244,872 (244,872) -Transfertostatutoryreserve - - - 2,780,327 - (2,780,327) -Nettransferstoreserves - - - 2,780,327 244,872 (3,025,199) -

Transactions with owners of the Company

Transfertoborrowings - (3,005,575) - - - -(3,005,575)(Note26)Fairvaluemeasurement - - 1,069,346 - - - 1,069,346on related party borrowings(Note26)

Total transactions - (3,005,575) 1,069,346 - - - (1,936,229)with owners of the Company

Balance at 8,637,520 - 1,363,560 7,687,438 1,100,215 4,254,070 33,042,80331 December 2016


STATEMENTOFCASHFLOWSFOR THE YEAR ENDED 31 DECEMBER Note 2016 2015 GH¢ GH¢

Profitaftertax 5,560,654 1,868,473Adjustments for:Depreciationandamortization 20(a) 4,024,549 3,440,026Netimpairmentlossonfinancialassets 10 3,269,947 2,362,465Netinterestincome 7 (48,488,172) (44,786,717)Profitondisposalofpropertyequipment 20(b) (125,160) (95,001)Deferredgrantsreleasedtoincome 27 (913,441) (3,223,470)Writeoffsofcashshortageandotheraccounts 291,415 8,170Assetswrite-offofintangibleasset 20 4,720 -Incometaxexpense 14 2,807,555 1,483,904 (33,567,933) (38,942,150)Changes in:Investmentsecurities (14,511,647) (1,940,395)Loanstocustomers 613,981 (1,880,059)Otherassets (3,262,922) (2,999,257)Duefromrelatedparty - (2,064,052)Customerdeposits 25,962,419 19,747,436Otherliabilities 81,938 3,099,260 (24,684,164) (24,979,217)Interestreceived 7 59,718,878 52,026,544Interestpaid 7 (11,230,706) (7,239,827)Taxespaid 14(a) (886,913) (37,047)Net cash flow from operating activities 22,917,095 19,770,453

Cash flow from investing activities

Acquisitionofpropertyandequipment 20 (1,773,786) (3,949,198)Proceedsfromdisposalofpropertyandequipment 20(b) 188,510 282,584Acquisitionofintangibleassets 21 (765,332) (58,496)Net cash flow used in investing activities (2,350,608) (3,725,110)

Financing activities

Proceedsfromborrowings 26 8,574,729 3,000,000Repaymentsofborrowings 26 (7,906,666) (3,608,633)Grantsreceived 27 3,575,936 785,256Depositsforshares - 1,817,914Net cash flows from financing activities 4,243,999 1,994,537Net increase in cash and cash equivalents 24,810,486 18,039,880Balanceatbeginning 33,899,794 16,679,936Effectofexchangeratefluctuationsoncashandcash (815,765) (820,022)equivalentsheldCashandcashequivalentsat31December 57,894,515 33,899,794Cash and cash equivalents:

Cashandbankbalances 16 32,319,743 13,115,957Investmentsecurities 17,5(C) 25,574,772 20,783,837Cashandcashequivalentsat31December16 57,894,515 33,899,794


NOTESFORMINGPARTOFTHE FINANCIAL STATEMENTS1. Reporting entityOpportunity InternationalSavingsandLoansLimited (theCompany) is a limited liability companyincorporated in Ghana. The address of the Company’s registered office is No. D765/3 KwameNkrumahAvenue,P.O.BoxJT323,Accra.Thefinancialstatementsof theCompanyasat,andfortheyearended31December2016areasstatedinthisreport.TheCompanyisasubsidiaryofOpportunityTransformationInvestments,USA.TheprincipalactivitiescarriedoutbytheCompanyincludetheprovisionofmicrofinance facilities in the formof loansto thegeneralpublic,with theemphasisonlendingtothoseinsocietywithlimitedincomeswhowouldnotordinarilyqualifyforaloanfromatraditionalbank.TheCompanyalsoacceptsdepositsofvarioustypesincludingcurrentaccounts,savingsaccountsandentersintocontractsforfixeddeposits.

2. Basis of accountingThefinancialstatementshavebeenprepared inaccordancewith InternationalFinancialReportingStandards(IFRS).Theywereauthorisedforissuebytheboardofdirectorson30March2017.DetailsoftheCompany’saccountingpoliciesareincludedinNote38.

3. Functional and presentation currencyThesefinancialstatementsarepresentedinGhanaCedi,whichistheCompany’sfunctionalcurrency.

4. Use of judgements and estimatesIn preparing these financial statements, management has made judgements, estimates andassumptions that affect the application of the Company’s accounting policies and the reportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoestimatesarerecognisedprospectively.

(a) Assumptions and estimation uncertaintiesInformationaboutassumptionsandestimationuncertaintiesthathaveasignificantriskofresultinginamaterialadjustmentintheyearended31December2016aresetoutbelowinrelationtotheimpairmentoffinancialinstrumentsandinthefollowingnotes:Note6–determinationoffairvalueoffinancialinstrumentswithsignificantunobservableinputs;andNotes22 (a)– recognitionofdeferredtaxassets:availabilityof future taxableprofitagainstwhichcarryforward tax losses can be used.

Impairment of financial instrumentsAssetsaccountedforatamortisedcostareevaluatedforimpairmentonthebasisdescribedinNote38(g)(vii).

Theindividualcomponentofthetotalallowanceforimpairmentappliestofinancialassetsevaluatedindividuallyforimpairmentandisbasedonmanagement’sbestestimateofthepresentvalueofthecashflowsthatareexpectedtobereceived.Inestimatingthesecashflows,managementmakesjudgementsaboutadebtor’sfinancialsituationandthenetrealisablevalueofanyunderlyingcollateral.Eachimpairedassetisassessedonitsmeritsandmanagementtakesintoconsiderationtherequiredcompulsorysavingsmaintainedbythecustomers.Acollectivecomponentofthetotalallowanceisestablishedforgroupsofhomogeneousloansthatwerenotfoundtobeindividuallyimpaired(loss‘incurredbutnotreported’orIBNR).


Thecollectiveallowanceforgroupsofhomogeneousloansisestablishedusingstatisticalmethodssuchasaformulaapproachbasedonhistoricallossrateexperience.Managementappliesjudgementto ensure that the estimate of loss arrived at on the basis of historical information is appropriately adjusted,whererelevant,toreflectthetypeofproductatthereportingdate.The IBNRallowancecoverscredit losses inherent inportfoliosof loansandadvanceswithsimilarcredit riskcharacteristicswhen there isobjectiveevidence tosuggest that theycontain impaireditemsbuttheindividualimpaireditemscannotyetbeidentified.

Inassessingtheneedforcollectivelossallowance,managementconsidersfactorssuchascreditquality, portfolio size, concentrations and economic factors. To estimate the required allowance,assumptionsaremadetodefinehowinherent lossesaremodelledandtodeterminetherequiredinput parameters, based on historical experience and current economic conditions. The accuracy of theallowancedependsonthemodelassumptionsandparametersusedindeterminingthecollectiveallowance.

5. Financial risk reviewThisnotepresentsinformationabouttheCompany’sexposuretofinancialrisksandtheCompany’smanagementofcapital.

ForinformationontheCompany’sfinancialriskmanagementframework,SeeNote36.

A. Credit risk, collateral given and offsetting: Pagei. Creditqualityanalysis 17ii. Collateral held and other credit enhancements 20iii. Offsettingfinancialassetsandfinancialliabilities 20iv. Concentrations of credit risk 21v. Impaired loans 22

B. Liquidity risk 23i. Exposuretoliquidityrisk 23ii. Maturityanalysisforfinancialassetsandfinancialliabilities 24iii. Liquidityreserves 25iv. Financialassetsavailabletosupportfuturefunding 26v. Financialassetspledgedascollateral 26

C. Market riski. Exposuretointerestraterisk–Non-tradingportfolios 29ii. Exposuretocurrencyrisks–Non-tradingportfolios 30

D. Capital management 31i. Regulatorycapital 31ii. Capital allocation 34

(A) Credit risk ForthedefinitionofcreditriskandinformationonhowcreditriskismanagedbytheCompany,SeeNote36(B).

(i) Analysis of credit qualityThetablesbelowsetoutinformationaboutthecreditqualityoffinancialassetsandtheallowanceforimpairment/lossheldbytheCompanyagainstthoseassets.


Maximum exposure to credit risk Note 2016 2015 GH¢ GH¢

Carryingamount 19 86,641,194 89,684,649

At amortised costGrade6:Substandard 2,176,646 1,727,933Grade7:Doubtful 1,149,948 551,977Grade8:Loss 4,263,257 1,895,950Totalgrossamount 7,589,851 4,175,860Allowanceforimpairment(specific) (4,278,302) (2,075,579)Netcarryingamount 3,311,549 2,100,281

Neither past due nor impairedGrade1–3:Low–fairrisk 83,590,281 87,646,764

Past due but not impairedGrade4–5:Watchlist 561,626 533,115Totalgrossamount 84,151,907 88,179,879Allowanceforimpairment(collective) (822,262) (595,511)Netcarryingamount 83,329,645 87,584,368

Past due 30–60days 2,176,646 1,727,93361-90days 1,149,948 551,97791-120days 669,782 669,087120days+ 3,593,475 1,226,863 7,589,851 4,175,860Individually impaired Grade6:Substandard 2,176,646 1,727,933Grade7:Doubtful 1,149,948 551,977Grade8:Loss 4,263,257 1,895,950 7,589,851 4,175,860Allowance for impairmentIndividual (4,278,302) (2,075,579)Collective (822,262) (595,511)Totalallowanceforimpairment (5,100,564) (2,671,090)

Impaired loansSeeaccountingpolicyinNote38(g)(vii).

TheCompanyregardsaloanandadvanceasimpairedwhenthereisobjectiveevidencethatalosseventhasoccurredsinceinitialrecognitionandthelosseventhasanimpactonfutureestimatedcash


flowsfromtheasset.

A loan that has been renegotiated due to a deterioration in the borrower’s condition is usuallyconsideredtobe impairedunlessthere isevidencethat theriskofnotreceivingcontractualcashflowshasreducedsignificantlyandtherearenootherindicatorsofimpairment.

LoansthataresubjecttoacollectiveIBNRprovisionarenotconsideredimpaired.Impairedloansandadvancesaregraded6to8intheCompany’sinternalcreditriskgradingsystemSeeNotes4(a)and36(B).

Loans that are past due but not impairedLoans that are ‘past due but not impaired’ are those for which contractual interest or principalpayments are past due but the Company believes that impairment is not appropriate on the basis ofthelevelofsecurityorcollateralavailableand/orthestageofcollectionofamountsowedtotheCompany.Theamountsdisclosedexcludeassetsmeasuredatfairvaluethroughprofitorloss.

Loans with renegotiated terms and the Company’s forbearance policySeeaccountingpolicyinNote38(g)(vii).Thecontractualtermsofaloanmaybemodifiedforanumberofreasons,includingchangingmarketconditions, customer retention and other factors not related to a current or potential credit deterioration ofthecustomer.AnexistingloanmaybederecognisedandtherenegotiatedloanrecognisedasanewloanatfairvalueinaccordancewiththeaccountingpolicysetoutinNotes38(g)(vii).

TheCompany renegotiates loans tocustomers in financialdifficulties (referred toas ‘forbearanceactivities’) to maximise collection opportunities and minimise the risk of default. Under the Company’s forbearancepolicy,loanforbearanceisgrantedonaselectivebasisifthedebtoriscurrentlyindefaultonitsdebtorifthereisahighriskofdefault,thereisevidencethatthedebtormadeallreasonableeffortstopayundertheoriginalcontractualtermsandthedebtorisexpectedtobeabletomeettherevised terms.

Therevisedtermsusuallyincludeextendingthematurity,changingthetimingofinterestpaymentsandamendingthetermsofloancovenants.Bothretailandcorporateloansaresubjecttotheforbearancepolicy.

For thepurposesofdisclosures in thesefinancialstatements, ‘loanswith renegotiated terms’aredefinedasloansthathavebeenrestructuredduetoadeteriorationintheborrower’sfinancialposition,forwhichtheCompanyhasmadeconcessionsbyagreeingtotermsandconditionsthataremorefavourable for the borrower than the Company had provided initially and that it would not otherwise consider.Aloancontinuestobepresentedaspartofloanswithrenegotiatedtermsuntilmaturity,earlierrepaymentoruntilitiswrittenoff.

Irrespectiveofwhetherloanswithrenegotiatedtermshavebeenderecognisedornot,theyremaindisclosedasimpaireduntilthereissufficientevidencetodemonstrateasignificantreductionintheriskofnon-paymentoffuturecashflowsandtherearenootherindicatorsofimpairment.

Cash and cash equivalentsTheCompanyheldcashandcashequivalentsofGH¢57,894,515at31December2016(2015:GH¢33,899,794).Thecashandcashequivalentsareheldwithfinancialinstitutions.

(ii) Collateral held and other credit enhancements, and their financial effectTheCompanyholdscollateralandothercreditenhancementsagainstcertainofitscreditexposures.Thetablebelowsetsouttheprincipaltypesofcollateralheldagainstdifferenttypesoffinancialassets.


Type of credit exposure Note 2016 2015 Principal type GH¢ GH¢ of collateral held

Loanstocustomers 19 204,749,035 106,594,849 Compulsorysavings and other properties

Loans to customersThegeneralcreditworthinessofacustomertendstobethemostrelevantindicatorofcreditqualityofa loanextendedtoit (seeNote36(B)).However,collateralprovidesadditionalsecurityandtheCompanygenerallyrequeststhatborrowersprovideit.TheCompanymaytakecollateralintheformofcompulsorysavings.

