THE NASFUND Contributors Savings & Loans Society Ltd (NCSL) today paid K12.3 million in interest to its members after it announced K13.24 million profit and interest crediting rate of 6% for the financial year 2020.
The current NCSL memberships stands at 133,869 members nationwide.
Chairman of NCSL Ian Tarutia while announcing the profit increased said that the Board is pleased with the overall results despite the challenges faced during the COVID-19 pandemic in the year 2020.
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 five 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 today.
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.
The key financial result for 2020 were:
- 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.
Mr Tarutia is confident that the Risk and growth strategies implemented by the boards will hold NCSL stead through 2021 given the second wave in COVID-19 that may affect , slow down business growth and stifling new investment opportunities in the country.
NCSL continues its focus on growing its electronic banking footprint aligned to its vision of becoming the best e-Bank in the country.
The financial company 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.
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.
[…] Source: PNG Bulletin […]