At its meeting today, the Board of NASFUND Contributors Savings & Loans Society Limited (NCSL) considered and accepted the Society’s audited financial accounts for the 2020 financial year.
Chairman, Ian Tarutia, on behalf of the Board, announced the following results:
• Total Assets increased by 11.3% to K 256.8 million
• Net Asset Value increased by 14.3% to K 29.2 million
• Revenue from core business increased by just over 10% to K 27.6 million
• Total Revenue increased by 13.9% to K 32.2 million.
• Increase in operating Expenses by 17%. (excluding Interim Interest Payment to Members and Loan Provisioning) to K 15.9 million.
• Net Income increased by 9.5% to K 13.2 million (after expenses including interim Interest Payment to Members and Loan Provisioning)
• Sound General Reserves increased by 17.4% to K 17.8 million,
• Interim Interest Payments to Members increased by 17.4% to K2.5 million.
• Total membership increased by 9.2% to 133,869 members.
• Members Savings increased by 11.2 % to K 219.5 million.
• Net Loan portfolio increased by 9.5% to K 122.0 million
• Total number of loans processed increased by 23 % to 134,327.
During the year NCSL paid an interim interest of 1.2% to members savings. After statutory reserving of 20%, NCSL will pay an additional 4.8 % or K 9.8 million in interest to members.
This is a total of 6% for the 2020 year equating to K 12.3 million which NCSL members will benefit from.
NCSL’s final interest crediting rate of 6.0% is above the average crediting rate of 5.5% paid to members over the last 5 years and maintains the wonderful record of healthy returns on members’ funds deposited with NCSL.
The interest payment will be made to members’ savings accounts.
Mr Tarutia said, “The Board was pleased with the overall results given the challenging environment during 2020 brought on by COVID-19.”
The main drivers of profitability and balance sheet growth were on the back of an increase in the lending portfolio and increased transaction numbers which resulted in a higher fee income.
In addition the introduction of new lending products, 1:5 higher loan ratio, Motor vehicle and SME loan assistance have proven a hit with members.
NCSL continues its focus on growing its electronic banking footprint, aligned to its vision of becoming the best e-Bank in the country and has invested in upgrading its information technology environment to ensure that its system is able to maintain optimum performance with all transactions performed in a safe environment.
He further mentioned that the second wave of COVID-19 in 2021 will provide a lot of challenges to the country and cause disruptions to business activities, slowing down business growth and stifling new investment opportunities in the economy.
While this would provide challenges for NCSL, he was confident the Board’s risk and growth strategies would hold NSL in good stead throughout 2021.Mr Tarutia commended the CEO Vari Lahui for his leadership and praised management and staff for their hard work and contribution to the 2020 results.
He also acknowledged and thanked valued members for their confidence and continued patronage over 2020.