Monday, April 30, 2012

Nasfund savings and loans posts K4.2 million profit

Nasfund Contributors Savings and Loans Society has announced a net operating profit of K4.2 million, which represents an increase of 55% from K2.7 million recorded in 2010, The National reports. Chairman Ian Tarutia announced the results after its board meeting held last Thursday.

Ian Tarutia… board approves 6% interest for members
The audited accounts revealed the following:
• Net operating profit of K4.2 million representing an increase of 55% from K2.7 million recorded in 2010;
• Gross assets of K79.6 million representing an increase of 20% from K66.1 million recorded in 2010;
• Net assets of K10.3 million – an increase of 24% from net asset value of K8.3 million recorded in 2010;
• Member savings deposits totaling K89.1 million representing an increase of 20% from K57.6 million recorded in 2010;
• Outstanding loans to members increased to K20.6 million presenting an increase of 11% from K18.5 million recorded in 2010; and
• Reserves of K5.2 million representing an increase of 19% from K4.3 million recorded in 2010.
Tarutia said during the year, the society:
• Paid out K28 million in loans to members;
• Paid out K29 million in withdrawals;
• Increased its membership base to 56, 539, representing an increase of 6% from 52, 223 members in 2010;
• Launched Nascare, a medicare/life insurance product for members. As part of the awareness programme, its business development team visited all provinces where the society was represented to explain Nascare to members;
• Conducted 151 shop floor presentations to members/potential employers, which were attended by 5, 494 members;
• Introduced two more companies as participants in the society’s popular Value Back Programme. Under this programme, members can avail of discounts upon payment of goods and services.
“It was a solid year in the face of rising competition from newly-licensed societies and microfinance organisations, with the society experiencing significant growth in membership, asset size and profitability,” Tarutia said.
“The society continues to maintain a diversified income stream from investments in government securities, bank deposits, equity and security.
“The society loan portfolio was K20.6 million – an increase of K2 million.
“This is a pleasing result for the society as it reflects an increase in the core business activity of the society.

“The increase in membership reflects the growing interest in the society and products.
“With net assets over K10 million, the society is in a strong financial position of overcome an unexpected losses.
“The board has approved at its board meeting, after statutory reserving members will receive 6% interest o on their savings, which equates to over K3.3 million.
“This will be credited to members’ accounts this month.”

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