The Nkoranza Area Teachers’ Cooperative Credit Union (NATCCU) at Nkoranza in the Bono East Region has posted impressive gains across the performance indicators during the 2018/2019 financial year.
The Credit Union, during the financial year (2018/2019) under review, recorded a net surplus or total reserves of GH¢1,591,259. Even though the figure is marginally lower than the 2017/2018 achievement of GH¢1,799,413, it signifies an impressive feat considering the plethora of challenges which engulfed the financial space and eventually affected the performance of many banks and non-bank financial institutions.
The total assets of NATCCU appreciated by 16.65 percent during the said period, increasing from a little over GH¢20million to GH¢23million. Again, the quality assets base of the Credit Union affirms the institution’s sound footing, positioning it as one of the top-performers among its peers in the country – and hence being rated ‘Grade A’ for 16 consecutive years.
Addressing the 43rdannual general meeting held at Nkoranza, Board Chairman of NATCCU, James Edjei Biney, said despite the challenge of low savings, the Union with membership of 6,566 also made total savings of GH¢13.66million as compared to GH¢11.80million in the previous financial year, showing an increase of 15.75 percent.
Members’ shares, he indicated, stood at GH¢2.93million as at the close of the 2018/2019 financial year. This, according to him, represents about 21.31 present more than was recorded in 2017/2018; NATCCU’s member’s shares for the later year was GH¢2.41million. Meanwhile, net loans to members soared by 19.24 percent. It increased from GH¢6.82million to GH¢8.17million.
The Board Chairman further stated that the Union made liquid investments to the tune GH¢12.21million, showing a slight 9.56 percent increase from GH¢11.14million in the year gone by. Year-on-year-on statistics point to the fact that the Credit Union – like many other financial institutions – reduced the growth-margin of its liquid investments. For instance, in the 2017/2018 financial year, it increased investments by 42.38 percent as against the previous year.
In an effort to consolidate its growth, Mr. Biney said the society plans to extend its mobile services to nearby communities across the Nkoranza South Municipality and Nkoranza North district to rope-in more members and enhance savings. He commended the board members, management and staff of NATCCU for their diverse performances which have pushed the society to a higher level.
The General Manager of NATCCU, Benjamin Kodom, expressed concern about the growing level of loan defaults among members – indicating that the trend is a threat to the operations of the Credit Union. “Some take loans for non-members even do not who pay back to them, thereby affecting the Union in terms of repayment.”
With the backdrop of the 2020 cashew buying season’s commencement, he also used the opportunity to encourage cashew farmers across the Credit Union’s catchment area to save at NATCCU so as to warrant them a loan when the need arises. Cashew production is one of the leading agricultural activities in the Nkoranza South and North areas, hence the appeal.