Unaitas Sacco has reported 26 percent jump in profitability to 426 million from 338 million for the financial period ended December 2018, buoyed by an increase in loans advanced, prudent non- performing loan recovery efforts and a reduction in overall costs due to digitisation and automation of services.
Total income grew to Sh1.8 billion representing a 14 percent growth from the previous year when it stood at Sh1.62 billion. Interest income contributed 83 percent of the total income after robust loan recovery efforts put in place last year began bearing fruit.
“Our loan book grew by 22 percent backed by a strong personalised marketing, relationship banking and upturn of the economy,” said Joseph Kabugu, chairman of the Unaitas SACCO adding that Agri-business value chain and SME were the main sectors in lending with personal lending and chamas also having a fair share of the loan book as well.
“In 2019 we expect higher profitability backed by non-funded income and reduction of cost through automation and digitization,” Kabugu told the Sacco delegates during the 26th Annual General Meeting held in Muranga today.
The member deposits grew by 7 percent to 7.5 Billion in 2018 compared to 7 Billion in 2017 while total expenditure grew by 14 percent to Sh1.5 billion in 2018 compared to 2017 when it was Sh1.3 billion. Total assets of Unaitas grew by 8 percent to Sh12.8 billion in 2018 compared to Sh11.8 billion in 2017.
Going forward Unaitas said that it will rely on strategic alliances and technology to grow their deposits, loan book, and recovery efforts.
“Most of the capital expenditure was used in putting in place a core banking, automation, and a digital system, investments that are beginning to impact the business positively by cutting off recurrent expenditures, said Unaitas CEO Martin Muhoho.
“We have automated all the loan processing facilities and this will go a long way in streamlining our operations while reducing our day to day operation costs.” Said Muhoho.
This year, the Sacco announced that it intends to focus on its expansion by opening up new branches in strategic locations to act as a hub for technology-based expansion.
“The performance targets are aligned in the spirit of enhancing a performance management culture,” said Kabugu.