•Interest income contributed 83 per cent of the Sacco's total income which grew to Sh1.8 billion during the review period
•The Sacco announced it plans to focus on expansion by opening up new branches in strategic locations.
Unaitas Sacco reported a 26 per cent rise in net profit to Sh426 million for the year ending December 2018 driven by increased loan disbursement.
The sacco’s financial results show interest income contributed 83 per cent of total income which grew to Sh1.8 billion during the review period.
The loan book grew by 22 per cent backed by strong personalized marketing, relationship banking and upturn of the economy,” Unaitas Sacco chairman Joseph Kabugu said.
He said the key contributors to a larger loan book were the agribusiness value chain and SMEs.
Member deposits grew seven per cent to Sh7.5 billion while the sacco’s total operational costs grew 14 per cent to Sh1.5 billion. Total assets grew by eight per cent to Sh12.8 billion.
“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,” Unaitas CEO Martin Muhoho said.
The Sacco announced it intends to focus on its expansion by opening up new branches in strategic locations to act as a hub for technology-based expansion.
“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,” Muhoho said.