Exodus SACCO Chairman, SCP Wilson Omoding addressing the Delegates at the SACCO’s 11th AGM held in Naguru on Wednesday.
Police’s Exodus SACCO Ltd. has reported a strong performance in 2023, announcing a profit of Shs4.96 billion, up from Shs 1.99 billion recorded in 2022. This represents a growth of 150.3%.
According to Police Exodus SACCO’s financial statements for the year ended 31st December 2023, its total assets: grew to Shs 70.76 billion in 2023, up from Shs59.56 billion the year before.
The SACCo’s total income grew to Shs 9.4 billion. Interest on loans remained the major source of income, representing 70.5% of the total operating income.
Revenue from the SACCO’s restaurant accounted for 29.5% of Exodus SACCO’s income.
Exodus SACCO Chairman, SCP Dr. Wilson Omoding, says by staying attuned to market dynamics, they maintain a competitive edge and delivered innovative solutions that provide unparalleled value to the members.
Exodus SACCO operationalized a suite of new financial products, including the Shilling-for-Shilling savings product, school fees loans, asset finance loans, business loans, and emergency loans.
As a result, during the period under review, Exodus SACCO disbursed Shs 38.76 billion in loans to members, resulting in a 62.4% growth in the loan portfolio from Shs 30.92 billion in 2022 to Shs 50.2 billion in 2023.
Omoding says during the same period, member savings grew by 3.1%, from Shs 30.76 billion in 2022 to Shs 31.71 billion in 2023.
“Based on this performance, we propose to pay a dividend of 10% of the surplus for the year, equivalent to Shs 495.51 million, in addition to the Shs 917.72 million set aside as interest on member savings,” said the SACCO Chief Executive Officer, SP Osbert Ashaba during the SACCO’s Annual General Meeting (AGM) held on Wednesday at Police headquarters in Naguru.
According to the SACCO Treasurer, SP Eddy Ssekanjako, the SACCO has continued to maintain the interest rate of 14% for the loans advanced to its members.
“And this continues to supplement your efforts towards achieving enhanced welfare as members while maintaining the solvency of the SACCO. Interest income grew by 71.6% from Shs 3.89Bn in 2022 to Shs 6.68Bn in 2023, while net surplus grew by 150.3% from Shs 1.98Bn in 2022 to Shs 4.96Bn in 2023, mainly due to effective and efficient expenditure management and the receipt of member loan repayments. It is imperative to note that the net surplus increased due to a significant increase in loan disbursement arising from an increase in members’ trust in SACCO activities and prudent expenditure management,” said SP Ssekanjako.
Exodus SACCO also recorded an 11.8% reduction in the expenditure incurred by the Sacco due to “stringent oversight financial reviews by management and the board.”
“Although there was an increase in the marketing expenses, this was basically due to the need to perform extensive sensitizations about the SACCO’s operations. The continued exploration of the marketing drives is crucial for member feedback and the improvement of our SACCO’s operations. We shall continue initiating new ways of serving you better with regard to expenditure cost effectiveness,” he added.
However, the SACCO continues to face challenges by including desertion among police force members, which stands out as a significant issue, particularly concerning loan defaults.
“When a member deserts the force, they often abscond with outstanding loans, leaving the SACCO in a difficult financial position and eroding trust in our lending practices. Furthermore, the dismissal of members from the police force exacerbates the situation, as they typically cease saving with the SACCO, making loan reclamation difficult. The absence of effective mechanisms to address such scenarios, compounded by the complexity of cooperative cooperatives’ involvement, further complicates the recovery process and increases financial risks for the SACCO.”
In 2024, Exodus SACCO plans to attract Shs 11 billion in revenue, minimize expenses, and meet the demands of its members.
