2023 Treasurer's Report
Supreme Court Savings and Loan Association, Inc.
The SCSLAI 2023 Treasurer’s Report presents an overview of the Association’s financial activities and financial position for the year 2023. The report includes key financial statements, such as the Statement of Financial Position, Statement of Comprehensive Income, and Statement of Cash Flows, along with relevant notes and disclosures. It provides insights into the Association’s financial performance, liquidity, and overall financial health.
Gross Income
| Particulars | 2022 | 2023 |
|---|---|---|
| Interest Income on Loans | ₱212,710,189.00 | ₱245,583,450.62 |
| Interest Income on Bank Deposits | ₱5,694,123.00 | ₱11,478,014.55 |
| Other Income | ₱29,805,021.00 | ₱18,297,522.13 |
| TOTAL | ₱248,209,333.00 | ₱275,358,987.30 |
Increase
₱ 27,149,654.30
Percentage of Increase
11%
As mentioned by our President in his annual report, we increased our loan production for 2023 compared to last year due to reintroducing existing loan facilities, offering new loan products, and lowering effective interest rates. These strategies also increased our gross income by 11%, or Php 27,149,654.38, from our 2022 gross income of Php 248,209,332.92.
Rigorous payment collection is also used to achieve higher interest income, particularly for those past due and delinquent accounts.
Total Operating Expenses
| Particulars | 2022 | 2023 |
|---|---|---|
| Compensation & Fringe Benefits | ₱13,980,091.00 | ₱19,820,012.00 |
| Provision for Credit Losses | ₱0.00 | ₱5,045,114.00 |
| Other Administrative Expenses | ₱4,527,209.00 | ₱7,905,097.00 |
| TOTAL | ₱18,507,300.00 | ₱32,770,223.00 |
Increase
₱14,262,923.00
Percentage of Increase
77%
The Association’s normal operating expenses consist of compensation, provision for credit losses, and administrative expenses.
As you may have noticed, operating expenses in 2023 increased by 77% to Php 14,262,923.00 compared to Php18,507,300.00 in 2022. This is mainly due to the increased salaries granted to SCSLAI staff and employees. Subsequently, all the benefits and mandatory contributions related to it increased by 10%.
You may also notice a recorded provision for credit losses amounting to Php5,045,114.00 which was not seen in 2022 reports. This is due to the Association’s manual reconciliation and monitoring as directed by BSP in their recent audit. These are the possible outstanding loans deemed uncollected at the end of 2023.
Net Income
| Particulars | 2022 | 2023 |
|---|---|---|
| Gross Income | ₱248,209,333.00 | ₱275,358,987.30 |
| Less: Total Expenses | (₱18,507,301.00) | (₱32,876,718.51) |
| NET INCOME | ₱229,702,032.00 | ₱242,482,268.79 |
Increase
₱12,780,235.79
Percentage of Increase
6%
Total Net Income for 2023 increased by 6% or Php12,780,235.79 from 2022. However, due to the restrictions set by the Bangko Sentral ng Pilipinas, this increase was not all converted to an increase in dividend rates. This increase was reverted to the Allowance for Probable Losses and will be subjected to the next audit schedule.
Nevertheless, the net income subject to distribution as dividends to members remained at a healthy level, as the Association continued to manage its resources prudently.
Total Assets
| Particulars | 2022 | 2023 |
|---|---|---|
| TOTAL ASSETS | ₱1,810,906,025.00 | ₱1,831,599,141.00 |
You may notice an increase in the Association's total assets in 2023. This is one effect of increasing loan production, particularly in the Association’s Loan Receivable balances. This also implies that SCSLAI has a healthy liquidity ratio and will be able to support its operation using its assets, particularly cash and cash equivalents.
Dividend Rate
| Particulars | 2022 | 2023 |
|---|---|---|
| Dividend Declared | ₱229,588,119.07 | ₱257,379,349.05 |
| Dividend Rate | 16% | 16.14% |
Increase in Dividend Rate
0.14%
For 2023, the Association declared dividends of Php 257,379,349.05, equivalent to a dividend rate of 16.14%, an increase of 0.14% from the 16% declared for 2022. This reflects the Association's adherence to compliance with BSP directives on reservation for allowance for probable losses.
SCSLAI has no issue with the appropriation of available funds for dividend distribution however, we are regulated and supervised by Bangko Sentral ng Pilipinas as a financial institution, and with this, we have to adhere to their rules and regulations and obtain their approval on the dividend rate declaration. Rest assured that the members of the Board and all the SCSLAI employees are doing their best to deliver higher returns on your investment while not sacrificing the reputation of the Association.
For more detailed financial health and status, kindly refer to SCSLAI’s bulletin board for the Audited Financial Statements for the year 2023.
Maraming salamat po!
FERNANDO S. AGBULOS, JR.
SCSLAI Corporate Treasurer