Other types of collateral and credit enhancementsInadditionto thecompulsorysavingsusedascollateral for loans, theCompanyalsoholdsothertypesofcollateralandcreditenhancementssuchassecondchargesandfloatingchargesforwhichspecificvaluesarenotgenerallyavailable.

Assets obtained by taking possession of collateralTheCompanydidnotholdanyfinancialandnon-financialassetsresultingfromtakingpossessionofcollateralheldassecurityagainstloansandadvancesatthereportingdate.

(iii)OffsettingfinancialassetsandfinancialliabilitiesTheCompanyholdsfinancialassetsandfinancialliabilitiesthataresubjecttoanenforceablenettingarrangementirrespectiveofwhethertheyareoffsetinthestatementoffinancialposition.

Atthereportingdate,customerdepositsbalanceofGH¢15,552,660(2015:GH¢14,293,657)washeldascompulsorysavingsoverloansgrantedtoanumberofcustomers.

(iv) Concentrations of credit riskThe Company monitors concentrations of credit risk by sector. An analysis of concentrations of credit riskfromloansandadvances,lendingcommitments,financialguaranteesandinvestmentsecuritiesis shown below.

Loans to customers 2016 2015 GH¢ GH¢

Carrying amount 86,641,194 89,684,649

Concentration by product:Grouploans 21,344,265 21,006,123Individualloans 10,394,630 11,701,765NkosuoSusuloans 2,879,987 2,468,385Adehyeloans 13,957,581 14,074,175Agricloans 28,697,570 19,483,638Ahotoloans 45,322 58,648Staffloans 4,824,490 6,624,532Small/MediumEnterprise(SME)loans 9,597,913 16,938,473Grossloans 91,741,758 92,355,739Less:Impairment (5,100,564) (2,671,090) 86,641,194 89,684,649


(v) Impaired loansForthedefinitionof‘impairedfinancialasset’,SeeNotes5(A).Fordetailsofimpairmentallowanceforloanstocustomer,SeeNote(b).Setoutbelowisananalysisofthegrossandnet(ofallowanceforimpairment)amountsofindividuallyimpairedloansbyriskgrade.

Loans to customers Gross Net31 December 2016 GH¢ GH¢

Grade6:IndividuallyImpaired 2,176,646 1,577,269

Grade7:IndividuallyImpaired 1,149,948 392,256


Gross amount 7,589,851 3,309,844

31 December 2015

Grade6:IndividuallyImpaired 1,727,933 904,609

Grade7:IndividuallyImpaired 551,977 220,209


Gross amount 4,175,860 2,142,291

Key ratios on loansLoanlossprovisionratiois5.56%(2015:2.89%).Percentage of gross non-performing loans with respect to Bank of Ghana Prudential Norms(specificallyimpaired)tototalgrossloansandadvancesis8.27%(2015:4.52%).Ratiooffifty(50)largestexposure(grossfunded)tototalexposureis0.72%(2015:0.01%).

(B) Liquidity riskForthedefinitionofliquidityriskandinformationonhowliquidityriskismanagedbytheCompany,SeeNote:36(C).

i. Exposure to liquidity riskThekeymeasureusedbytheCompanyformanagingliquidityriskistheratioofnetliquidassetstodeposits from customers.

Forthispurpose,‘liquidassets’ includescash,cashreserveratiobalanceswiththeCentralBank,balanceswithbanks,billspurchased/discountedup to1year, investmentsup tooneyear,swapfunds(sell/buy)uptooneyearandtradableGovernmentnotesandbonds.‘Volatileliabilities’includesdemanddeposits,otherborrowings,DistrictAssemblyCommonFunds(DACF)andallGovernmentsinstruments which could be called at short notice, etc.

DetailsofthereportedCompanyratioofnetliquidassetstodepositsfromcustomersatthereportingdateandduringthereportingperiodwereasfollows.

2016 2015 % %At period end 322 212Averagefortheyear 296 223Maximumfortheyear 350 259Minimumfortheyear 266 187


ii.MaturityanalysisforfinancialassetsandfinancialliabilitiesThetablesbelowsetouttheremainingcontractualmaturitiesoftheCompany’sfinancialliabilities.

Note Carrying Nominal Less than 1‑3 3 months 1‑ 5 amount inflow / 1 month months to 1 year year GH¢ (outflow) GH¢ GH¢ GH¢ GH¢ GH¢31 December 2016

Financial liability by typeNon‑derivative liabilities

Customersdeposits 24 124,704,293 124,704,293 107,632,000 5,751,620 11,320,673 -

Otherliabilities 28 7,459,028 3,200,450 3,200,450 - - -

Borrowings 26 19,630,975 19,630,975 2,038,633 - 10,040,800 7,551,542

151,794,296 147,535,718 112,871,083 5,751,620 21,361,473 7,551,542

31 December 2015

Financial liability by typeNon‑derivative liabilities

Customersdeposits 24 98,741,874 98,741,874 89,827,518 4,376,786 4,537,570 -

Otherliabilities 28 7,377,090 2,718,528 2,718,528 - - -

Borrowings 26 16,828,172 16,828,172 38,633 - 6,240,000 10,549,539

122,947,136 118,288,574 92,584,679 4,376,786 10,777,570 10,549,539

The amounts in the table above have been complied as follows.

Type of financial instrument Basis on which amounts are compiledNon-derivativefinancialliabilitiesandfinancial Undiscountedcashflows,whichinclude assets estimated interest payments.

TheCompany’sexpectedcashflowsonsomefinancialassetsandfinancialliabilitiesvarysignificantlyfromthecontractualcashflows.Forexample,demanddeposits fromcustomersareexpectedtoremainstableor increaseandunrecognised loancommitmentsarenotallexpected tobedrawndown immediately.

Aspartofthemanagementofliquidityriskarisingfromfinancialliabilities,theCompanyholdsliquidassetscomprisingcashandcashequivalents.

Thetablebelowsetsoutthecarryingamountsofnon-derivativefinancialassetsandfinancialliabilitiesexpectedtoberecoveredorsettledmorethan12monthsafterthereportingdate.


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Note 2016 2015 GH¢ GH¢

Financial assets

Loanstocustomers 19 22,810,589 27,265,208Financial liabilitiesBorrowings 26 7,551,542 10,549,539

iii. Liquidity reservesThetablebelowsetsoutthecomponentsoftheCompany’sliquidityreserves.

Carrying Fair value Carrying Fair value amount amount 2016 2016 2015 2015 GH¢ GH¢ GH¢ GH¢ Cashandbalances 10,271,751 10,271,751 7,498,465 7,498,465with other banks

Othercashandcash 22,047,992 22,047,992 5,617,492 5,617,492equivalentsTotalliquidityreserves 32,319,743 32,319,743 13,115,957 13,115,957

iv. Financial assets available to support future fundingThetablebelowsetsouttheavailabilityoftheCompany’sfinancialassetstosupportfuturefunding.

Note Encumbered Unencumbered31 December 2016 Total GH¢ GH¢ GH¢Cashandcashequivalents 16 9,976,343 22,343,400 32,319,743Investmentsecurities 17 - 45,295,441 45,295,441 9,976,343 67,638,841 77,615,184 31 December 2015Cashandcashequivalents 16 7,899,350 5,216,607 13,115,957Investmentsecurities 17 - 25,992,859 25,992,859 7,899,350 31,209,466 39,108,816

EncumberedrepresentsmandatoryreserverequirestobemaintainedbytheCompanybasedontheCentralBank’srequirementsSeeNote16.

v. Financial assets pledged as collateralTheCompanydidnothavefinancialassetspledgedascollateralforliabilitiesatthereportingdate(2015:Nil).

Financialassetsarepledgedascollateralaspartofsecuritisationtransactionsundertermsthatareusual and customary for such activities.

(C) Market riskFor thedefinitionofmarket riskand informationon themetrics (and their limitations)usedby theCompanytomanagethemarketrisksofnon-tradingportfolios,SeeNotes36(D).

The table below sets out the allocation of assets and liabilities subject to market risk.


Note Market risk measure31 December 2016 Carrying Non-trading Amount portfoliosAssets subject to market risk GH¢ GH¢

Cashandcashequivalents 16 32,319,743 32,319,743Investmentsecurities 17 45,295,441 45,295,441Duefromrelatedparty 18 3,663,269 3,663,269Loanstocustomers 19 86,641,194 86,641,194Liabilities subject to market riskCustomersdeposits 24 124,704,293 124,704,293Borrowings 26 19,630,975 19,630,975

31 December 2015Assets subject to market risk

Cashandcashequivalents 16 13,115,957 13,115,957Investmentsecurities 17 25,992,859 25,992,859Loanstocustomers 19 89,684,649 89,684,649Liabilities subject to market risk

Customersdeposits 24 98,741,874 98,741,874Borrowings 26 16,828,172 16,828,172

ThefollowingisasummaryoftheCompany’sinterestrategappositiononnon-tradingportfolios.

Note Carrying Less than 1‑3 3 months 1‑ 5 amount 1 month months to 1 year year GH¢ GH¢ GH¢ GH¢ GH¢31 December 2016

Cashandcashequivalent 16 32,319,743 32,319,743 - - -Investmentsecurities 17 45,295,441 25,574,772 19,720,669 - -Duefromrelatedparty 18 3,663,269 3,663,269 - - -Loanscustomers 19 86,641,194 14,064,367 31,269,572 18,496,666 22,810,589 167,919,647̀ 75,622,151 50,990,241 18,496,666 22,810,589Customersdeposits 24 (124,704,293) (113,383,620) (4,760,293) (6,560,380) -

Borrowings 26 (19,630,975) (2,038,633) (8,040,800) (2,000,000) (7,551,542)

(144,335,268) (115,422,253) (12,801,093) (8,560,380) (7,551,542)

Total interest repricing gap 23,584,379 (39,800,102) 38,189,148 9,936,286 15,259,047

31 December 2015

Cashandcashequivalent 16 13,115,957 13,115,957 - - -

Investmentsecurities 17 25,992,859 20,783,837 5,209,022 - -

Duefromrelatedparty 18 3,663,269 3,663,269 -


Loanstocustomers 19 89,684,649 12,677,852 31,496,400 18,245,189 27,265,208

132,456,734 50,240,915 36,705,422 18,245,189 27,265,208Customersdeposits 24 (98,741,874) (94,204,304) (2,023,070) (2,514,500) -

Borrowings 26 (16,828,172) (38,633) - (6,240,000) (10,549,539)

Total liabilities (115,570,046) (94,242,937) (2,023,070) (8,754,500) (10,549,539)

Total interest repricing gap 16,886,688 (44,002,022) 34,682,352 9,490,689 16,715,669

i. Exposure to interest rate risk – non‑trading portfoliosThemanagementofinterestrateriskagainstinterestrategaplimitsissupplementedbymonitoringsensitivity of theCompany’s financial assets and liabilities to various standard and non-standardinterestratescenarios.Standardscenariosthatareconsideredonamonthlybasisincludea50basispoint (bp) parallel fall or rise in market interest rates.

Anincreaseofa50basispointsininterestratesatthereportingdatewouldhaveimpactedequityandprofit/(loss)bytheamountsshownbelow:

Sensitivity of projected net interest income 2016 2015 GH¢ GH¢At31December 117,922 84,433Sensitivity of reported equity to interest rate movements

At31December 88,441 63,325

Interestratemovementsaffectreportedequityinthefollowingways:retainedearnings–increasesordecreasesinnetinterestincomeandtheeffectofincometax(25%)andNationalStabilisationLevy(5%ofaccountingprofit)reportedinprofitorloss;

Overall non-trading interest rate risk positions aremanaged by Treasury, which uses investmentsecurities and customer deposits to manage the overall position arising from the Company’snon-tradingactivities.

Adecreaseofa50basispointsininterestratesatthereportingdatewouldhavehadtheequalbutoppositeeffectontheamountshownabove,onthebasisthatallothervariablesremainconstant.

ii. Exposure to currency risk – non‑trading portfolios AsatthereportingdatenetcurrencyexposuresformajorcurrenciesoftheCompanyareasfollows:

USD GBP EURO Total GH¢ GH¢ GH¢ GH¢31 December 2016Net foreign currency exposure:

Assets 11,015,718 410,860 7,338 11,433,916Liabilities - - - -Netbalancesheetposition 11,015,718 410,860 7,338 11,433,916

31 December 2015Net foreign currency exposure:Assets 15,252,359 48,107 3,207 15,303,673


Liabilities - - - -Netonbalancesheetposition 15,252,359 48,107 3,207 15,303,673

Thefollowingmidinter-bankexchangerateswereappliedduringtheyear:

Average rate Reporting rateGH¢ to 2016 2015 2016 2015USD1 3.9233 3.7021 4.2002 3.7941GBP1 5.2740 5.7025 5.1965 5.6921EURO1 4.3237 4.1383 4.4367 4.1244

A5%weakeningoftheCediagainstforeigncurrenciesat31December2016wouldhaveimpactedequityandprofit/(loss)bytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.Theanalysisisperformedonthesamebasisfor2015.

