Financial services firm Unaitas recorded a 65 per cent growth in profit for the financial year ended December 31, buoyed by increased loan portfolio.
Unaitas Sacco’s after tax profit rose from Sh258 million in December 2014 to Sh428 million in December 2015, despite a tough financial year.
Unaitas Chairman Mr Joseph Ngaai said the business weathered a tough year characterised by high interest rates in second half of the year to post impressive results.
“We are glad to also announce that our institutional capital to total assets stood at 9 per cent as at December 2015 given that the minimum requirement is 8 per cent,” he said.
The institution’s asset base grew by 35 per cent to Sh9.3 billion from Sh6.9 billion the previous year while the core capital hit Sh3.6 billion mark as compared to Sh2.3 billion in December 2014.
Its business growth was however majorly driven by a 30 percent growth in interest income buoyed by growth in loans and advances.
Interest income grew to Sh1.09 billion in December 2015 compared to Sh840 million the previous year while total loans and advances almost doubled to Sh7.42 billion compared to Sh4.85 billion.
The sacco plans to become a commercial bank by mid this year. The move has seen it double its share capital to Sh1.44 billion in 2014 from Sh693 million a year earlier.
An aggressive membership recruitment drive saw it increase membership from 140, 000 to 230, 355 members by last year December.
The Sacco continues to heavily invest on capital projects, to increase the shareholder value of their members.