The Dormaa Area Teachers’ Cooperative Credit Union (DATCCU) in the Brong Ahafo Region has recorded sound growth in the 2016/2017 financial year, posting a net surplus of GH¢808,080.
The 2016/2017 surplus achievement is an improvement over the 2015/2016 figure of GH¢726,821. Members’ deposits also grew significantly, from a little over GH¢16.99million in the previous financial year to approximately GH¢20.97million.
DATCCU currently has a membership of 20,379, representing a 23.59% growth over the 2015/2016 membership total of 16,790. The Board Chairman of DATCCU, Patrick Yeboah, disclosed these at the 17th annual general meeting held at Dormaa-Ahenkro. He said the union’s membership growth is an indication that it is enjoying the general public’s goodwill.
The membership-increase obviously translated into corresponding share capital, pegging at over GH¢2.20million. The minimum shareholding for the union is GH¢200. Loans advanced to members, according to the Board Chairman, during the period under review stood at GH¢13,970,893; the amount represents 51.82% of its total assets, which appreciated from GH¢20.60million to GH¢26.96million.
Mr. Yeboah indicated that the credit union has set a 2018 target of growing the current total assets of GH¢26.96million by 35%, and urged members to save more as well as embrace its ‘Anidaso mutual fund’ and housing policy as products for future hope.
The credit union’s total investment during the year under review was over GH¢9.05million, showing about 40.7% increase over the year gone by. Total income also increased from GH¢3.95million in the 2015/2016 financial to GH¢4.48million in 2016/2017, whereas total operating expenses stood at GH¢3.67million with a marginal increase from GH¢3.22million.
The Board of Directors of DATCCU proposed a dividend of 15% – amounting to GH¢330,932 on shares for members with the minimum share capital of GH¢200.
The Board Chairman announced that DATCCU has been selected by the Credit Unions Association (CUA) to be licenced by the Bank of Ghana due to “our compliance” with the cooperative credit unions regulation (Act. 2225) passed in October 2015. Per the Act, all societies are among others required to have a core capital that is not less than 10% of their total assets and 20% of investments.
Mr. Yeboah enumerated high rate of loan delinquency, frequent withdrawals by members, inability to retain dividends, and failure of some members to meet the minimum share capital as some challenges impeding smooth operations. He, however, assured members of pursuing policies that will put the union on a sound footing and serve the supreme interest of members in the years ahead.