REPORT FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
The Tema Metro Director of Department of Co-operatives, the Tema Chapter Manager of CUA, the Audit Team, fellow Co-operators, distinguished Ladies and Gentlemen.
It is both a great honour and privilege to stand before you today as we gather for our 36th Annual General Meeting, an important moment in the life of our credit union, where we reflect on the year gone by, account for our stewardship and lay a foundation for the journey in the year ahead.
Let me begin by extending a warm welcome to all of you. Your presence here is a testament to your continued commitment and belief in the vision and mission of North Tema Credit Union.
Per your mandate you elected a five-member Board in January 2024 comprising
- Anthea Ohene Mayne Chairperson
- Nicholas Opoku Vice Chairperson
- Rebecca Eshun Treasurer
- Sylveter Kwasi Ofori Secretary
- Emmanuel Idun Acquah Member
On behalf of the Board, I would like to express our deepest gratitude to you our members who have placed your trust in us to steer the affairs of this union in the next four years. I also thank the Management team, our dedicated staff and all stakeholders who continue to uphold the spirit of service, professionalism and cooperation that defines the Union.
The current Board assumed office in June 2024 to continue the good works and the legacy of the previous board, and I would like to say that 2024 has been another successful and active year in the life of North Tema credit union. Though the financial year was marked by persistent economic volatility including high inflationary trends, exchange rate pressures and rising cost of doing business, despite these obstacles the union remained resilient and have registered massive growth in all key areas of its operations. Thanks to prudent financial management by the Board, Management and your committed patronage.
I find the theme for our 36th AGM to be very appropriate and thank to the organizers for such a theme because the year under review has been very transformative marked by significant asset growth and remarkable achievement in financial stability and profitability.
MEMBERSHIP
In the 2024 financial year, 2,029 new members joined the union, increasing total active membership from 11,564 to 13,930—a growth of 17.5%. This growth was driven by the collective efforts of our dedicated team and the ambassadorial role played by members. I must say that the union’s marketing efforts were significantly enhanced during the year under review and key initiatives included the hiring of a Marketing Manager, implementations of new member sensitization initiatives, increased brand visibility, procurement of NTCCU branded marketing materials, significant upgrade in social media presence, acquisition of a toll-free line, and the celebration of Member Service Week.
I would like to emphasize that growing the membership of our union is a shared responsibility for both members and staff. I, therefore, urge all of us to continue educating our families, friends, colleagues, and communities about the importance and benefits of becoming a member of North Tema.
Moreso. it is the responsibility of the union to offer top notch member service to all members at all branches. For this reason, the union has acquired a toll-free line 0800-101-080 to responds promptly to members’ queries during the working hours
FINANCIAL PERFORMANCE
Fellow cooperators, I am pleased to report that our union achieved outstanding financial success during the year under review. All key financial indicators showed significant growth, contributing to the development of a resilient and a sustainable union for posterity.
Members Share
In 2024, the union’s total member share increased considerably 41.10% by from GHC2,976,778.81 to GHC4,210,250.80. The key factor in this growth was the ‘Me Kye-fa share promotion which successfully mobilised a total of GHC523,271.93 in member shares from July to August.
I would like to take this opportunity to thank all members who participated in the promotion. Despite this impressive progress, the union still falls short of the required benchmark of 10% of total assets in member shares. To address this, the Board and Management would like to advise all members to meet their minimum share requirement of GHC300 – personal account, GHC400.00 – group account and GHC500.00 -corporate account. We also encourage members to participate in the upcoming 2025 share promotion as a long-term investment.
Asset Growth Performance
The union witnessed an extraordinary increase of over 50% in its total asset from GHC 74,142,113.71 in 2023 to GHC 111,240,664.72 in 2024 indicating an absolute growth of GHC 37,098,551.01. This surge is a clear reflection of member loyalty coupled with sound and prudent financial management decisions by the Board and Management of the union. The growth underscores the strength of our operations and the confidence our members continue to place in us.
