By Chimwemwe Mangazi:
United Nations (UN) Sacco has grown its profits for the year ended December 2018 by 35 percent, a financial statement that the Sacco released over the weekend has shown.
The Sacco has posted a surplus of K77.2 million compared to K57.1 million that was realised in 2017.
The statement also shows that the Sacco has grown its assets in the year by 42 percent after, now valued at K589 million from K415.4 as at December 2017.
UN Sacco president, Pamela Mkwamba Matumbi, attributed the performance to increased membership base.
She said in the year, over 70 employees of the Malawi Sciences for Health joined the Sacco.
“There are a number of factors I can attribute to the success, apart from the membership we also introduced some very good products but also in terms of processing the loans which we were able to complete within 24 hours.
“This superb performance has also been possible with the many investments the Sacco has made in Human Resource, trainings, Marketing, and professionalism,” Matumbi said.
She added the Sacco’s capitalisation and liquidity at the end of 2018 were at 25 percent and 12 percent, respectively, higher than the benchmark ratio of 10 percent.
Matumbi further said 2018 profit margin was low as the Sacco reduced interest rates from 32 percent to 28 percent and are projected to reduce further in 2019 to 24 percent.