2016 2015 Assets Liabilities Total Assets Liabilities Total

Profit/(Loss) 571,696 - 571,696 765,184 - 765,184

Abestcasescenario5%strengtheningoftheGhanaCediagainstforeigncurrenciesat31Decemberwouldhavehadtheequalbutoppositeeffectontheamountshownabove,onthebasisthatallothervariables remain constant.

(D) Capital managementi. Regulatory capitalTheCompany’sregulator,theBankofGhanasetsandmonitorscapitalrequirementsfortheCompanyasawhole.Inimplementingcurrentcapitalrequirements,theBankofGhanarequirestheCompanytomaintainaprescribedratiooftotalcapitaltototalrisk-weightedassets.

TheCompany’sregulatorycapitalisanalysedintotwotiers:Tier 1 capital,alsoreferredtoascore/primarycapitalismadeupofequityanddisclosedreserves.Equityincludesissuedandfullypaidordinarysharecapitalandperpetualnon-cumulativepreferenceshares. Disclosed reserves relate to those created or increased by appropriation of after tax retained earnings/surplus, retainedprofits and general statutory reserves anddoes not include regulatorycredit risk reserve.

Tier 2 capital,alsoreferredtoassupplementary/secondarycapitalincludesrevaluationsreserves,latent revaluation reserves and hybrid capital instruments. Latent revaluation reserves relate to unrealisedgainsonequityinstrumentsclassifiedasavailable-for-sale.Variouslimitsareappliedtoelementsofthecapitalbase.Thequalifyingtier2capitalcannotexceedtier 1 capital.

Risk-weightedassetsaredeterminedaccording tospecified requirements thatseek to reflect thevaryinglevelsofriskattachedtoassetsandoff-balancesheetexposures.

TheCompany’spolicyistomaintainastrongcapitalbasesoastomaintaininvestor,creditorandmarketconfidenceand tosustain futuredevelopmentof thebusiness.The impactof the levelofcapitalonshareholders’returnisalsorecognisedandtheCompanyrecognisestheneedtomaintainabalancebetweenthehigherreturnsthatmightbepossiblewithgreatergearingandtheadvantagesandsecurityaffordedbyasoundcapitalposition.

TheCompanycompliedwiththestatutorycapitalrequirementsthroughouttheperiod.Therehave


beennomaterialchangesintheCompany’smanagementofcapitalduringthisperiod.

ThecapitaladequacyratioisthequotientofthecapitalbaseoftheCompanyandtheCompany’srisk-weightedassetbase.InaccordancewithCentralBankofGhanaregulations,aminimumratioof10%istobemaintained.

ThetablebelowsummarizesthecompositionofregulatorycapitalandratiosoftheCompany. Note 2016 2015 GH¢ GH¢Tier 1 capitalOrdinarysharecapital 29(a) 18,637,520 18,637,520

Disclosed reserves

Statutoryreserve 29(b) 7,687,438 4,907,111Depositforshares 29(b) - 3,005,575Retainedearnings 29(b) 4,254,070 1,718,615Total disclosed reserve 11,941,508 9,631,301 Total qualifying tier 1 capital 30,579,028 28,268,821Less:

Intangibles(prepayments) 23 3,700,643 2,822,929Net tier 1 capital 26,878,385 25,445,892Tier 2 capital - -Total adjusted regulatory capital base 26,878,385 25,445,892

Total assets (less contra items) 192,054,706 155,309,344Less:

Cashonhand(Cedi) 1,514,153 1,485,583Cash on hand (forex) - -ClaimsonBankofGhana:

i.Cediclearingaccountbalance 26,158 14,607

TotalclaimsonBankofGhana 16,23 26,158 14,607Balancecarriedforward 190,514,395 153,809,154Balancebroughtforward 190,514,395 153,809,154ClaimsonGovernment:

i.Treasurysecurities(billsandbonds) - 1,002,375

80%ofchequesdrawnonotherbanks 20,926 11,686Intangibles(prepayments) 23 3,700,643 2,822,92980%ofclaimsonOtherBanksinCedi/forex 60,859,898 29,285,001Adjustedtotalassets 125,932,928 120,687,16350%ofnetopenposition(NOP) - -100%of3yrsaverageannualgrossincome 55,272,805 46,747,458Totalriskweightedassetsbase 181,205,733 167,434,621

Capitaladequacyratio(adjustedregulatorycapital 14.83% 15.20%baseaspercentageofriskweightedassetsbase)

Capitalsurplus 8,757,812 8,702,430


ii. Capital allocation

Theallocationofcapitalbetweenspecificoperationsandactivities is, toa largeextent,drivenbyoptimisation of the return achieved on the capital allocated. The amount of capital allocated to each operationoractivityisbasedprimarilyupontheregulatorycapital,butinsomecasestheregulatoryrequirementsdonotreflectfullythevaryingdegreeofriskassociatedwithdifferentactivities.Insuchcasesthecapitalrequirementsmaybeflexedtoreflectdifferingriskprofiles,subjecttotheoveralllevelofcapital tosupportaparticularoperationoractivitynot fallingbelowtheminimumrequiredfor regulatory purposes. The process of allocating capital to specific operations and activities isundertakenindependentlyofthoseresponsiblefortheoperation,bytheCompany’sRiskManagementand Credit Administration Units, and is subject to review by the Company’s Credit Committee or ALCO as appropriate.

Althoughmaximisationofthereturnonrisk-adjustedcapitalistheprincipalbasisusedindetermininghow capital is allocated within the Company to particular operations or activities, it is not the sole basis usedfordecisionmaking.Accountalsoistakenofsynergieswithotheroperationsandactivities,theavailabilityofmanagementandotherresources,andthefitoftheactivitywiththeCompany’slongertermstrategicobjectives.

TheCompany’spoliciesinrespectofcapitalmanagementandallocationarereviewedregularlybythe Board of Directors.

6. Fair values of financial instrumentsSeeaccountingpolicyinNotes38(g)(vi).

Thefairvaluesoffinancialassetsandfinancialliabilitiesthataretradedinactivemarketsarebasedonquotedmarketpricesordealerpricequotations.Forallotherfinancialinstruments,theCompanydeterminesfairvaluesusingothervaluationtechniques.

For financial instruments that trade infrequently and have little price transparency, fair value isless objective, and requires varying degrees of judgement depending on liquidity, concentration,uncertaintyofmarketfactors,pricingassumptionsandotherrisksaffectingthespecificinstrument.

(a) Valuation modelsThe Company measures fair values using the following fair value hierarchy, which reflects thesignificanceoftheinputsusedinmakingthemeasurements.

Level 1:inputsthatarequotedmarketprices(unadjusted)inactivemarketsforidenticalinstruments.

Level 2:inputsotherthanquotedpricesincludedwithinLevel1thatareobservableeitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).Thiscategoryincludesinstrumentsvaluedusing:quotedmarketpricesinactivemarketsforsimilarinstruments;quotedpricesforidenticalorsimilarinstrumentsinmarketsthatareconsideredlessthanactive;orothervaluationtechniquesinwhichallsignificantinputsaredirectlyorindirectlyobservablefrommarketdata.

Level 3: inputsthatareunobservable.Thiscategoryincludesallinstrumentsforwhichthevaluationtechnique includes inputs not based on observable data and the unobservable inputs have asignificanteffecton the instrument’svaluation.Thiscategory includes instruments thatarevaluedbasedonquotedprices forsimilar instruments forwhichsignificantunobservableadjustmentsorassumptionsarerequiredtoreflectdifferencesbetweentheinstruments.

Valuationtechniquesincludenetpresentvalueanddiscountedcashflowmodels,comparisonwith


similar instruments for which market observable prices exist and other valuation models. Assumptions andinputsusedinvaluationtechniquesincluderisk-freeandbenchmarkinterestrates,creditspreadsandotherpremiausedinestimatingdiscountrates.

Theobjectiveofvaluationtechniquesistoarriveatafairvaluemeasurementthatreflectsthepricethat would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

Availability of observable market prices and model inputs reduces the need for managementjudgementandestimationandalsoreducestheuncertaintyassociatedwithdeterminingfairvalues.Availabilityofobservablemarketpricesandinputsvariesdependingontheproductsandmarketsandispronetochangesbasedonspecificeventsandgeneralconditionsinthefinancialmarkets.

(b) Financial instruments measured at fair value – fair value hierarchyAtthereportingdate,theCompanydidnotcarryfinancialinstrumentsthataremeasuredatfairvalue.

(c) Financial instruments not measured at fair value

Thefollowingtablesetsoutthefairvaluesoffinancial instrumentsnotmeasuredat fairvalueandanalyses them by the level in the fair value hierarchy into which each fair value measurement is categorised.

31 December 2016 Note Level 1 Level 2 Level 3 Total

Assets

Cashandcashequivalents 16 - 32,319,743 - 32,319,743Held-to-maturityinvestmentsecurities 17 - 45,295,441 - 45,295,441Duefromrelatedparty 18 - 3,663,269 - 3,663,269Loanstocustomers 19 - 86,641,194 - 86,641,194 - 167,919,647 - 167,919,647Liabilities

Customersdeposits 24 - 124,704,293 - 124,704,293Borrowings 26 - 19,630,975 - 19,630,975 - 144,335,268 - 144,335,268

7. Net interest income SeeaccountingpolicyinNotes38(b). 2016 2015 GH¢ GH¢Interest incomeIndividualloans 7,874,279 7,357,225Grouploans 17,822,606 17,152,041Susuloans 1,738,609 1,309,074SMEloans 15,604,128 12,055,212Agricloans 4,100,999 3,304,704Adehyeloans 11,291,271 10,481,671Ahotohousingloans 474,131 39,333Others 812,855 327,284Totalinterestincome 59,718,878 52,026,544


Interest expenseSavings 2,223,085 1,242,325Fixeddeposits 4,796,501 1,737,014Borrowings 4,211,120 4,260,488Totalinterestexpense 11,230,706 7,239,827Netinterestincome 48,488,172 44,786,717

8. Other operating incomeSeeaccountingpolicyinNotes38(c).SeeaccountingpolicyinNote:38. 2016 2015 GH¢ GH¢Interestonaccountswithlocalbanks 64,550 70,311Interestoncallaccount 1,226,543 842,366Interestoninvestments 9,456,482 5,031,758Moneytransfercommissions 547,362 300,423Feesandcommissions 1,189,355 1,247,357 12,484,292 7,492,215

9. Other incomeSeeaccountingpolicyinNotes38(a),(g)(iii). 2016 2015 GH¢ GH¢

Deferredgrantreleased(Note27) 913,441 3,223,470Netexchangegains 885,334 538,930Profitondisposalofpropertyandequipment(Notes20(b)) 125,160 95,001Sundryincome 533,230 661,615 2,457,165 4,519,016

10.Netimpairmentlossesonfinancialassets SeeaccountingpolicyinNotes38(i). 2016 2015 GH¢ GH¢Specificimpairment(reversal)/loss 2,202,723 (477,508)Collectiveimpairmentloss 226,751 34,061Otherreceivables 840,473 51,757Directwriteoff - 2,754,155Netimpairmentlossonfinancialassets 3,269,947 2,362,465

11. Personnel expenses SeeaccountingpolicyinNotes38(o). 2016 2015 GH¢ GH¢Wagesandsalaries 14,671,391 16,419,422Compulsorysocialsecurityobligations 1,747,911 1,815,013Contributiontodefinedcontributionplan 1,357,811 1,304,099Otherstaffcost 7,822,718 7,270,650 25,599,831 26,809,184 Executivedirector’semolumentsincludedinpersonnelexpensesamountedtoGH¢500,183(2015:GH¢414,004).ThenumberofpersonsemployedbytheCompanyattheendoftheyearwas700(2015:768).


12. Occupancy costsThisrepresentscostoftheCompany’sofficeoccupationsanditsoccupancyrelatedexpenses.

13. Other expensesSeeaccountingpolicyinNote:38. 2016 2015 GH¢ GH¢

Advertisingandmarketingexpenses 1,045,830 802,901Administrativeexpenses 16,318,879 14,243,538Technicalandmanagementfees 1,865,595 3,372,807Directors’emolumentsandexpenses(non-executive) 246,000 220,514Professionalexpenses 736,366 415,950Auditors’remuneration 259,875 225,000Donationsandsponsorship 65,049 48,376 20,537,594 19,329,086

AnamountofGH¢65,049 (2015:GH¢48,376)was spent aspart of social responsibility of theCompany.

14. Income tax expenseSeeaccountingpolicyinNotes38(f). 2016 2015 GH¢ GH¢Amountsrecognisedinstatementofcomprehensiveincome

Currentyearincometax-SeeNote(a)below 2,489,087 466,801Deferredtaxcharge/(recovery)-SeeNotes22(a) 318,468 1,017,103 2,807,555 1,483,904

(a) Income taxSeeaccountingpolicyinNotes38(f).Balanceat Payments Charge for Balance at 1/1/2016 during the year the year 31/12/2016 GH¢ GH¢ GH¢ GH¢Income tax2012-2014 - 15,867 (15,867) -2015 - - - -2016 - (1,334,027) 2,064,488 730,461

- (1,318,160) 2,048,621 730,461Nationalstabilisationlevy

2014 (68,997) - - (68,997)2015 163,799 (94,802) - 68,9972016 - (196,260) 440,466 244,206 94,802 (291,062) 440,466 244,206Total 94,802 (1,609,222) 2,489,087 974,667

TaxpaymentsismadeofcashpaymentsofGH¢886,913andutilisationoftaxcreditofGH¢722,309.


