The Axim Road Community Co-operative Credit Union (ARCCU), has recorded a profit of GH¢84,741.55 for 2007/2008, 46.8 percent increase over the previous year.
Mr Edward Howard, the Union Chairman, who told the 9th Annual General Meeting (AGM) of the Union on Friday said the last year profit was GH¢57,716.47.
He said shareholders fund increased from GH¢286,983.48 to GH¢420,032.67, an increase of 46.37 per cent.
The AGM was under the theme: “Credit Union-Savings for Secured Future”.
Mr Howard said increased competition with banks and significant increases in the price of crude oil led to high cost of operation for the union and the members.
Mr Howard said that led to high loan delinquency levels and management took a hard stance to retrieve loans from defaulters.
He appealed to members to honour their loan repayment obligations and said the union continued to be guided by its strategic objective of growing shareholder value and providing assistance to members on timely basis.
In this regard, Mr Howard urged members to buy more than the minimum shares and also to make regular savings.
Mr Alexander Sackeyfio, General Manager of the Union, said total assets of the union for the year under review was GH¢2,320,360.15 as against GH¢1,829,101.80 for 2006/2007.
He said union also saw net increase of 1,909, bringing active membership to 5,620.
Mr. Sackeyfio said members savings went up from GH¢1,433,439.82 in 2006/2007 to GH¢1,891,740.66 for the year under review.
He said savings mobilisation had been the core business of the union with members saving through mobile bankers or coming direct to deposit in the office.
He said during the latter part of 2008, a “Home Banking Service” was introduced where metallic boxes are placed at the member's home or office and the box is opened at the end of every month in the presence of the member.
Mr Sackeyfio said interest paid on savings for the year under review amounted GH¢110,627.69 compared to GH¢88,730.00.
He said total loans granted amounted to GH¢1,946,941.51 as against GH¢1,450,422.00.
Mr Charles Sefa, Western Regional Manager of the Bank of Ghana said the savings culture in the country was not encouraging and noted: “It is on the average between eight percent and 12 percent compared to Sub-Saharan African average of 25 percent”.
Mr Sefa said savings hold the key to the development of the nation as infrastructural developments and other amenities could be provided only if enough resources were generated.
He advised that expenditure on funerals, naming ceremonies, weddings and get-togethers could be reduced to create funds for investment.
Mr Sefa said the level of savings would improve if members could be assisted to manage their human and material resources very well.
He called on the management of the union to extend its operations to communities, which lack banking services.