STATUS CAPITAL LOSSES UP BY 233%

MBABANE – The Status Capital Building Society has continued to incur losses as they increased significantly to reach E31 920 000 from E9 558 000 losses recorded in 2021.

These losses are reflected in the society’s statement of profit or loss and other comprehensive income for the year ended June 30, 2023 (18-month period). This reflects a 233 per cent increase in the losses incurred by the society. The increase in the losses incurred by the society may be attributed to the increased operating expenses that grew from E11 196 000 to reach E 46 402 000.

The Status Capital Building Society’s assets for the year ended June 30, 2023 (18-month period), also dropped by 16 per cent when compared to the value of the assets in 2021. According to the organisation’s abridged financial statements, during the period under review, the total assets were valued at E148 147 000, while in 2021 they were valued at E176 622 000. The society’s loans and advances to customers had also dropped to E15 663 000 from the E186 253 000 recorded in 2021. The society’s net cash from investing activities also dropped to E1 294 000 from the E85 151 000 recorded in 2021.

Statements

Kobla Quashie and Associates’ auditors report indicated that the financial statements present fairly, in all material respects, the financial position of the society as at June 30, 2023, and its financial performance and its cash flows for the period then ended in accordance with International Financial Reporting Standards and in the manner required by the Building Societies Act, 1962. In a statement issued last year, Nomfundo Fakudze, the Executive Director of Status Capital Building Society, said, “One thing we are certain of is that we are optimistic about the future of our Building Society and remain committed to delivering sustainable investment returns for our shareholders.”

Fakudze said although the society made a loss in 2021, there were long-term innovative plans in place to strengthen and steady the brand. She said their dedicated team was working tirelessly to resolve existing issues and ensure that past mistakes were not repeated. Fakudze said they were confident that through these efforts, they reassured their shareholders and clients that the organisation would get back on track and deliver value for all stakeholders.

The primary cause for losses experienced by Status Capital Building Society was attributed to a combination of factors that included high outsourcing fixed costs and delays in the launching of the banking system to ensure they diversify their revenue resources- all of which were addressed in 2022.

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