The Wa Community Co-operative Credit Union (WACCU) has grown its revenue from GH¢3,819,312.49 in 2020 to GH¢4,327,792.11 in 2021, representing a 13 per cent increase.
The major driver of the revenue growth was interest income from loans occasioned by a higher portfolio with improved portfolio quality, Mr John Kofi Seidu, Board Chairman of WACCU announced.
He said the Union membership also appreciated in 2021 by 11 per cent from 14,532 the previous year to 16,067 as of December 31, 2021, attributing the increase to various membership winning drives and programmes the Union introduced and an enhanced marketing presence and agenda.
Mr Seidu made these known during the Annual General Meeting of WACCU held in Wa to consolidate the gains made in the previous years and map up new strategies to strengthen the Union.
He said the gross expenditure increased from GH¢3,393,418.91 in 2020 to GH¢3,616,276.70 in 2021 resulting in a seven per cent increase.
The Board Chairman said the increase in revenue expenditure was due largely to personnel cost, which grew from GH¢1,010,342.37 to GH¢ 1,144,340.87 emanating from the introduction of a staff performance incentive scheme, new corporate outfit and staff medical cost going beyond normal levels.
Mr Seidu said interest on member savings and fixed deposits also witnessed a growth of 10 per cent from GH¢952,328.60 to GH¢1,043,610.43 due to growth in deposits.
Cash flows also increased from GH¢12,915,471.97 to GH¢14,837,214.85 representing a 15 per cent increase over the previous year.
On assets, the Board Chairman said 2021 showed a strong statement of financial position with an increase of 11 per cent of total assets from GH¢29,144,124.37 to GH¢32,312,463.27 in 2021.
He said the Union registered a remarkable growth of nine per cent from GH¢26,693,551.42 to GH¢29,165,086.86 at the end of December 2021.
Mr Seidu, however, noted that though the shares component of GH¢1,953,639.52 currently constituted seven per cent of total assets, it fell short of the new CUA standard of 10 per cent of total assets.
He urged members to top up their minimum shares to the newly approved GH¢150.00 as shares.
He said despite the effects of COVID-19, the Union chalked successes, increasing its profitability to GH¢711,515.41 compared with GH¢425,893.58 in the previous year, representing a significant 40 per cent growth rate.
Mr Yakubu Yessif Sungumo, Chairman of the Loans Committee of WACCU, said the 1,417 loan applications were considered and ratified in 2021.
He said the Union disbursed a total of GH¢8,712,681.31 in 2021 compared to GH¢10,938,451.47 Ghana cedis in 2020.
The total cumulative number of borrowers were 1,818 with a total portfolio balance of GH¢13,912,013.83.
He mentioned loan delinquency, refusal of some members to adhere to financial counselling and poor loan repayment pattern of some borrowers as challenges facing the Union.
Source: Ghana News Agency