While we celebrate this achievement, we remain aware of the responsibilities that come with growth. Our focus going forward will be to consolidate these gains by continuing to strengthen our internal systems and governance, enhancing our digital service offerings to improve member access and convenience as well as introducing innovative financial products tailored to the evolving needs of our members.
Deposit
Similarly, the union’s member deposit mobilization saw a massive growth rate of 41.3% as total member deposit including regular savings, daily deposit, kiddy accounts, current account Fixed Deposit and Me Daakye Anidaso grew meaningfully from GHC 60,625,314.32 in January to GHC85,661,219.96 as of 31st December, 2024.
This achievement reflects not only the commitment of our members to the credit union but also the strategic efforts made by the union to foster trust, encourage savings and offer competitive deposit services including creating a pleasant and professional atmosphere at our branches and head office as well as a user-friendly payment system that makes depositing funds easy.
Loans
The total loans disbursed during the year increased reasonably by 33.2% from GH41, 323,540.00 in 2023 to GHC55,058,240.00 in 2024. This growth is largely due to new initiatives aimed at improving loan processing and recovery procedure, including the establishment of credit desks at all branches.
Also, I would like to mention that the union’s loan products are specifically designed to meet members’ diverse financial needs. For example, we offer back-to-school loans for parents, quick working capital loans for traders and special business loans for big businesses. Therefore, members are encouraged to take advantage of these loan offerings and repay on time.
Though the union was able to mobilize a total amount of GHC48,429,391.55 from loan repayment in 2024 indicating 35.9% increase over the last year’s figure of GHC35,624,493.25 still some members do not adhere to their loan repayment plan leading to high level delinquency in loan repayment.
As Board Chairperson of the Union, I must express serious concern regarding our current high loan delinquency rate, which stands at 19%, far above the regulatory benchmark of 3%. This level of delinquency is not only unsustainable but poses a significant threat to the financial health, operational stability of our Union. It is, therefore, imperative that we act decisively and swiftly to reverse this trend. In view of this, the Board in collaboration with management is initiating a comprehensive loan recovery strategy including stricter enforcement such as disposing off defaulter’s collateral to repay their outstanding debt to the union. Also on behalf of the Board I would like to seek members’ permission to display names and pictures of critical defaulters at various banking hall.
Surplus
Fellow Co-operators I am pleased to report that the Union recorded a net surplus of GHC8,609,235.64 for the financial year ending 31st December 2024, an impressive increase of 184.7% as compared to the net surplus of GHC3,024,046.90 recorded in 2023.
This union’s strong performance is a testament to the dedication and strategic efforts of the Board, Management, staff and most importantly you, our loyal and trusted members. I must also say that the union’s approach to prudent financial management, improved revenue mobilization and cost control were the key contributing factors to this success.
As we all know, our nation was confronted with severe economic challenges in the year under review, however, we remained focused on being a resilient, member-oriented financial cooperative committed to maintain financial sustainability. Indeed, this surge in surplus clearly reflects the strength and potential of our union. On behalf of the Board, I would like to assure you that we are committed to maintain this positive path, while upholding the cooperative values that have guided us over the years.
NEW INITIATIVES
As we look forward into the years ahead the union seeks to embark on the following initiatives aim to better member services and position the union as one of the leading and dependable credit unions in Ghana.
- Refurbish Ashaiman Main Market Branch into an ultramodern office complex to better serve existing and prospective members. In view of this, the union has temporarily relocated the branch office to a building next to Ashfoam Depot in the Ashaiman Market to make way for the renovation works at the branch
- Acquisition of land at Community 1 to build a bigger and easily accessible office complex aiming to enhance member service and operational efficiency
- Reconstruction of a collapsed fence wall with an inbuilt security post to protect the union’s parcel of land at Dawhenya
- Change the union’s Core banking software to improve operational efficiency, offer better service to members and enhance data management.
CONCLUSION
In conclusion, this year has marked with extraordinary progress strategically, operationally and financially. Yet, we remain focused on our mission to promote the financial well-being of our valued members through comprehensive services. This progress is only possible because of our dedicated team and stakeholders to whom the Board extends heartfelt thanks. To our members, we are deeply grateful for your unwavering support and may God bless you all.
