Stima Sacco recorded a 51% growth in profit before tax for the year ending December 31, 2018, which stood at Ksh 972 million compared to Ksh 644 million realised in 2017.
The national vice chair Rebecca Miano said the Sacco’s operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review. Subsequently, the Sacco’s turnover grew from by Ksh 0.6 billion during the period under review to Ksh 4.6 billion.
Stima Sacco CEO Chris Useki attributed this impressive performance to an aggressive growth on the loan portfolio, lending reforms and improved liquidity. The lending grew by 8% from Ksh 23 billion in 2017 to Ksh 24.9 billion in 2018. On the other hand, the share capital grew by 25% from Ksh 1.2 billion in 2017 to Ksh 1.5 billion in 2018.
“The growth in share capital demonstrates a great commitment by our members to the Sacco,” added Miano.
“As a result of our relatively good performance and in line with our retention policy and strategy, we are retaining Ksh 849 million in 2018 of the net appropriation, up from Ksh 560 million in 2017, to strengthen our reserves and cushion the business for any potential future shocks”, said Mr. Useki, adding: “The lender is focusing on digital banking, with the all-telco M-Pawa Mobile Wallet continuing to play a pivotal role in the growth of non-funded income to the Sacco.
The Board of Directors recommends payment of a first and final dividend of 14 per cent per share for the period ended December 2017. Conversely, the board recommends interest rebates on members’ deposit of 10.5 per cent for the year under review. The total payout for the two items will be Ksh 2.06 billion in 2018, compared to Ksh 1.98 billion in 2017.