(b) Reconciliation of effective tax rate 2016 2016 2015 2015 % GH¢ % GH¢Profitbeforetax 8,368,209 3,352,377

Incometaxusingdomestictaxrate 25.00 2,092,052 25.00 838,094Nationalstabilisationlevy 5.00 418,410 5.00 167,619Non-deductibleexpenses (0.14) (11,563) (22.34) (748,859)Taxincentives (1.51) (126,277) (2.66) (89,235)Originationandreversaloftemporarydifferences 3.81 318,468 30.34 1,017,103Under/(over)providedinprioryears (0.19) (15,867) 8.92 299,182Tax expenses 31.97 2,675,223 44.26 1,483,904

15. Classification of financial assets and financial liabilitiesSeeaccountingpolicyinNotes38(g)(ii),(g)(iii).

Note Trading Design’d Held‑to‑ Loans & Other Total Fair at fair maturity receivables amort’d carrying value value cost amount GH¢ GH¢ GH¢ GH¢ GH¢31 December 2016

Cashandcash 16 - - - 32,319,743 - 32,319,743 32,319,743equivalentsInvestmentsecurities 17 - - 45,295,441 - - 45,295,441 44,001,687Duefromrelatedparty 18 - - - 3,663,269 -3,663,269 3,663,269Loanstocustomers 19 - - - 86,641,194 - 86,641,194 81,206,182Total assets - - 45,295,441 122,624,206 -167,919,647 161,190,881

Customersdeposits 24 - - - - 124,704,293124,704,293 124,704,293Borrowings 26 - - - - 19,630,975 19,630,975 19,630,975

Total liabilities - - - - 144,335,268144,335,268 144,335,268 31 December 2015Cashandcashequivalents 16 - - - 13,115,957 - 13,115,957 13,115,957Investmentsecurities 17 - - 25,992,859 - - 25,992,859 25,992,859

Duefromrelatedparty 18 - - - 3,663,269 -3,663,269 3,663,269Loanstocustomers 19 - - - 89,684,649 -89,684,649 89,684,649Total assets - - 25,992,859 106,463,875 -132,456,734 132,456,734

Customersdeposits 24 - - - - 98,741,874 98,741,874 98,741,874Borrowings 26 - - - - 16,828,172 16,828,172 16,828,172

Total liabilities - - - - 115,570,046115,570,046 115,570,046


16. Cash and cash equivalentsSeeaccountingpolicyinNotes38(h). 2016 2015 GH¢ GH¢

Cashonhand 1,514,153 1,485,583BalanceswithotherlocalBanks 10,271,751 7,498,465Itemsincourseofcollection 26,158 14,607Callaccount 20,507,681 4,117,302 32,319,743 13,115,957

TheCompany is required by theCentral Bank tomaintain amandatory ratio of liquid assets todepositsof8%(2015:8%)amountingtoGH¢9,976,343(2015:GH¢7,899,350).Itemsincourseofcollectionarenon-interest-bearing.

17. Investments securities SeeaccountingpolicyinNotes38(j). 2016 2015 GH¢ GH¢Fixeddeposits 45,295,441 24,990,484Treasurybills - 1,002,375Total 45,295,441 25,992,859

TreasurybillsareissuedbytheGovernmentofGhanaandareclassifiedasheldtomaturityandcarriedatamortisedcost.Atthereportingdate,anamountofGH¢45,295,441(2015:GH¢25,992,859)ofinvestment balance was due to mature within the next twelve (12) months.

18. Due from related partySeeaccountingpolicyinNotes38(i).

Atthereportingdate,anamountofGH¢3,663,269(2015:GH¢-)representingbalanceduefromOpportunityTransformationInvestments.AlsoseeNote33(a).Thebalanceatthereportingdateisdue within the next twelve (12) months.

19. Loans to customersSeeaccountingpolicyinNotes38(i). 2016 2015 GH¢ GH¢

Loanstocustomersatamortisedcost 91,741,758 92,355,739Lessallowanceforimpairment (5,100,564) (2,671,090)Loanstocustomersatamortisedcost 86,641,194 89,684,649

(a) Loans to customers at amortised cost

Gross Impairment Carrying Gross Impairment Carrying amount allowance amount amount allowance amount 2016 2016 2015 2015 2015 2015

Individualcustomers 81,918,169 (3,928,058) 77,990,111 74,580,494 (2,067,883) 72,512,611

Small/MediumEnterprise(SME)loans 9,823,589 (1,172,506) 8,651,083 17,775,245 (603,207) 17,172,038Totalloanstocustomers 91,741,758 (5,100,564) 86,641,194 92,355,739 (2,671,090) 89,684,649


(b) Allowances for impairment 2016 2015 GH¢ GH¢Specific allowances for impairmentBalanceatthebeginningoftheyear 2,075,579 2,553,087Charge/(reversal)fortheyear 2,202,723 (477,508)Balance at 31 December 4,278,302 2,075,579

Collective allowances for impairment

Balanceatthebeginningoftheyear 595,511 561,450Chargefortheyear 226,751 34,061Balance at 31 December 822,262 595,511

Total allowances for impairment 5,100,564 2,671,090

20. Property and equipmentSeeaccountingpolicyinNotes38(k).

Renov’n Furniture Equipm’ts Motor Capital Total & reconst’n & fittings vehicles work in progress GH¢ GH¢ GH¢ GH¢ GH¢ GH¢CostBalancesat1January2015 4,133,412 2,308,343 9,055,707 4,122,853 4,082,965 23,703,280Acquisitions 15,032 479,127 1,024,310 904,370 1,526,359 3,949,198Transfers 776,036 84,597 920,210 211,774 (2,024,539) (31,922)Reclassifications** - - - - (230,824) (230,824)Disposals - (72,738) (189,504) (312,418) - (574,660)Write-offs - - - - (16,925) (16,925)

Balance at 31 December 2015 4,924,480 2,799,329 10,810,723 4,926,579 3,337,036 26,798,147Balanceat1January2016 4,924,480 2,799,329 10,810,723 4,926,579 3,337,036 26,798,147Acquisitions*** 75,393 222,573 1,109,450 674,710 109,332 2,191,458Transfers 58,376 608 610,924 -(3,263,936) (2,594,028)Disposals - (21,488) (133,319) (134,819) - (289,626)

Balance at 31 December 2016 5,058,249 3,001,02212,397,778 5,466,470 182,432 26,105,951Depreciation

Balances at 1 January 2015 1,675,924 1,697,636 4,913,231 1,986,783 - 10,273,574Depreciationfortheyear 413,870 259,785 1,535,871 852,373 - 3,061,899Releasedondisposal - (72,738) (188,553) (125,786) - (387,077)Balanceat31December2015 2,089,794 1,884,683 6,260,549 2,713,370 - 12,948,396Balanceat1January2016 2,089,794 1,884,683 6,260,549 2,713,370 - 12,948,396Depreciationfortheyear 415,612 310,821 1,700,147 788,204 - 3,214,784Releasedondisposal - (21,488) (89,603) (115,185) - (226,276)

Balance at 31 December 2016 2,505,406 2,174,016 7,871,093 3,386,389 - 15,936,904

Carrying amountsBalances at 1 January 2015 2,457,488 610,707 4,142,476 2,136,070 4,082,965 13,429,706Balance at 31 December 2015 2,834,686 914,646 4,550,174 2,213,209 3,337,036 13,849,751Balance at 31 December 2016 2,552,843 827,006 4,526,685 2,080,081 182,432 10,169,047

Therewerenocapitalisedborrowingcostsrelatedtotheacquisitionofplantandequipmentduringtheyear(2015:Nil).


**The balance reclassified represents a cost of leasehold land that was purchased in 2014 andsubsequentlyreversedin2015toaccountspayable.TheCompanysignedacontracttothiseffectandassuch,afinancial liabilityexistedasattheyearended2014.Thecorrespondingassetwascapitalised in work in progress pending formalisation of legal title and a corresponding liabilityrecognised inaccountspayable.TheCompanyencountereddifficultieswithobtaininga legal titlesubsequenttothesigningofthecontractandoptedoutthetransaction.

***Additionsin2016ismadeofcashcomponentofGH¢1,773,786andgrantscomponentofGH¢417,672(SeeNote27).

Therewerenocapitalisedborrowingcostsrelatedtotheacquisitionofplantandequipmentduringtheyear(2015:Nil).

(a) Depreciation and amortisation expense 2016 2015 GH¢ GH¢Propertyandequipment (Note20) 3,214,784 3,061,899Intangibleasset (Note21) 809,765 378,127 4,024,549 3,440,026

(b)Profitondisposal 2016 2015 GH¢ GH¢Cost 289,626 574,660Accumulateddepreciation (226,276) (387,077)Carryingamount 63,350 187,583Proceedsfromdisposal (188,510) (282,584)Profitondisposal (125,160) (95,001)

21. Intangible assetSeeaccountingpolicyinNotes38(l). 2016 2015 GH¢ GH¢CostBalanceat1January 3,286,795 3,196,377Acquisitions 765,332 58,496Write-offs (4,720) -Transfers 2,594,028 31,922Balance at 31 December 6,641,435 3,286,795

Amortisation

Balanceat1January 2,533,628 2,155,501Amortisationfortheyear 809,765 378,127Releasedonwrite-offs (552) -Balanceat31December 3,342,841 2,533,628

Carrying amount

Balanceat1January 753,167 1,040,876Balanceat31December 3,298,594 753,167

Therewerenocapitalisedborrowingcostsrelatedtotheacquisitionof intangibleassetduringtheyear(2015:Nil).


22. Deferred tax assets and liabilitiesSeeaccountingpolicyinNotes38(f).

Deferredtaxassetsandliabilitiesareattributabletothefollowing:

Assets Liabilities 2016 Assets Liabilities 2015 Net Net GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Property,equipmentandsoftware - (519,309) (519,309) - (310,553) (310,553)Allowancesforloanlosses 205,564 - 205,564 315,276 - 315,276Nettaxassets/(liabilities) 205,564 (519,309) (313,745) 315,276 (310,553) 4,723

(a) Movements in temporary differences during the year

Balance at 1 Recogn’d in Recogn’d in Balance at January profit and comprehensive 31 December loss income GH¢ GH¢ GH¢ GH¢Property,equipmentandsoftware (310,553) (208,756) - (519,309)Allowancesforloanlosses 315,276 (109,712) - 205,564 4,723 (318,468) - (313,745)

For the year ended 31 December 2015

Property,equipmentandsoftware 716,263 (1,026,816) - (310,553)Allowancesforloanlosses 305,563 9,713 - 315,276 1,021,826 (1,017,103) - 4,723

Recognised and unrecognised deferred tax assetsRecognitionofdeferredtaxassetsofGH¢-(2015:GH¢4,723)isbasedonmanagement’sprofitforecasts(whicharebasedontheavailableevidence,includinghistoricallevelsofprofitability),whichindicatesthat it isprobablethat theCompanywillhave futuretaxableprofitsagainstwhichtheseassets can be utilised.

23. Other assets 2016 2015 GH¢ GH¢Prepayments-lease 2,283,558 1,938,787Otherprepayments 1,417,085 884,142WesternUnionMoneyTransferpayments 125,525 310,835Accruedinterestreceivable 6,470,111 3,187,747MTNMobileMoney 522,802 339,595Moneygrampayments 138,791 569,664Inventories 200,060 117,786Others 1,015,560 1,562,014 12,173,492 8,910,570

Impairmentallowanceforinterestreceivables (1,506,074) (665,601) 10,667,418 8,244,969Current 8,776,375 6,777,407Non-current 1,891,043 1,467,562 10,667,418 8,244,969


24. Customer depositsSeeaccountingpolicyinNotes38(n).

Currentaccounts 24,066,724 18,483,022Regularsavings 55,085,806 47,385,995Staffsavings 328,247 316,290Sususavings 5,494,337 5,680,356Fixedtermdeposits 24,176,519 12,582,554Specialsavings 2,541 4,508Compulsorysavings 15,550,119 14,289,149 124,704,293 98,741,874

Ratioof20largestdepositorstototaldeposits 0.15% 0.12%

WiththeexceptionofSusuLoanclients,allloanclientsarerequiredtoaccumulateatleast10%oftheamountofloanappliedforasCompulsorySavingsatthetimeofloandisbursement.Thisistopromotesavingscultureamongmicroborrowersandalsotoserveasadditionalcollateralagainstloandefaults.Therearerestrictionsontheabilityofaborrowertodrawontheirsavings.Asat31December2016therewere470,880voluntarysavers(2015:447,308).

25. Bank overdraftTheCompanyhasthefollowingunsecuredoverdraftfacilitieswithlocalbanksatthereportingdate:Limit 2016 2015 GH¢ GH¢

EcobankGhanaLtd.(Baserate+2%,pasubjecttoperiodicreview). - 3,000,000Expiredon30September2016andsecuredbyanundertakingtomaintainaninvestmentbalanceofnotlessthanGH¢800,000.

