North Tema Co-op Credit Union successfully organizes its 31st Annual General Meeting (AGM).
Below is the report from the Board Chairman.
BOARD CHAIRMAN’S REPORT
Mr. Chairman, our special guest of Honour in the person of Mr. E. O. Darko, the former General Manager of CUA, Greater Accra Regional Director of Department of Co-operatives, Tema Metro Director of Department of Co-operatives, Tema Chapter Manager of CUA, the Audit Team, fellow co-operators, ladies and Gentlemen.
On behalf of the Board, Management, staff and on my own behalf, I would like to welcome you all to this 31st Annual General Meeting of North Tema Co-Operative Credit Union Limited (NTCCU). The union strived to fulfill its vision and mission during the period under review. In carrying out its mandate the Board of Directors were guided by the principles and core values by which the union operates.
The Board of Directors comprises of
Joseph Odechie Bossman Chairperson
Anthea Ohene Vice Chairperson
Mary Adwoa Anaman Treasurer
Victoria Badagbor Assistant Treasurer
Jonathan A. Aryee Secretary
Aaron Sagoe Assistant Secretary
Felix Richter Bannerman Member
Nana Kwatia Kumapim I Ex-Officio
As the Chairman of the Board I am pleased to submit to members the annual report for the 12 months ending 30th June, 2019 which happens to be the last report for the Board’s four year term from February 2015 to November 2019. I am particularly happy to report that NTCCU continues to operate in a safe and efficient manner irrespective of the challenging environment that confronted all financial institutions in the country for the past one and half years. I would humbly mention that the leadership of your Credit Union has been able to steer the affairs of the society in these turbulent times and have maintained a good balance to offer its cherished members the needed products and services.
MEMBERSHIP
I am glad to say that a total of 1,286 new members joined the union during the 2018/2019 financial year. This jump can largely be attributed to the appointment of a marketing personnel as well as the opening of Ashaiman Main Market branch. Although this indicate an increase of about 219% over the 2017/2018 financial year figure of 568 however still there is room for improvement as the union’s active membership stood at 6554 at the end of June, 2019. This development has prompted the Board and Management to map up strategies to drive the union’s a membership plan to recover lost members and win a total of 3156 new members into the union in the course of 2019/2020 financial year to bring the total active membership to about 9710.
As shareholders and for that matter owners of the society it is encumbered on each of us to attract new members into the union by spreading the joy of being a member of the society to others including family members and colleagues.
FINANCIAL PERFORMANCE
Fellow Co-operators I would like to mention that although the union experienced a moderate success as compared to its previous year. Nevertheless I am particularly proud of the fact that our deposit, loans and total asset continue to grow at a steady pace which is a clear gesture of your vote of confidence in the union. As leaders of the society we would like to assure members that the society will continue to remain strong and dedicated as ever to the needs of its members.
TOTAL ASSET
At year end the society’s assets amounted to GHC30, 373,853.32 signifying an increase of about 23 % on the previous year figure of GHC24, 712,905.19. This significant growth can be attributed to the application of good financial management practices by the Board and management coupled with member’s unwavering support and co-operation. With this level of achievement, it is satisfying to mention that North Tema, your credit union, is indeed resolute in providing the financial needs of its members.
DEPOSIT
In the 2018/2019 financial year the union was able to maintain a good increase in deposit mobilization by increasing its total deposit from GHC17, 340,006.79 in the 2017/2018 financial year to GHC21, 744,207.35 in the year under review (indicating about 25% increase). This is a clear demonstration of members’ trust in the union. For this sense of loyalty shown by members, the Board would like to assure members that we will continue to apply prudent financial measures to invest, grow and protect your funds because we thrive as a credit union because of your complete confidence in us.
