K2.1mil profit giving members a 4.3pc deal from NCSL

The National Business

The Nasfund Contributors Savings and Loans Society Ltd (NCSL) recorded K2.1 million profit in the last financial year and is paying
4.3 per cent interests to members’.
The payment will be made to the members’ today.
The result and other highlights was announced by board chairman Ian Tarutia at a meeting in Port Moresby yesterday.
Tarutia said NCSL paid a total of over K4 million in interest to members during the course of 2017 and the net income of K2.1 million was after allowing for this.
NCSL is paying an additional amount of Kl.68 million in interest to its members which brings the total amount of interest paid to members at K5.69 million.
This equates to a total of 4.3 per cent in total interest payment to its members for the 2017 financial year.
The 4. 3 per cent interest crediting announced by NCSL is in addition to the 8 per cent recently announced by the Nasfund board for its superannuation members.
NCSL’s result is an improvement on the 2016 result where the society paid 3.9 per cent in interest to its members.
Tarutia said: “The board was pleased with the overall results despite the challenging environment.
“We note the main drivers of profitability and balance sheet growth were on the back of good growth in the lending portfolio and returns on cash investments.”
The society has seen a large increase in the number of members using the electronic channels, including internet banking.
It will continue its focus on enhancing these channels to provide a more-convenient and user-friendly service to its more than 98,833 member’s in the country.
NCSL is working on initiatives, including launching the debit card offering and is hopeful of getting this to the market before the end of this year.
Other highlights:

  • Total assets increased by 8.8 per cent to K157.9 million;
  • Net asset value at K13.4 million;
  • Sound general reserves at K11.1million;
  • Revenue from core business increased by just under 15 per cent to K17 million;
  • Downward revaluation of equity investment and investment properties by K1.2 million;
  • Operating expenses (excluding interim interest payment to members) increased by 2.5 per cent to K9.7 million;
  • Interim interest payment to members increased to K4 million.
  • Loan provisioning charge reduced by 45 per cent to just under K1 million;
  • Net income of K2.1 million (after interim interest payment to members);
  • Total membership increased by 18.1 per cent to 98,833 members;
  • Members’ savings increased by 12.3 per cent to K142.8 million;
  • Loan portfolio increased by 22.6 per cent to K61.5 million;
  • Payment of K57.8 million in withdrawals from member savings accounts; and
  • Total loans of K70.6 million processed from over 39,000 applications from members.