EcobankGhanaLtd.(creditcardlineat5.833%pa).Expiredon - 94,85330September2016.CALBankLimited(attheBank’sCediBaserateof29.5%p.a.). 3,000,000 -Expireson19February2017andsecuredbyanegativepledge.Totalfacilitylimitandamountunutilised 3,000,000 3,094,853

26. Borrowings 2016 2015SeeaccountingpolicyinNote:38and(o). GH¢ GH¢

Borrowingsatamortisedcostcompriseof:

Fallingduewithin1year 12,079,433 6,278,633Fallingdueafter1year 7,551,542 10,549,538 19,630,975 16,828,171Reconciliationofborrowingbalance

Balanceat1January 16,828,172 20,336,697Additionsduringtheyear 8,574,729 3,000,000 25,402,901 23,336,697Repaymentsduringtheyear (7,906,666) (3,608,633)Conversionfrom/(to)depositforshares/equity 3,005,574 (1,190,292)Conversiontogrant - (2,365,398)Fairvalueofequityportionofborrowingsrecognisedintheyear (1,068,973) -Unwindingofinterest 198,139 105,937Exchangedifference - 549,861Balance at 31 December 19,630,975 16,828,172


Lender Amount Grant Maturity Contr’l Balance Balance (‘000) date date interest at 2016 at 2015 rate GH¢ GH¢AgroEco-LouisBolkInstitute USD25 18/11/2011 18/11/2012 12.50% 38,633 38,633 RevolvingWholesaleMicrofinance GHS2,000 27/07/2011 27/01/2017 15.00% 2,000,000 2,000,000WholesaleMicrofinance GHS2,000 31/12/2014 24/12/2017 27.72% 2,000,000 2,000,000SymbioticsSA GHS8,122 16/11/2016 16/11/2017 24.50% 8,040,800 -Oikocredit GHS5,000 29/10/2014 28/10/2019 22.77% 4,882,873 6,549,539Responsability GHS6,240 19/09/2013 19/09/2016 21.25% - 6,240,000OpportunityInternational-UK GHS3,005 01/08/2016 01/08/2018 -% 2,136,993 -OpportunityInternational-UK GHS534 03/11/2016 03/11/2018 -% 531,676 - 19,630,975 16,828,172

27. GrantsSeeaccounting CIDA Gates/ OI ‑ UK WEBERG OI US John 2016 2015policyinNotes GH¢ Master Project GH¢ Project Deere GH¢ GH¢38(d). Card GH¢ GH¢ GH¢

Balat1Jan. 1,024,737 455,825 446,404 922,062 - - 2,849,028 1,803,340

Fundsreceived - 110,779 1,724,224 147,116 1,453,899 557,590 3,993,608 4,269,158

1,024,737 566,604 2,170,628 1,069,178 1,453,899 557,590 6,842,636 6,072,498

Rel’dtoincome (370,181) (199,203) (181,200) (75,801) (87,056) - (913,441) (3,223,470)

Balat31Dec. 654,556 367,401 1,989,428 993,377 1,366,843 557,590 5,929,195 2,849,028

FundsreceivedintheyearismadeofcashcomponentofGH¢3,575,936andequipmentcomponentofGH¢417,672.Grantsareforspecificcapitalassetsandamortisedovertheusefullivesofthoseassets.

28. Other liabilities SeeaccountingpolicyinNote:38and(o). 2016 2015 GH¢ GH¢

Loansdrawdown 16,273 62,745Interestpayable 2,066,076 1,654,109Accruedexpenses 2,111,567 2,005,159Otherpayables 3,265,112 3,655,077

7,459,028 7,377,090Current 7,459,028 7,377,090Non-current - - 7,459,028 7,377,090

29. Capital and reservesSeeaccountingpolicyinNotes38(p)(a) Share capital 2016 2016 2015 2015 No. of Proceeds No. of Proceeds Shares GH¢ Shares GH¢AuthorisedOrdinarySharesofnoparvalue 1,000,000,000 - 1,000,000,000 -

Issued and fully paidIssuedforcashconsideration 176,646,823 17,664,682 176,646,823 17,664,682Issuedforconsiderationotherthancash 9,728,370 972,837 9,728,370 972,837Issuedforcashconsideration 186,375,193 18,637,519 186,375,193 18,637,519


Reconciliation of stated capital

Balanceat1January 186,375,193 18,637,519 153,967,247 15,396,724Transferredfromdepositsforshares - - 32,407,946 3,240,795Balanceat31December 186,375,193 18,637,519 186,375,193 18,637,519

(b) Nature and purpose of reserves

Retained earningsThis represents the residual of cumulative annual profits that are available for distribution toshareholders.

Statutory reserveThisrepresentsamountssetasideasanon-distributablereservefromannualprofitsinaccordancewithsection29oftheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738)andguidelinesfromtheCentralBank.

Credit risk reserveThisisareservecreatedtosetasidetheexcessbetweenamountsrecognizedasimpairmentlossonloans based on provisions made for bad and doubtful loans and advances calculated in accordance withIFRSandtheCentralBank’sprudentialguidelines.

Other reserveThis represents the excess of borrowing proceeds over fair value measurement of borrowingsobtained from related parties at concessionary interest rates.

Deposit for shares Depositsforsharesrelatestofundsdepositedbysomeexistingshareholdersinrespectofshareofferfrom the Company.

30. DividendsTheCompanydidnotdeclaredividendforthefinancialyearended31December2016(2015:Nil).

31. LeasingTheCompanyleasesvariousoffices,branchesandotherpremisesundernoncancelableoperatingleasearrangements.Theleaserentalsarepaidinadvanceandamortisedonastraightlinebasisovertheleaseperiod.Theoutstandingbalanceisaccountedforasaprepaymentinotherassets.Therewerenocontingentrentspayable.

Noncancelableoperatingleaserentalsarepayableasfollows: 2016 2015 GH¢ GH¢

Lessthanoneyear 392,515 471,225Betweenoneandfiveyears 1,582,177 1,130,641Morethanfiveyears 308,866 336,921 2,283,558 1,938,787

32. Contingencies(a) Claims and litigationsLitigationandclaimsinvolvingtheCompanyamountedtoGH¢441,100asat31December2016(2015:Nil).


(b) Contingent liabilities and commitmentsThe conduct of the Company’s business does not involve acceptance and performance bonds and indemnities.

(c) Commitments for capital expenditureAt31December2016,theCompany’scommitmentforcapitalexpenditurewasGH¢Nil-(2015:GH¢347,350).

33. Related partiesParties are considered to be related if one party has the ability to control the other party or exercise influenceovertheotherpartyinmakingfinancialandoperationaldecisions,oroneotherpartycontrolsboth.ThedefinitionincludesmembersoftheOpportunityTransformationInvestmentsGroup.

(a) Parent and associated companiesThe parent company, which is also the ultimate parent company, is Opportunity Transformation Investments(OTI).TransactionsbetweenOTIandthesubsidiariesalsomeetthedefinitionofrelatedpartytransactions.Duringtheyearended31December2016,theCompanytransactedthefollowingbusinesswiththeparentandassociatedcompanies:

i . Transactions with associated companies during the year were:

Associated company

Nature of transaction 2016 2015 GH¢ GH¢

OpportunityTransformationInvestments OInetworkexpenses 55,372 127,723

OpportunityTransformationInvestments OInetworksubscription 1,865,595 781,823

OpportunityTransformationInvestments Technicalmanagementfee - 2,590,984

1,920,967 3,500,530

ii Balances with associated companies as at the reporting period were:

AlsoseeSeeNote26forrelatedpartyborrowingbalances.

Associated company Nature of transaction 2016 2015 GH¢ GH¢

OpportunityTransformationInvestments Advancesreceivable 3,663,269 3,663,269

(b) Transactions with key management personnelTheCompany’skeymanagementpersonnel,andpersonsconnectedwiththem,arealsoconsideredtoberelatedpartiesfordisclosurepurposes.Thedefinitionofkeymanagementincludestheclosemembersoffamilyofkeypersonnelandanyentityoverwhichkeymanagementexercisecontrol.ThekeymanagementpersonnelhavebeenidentifiedastheexecutiveandnonexecutivedirectorsoftheCompany.Closemembersoffamilyarethosefamilymemberswhomaybeexpectedtoinfluence,orbeinfluencedbythatindividualintheirdealingswithOpportunityTransformationInvestments.

Key management personnel and their immediate relatives have the following outstanding loanbalanceswiththeCompanyatthereportingperiod:


2016 2015 GH¢ GH¢Executiveofficers 222,330 256,101Officersandotheremployees 4,715,598 6,368,431 4,937,928 6,624,532

(c) Shareholders

2016 2015No Name No. of Holding (%) No. of Holding (%) shareholding shareholding

1.OpportunityTransformation 141,551,784 75.9499 131,823,419 70.7301 Investment Inc. 2.OIKOCREDITUA 14,633,653 7.8517 14,633,653 7.85173.SinapiAbaTrust - - 9,728,365 5.21984.OpportunityMicrofinance 10,497,686 5.6326 10,497,686 5.6326 Investment Ltd. 5.ElaineMcKay 4,041,549 2.1685 4,041,549 2.16856.OpportunityInternational-Canada 11,791,997 6.3270 11,791,997 6.32707.Inter-churchOrganisationfor 1,559,144 0.8366 1,559,144 0.8366 Dev’t Co-op 8.Others 2,299,380 1.2337 2,299,380 1.2337

Total 186,375,193 100.000 186,375,193 100.000

34. Comparative informationThecomparative informationhavebeen reclassified,where applicable, to conform to the currentyear’s presentation.

35. Subsequent eventsEventssubsequenttothereportingdatearereflectedinthefinancialstatementsonlytotheextentthattheyrelatetotheyearunderconsiderationandtheeffectismaterial.Therewerenosubsequenteventsatthereportingdateandat31December2015.

36. Financial risk management(A) Introduction and overviewTheCompany’sactivitiesexposethebusinesstorisks.Theserisksaremanagedprofessionallyandinatargetedmanner.Keyrisksarisingfromcorefunctionsareidentifiedandmeasuredtofacilitatemanaginganddeterminingriskpositionsandcapitalallocations.TheCompanyhasexposuretothefollowingtypesofrisksfromitsuseoffinancialinstruments:•creditrisk•liquidityrisk•marketrisks•operationalrisks

TheCompanycontinuestoassessitsoverallriskmanagementframeworkandgovernancestructure.This note presents information about the Company’s exposure to each of the above risks, the Company’sobjectives,policiesandprocessesformeasuringandmanagingrisk,andtheCompany’smanagementofcapital.


i. Risk management framework

TheBoardofDirectorshasoverallresponsibilityfortheestablishmentandoversightoftheCompany’sriskmanagement framework. TheRiskManagementCommitteeof theBoard is responsible fordevelopingandmonitoringtheCompany’sriskmanagementpoliciesoverspecifiedareas.

TheCompany’sriskmanagementpoliciesareestablishedtoidentifyandanalyzerisksfacedbytheCompany, set appropriate risks limits and controls and monitor risks and adherence to established policies.Riskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditions,productsandservicesoffered.Throughtrainingandsettingofstandardsandprocedures,theCompanyhasdevelopedadisciplinedandreasonablyeffectivecontrolenvironmentinwhichallemployeesunderstandtheirrolesandobligations.

TheCompany’sRiskManagementCommitteeoftheBoardisresponsibleformonitoringcompliancewiththeCompany’sriskmanagementpoliciesandprocedures,andforreviewingtheadequacyoftheriskmanagementframeworkinrelationtorisksfacedbytheCompany.

(B) Credit riskCreditrisk istheriskoffinancial losstotheCompany ifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromtheCompany’sloanstocustomersand investment securities. For riskmanagement reportingpurposes, theCompanyconsiders all elements of credit risk exposure.

i. Settlement riskTheCompany’sactivitiesmaygiverisetoriskatthetimeofsettlementoftransactionsandtrade.Settlementriskistheriskoflossduetothefailureofacompanytohonouritsobligationstodelivercash,securitiesorotherassetsascontractuallyagreed.Forcertaintypesoftransactions,theCompanymitigatesthisriskbyconductingsettlementsthroughaclearingagent (theCompany’sbankers) toensure that a transaction is settledonlywhenbothpartieshavefulfilledtheircontractualsettlementobligations.

ii. Management of credit riskTheCompanystructuresthelevelsofcreditriskitundertakesbyplacinglimitsontheamountofriskacceptedinrelationtooneborrower,orgroupofborrowers,andtoindustrysegments.Suchrisksaremonitoredonarevolvingbasisandsubjecttoannualormorefrequentreview.Limitsonthelevelofcredit risk by product and industry sector are approved by the Board of Directors. Actual exposures againstlimitsaremonitoreddaily.

TheCompanyemploysarangeofpoliciesandpracticestomitigatecreditrisk.Themosttraditionaloftheseisthetakingofsecurityforfundsadvances,whichiscommonpractice.TheCompanyreviewstheacceptabilityofspecificclassesofcollateralforcreditriskmitigation.Theprincipalcollateraltypesforloansare:

Compulsorysavings;

Mortgagesoverresidentialproperties;and

Chargesoverbusinessassetssuchaspremises,inventoryandaccountsreceivable.

(C) Liquidity risk ‘Liquidityrisk’istheriskthattheCompanywillencounterdifficultyinmeetingobligationsassociatedwithitsfinancialliabilitiesthataresettledbydeliveringcashoranotherfinancialasset.


i. Management of liquidity riskTheCompanydefines liquidityrisksastheriskthattheCompanywillencounterdifficultymeetingobligationsassociatedwith financial liabilities thataresettledbydeliveringcashorother financialassets. TheCompanymaintains liquidity limit imposedby its local regulator,BankofGhanaandtheoverall liquidityhasalwaysbeenwithin the regulatory limitofBankofGhana.ALCOmonitorscompliance of all branches to ensure that the Companymaintains optimum liquid assets. TheCompanyaimstobeinapositiontomeetallobligations,repaydepositors,fulfilcommitmentstolendand meet any other commitments.

