North Tema Cooperative Credit Union records 28.85% increase in profit

By Evelyn ARTHUR, Tema

The North Tema Cooperative Credit Union Ltd., in the Tema Metropolitan Area  (TMA) of Greater Accra Region, has recorded an impressive performance in most of its financial indicators for the year 2023.

It ended the year with a 28.85 percent increase in profit. The union also recorded a net surplus of GH¢3,024,047 in the 2023 financial year as against GH¢2,346,934 for the year 2022, indicating an increment of 28.85 percent .

Total assets of the union during the 2023 year under review stood at GH¢74,142,114 compared to an amount of GH¢62,501,061 in the 2022 financial year, showing an 18.63 percent increment.

Secretary-Board of Directors, North Tema Cooperative Credit Union, Nii Laryea Ashia announced these and more on behalf of Chairman-Board of Directors, Aaron Sagoe, at the union’s 35th Annual General Meeting of shareholders held recently under the theme ‘One Family, One Goal, One Credit Union, success for all’.

According to him, membership of the union grew from 10,116 to 11,564 – indicating a significant increase of 14.31 percent. Adding to their overall objective of increased membership by existing customers is aimed at making North Tema Credit Union a household name in Tema and its environs.

Altogether, 4,530 loans were disbursed to a tune of GH¢41,323,530 in the year under review as against GH¢25,206,220 in the 2022 financial year, indicating an increment of 63.94 percent .

He said one of their success stories was the introduction of special business loans in addition to traditional products of the union designed to support medium-scale businesses, stating that freight-forwarders who have personal accounts with the union have taken advantage of the product to clear their goods from the port.

Members’ share capital increased from GH¢2,392,265 to GH¢2,976,779 – indicating 24.43 percent growth. The Secretary entreated members to go above minimum shares and own the society by increasing their share values, as the credit union proposes the payment of 25 percent dividend on members’ shares.

With deposits during the year under consideration,  the union mobilised GH¢60,625,314 compared to the previous year’s amounting to GH¢45,781,716 – an increment of 32.42%.

Challenges

He reported that even though the year under review marked the end of another chapter in the union’s life as  their tenure as a Board of Directors ends, it was characterised by difficult and turbulent times in not only this country but throughout the world.

Mr. Ashia noted: “The years preceding our assumption of office was a difficult period as far as the economy was concerned. Our credit union lost a significant portion of our investment through the financial sector clean-up exercise embarked upon by government while a number of issues affected its financial performance – and 2023 was not exception.

Amid the uncertainty and doubt in people’s minds with respect to savings and investment with financial institutions, the union formulated an initiative to create an environment of trust spearheaded by effective leadership that is committed to setting high goals and disciplining themselves to achieve them.

Despite these external challenges which are beyond its control, the union saw a reasonable increase in its operational areas and was able to achieve consistent net surplus over the years and declare attractive dividends to members.

Achievements

Mr. Laryea outlined the remarkable achievements attained by the union during the current Board’s term of office, which includes acquiring a  building for the Ashaiman union branch; relocating the Community Eight branch to Community Two; outdooring a state-of-the-art renovated F.E. Daniels building, which is a rebrand of the union. All these set it in motion to become the leading and most dependable credit union in the country, with a mission of empowering its members economically through the provision of sound financial services.

The current Board is also putting up a modern office facility, at the heart of Tema Community One central  market, that befits the  credit union’s status.

He urged borrowers to pay their loans on time for running the union, and also urged them to keep on spreading the goods news of benefits they derive from being members of the credit union

Mr. Laryea expressed gratitude to all who supported the credit union’s activities, initiatives and products, and officially welcomed the newly-appointed Board of Directors for the next four years – calling on them to use their expertise to drive the credit union into achieving its mission.

General Manager-North Tema Cooperative Credit Union Ltd., Dorothy Asiamah Cobhinah, disclosed that the credit union will be introducing cutting-edge technology and new product innovation to enhace service delivery geared toward satisfying the  needs of members.

She told the B&FT in an interview that as the credit union grows stronger, it will continue to uphold its values and purpose of empowering members economically.

Deputy General Manager-North Tema Cooperative Credit Union, Dickson Andoh, also mentioned the credit union’s income for 2024  financial year showed a net surplus of GH¢3,204,833 and total assets of GH¢93,766,022 among others.

The credit union also elected a nine-member Board of Directors to steer its operational affairs for the next four years.

The newly-elected Board-Chair of the union, Antia Ohene Mayne, pledged to continue from where the outgoing board of directors ended their mandate – and  highlighted some key areas such as improving their digitalisation processes, running capacity building programmes aimed at resolving delinquent loan challenges – and and said they will not rest on their oars but continue to find new and innovative ways of ensuring their systems work effectively and efficiently.

“We will ensure the training of members on business management, entrepreneurship, marketing and business ideas to go out there and succeed as business people, so that when they take a loan they can pay back. Those we groom, we will use as models for other members to recognise the fact that if you are groomed to be a better business person, you are able to grow your business in all aspects,” she said.

Mrs. Ohene May, who is also Greater Accra Regional Manager-Ghana Enterprises Agency (GEA), urged youth to be up and doing, work hard, start something on their own and save enough money for the future.

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