Metropolitan National Sacco Society saw loans extended to members increase by Sh1.59 billion last year, closing at Sh13.52 billion in the period ended December 31.
At the same time, the level of non-performing loans reduced significantly after the Sacco recovered over Sh110 million from non-performing loans as a result of improved debt collection efforts.
The Sacco, founded in 1977, is a deposit-taking institution with a membership of over 100,000 drawn from teachers and other civil servants as well as the private sector.
Net interest income within the period dipped marginally from Sh1.13 billion in 2018 to Sh1.05 billion last year. This was on the back of a reduction in interest on loans and advances.
“Member deposits grew by 6 per cent to close at Sh7.32 billion, driven by deposit mobilisation campaigns which resulted in increased patronage by committed members and improved remittances from employers,” said the Sacco in a statement.
Cost reduction
“The operational efficiency initiatives resulted in an overall cost reduction of Sh96 million, mainly driven by savings in financial and administrative expenses which were further powered by enhanced uptake of digital service delivery channels.”
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The Sacco paid interest on deposits at the rate of 6.25 per cent, up from six per cent in 2018. The interest on members’ deposit rose to Sh367 million from Sh334 million the previous year.
In an increasingly trend as deposit-taking Saccos seek to boost their capital and liquidity, 50 per cent of the interest rebate was retained as deposits while the rest was paid out in cash.
Dividends on shares have been paid at 6.25 per cent compared to six per cent in 2018.
The board said it had embarked on the second phase of the transformation strategy that would lead to more efficient service delivery.
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