ALCOreceivesinformationfrombranchesregardingtheliquidityprofileoftheirfinancialassetsandliabilitiesanddetailsofotherprojectedcashflowsarisingfromprojectedfuturebusiness.Treasuryunitthenmaintainsaportfolioofshort-termliquidassets,largelymadeupofshort-termliquidinvestmentsecuritiesandloans,toensurethatsufficientliquidityismaintainedwithintheCompany.

AllliquiditypoliciesandproceduresaresubjecttoreviewandapprovalbyALCO.DailyreportsontheliquiditypositionoftheCompanyissubmittedtoseniormanagementandsummaryreport,includinganyexceptionsandremedialactiontaken,issubmittedregularlytoALCOonmonthlybasis.

(D) Market risks‘Market risk’ is the risk thatchanges inmarketprices–suchas interest rates, foreignexchangerates and credit spreads (not relating to changes in the obligor’s/issuer’s credit standing) – willaffecttheCompany’s incomeorthevalueof itsholdingsoffinancial instruments.TheobjectiveoftheCompany’smarket riskmanagement is tomanage and controlmarket risk exposureswithinacceptableparameterstoensuretheCompany’ssolvencywhileoptimisingthereturnonrisk.

i. Management of market risksTheCompanyrecognizesmarketriskastheexposurecreatedbypotentialchangesinmarketpricesandrates,suchasinterestratesandforeignexchangerates.TheCompany’sexposuretomarketrisk arises principally from customer driven transactions.

OverallauthorityformarketriskisvestedintheALCO.TheRiskManagementunitisresponsibleforthedevelopmentofdetailedriskmanagementpolicies(subjecttoreviewandapprovalbytheBoard’sRisk Committee) and for the day-to-day review of their implementation.

ii. Exposure to other market risks – Non‑trading portfoliosTheprincipalrisktowhichnon-tradingportfoliosareexposedistheriskoflossfromfluctuationsinthefuturecashflowsorfairvaluesoffinancialinstrumentsbecauseofachangeinmarketinterestrates.Interestrateriskismanagedprincipallythroughmonitoringinterestrategapsandbyhavingpre-approvedlimitsforrepricingbands.RiskManagementunitisthemonitoringbodyforcompliancewiththeselimitsandisassistedbyTreasuryinitsday-to-daymonitoringactivities.

(E) Operational riskOperationalriskistheriskofdirectorindirectlossarisingfromawidevarietyofcausesassociatedwiththeCompany’sprocesses,personnel,technologyandinfrastructure,andfromexternalfactorsotherthancredit,marketandliquidityriskssuchasthosearisingfromlegalandregulatoryrequirementsand generally accepted standards of corporate behaviour. Operational risks arise from all of theCompany’soperations.TheCompany’sobjectiveistomanageoperationalrisksoastobalancetheavoidanceoffinanciallossesanddamagetotheCompany’sreputationwithoverallcosteffectivenessand to avoid control procedures that restrict initiative and creativity. The primary responsibility for thedevelopmentand implementationofcontrolstoaddressoperational risk isassignedtoseniormanagementwithineachbusinessunit.


The Company’s Compliance Unit is responsible for establishing and maintaining an appropriateframework of the Company’s compliance policies and procedures. This responsibility is supported by thedevelopmentofoverallCompanystandards for themanagementofoperational risk in thefollowingareas:

•requirementsforappropriatesegregationofduties,•includingtheindependentauthorisationoftransactions;•requirementsforthereconciliationandmonitoringoftransactions;•compliancewithregulatoryandotherlegalrequirements;•documentationofcontrolsandprocedures;•requirementsfortheperiodicassessmentofoperationalrisksfaced,andtheadequacyofcontrolsandprocedurestoaddresstherisksidentified;•requirementsforthereportingofoperationallossesandproposedremedialaction;•developmentofcontingencyplans;•trainingandprofessionaldevelopment;•ethicalandbusinessstandards;and•riskmitigation,includinginsurancewherethisiseffective.

37. Basis of measurementThe financial statements have been prepared on a historical cost basis except for the followingmaterial items.

Items Measurement basisNon-derivativefinancialinstrumentsatfairvaluethroughprofitorlossFairvalue

38. Summary significant accounting policiesTheCompanyhasconsistentlyappliedthefollowingaccountingpoliciestoallperiodspresentedinthesefinancialstatements.

Setoutbelowisanindexofthesignificantaccountingpolicies,thedetailsofwhichareavailableonthepagesthatfollow.

(a) Foreigncurrencytransaction 60(b) Interestincomeandexpense 60(c) Feeandcommissionincome 60(d) Grants (e) Leases 61(f) Incometax 62(g) Financialassetsandfinancialliabilities 64(h) Cashandcashequivalents 67(i) Loans 68(j) Investmentsecurities 68(k) Propertyandequipment 69(l) Intangibleassets 70(m) Impairmentofnon-financialassets 71(n) Depositsanddebtsecurities 71(o) Employeebenefits 72(p) Statedcapitalandreserves 72

(a) Foreign currency transactionTransactionsinforeigncurrenciesaretranslatedintothefunctionalcurrencyusingexchangeratesprevailingatthedatesofthetransactions.


Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesarere-translatedatclosinginter-bankmidratesrulingatthereportingdate.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedatexchangeratesrulingatthedatesofinitialrecognition.Non-monetaryitemsdenominatedinaforeigncurrencythataremeasuredatfairvaluearetranslatedatexchangeratesrulingatthedatewhenfairvaluewasdetermined.

Foreignexchangegainsandlossesresultingfromthesettlementofforeigncurrencytransactionsandfromre-translationatyear-endexchangeratesofforeigncurrencydenominatedmonetaryassetsandliabilitiesarerecognizedinprofitorloss,exceptfordifferencesontranslationofequityinvestmentsin respectofwhichanelectionhasbeenmade topresentsubsequentchanges in fair valueanddifferences arising on translation of available-for-sale equity investments in other comprehensiveincome.

All foreign exchange gains and losses recognized in profit or loss are presented net within thecorrespondingitem.Foreignexchangegainsandlossesonothercomprehensiveincomeitemsarepresentedinothercomprehensiveincomewithinthecorrespondingitem.

(b) Interest income and expenseInterest incomeandexpenseare recognized inprofitor lossusing theeffective interestmethod.Theeffectiveinterestmethodistheratethatexactlydiscountsestimatedfuturecashpaymentsorreceiptsthroughtheexpectedlifeofthefinancialinstrumentor,whenappropriate,ashorterperiodtothenetcarryingamountofthefinancialassetorfinancialliability.Whencalculatingtheeffectiveinterest rate, theCompanyestimatescashflowsconsideringallcontractual termsof thefinancialinstrument,includingprepaymentoptions,butdoesnotconsiderfuturecreditlosses.Thecalculationincludesalltransactioncosts,feesandpointspaidorreceivedthatareanintegralpartoftheeffectiveinterest rate.

Onceafinancialassetoragroupofsimilarfinancialassetshasbeenwrittendownasaresultofanimpairmentloss,interestincomeisrecognizedusingtherateofinterestusedtodiscountfuturecashflowsforthepurposeofmeasuringtheimpairmentloss.

(c) Fee and commission incomeFeesandcommissionsarerecognizedonanaccrualbasiswhentherelatedservicesareperformed.Loancommitment fees for loansthatarenot likely tobedrawndownaredeferred, togetherwithrelateddirectcostsandrecognizedonastraightlinebasisoverthecommitmentperiod.Feesandcommission expenses, which relate mainly to transaction and service fees, are expensed as the related services are received.

(d) GrantsGrants and donations for operations in current year are recorded in the statement of comprehensiveincomeaspartofotheroperatingincome.Grantsanddonationsbeyondthecurrentoperatingperiodare recorded under liabilities as deferred grants.Capital grants are recorded in the statement offinancialpositionasdeferredliabilitiesandanamountequaltothedepreciationistransferredtothestatement of comprehensive income over the useful lives of the assets.

(e) LeasesMinimumleasepaymentsunderfinanceleasesareapportionedbetweenfinanceexpenseandtheoutstanding lease liability. The finance expense is allocated to each period so as to produce aconstantperiodicrateofinterestontheremainingbalanceoftheliability.

Leases under which the Company assumes substantially all the risks and rewards of ownership of theunderlyingassetareclassifiedasfinanceleases.Uponinitialrecognition,theleasedasset


ismeasuredatanamountequaltothelowerof itsfairvalueandpresentvalueofminimumleasepayments.Subsequenttoinitialrecognition,theleasedassetisaccountedforinaccordancewiththeaccountingpolicyapplicabletothatasset.Allotherleasesareclassifiedasoperatingleases.

Paymentsmadeunderoperatingleasesarechargedtoprofitorlossonastraightlinebasisovertheperiodofthelease.Whenanoperatingleaseisterminatedbeforetheleasehasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognizedasanexpenseintheperiodinwhichterminationtakesplace.Minimumleasepaymentsunderfinance leasesareapportionedbetweenfinanceexpenseandtheoutstandingleaseliability.Thefinanceexpenseisallocatedtoeachperiodsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.

(g) Financial assets and financial liabilitiesi. RecognitionThe Company initially recognises loans and advances, deposits, debt securities issued andsubordinatedliabilitiesonthedateonwhichtheyareoriginated.Allotherfinancialinstrumentsincludingregular-waypurchasesandsalesoffinancialassets)arerecognisedonthetradedate,whichisthedate on which the Company becomes a party to the contractual provisions of the instrument.

Afinancialassetorfinancialliabilityismeasuredinitiallyatfairvalueplus,foranitemnotatfairvaluethroughprofitorloss,transactioncoststhataredirectlyattributabletoitsacquisitionorissue.

(ii)ClassificationFinancial assetsTheCompanyclassifiesitsfinancialassetsinthefollowingcategories:loansandreceivables,heldtomaturity,available-for-saleoratfairvaluethroughprofitorlosswithinthecategoryofheldfortradingordesignatedat fairvalue throughprofitor loss.Managementdetermines theclassificationof itsfinancialassetsatinitialrecognitionSeeNotes(g),(h),(i)and(j).

Financial liabilitiesTheCompanyclassifiesitsfinancialliabilities,otherthanfinancialguaranteesandloancommitments,asmeasuredatamortisedcostorfairvaluethroughprofitorlossSeeNotes(i),(j)and(n).

(iii) De‑recognitionFinancial assetsTheCompanyderecognisesafinancialassetwhenthecontractualrightstothecashflowsfromthefinancialassetexpire,orittransferstherightstoreceivethecontractualcashflowsinatransactioninwhichsubstantiallyalloftherisksandrewardsofownershipofthefinancialassetaretransferredor in which the Company neither transfers nor retains substantially all of the risks and rewards of ownershipanditdoesnotretaincontrolofthefinancialasset.

On derecognition of a financial asset, the difference between the carrying amount of the asset(orthecarryingamountallocatedtotheportionoftheassetderecognised)andthesumof (i) theconsiderationreceived(includinganynewassetobtainedlessanynewliabilityassumed)and(ii)anycumulativegainorlossthathadbeenrecognisedinOCIisrecognisedinprofitorloss.AnyinterestintransferredfinancialassetsthatqualifyforderecognitionthatiscreatedorretainedbytheCompanyisrecognisedasaseparateassetorliability.

Financial liabilitiesFinancialliabilitiesarederecognizedwhencontractualobligationsaredischarged,cancelledorexpire.

(iv)OffsettingFinancialassetsandfinancialliabilitiesareoffsetandthenetamountpresentedinthestatementof


financialpositionwhen,andonlywhen,theCompanyhasalegalrighttosetofftheamountsanditintends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. IncomeandexpensesarepresentedonanetbasisonlywhenpermittedunderIFRS,orforgainsandlossesarisingfromagroupofsimilartransactions.

v) Amortised cost measurementThe ‘amortised cost’ of a financial asset or financial liability is the amount atwhich the financialassetorfinancialliabilityismeasuredatinitialrecognition,minusprincipalrepayments,plusorminusthecumulativeamortisationusingtheeffectiveinterestmethodofanydifferencebetweentheinitialamountrecognisedandthematurityamount,minusanyreductionforimpairment.

(vi) Fair value measurement‘Fairvalue’isthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction between market participants at the measurement date in the principal or, in its absence, themostadvantageousmarkettowhichtheCompanyhasaccessatthatdate.Thefairvalueofaliabilityreflectsitsnon-performancerisk.

Whenavailable,theCompanymeasuresthefairvalueofaninstrumentusingthequotedpriceinanactivemarketforthatinstrument.Amarketisregardedasactiveiftransactionsfortheassetorliabilitytakeplacewithsufficientfrequencyandvolumetoprovidepricinginformationonanongoingbasis.

If there isnoquotedprice inanactivemarket, thentheCompanyusesvaluationtechniquesthatmaximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosenvaluationtechniqueincorporatesallofthefactorsthatmarketparticipantswouldtakeintoaccountinpricingatransaction.

Thebestevidenceofthefairvalueofafinancialinstrumentatinitialrecognitionisnormallythetransactionprice–i.e.thefairvalueoftheconsiderationgivenorreceived.IftheCompanydeterminesthatthefairvalueatinitialrecognitiondiffersfromthetransactionpriceandthefairvalueisevidencedneitherbyaquotedpriceinanactivemarketforanidenticalassetorliabilitynorbasedonavaluationtechniquethatusesonlydatafromobservablemarkets,thenthefinancialinstrumentisinitiallymeasuredatfairvalue,adjustedtodeferthedifferencebetweenthefairvalueatinitialrecognitionandthetransactionprice.Subsequently,thatdifferenceisrecognisedinprofitorlossonanappropriatebasisoverthelifeof the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.

