PNG Power Savings and Loan Society has announced in its recent Annual General Meeting held in Alotau, Milne Bay province that it will pay its members, an additional 7% interest into their respective share savings (S1) accounts.
This additional interest of 7% is an increase by 1% from 2017 (6%), due to another successful financial year in 2018.
This announcement was unanimously approved by the members present during the Annual General Meeting in Alotau and is now pending Regulator (Bank of Papua New Guinea) endorsement before payment is made.
Endorsement of the 7% additional interest will bring total accumulated interest on members’ share savings to 12.25% for year 2018 (5.25% regular interest plus 7% additional interest).
According to the Society’s General Manager Mr Eliakim ToBolton, 2018 was a challenging year for the Society due to tough economic conditions.
However Mr ToBolton stated through prudent control measures taken over managing its Income and Expenditure, proper maintenance of its Investment portfolio, accelerated turnover through improved loan repayments, substantial increase in savings deposits despite decreasing of membership through retirement, the Society managed to achieve a positive outlook on its performance in 2018.
“Our net profit recorded in 2018 was maintained at K2 million compared to K2.1 million in 2017. This marginal decrease in profit was mainly due to increased loan provisioning in 2018. Our net income recorded in 2018 was K4.4 million, compared to K4 million in 2017, an increase of about K400, 000.00,” Mr ToBolton said.
Mr ToBolton was also impressed to note that despite the decrease in membership, total member savings contributions increased to K21.2 million in 2018, compared to K20.2 million in 2017, highlighting an increase of about K1 million.
“On a more positive note, I am pleased to report that for the first time in the history of the Society operations, two members have saved beyond K200,000 in their share savings account, while three other members’ savings are well above K100,000. This statistic indicates improved member confidence in the Society therefore; I would like to encourage all members to be inspired by this, and continue to save more for their future.”
Mr ToBolton said that despite these positive financial outlooks, his Management and Board are mindful of the current legislative changes taking place with the new Savings and Loans Act 2015, which will come into effect as of August 2019.
He said this new Act will have a substantial bearing on the Society’s current operation, presenting both opportunities and threats which needed to be carefully analysed and addressed.
“Under this new Act, membership of the Society will now be open/optional. Whilst we opted to remain close bonded, the entity is now exposed to the risk that other Societies pose on our members. So this will be our biggest challenge going forward, to adequately address risks as such presented by the introduction of the new Act,” Mr ToBolton said.
Meanwhile Mr ToBolton expressed his gratitude towards all financial members for their continued support, confidence and understanding in allowing PNG Power Savings and Loans Society to manage their funds on their behalf and reassured that the Board and his Management will continue to ensure it successfully delivers another exciting set of results in the 2019 Financial Year.