Dear Co-operators,
Humbly, I welcome you to the end of 2018 financial year and boldly we look back with pride in what have achieved and we beat our chest with confidence that we have kept faith with our mandate.
In the beginning, the founding fathers of our society had a purpose and this purpose act as catalyst to our values. These values are the foundational fabric to which our success stories are woven. They will continue to be instrumental as we continue to build a world-class non-banking financial institution.
During the year, our strategy of riding the curve of the fixed income security market issued by the Federal Government of Nigeria with yields higher than inflation rate with as much as 300 basis points premium did not fully materialize.
However, members’ interests in loans continue to maintain the same tempo that was prevalent in prior year. Thus, on the average, at different point in time, 35% – 40% were availed to borrowers at average of 10.58%.
During the year, Membership strength increased from 38(2017) to 56 as at December 2018. This consequentially increased pool of contribution by 60%. As a result of the foregoing, fund’ asset size grew by 64% from NGN94Million in 2017 to NGN155Million in 2018.
Revenue increased by 23% above prior year, while net operating return increased by 10%. Reduction in performance was largely influenced by reduced rate of return on investment (in particular, treasury bills) and increase in operating expenses by 25% over prior year position.
During the year, the society was able to obtain office space with some fixtures from the management of the company and thus our society was able to equip the office with some computer equipment to facilitate the running of the cooperative society.
Future Outlook
Increase in investment horizons beyond FGN fixed income securities to include real estate, micro finance banking and agro-allied business among several opportunities available within the context of the Nigerian economy.
Learning to deal with volatility of the investing environment.
Dividend Payment
Subject to members’ approval at the forthcoming AGM, the sum of NGN8,639,904.06 (2017:NGN5,457,143.72) been the amount statutorily allowed for distribution after 2018 appropriation, shall be paid out to members on register as at 31st December 2018.
In conclusion, as at date, we have done well, but I say we can do better. Thus, we give our commitment that we shall continue to keep the flame burning, and that we will constantly be making you proud and by extension adding value to your asset.
Thank you.
Omotayo Olusegun Bamishe (fca)
President