If an asset or a liability measured at fair value has a bid price and an ask price, then the Company measuresassetsandlongpositionsatabidpriceandliabilitiesandshortpositionsatanaskprice.

PortfoliosoffinancialassetsandfinancialliabilitiesthatareexposedtomarketriskandcreditriskthataremanagedbytheCompanyonthebasisofthenetexposuretoeithermarketorcreditriskaremeasuredonthebasisofapricethatwouldbereceivedtosellanetlongposition(orpaidtotransfera net short position) for a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.

The fair value of a demand deposit is not less than the amount payable on demand, discounted from thefirstdateonwhichtheamountcouldberequiredtobepaid.

TheCompanyrecognisestransfersbetween levelsof the fairvaluehierarchyasof theendof thereportingperiodduringwhichthechangehasoccurred.


(vii)IdentificationandmeasurementofimpairmentAteach reportingdate, theCompanyassesseswhether there isobjectiveevidence that financialassetsnotcarriedat fairvalue throughprofitor lossare impaired.Afinancialassetoragroupoffinancialassetsis impairedwhenobjectiveevidencedemonstratesthatalosseventhasoccurredaftertheinitialrecognitionoftheasset(s)andthatthelosseventhasanimpactonthefuturecashflowsoftheasset(s)thatcanbeestimatedreliably.

Objectiveevidencethatfinancialassetsareimpairedincludes:•significantfinancialdifficultyoftheborrowerorissuer;•defaultordelinquencybyaborrower;•therestructuringofaloanoradvancebytheCompanyontermsthattheCompanywouldnotconsidertherwise;•indicationsthataborrowerorissuerwillenterbankruptcy;•thedisappearanceofanactivemarketforasecurity;or•observabledatarelatingtoagroupofassetssuchasadversechangesinthepaymentstatusofborrowersorissuersinthegroup,oreconomicconditionsthatcorrelatewithdefaultsinthegroup.

The Company considers evidence of impairment for loans and advances and held-to-maturity investmentsecuritiesatbothaspecificassetandacollectivelevel.Allindividuallysignificantloansandadvancesandheld-to-maturityinvestmentsecuritiesareassessedforspecificimpairment.Thosefoundnottobespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeenincurredbutnotyetidentified.Loansandadvancesandheld-to-maturityinvestmentsecuritiesthatarenotindividuallysignificantarecollectivelyassessedforimpairmentbygroupingtogetherloansandadvances and held-to-maturity investment securities with similar risk characteristics.

In assessingcollective impairment, theCompanyuses statisticalmodellingof historical trendsoftheprobabilityofdefault,thetimingofrecoveriesandtheamountof lossincurred,andmakesanadjustment if current economic and credit conditions are such that the actual losses are likely to be greaterorlesserthanissuggestedbyhistoricaltrends.Defaultrates,lossratesandtheexpectedtimingoffuturerecoveriesareregularlybenchmarkedagainstactualoutcomestoensurethattheyremain appropriate.

Impairmentlossesonassetsmeasuredatamortisedcostarecalculatedasthedifferencebetweenthecarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheasset’soriginaleffectiveinterestrate.

Ifthetermsofafinancialassetarerenegotiatedormodifiedoranexistingfinancialassetisreplacedwithanewoneduetofinancialdifficultiesoftheborrower,thenanassessmentismadeofwhetherthefinancialassetshouldbederecognised.Ifthecashflowsoftherenegotiatedassetaresubstantiallydifferent, thenthecontractual rights tocashflowsfromtheoriginalfinancialassetaredeemedtohaveexpired.Inthiscase,theoriginalfinancialassetisderecognisedandthenewfinancialassetisrecognisedatfairvalue.

Theimpairmentlossbeforeanexpectedrestructuringismeasuredasfollows.Iftheexpectedrestructuringwillnotresultinderecognitionoftheexistingasset,thentheestimatedcashflowsarisingfromthemodifiedfinancialassetareincludedinthemeasurementoftheexistingassetbasedontheirexpectedtimingandamountsdiscountedattheoriginaleffectiveinterestrate


oftheexistingfinancialasset.

Iftheexpectedrestructuringwillresultinderecognitionoftheexistingasset,thentheexpectedfairvalueofthenewassetistreatedasthefinalcashflowfromtheexistingfinancialassetatthetimeofitsderecognition.Thisamountisdiscountedfromtheexpecteddateofderecognitiontothereportingdateusingtheoriginaleffectiveinterestrateoftheexistingfinancialasset.

Impairmentlossesarerecognisedinprofitorlossandreflectedinanallowanceaccountagainstloansand receivables or held-to-maturity investment securities. Interest on the impaired assets continues toberecognisedthroughtheunwindingofthediscount.Ifaneventoccurringaftertheimpairmentwasrecognisedcausestheamountofimpairmentlosstodecrease,thenthedecreaseinimpairmentlossisreversedthroughprofitorloss.

Impairment losses on available-for-sale investment securities are recognised by reclassifying thelossesaccumulated in the fairvaluereserve inequity toprofitor loss.Thecumulative lossthat isreclassified fromequity toprofitor loss is thedifferencebetween theacquisitioncost,netofanyprincipalrepaymentandamortisation,andthecurrentfairvalue,lessanyimpairmentlossrecognisedpreviouslyinprofitorloss.Changesinimpairmentattributabletoapplicationoftheeffectiveinterestmethodarereflectedasacomponentofinterestincome.

If, in a subsequentperiod, the fair valueof an impairedavailable-for-saledebt security increasesand the increase canbe related objectively to an event occurring after the impairment losswasrecognised, then the impairment loss is reversed through profit or loss; otherwise, any increasein fair value is recognised throughOCI.Anysubsequent recovery in the fair valueofan impairedavailable-for-saleequitysecurityisalwaysrecognisedinOCI.

TheCompanywritesoffaloanoraninvestmentdebtsecurity,eitherpartiallyorinfull,andanyrelatedallowance for impairment losses, when Company Credit determines that there is no realistic prospect ofrecoveryandapprovalforwrite-offgrantedbytheCentralBank.

(viii)DesignationatfairvaluethroughprofitorlossTheCompanyhasdesignatedfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorlossineitherofthefollowingcircumstances.

Theassetsorliabilitiesaremanaged,evaluatedandreportedinternallyonafairvaluebasis.Thedesignationeliminatesorsignificantly reducesanaccountingmismatch thatwouldotherwisearise.

Note 15 sets out the amount of each class of financial asset or financial liability that has beendesignatedatfairvaluethroughprofitorloss.Adescriptionofthebasisforeachdesignationissetout in the note for the relevant asset or liability class.

h) Cash and cash equivalents‘Cashandcashequivalents’includenotesandcoinsonhand,unrestrictedbalancesheldwithcentralbanks and highly liquid financial assetswith originalmaturities of threemonths or less from theacquisitiondatethataresubjecttoaninsignificantriskofchangesintheirfairvalue,andareusedbytheCompanyinthemanagementofitsshort-termcommitments.

Cashandcashequivalentsarecarriedatamortisedcostinthestatementoffinancialposition.

(i) Other non‑trading derivativesIfaderivativeisnotheldfortrading,andisnotdesignatedinaqualifyinghedgerelationship,thenall


changesinitsfairvaluearerecognisedimmediatelyinprofitorlossasacomponentofnetincomefromotherfinancialinstrumentsatfairvaluethroughprofitorloss.

(i) Loans‘Loans’arenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedin an active market and that the Company does not intend to sell immediately or in the near term. Loansandadvancesareclassifiedasloansandreceivables.Loanstocustomersincludethoseclassifiedasloansandreceivables.Loansareinitiallymeasuredatfairvalueplusincrementaldirecttransactioncosts,andsubsequentlymeasuredattheiramortisedcostusingtheeffectiveinterestmethod.WhentheCompanychoosestodesignatetheloansasmeasuredatfairvaluethroughprofitorlossasdescribedin(g)(vii).theyaremeasuredatfairvaluewithfacevaluechangesrecognisedimmediatelyinprofitorloss.

Loans also include receivables from related parties.

(j) Investment securitiesInvestment securities are initially measured at fair value plus incremental direct transaction costs and subsequentlyaccountedfordependingontheirclassificationasheldtomaturity,fairvaluethroughprofitandlossoravailable-for-sale.

i. Held to maturity‘Heldtomaturity’ investmentsarenon-derivativeassetswithfixedordeterminablepaymentsandfixedmaturitythattheCompanyhasthepositiveinterestandabilitytoholdtomaturityandwhicharenotdesignatedatfairvaluethroughprofitorlossoravailable-for-sale.

Held-to-maturity investments are carried at amortised cost using the effective interest method,lessanyimpairmentlosses(SeeNotes(g)(vii)).Asaleorreclassificationofamorethaninsignificantamount of held-to-maturity investmentswould result in the reclassification of all held-to-maturityinvestments as available-for-sale, and would prevent the Company from classifying investmentsecuritiesasheld-to-maturity forthecurrentandthefollowingtwofinancialyears.However,salesandreclassificationsinanyofthefollowingcircumstanceswouldnottriggerareclassification:

salesorreclassificationsthataresoclosetomaturitythatchangesinthemarketrateofinterestwouldnothaveasignificanteffectonthefinancialasset’sfairvalue;sales or reclassifications after the Company has collected substantially all of the asset’s originalprincipal;andsalesorreclassificationsthatareattributabletonon-recurringisolatedeventsbeyondthe Company’s control that could not have been reasonably anticipated.

ii.FairvaluethroughprofitorlossTheCompanydesignatessomeinvestmentsecuritiesatfairvalue,withfairvaluechangesrecognisedimmediatelyinprofitorlossasdescribedin((g)(viii)).

‘Available-for-sale investments’ are non-derivative investments that are designated as availablefor-saleorarenotclassifiedasanothercategoryoffinancialassets.Available-for-saleinvestmentscompriseequitysecuritiesanddebtsecurities.Unquotedequitysecuritieswhosefairvaluecannotbe measured reliably are carried at cost. All other available-for-sale investments are measured at fair valueafterinitialrecognition.

Interestincomeisrecognisedinprofitorlossusingtheeffectiveinterestmethod.DividendincomeisrecognisedinprofitorlosswhentheCompanybecomesentitledtothedividend().Foreignexchangegainsorlossesonavailable-for-saledebtsecurityinvestmentsarerecognisedinprofitorloss(SeeNote:(a)).Impairmentlossesarerecognisedinprofitorloss(SeeNotes(g)(vii)).


Other fairvaluechanges,other than impairment losses (SeeNotes (g)(vii)),are recognised inOCIandpresentedinthefairvaluereservewithinequity.Whentheinvestmentissold,thegainorlossaccumulatedinequityisreclassifiedtoprofitorloss.

Anon-derivativefinancialassetmaybereclassifiedfromtheavailable-for-salecategorytotheloansandreceivablescategoryifitwouldotherwisehavemetthedefinitionofloansandreceivablesandiftheCompanyhastheintentionandabilitytoholdthatfinancialassetfortheforeseeablefutureoruntil maturity.

(k) Property and equipmenti. Recognition and measurementItemsofpropertyandequipmentaremeasuredatcostlessaccumulateddepreciationandimpairmentlosses.Costincludesexpendituresthataredirectlyattributabletotheacquisitionoftheasset.Thecost of selfconstructed assets includes the cost of materials and direct labour, any other costs directlyattributabletobringingtheassetstoaworkingconditionfortheirintendeduse,thecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhichtheyarelocated,andcapitalisedborrowingcosts.

Purchasedsoftwarethatisintegraltothefunctionalityoftherelatedequipmentiscapitalisedaspartofthatequipment.

Whenpartsofanitemofpropertyorequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofpropertyandequipment.

Thegainorlossondisposalofanitemofpropertyandequipmentisdeterminedbycomparingtheproceeds fromdisposalwith the carryingamountof the itemofproperty andequipment, and isrecognisedinotherincome/otherexpensesinprofitorloss.

ii. Subsequent costsThecostofreplacingpartofanitemofpropertyorequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheCompanyanditscostcanbemeasuredreliably.Thecostsoftheday-to-dayservicingofpropertyandequipmentarerecognisedinprofitorlossasincurred.

iii. DepreciationDepreciationisrecognisedinprofitorlossonastraight-linebasisovertheestimatedusefullivesofeachpartofanitemofpropertyandequipmentsincethismostcloselyreflectstheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheasset.Leasedassetsunderfinanceleases are depreciated over the shorter of the lease term and their useful lives.

Theestimatedusefullivesforthecurrentandcorrespondingperiodsareasfollows:

Equipments 5years Computershardware 5years Furnitureandfittings 5years Motorvehicles 5years Capitalised renovation expenses 10 years (l) Intangible assetsComputer softwareSoftwareacquiredbytheCompanyisstatedatcostlessaccumulatedamortisationandaccumulated


impairment losses.

Subsequentexpenditureonsoftwareassetsiscapitalisedonlywhenitincreasesthefutureeconomicbenefits embodied in the specific asset towhich it relates. All other expenditure is expensed asincurred.

