WSACCO PERFORMANCE UPDATES FOR OCT 20

WSACCO PERFORMANCE UPDATES FOR OCT 20
The results for Oct 20 indicate that WSACCO membership stood at 77,596 of the total membership, During the month, Deposits stood at UGX 198,423,548,268 while 2,884 loans worth UGX 19.728,412,509 were disbursed for both normal and special loans. The net loan portfolio attributable to 57,732 borrowers stood at UGX 369,724,874,946 while Cumulative loan disbursements as at 30 Oct 20 stood at UGX 1,299,423,100,335.

The total operating income for the month was UGX 52,895,432,595 against the projection of UGX 54,600,017,356. The total operating expenses were UGX 7,963,363,544 against a projection of UGX9,709,622,433. This represents 18% expenditure control below target. Financing costs totalled toUGX7,999,737,470 against a projection of UGX8,235,245,372. The surplus for the month was UGX 37,777,874,741 against a projection of UGX 37,461,977,140. The general performance for the month was above the target by 1% due to controlled expenditure and increased loan disbursements.
The general operational and financial performance overview for the month of Oct 20 is summarized in a table below.
Table 1: General Operational performance Oct 20
CATEGORY AMOUNT (UGX) AVERAGE (UGX)
Membership/Share holding 216,802,543,861 2,793,991
Ordinary Savings 32,108,407,213 444,235
Retirement Savings 126,963,610,800 1,792,967
Salary Accounts 38,075,070,010 1,360,601
Fixed Deposits 1,276,460,245 182,351,464
Loans Disbursed in Oct 2020 19,728,412,509 6,840,642
Loan Portfolio as at 31 Oct 2020 369,896,528,170 6,407,132
General Provision on loans (171,653,224) –
Loan portfolio (Net Bal) Oct 2020 369,724,874,946 6,404,158
Cumulative Loans Disbursed 1,299,423,100,335 4,266,321
Total operating income 52,895,432,595
Total operating expenses (7,963,363,544)
Total financing costs (7,999,737,470)
Net surplus 37,777,874,741
Total Equity and equity & 296,113,787,910
reserves
The Share Capital has increased to UGX 216.8Bn in Oct 20 from UGX 216.4Bn as of Sept 20. This increase of 0.18% was as a result of new members who joined the SACCO.

ANALYSIS OF SAVINGS DISTRIBUTION
Savings are the life and blood of any SACCO. They provide liquidity and a cheaper source of funding the demand for credit. Analysis of savings distribution provides an insight into cash flows and hence the liquidity situation. The analysis looks at ordinary savings, retirement savings, salary savings accounts and fixed deposits.

The Ordinary Savings as at end of Oct 20 stood at UGX 32.1Bn, as compared to 31.5Bn of Sept; this increase in volume of savings was as a result of members not withdrawing all their loan balances at Over the Counter (OTC) of Post Bank Uganda (PBU).

Retirement Savings have increased from UGX 122Bn in Sep 20 to UGX126.9Bn in Oct 20 The increase in volume of deposits on the retirement savings account.

There were 27,984 Salary Accounts in Oct 20 as compared to 28,029 for Sept with total deposits of UGX 38Bn in Oct 20 as compared to 57Bn in Sept 20.

Under fixed account Six members and UPDF have fixed their money with WSACCO to a tune of UGX 1,276,460,245.

In comparison of loans disbursed September and October 2020 was, the month of Oct 20, loan disbursements were UGX 19.7Bn as compared to UGX 20.6Bn in Sept. This decrease was due to lower demand for loans by members as compared to last month.

The monthly loan disbursements were heavily affected between Mar 20 and Jul 20 by the lockdown due to COVID 19 where disbursements started dropping to a lowest level of UGX 7.6Bn in May but later picked up with the relaxing of the restrictions in the month of July 20.
The disbursements have picked up both in volumes and in average loan per member of UGX 10M for months of June and July. For month of Sep 20, the average is low at UGX 5.7M due to many special loans disbursed totaling 1,907, these range between 2.5M and 1M but at a critical analysis, the normal loans still are at an average of UGX 10M.
The monthly average disbursement for the last ten months, that’s from January to-date stand at UGX 15.7Bn as compared to the projected figure of 16.5Bn in the Budget.
Loan interest income has remained the major source of revenue contributing 78% of the total operating income in the month ofOct 20 contributing UGX 41.2Bn compared to 37.3Bn for the month of Sep 20 against the projected income of 39.7Bn representing a 93% performance against the budget.

The total operating income is UGX 52.9Bn against the projected UGX 54.6Bn for the month of Oct 20 representing 97% performance.
The projected disbursement for the month Oct 2020 were UGX 17.5Bn to 2, 927 members, however the actual disbursement for the month Oct 20 was UGX 19.7Bn representing disbursement of 25% performance above the target. Budgeted expenditure for the period ended 31 Oct 20 was UGX 9.71Bn, but the actual expenditure was UGX 7.96Bn representing 82% of the planned expenditure for the period. The above inflows and out flows generated a surplus of UGX37.8 Bn as compared to UGX37.5Bn projected for the period ended 31 Oct 2020. The performance was above the target by 1% this was due to controlled expenditure in the previous months.

Wazalendo SACCO total assets increased from UGX 413.92Bn as at 31Dec 2019 to UGX 517.8Bn as at 31 October 2020 representing 25% growth in total assets. The core capital grew from UGX 277.8Bn by 31 Dec 2019 to UGX 296.1Bn as at 31 October 2020 representing 6.6% growth. Loan advances grew from UGX 349.8Bn by the 31 Dec 2019 to UGX 369.7Bn as at 31 October 2020 representing 5.7% increase which is attributed to good portfolio management and new redesigned products. Share capital increased from UGX 212.0Bn to UGX212.7Bn in month of October 2020 representing 0.19% increase, this was due to recruitment of new members.
Members’ deposits have increase from UGX 123Bn as at 31Dec 2019 to 207Bn during the month ended 31October 2020 representing 68 % growth.
Specific issues for attention under the operations Directorate as at 31 Oct 20 are summarized below.
Alternative OTC and Agency banking services by Centenary Rural Development Bank (CERUDEB) under review level and a technical report is being developed by CERUDEB.
Product development and refinement is ongoing, Board of Directors (BOD) approved both Boda Boda Asset loans and Tujeyunge Fund.
Business savings account is at implementation level and the Waza Quick loan has successfully picked up with very high demand from members.

Implementation of Soroti liaison office is ongoing and currently procurement of office requirements/items are being handled.
A total of 1,115 members were retired under Batch 10, where 970 have been fully paid UGX 6.1Bn, 57 Retirees have opted to remain members and 145 of them are yet to claim for their deposits with WSACCO worth UGX 998M.
Data capture of newly passed out 4,325 soldiers who are now members of WSACCO, this exercise is ongoing and to date 4,260 members have been data captured, the remaining 65 are yet to be data captured.
Member statement printing and distribution is ongoing, the printing is done for all branches with exception of Jinja and Mbarara branches that have just received new printer and have just started the printing.

CONCLUSION
The operational performance in terms of disbursements continued to improve during the month of Oct 20. The financialperformance was slightly above the target by 1%. The overall performance was good on account of improved disbursements, better liquidity management, expenditure control and prudent investments. As at 30 Oct 20 WSACCO remained sound and is therefore a going concern and is expected to remain so to a foreseeable future.