LOANS
In the financial year under review, the union delivered a total of GHC16, 078,00.00 loans to its members representing an increase of 15.6% over last year’s figure of GHC13, 563,00.00. Similarly a total of GHC13, 860,000.60 was received as loan repayment indicating an increase of 15.1% as compared to the previous year amount of GHC11, 884,693.34. It is worth mentioning that loans to members remains the main contributor to the union’s income stream. For instance about 46% of the union’s total income in the year under review was generated from loan interest. With this analysis it is obvious that good loan repayment is the lifeblood of the union and delinquency can substantially decrease the growth prospects of the society. I would like to mention that as some members are repaying their loans religiously, others are also defaulting critically. It should be noted that any member who defaults in his or her loan repayment is making the union anemic and for that matter putting the society’s life at risk. Therefore it is compulsory for members to exercise a sense of responsibility by paying their loans on time.
Again the Board as well as the Loans and Supervisory Committee together with management would apply stringent measures including but not limited to showing the name and faces of critical defaulters in our banking halls to recover all delinquent loans and its interest.
MEMBERS SHARE
The Union’s year-end value of shares amounted to GHC 1,163,020.18 depicting 3.8% of total assets, although this shows an increase of 30% over the 2017/2018 financial year figure of GHC891, 682.11 but it is still below the CUA benchmark of 5% of total asset. This requires the society to put in place crucial measures to ensure that its equity shares grows proportionally to assets. In view of this the Board and Management would like to remind members that it is obligatory for every member to fulfill this vital requirement by having the minimum share of GHC100.00 soon as possible. Again the board would like to encourage members to patronize the union’s on-going “top and win” share promotion by increasing their shares with an amount of GHC200.00 to win either NTCCU branded Umbrella, T-Shirt or flask.
DIVIDEND
In relation to dividend on member’s share, I am happy to mention that irrespective of the crisis that hit the financial sector in the country the union through its prudent financial management practices is able to propose 20% dividend to be paid on member’s share.
SURPLUS
Although as compared to the previous year the union’s surplus for the 2018/2019 financial year dropped massively by 46.89% from GHC1, 950, 359.67 to GHC1, 035813.39 as a result of low return on our investment and non-performing loans but permit me to say that the union had been able to lift its head above the waters by realizing a surplus of over a million cedis in these perilous times. I trust that the incoming Executives will do whatever they can in their capacity to double our surplus in the subsequent years.
ACHIEVEMENTS OF THE OUTGOING BOARD OF DIRECTORS
In all humility the board would like to chronicle some of their achievements in the course of its four year term from 2016 to 2019 namely the establishment of the community 1 branch in 2016, introduction of international money transfer and mobile money transfer services into the union’s operations in 2017, celebration of the union’s 35th anniversary in 2017, introduction of security and CCTV cameras in all branches in 2017, establishment of Ashaiman Main Market Branch in 2018, fencing of the union’s land at Dawhenya, in 2018, introduction of direct mobile money transfer services in 2018, introduction of cheque books in to the union’s banking operations and lastly the review of the union’s bye-laws in 2019as well as other operational policies and procedures .
CHALLENGES ENCOUNTERED BY THE OUTGOING BOARD OF DIRECTORS
On the other hand, the union had its share of the financial sector crisis that hit our nation as a result of the financial sector clean up exercise by BoG. We trust that as the Receiver and the Regulators of the affected institutions have started paying depositors it will have a good impact on our operations.
WAY FORWARD
To the incoming Board I would like to comment that we have developed a five year-strategic plan from 2017 to 2022 and this will serve as a fertile ground for you to meet the union’s set goals in the next four years. Secondly with the rapid growth in Financial Technology, it will be important for the union to digitize some aspects of our banking operations to provide needed and convenient services to our valued member. Also we would like to recommend to the next board to tap into the energy of the youth in the union’s catchment area to help sustain the union for the next generation.
CONCLUSION
All too soon our four-year mandate as Board of Directors is coming to an end today as new executives will be elected to continue where we left off. First and foremost I would like to express my sincere thanks to God Almighty for his protection and provision and secondly to my colleague Board members for their exhibition of unity, support and dedication. Thirdly to CUA and Department of Co-Operatives for your professional advice and direction. To the Supervisory, Loan and Education Committees I would like to show my appreciation for your devotion and commitment, to management and staff, we would say “ayekoo” for you untiring efforts and to our cherished members we would thank you a million times for you loyalty.
Thank you and God bless you all.
JOSEPH O. BOSSMAN
BOARD CHAIRMAN