Dormaa Teachers Credit Union approves increase in minimum share capital for members

The Board of Directors and management of the Dormaa Area Teachers Cooperative Credit Union (DATCCU), have approved an increase in the minimum share capital for its shareholders from GH¢300 to GH¢500.

The increase, according to the Union was essential to meet the Bank of Ghana’s (BoG) capital adequacy ratio requirement.

Mr Frimpong Badu, the Chairman of the Board of Directors of the Union who announced this, said that would enable the union to stay afloat and keep operating, providing and delivering financial services and products to members for a long term.

It would further improve access to future funding and partnership opportunities to secure the union against potential economic shocks.

The Board and management gave their approval at the 21st Annual General Meeting (AGM) of the Union at Dormaa-Ahenkro in the Bono Region on the theme: “A New Dawn of Growth: united for a stronger union”.

It was attended by members and shareholders from all the branches and agencies of the union, traditional authorities, staff, as well as past and present members of the Board and management of the union.

Mr Badu said the Union’s asset base and investment increased by 68.4 per cent rising from GH¢57.77 million in 2023 to GH¢97.32 million in 2024.

He said net loans to members grew by 26.5 per cent while savings increased by 68.5 per cent from GH¢54.1 million to GH¢91.18 million.

“This level of growth is a signal that we are entering a new dawn of institutional strength and trust,” he added, saying the Union’s share capital grew by 32.8 per cent from GH¢2.80 million to GH¢3.73 million.

“While this is commendable, the growth is still inadequate relative to its asset size,” Mr Badu stated, saying the “share capital is the engine room of the Union’s financial stability.

“It is what cushions us against risk and ensures we remain compliant with regulatory standards. Unity without capital strength is a fragile union and asked members to buy more shares,” he added.

Mr Badu said the new DATCCU remained committed to paying higher dividends on shares going forward asking them to “commit to ownership through increased shareholding,” adding that the Union recorded its strongest financial year as total income rose by 39.3 per cent from GH¢9.07 million in 2023 to GH¢12.64 million.

The net surplus grew by an impressive 82.5 per cent from GH¢1.15million to GH¢2.10 million and declared a 12 per cent dividend on shares, he stated.

Mr Badu added that membership also grew at 40.6 percent from 4,631 in 2023. to 6,512 in 2024, saying “this growth is a testimony to rising confidence in DATCCU’s stability, service delivery and member responsiveness”.

He said union expanded digital banking reach, began major policy reviews in procurement, loans and human resources, and improved audit functions and internal controls adding that it faced delays in loan recoveries, rising cost of operations, inadequate member understanding of share capital obligations and logistical constraints at some branches and agencies.

Mr Badu indicated that the Union look forward to a positive outlook for 2025, with the goals of the regulatory capital adequacy ratio, surpassing GH¢120 million in total assets, upgrading integrated digital platform, deepening shareholding through member education drives and strengthening financial literacy and cooperative culture.

Madam Patricia Nyaaba, the General Manager of the Union said the members were obliged and qualified to secure loans on conditions that they had guarantors, affordability and collateral security.
Source: GNA

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