Intangible assets with indefinite useful lives are not amortized. Amortisation is recognised in theincomestatementonastraight-linebasisovertheestimatedusefullifeofthesoftware,fromthedatethatitisavailableforuse.Theestimatedusefullifeofsoftwareisfiveyears.

Amortisationmethods,usefullivesandresidualvaluesarereviewedateachfinancialyear-endandadjusted if appropriate.

(m) Impairment of non-financial assetsThecarryingamountsof theCompany’snon-financial assetsother thandeferred tax assets, arereviewedateachreportingdatetodeterminewhetherthereisanyindicationof impairment.Ifanysuch indication exists then the asset’s recoverable amount is estimated. An impairment loss is recognised if thecarryingamountofanassetor itscash-generatingunitexceeds its recoverableamount.Acash-generatingunitisthesmallestidentifiableassetthatgeneratescashflowsthatarelargelyindependentfromotherassets.Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesrecognisedinrespectofcashgeneratingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheotherassetsintheunit(groupofunits)onaproratabasis.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

In respect of other assets, impairment losses recognised in prior periods are assessed at eachreportingdateforanyindicationsthatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamount thatwouldhavebeendetermined,netofdepreciationor amortisation, if noimpairmentlosshadbeenrecognised.TheCompanydidnotholdsuchassetsatthereportingdate.

(n) Deposits and debt securitiesDepositsandborrowingsaretheCompany’ssourcesofdebtfunding.TheCompanyclassifiescapitalinstruments as financial liabilities or equity instruments in accordancewith the substance of thecontractual terms of the instrument.

Depositsandborrowingsareinitiallymeasuredatfairvalueplustransactioncosts,andsubsequentlymeasuredattheiramortisedcostusingtheeffective interestmethod,exceptwheretheCompanychoosestocarrytheliabilitiesatfairvaluethroughprofitorloss.

(o) Employee benefitsi.DefinedcontributionplansA defined contribution plan is a post-employment benefit plan underwhich an entity pays fixedcontributions intoaseparateentityandwillhaveno legalorconstructiveobligationtopayfurtheramounts.Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanemployeebenefitexpenseinprofitorlossintheperiodsduringwhichservicesarerenderedby


employees.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareduction in future payments is available.

ii. Provident fundTheCompanyhasaProvidentFundSchemeforallemployeeswhohavecompletedtheirprobationperiodwith theCompany. Employees contribute 5%of their basic salary to the Fundwhilst theCompanycontributes10%.Obligationsundertheplanarelimitedtotherelevantcontributions,whicharesettledonduedatestothefundmanager.

(p) Stated capital and reservesi. Share capitalTheCompanyclassifiescapitalandequityinstrumentsinaccordancewiththecontractualtermsofthe instrument. The Company’s share capital is not redeemable by holders in the normal course of business and bears an entitlement to distributions that is non-cumulative and at the discretion of the Directors.Accordingly,theyarepresentedasacomponentofissuedcapitalwithinequity.

ii. Share issue costsIncrementalcostsdirectlyattributable to the issueofanequity instrumentarededucted fromtheinitialmeasurementoftheequityinstruments.

iii. Dividend on ordinary sharesDividends on ordinary shares are recognized in the period in which they are approved by theshareholders. Dividend proposed which is yet to be approved by shareholders, is disclosed by way of notes.

iv. Statutory reservesStatutoryreservesarebasedontherequirementsofsection29(i)oftheBankingAct.Transfersintostatutory reserves are made in accordance with the relationship between the Company’s reserve fundanditspaidupcapital,whichdeterminestheproportionofprofitsfortheperiodthatshouldbetransferred.

v. Credit risk reservesThisisareservecreatedtosetasidetheexcessbetweenamountsrecognizedasimpairmentlossonloans and advances based on provisions made for bad and doubtful loans and advances calculated inaccordancewithIFRSandtheCentralBank’sprudentialguidelines.

39. New standards and interpretations not yet adoptedAtthedateofauthorisationofthefinancialstatementsoftheBankfortheyearended31December2016,thefollowingStandardsandInterpretationswereinissuebutnotyeteffectiveandmayhaveanimpactonfuturefinancialstatements:

Standard InterpretationIFRS9 On24July2014,theIASBissuedthefinalIFRS9FinancialInstrumentsStandard,FinancialInstruments whichreplacesearlierversionsofIFRS9andcompletestheIASB’sprojecttoreplace IAS39FinancialInstruments:Recognition and Measurement.

ThisstandardwillhaveasignificantimpactontheCompany,whichwillinclude changesinthemeasurementbasesoftheCompany’sfinancialassetstoamortised cost,fairvaluethroughothercomprehensiveincomeorfairvaluethroughprofitor loss.EventhoughthesemeasurementcategoriesaresimilartoIAS39,thecriteriafor classificationintothesecategoriesaresignificantlydifferent.Inaddition,theIFRS9 impairmentmodelhasbeenchangedfroman“incurredloss”modelfromIAS39to an “expected credit loss” model, which is expected to increase the provision for bad


debtsrecognisedintheCompany.

Thestandardiseffectiveforannualperiodsbeginningonorafter1January2018with retrospective application, early adoption is permitted.

TheCompanyisassessingthepotentialimpactonitsfinancialstatements resultingfromtheapplicationofIFRS9.GiventhenatureoftheCompany’soperations, thisstandardisexpectedtohaveapervasiveimpactontheCompany’sfinancial statements.Inparticular,calculationofimpairmentoffinancialinstrumentsonan expected credit loss basis is expected to result in an increase in the overall level of impairment allowances.

IFRS16-Leases IFRS16waspublishedinJanuary2016.Itsetsouttheprinciplesfortherecognition, measurement, presentation and disclosure of leases for both parties to a contract, iethecustomer(‘lessee’)andthesupplier(‘lessor’).IFRS16replacestheprevious leasesStandard,IAS17Leases,andrelatedInterpretations.IFRS16hasonemodel forlesseeswhichwillresultinalmostallleasesbeingincludedontheStatementof Financialposition.Nosignificantchangeshavebeenincludedforlessors.

Thestandardiseffectiveforannualperiodsbeginningonorafter1January2019, withearlyadoptionpermittedonlyiftheentityalsoadoptsIFRS15.Thetransitional requirementsaredifferentforlesseesandlessors.TheCompanyisassessingthe potentialimpactonthefinancialstatementsresultingfromtheapplicationofIFRS16.

DisclosureInitiative Theamendmentsprovidefordisclosuresthatenableusersoffinancialstatements(AmendmentstoIAS7) toevaluatechangesinliabilitiesarisingfromfinancingactivities,includingboth changesarisingfromcashflowandnon-cashchanges.Thisincludesprovidinga reconciliationbetweentheopeningandclosingbalancesforliabilitiesarisingfrom financingactivities.

Theamendmentsapplyforannualperiodsbeginningonorafter1January2017and early application is permitted. The Company will not early adopt this amendment.

ThepotentialimpactoftheamendmentontheBank’sfinancialstatementswillbe assessed for implementation.

Recognitionof TheamendmentsprovideadditionalguidanceontheexistenceofdeductibleDeferredTaxAssetsfor temporarydifferences,whichdependsolelyonacomparisonofthecarryingamountUnrealisedLosses ofanassetanditstaxbaseattheendofthereportingperiod,andisnotaffectedby(IFRS12) possiblefuturechangesinthecarryingamountorexpectedmannerofrecoveryof the asset.

Theamendmentsalsoprovideadditionalguidanceonthemethodsusedtocalculate futuretaxableprofittoestablishwhetheradeferredtaxassetcanberecognised.

Guidance is provided where an entity may assume that it will recover an asset for morethanitscarryingamount,providedthatthereissufficientevidencethatitis probable that the entity will achieve this.

Guidanceisprovidedfordeductibletemporarydifferencesrelatedtounrealised lossesarenotassessedseparatelyforrecognition.Theseareassessedona combinedbasis,unlessataxlawrestrictstheuseoflossestodeductionsagainst incomeofaspecifictype.

Theamendmentsapplyforannualperiodsbeginningonorafter1January2017and early application is permitted.


Revenuefrom Thestandardcontainsasinglemodelthatappliestocontractswithcustomersandcontractswith twoapproachestorecognisingrevenue:atapointintimeorovertime.Themodelcustomers(IFRS15) featuresacontract-basedfive-stepanalysisoftransactionstodeterminewhether, howmuchandwhenrevenueisrecognised.

Thestandardiseffectiveforannualperiodsbeginningonorafter1January2018, with early adoption permitted.

ThisnewstandardwillnotlikelyhaveasignificantimpactontheBank.

Classification and Currently,thereisambiguityoverhowacompanyshouldaccountforcertaintypesMeasurement of ofshare-basedpaymentarrangements.TheIASBhasrespondedbypublishing Share‑based Payment amendmentstoIFRS2Share-basedPayment.Transactions(Amendments to Theamendmentscoverthreeaccountingareas:IFRS 2) Measurementofcash-settledshare-basedpayments–Thenewrequirementsdonot changethecumulativeamountofexpensethatisultimatelyrecognised,becausethe totalconsiderationforacash-settledshare-basedpaymentisstillequaltothecash paid on settlement.

Classification of share‑based payments settled net of tax withholdings– Theamendmentsintroduceanexceptionstatingthat,forclassificationpurposes,a share-basedpaymenttransactionwithemployeesisaccountedforasequity-settled if certain criteria are met.

Accounting for a modification of a share‑based payment from cash‑settled to equity‑settled –.Theamendmentsclarifytheapproachthatcompaniesaretoapply.

Thenewrequirementscouldaffecttheclassificationand/ormeasurementofthese arrangements–andpotentiallythetimingandamountofexpenserecognisedfor newandoutstandingawards.Theamendmentsareeffectiveforannualperiods commencingonorafter1January2018.


GeographicalSpread&Delivery ChannelsWide coverage of operations:

PhysicalPresencein7regionsoutofthe10regionsinGhanawith:36Branches

8SatellitesBranches

4 Mobile Banks

18ATMs

186POS(FieldandBranchbased)


AppendixVALUE ADDED STATEMENT FOR THE YEAR ENDED 31 DECEMBER

Note 2016 2015 GH¢ GH¢

Interestearnedandotheroperatingincome 72,203,170 59,518,759

Directcostofservicesandothercosts (33,151,799) (27,853,209)

Valueaddedbybankingservices 39,051,371 31,665,550

Non-bankingincome 9 2,457,165 4,519,016

Impairments 10 (3,269,947) (2,362,465)

Value added 38,238,589 33,822,101

Distributedasfollows:

To employees

Directors(withoutexecutive) 13 (246,000) (220,514)

Executivedirector (500,183) (414,004)

Otheremployees (25,099,648) (26,395,180)

Total (25,845,831) (27,029,698)

To Government

Incometax 14 (2,807,555) (1,483,904)

To providers of capital

Dividends to shareholders - -

To expansion and growth

Depreciationandamortization 20(a) (4,024,549) (3,440,026)

Retainedearnings (5,560,654) (1,868,473)


Contact and BranchesAbuakwa OppositetheTotalFillingStation 0263003167Abofour NexttoGoilFillingStation 0501452991 0263003014AccraCentral GeneralPostOffice,NearWatoTrafficLights 0302610000AdaKasseh AdjacentAlFillingStation 0572290778 0572290991AkimOda OffLibertyLorryStation,OppositetheMainMarket 0342922566Apam BehindGoilFillingStation 0274098849Asafo BehindGoilFillingStation 0322083189/91Ashaiman OppositeFireService 0263003317 0263003325Asiwa AsiwaMarket 0243553252

Bekwai OppositetheGovernmentHospital 0263003574 0263001984Berekum BehindthePostOffice 0352222270/1Bibiani NearPresbyterianChurch 0303935605Bogoso OppositetheGovernmentHospital 0263008312 0263003165

Circle NexttoVodafone 0302251888

Dansoman AgegeLastStop 0307038182/3Datano AdjacentthePoliceStation 0307020094Dome SuperbetBuilding,oppositeDomeMarket 0263003160

Goaso AtthemainLorryStation 0263003654

Jacobu OppositetheMarket 0501452992

Kasoa NexttoSuvinilPaint,BawjiaseRoad 0263002994/5Kejetia OppositeAdehyemanGardens 0322041850Kintampo NexttoDuapaFM 0352192212Koforidua NearMelcomStore 0263003363Konongo NearShellFillingStation 0263003618

Lapaz BehindLasPalmas 0307038184

Madina ShellFillingStation 0302519821/3Mankessim InsidetheLorryStation 0263003379


Nkawkaw ZongoJunction 0343122266

Obuasi OldArabaAframBuilding 0263008304 0263002997Odorkor OfficialTown-OppositeBoneBenBuilding 0263003593Offinso OppositeAnnor’sHotel 0263003163

Sefwi Dwinase,AdjacentCocobod 0303935607

Wiawso JimmyGreenJunction 0303935606

Somanya JimmyGreenJunction 0303935606Suame MaakroGoilFillingStation 0263003029/30Sunyani NearEbenezerMethodistChurch 0352023708/28Swedru NexttoAhmadiyyaMuslimHospital 0501452990

Takoradi MarketCircle,OldGlamourBuilding 0312028530 0312028960Tamale NexttoTamaleTeachingHospital 0372028665Techiman OppositeTechimanCommunityCentre 0352091186/9Tema OppositeTDC 0307079350TemaNewTown BehindthePoliceStation 0263003207TeshieNungua OppositeShellFillingStation 0317010198/9

Wenchi NexttoPonyFillingStation 0572290811


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