Fruits of quality services, trustworthiness: UNA Familia Finance Plc breaking grounds four years on.

Four years on in business, the credit union has continued witnessing exponential growth, maintaining a good liquidity and regularly satisfying the needs of its teeming customers. 

The positive assessment of UNAFF’s performance was made by the Board of Directors of the institution. 

This was during the microfinance institution’s 2023 Annual General Meeting, AGM. 

It held at the institution’s head office in Mamfe, Manyu Division of the South West Region, June 28, 2024.

The credit union’s performance record, projections, proposals and roadmap for expansion to continuously buildup UNAFF to be a better place are contained in a release issued by the Chairman of the Board of Directors, Bishop Aloysius Abangalo Fondong. 

“The general operating atmosphere of UNAFF in 2023, witnessed some improvements, despite the crisis plaguing the North West and South West Regions. The daily operations were computerised and interconnected to ensure that there is effective control, reporting and monitoring of branch office activities and also to provide better quality services to customers,” stated the Board Chairman. 

Hails growth within credit union 

The Board Chairman said the credit union’s 2023 business activities witnessed a growth trend with good liquidity situation. 

Bishop Aloysious Abanglo revealed that in terms of customer base, a total of 1,042 new accounts were registered in 2023, compared to 795 that were registered in 2022.

The figures, he said, increased active customers to 3,344 as against 2,302 in 2022. This, he added, represents a growth rate of 45.3 percent. 

“The active customers are made up of 1,850 savings accounts, 561 current accounts and 933 salary accounts. In terms of gender, it is made up of 1,942 men, 1,105 women, and 297 groups,” the Board Chairman revealed. 

He reiterated that UNAFF continues to offer best quality services to its customers. He appealed to all old customers to introduce at least one new customer to the institution, in the course of the 2024 fiscal year, so as to assist management to readily achieve the budget of 2024 on customer base. 

Strides recorded in shares, savings 

The Board Chairman disclosed that a total of 1,462 shares, amounting to 73,100,000 FCFA, were redeemed as at December 31, 2023, completing the redemption of 10,000 shares amounting to 500,000,000 FCFA. 

As per the release, the Board of Directors proposed an increase of share capital by 250,000,000 FCFA, taking the share capital to 750,000,000 FCFA. 

The release indicated that the total savings of 247.7 million FCFA was mobilised from customers in 2023. 

“This reasonable amount is a sign that the public continues to gain trust in the institution,” the Board Chairman stated.

He further detailed that savings, in 2023, increased to 1.6 billion FCFA, up from 1.4 billion FCFA in 2022, representing a growth rate of 14.3 percent. 

The average savings of customers with savings accounts, it was disclosed, stood at 700,293 FCFA as at December 31, 2023. 

The Current Accounts balance of customers, the release added, increased from 239.1 million FCFA in 2022 to 371.9 million FCFA in 2023, representing a growth rate of 132.8 million FCFA.

UNAFF loan situation 

On UNAFF’s loan situation, it was disclosed that outstanding loans with customers increased from 723.3 million FCFA in 2022 to l.2 billion FCFA in 2023. 

This signifies an increase of 476.7 million FCFA, representing 65.9 percent. 

“Out of the current customer base of 3,344 accounts, 311 had loan balances as at December 31, 2023. This represents a loan patronage ratio of 9.3 percent,” Bishop Aloysious Abanglo detailed. 

The statistics, the Board Chairman said, reveals UNAFF’s “loan patronage is still low, even though interests generated from loans is able to cover the total expenses of the institution, including depreciation and provisions”. 

UNAFF gaining more stability 

As per the release, a total income of 217.9 million FCFA was realised in 2023, as against 147.4 million FCFA in 2022, representing an increase of 70.5 million FCFA. 

Total operating expenses with interests on savings, it was revealed, amounted to 143.1 million FCFA. 

“Depreciation and provisions for doubtful debts expenses amounted to 32 million FCFA, while taxes amounted to 5.3 million FCFA. Our net profit for the year is 37,252,101 million FCFA. Dividends on shares is hereby proposed in the total sum of 20.970.000 FCFA, at the rate of 5 percent,” the Board Chairman detailed. 

The positive increased results realised in 2023, as against a small result of 544,918 FCFA realised in 2022, the Board Chairman said, “is an indication that UNAFF has moved out of danger (losses) zone and the business is gaining more stability”.

Expansion roadmap unveiled 

In order to continue taking its products and services closer to its shareholders, customers and potential customers, who are based out of the head office in Mamfe, UNAFF envisages the creation of a branch office in Buea, in the course of the current financial year.

The Buea branch will add to the branch in Yaounde, which went operational on October 12, 2020, and the Douala branch, which became functional on November 15, 2021. 

Ambitious 2024 budget 

UNAFF’s budget for 2024, it was disclosed, stands at 280.5 million FCFA, as income, against 176.7 million FCFA, as operating expenses with operating results of 103.8 million FCFA. 

“Provisions and depreciation expense amount to 35 million FCFA, while taxes have been projected at six million FCFA. Our projected net profit is 62.8 million FCFA,” the release added. 

The essential for the realisation of the budget, the Board Chairman added, “shall entail greater usage of the products and services of the institution by customers and most especially the lending activities, which projected income is 203.6 million FCFA”. 

He said the greater usage of the products and services shall be triggered by intensification of marketing activities using various strategies. 

In order to boost the revenue situation of the institution through investment of excess liquidity funds, the release detailed that a fixed deposit, worth three hundred million (300,000,000) FCFA, has been established in National Financial Credit bank for one year. 

Pledges to continue delivering quality services 

The Board Chairman said despite the disappointment and distrust of the population in dealing with microfinance institutions, due to the collapse and failure of trusted institutions in the past, especially in Mamfe, the focus of UNAFF remains that of providing quality and affordable services and to maintain good customer service in order to continue succeeding. 

About UNAFF

UNA Familia Finance Plc is a Category II microfinance establishment. It creation was the initiative of the Diocese of Mamfe, to promote the financial welfare of the less privileged and to fight against poverty. 

UNAFF has as vision to become the leader in providing quality financial services to the less privileged and become a self-sustaining financial institution.

Its mission is to significantly strengthen the economic base of the less privileged of the community, through increased access to savings and lending services in local and urban areas. 

The microfinance institution’s core value system is to build on the norms of the banking profession as well as the values of a typical African Christian family- competence, integrity, commitment, empathy and confidentiality. 

UNAFF offers different services; including business loan, cheque clearing, anniversary account, daily savings, current account, savings account, mobile banking fixed deposits, money transfer, salary account as well as Njanji financing. 

It also offers mobile money services and international transfers, through Western Union, smobilpay, WorldRemit, Ria, MoneyGram, JubaExpress and GB Mobile Banking. 

This story was first published in The Guardian Post issue N0:3155 of Monday July 01, 2024