Business News of 2013-12-16

GESTRO Co-operative Credit Union makes strides

The GESTRO Co-operative Credit Union, this year, gained a total income of GH¢ 2,026,682.41 compared to GH¢ 1,481,462.29 achieved in 2012, representing a 36.80 per cent increment.

This resulted in a net profit of GH¢ 213, 035 compared to the previous year’s amount of GH¢124,709.20 representing 70.83 per cent growth. Mr Nelson Ahlijah Kwao, Chairman of the Board of Directors, announced this at the Union’s 13th Annual General Meeting in Takoradi.

He said the union achieved this feat due to prudent financial management despite the macroeconomic constraints experienced in the country in the year under review.

Mr Kwao revealed that interest on loans rose by 21.76 per cent this year from GH¢1,398,964.57 to GH¢1,148,985.86.

He said the union’s extensive investment in liquid assets paid off resulting in more than a tripple of the returns from GH¢118,985.86 in 2012 to GH¢552,144.65 this year.

He said the remarkable improvement in savings mobilisation and prime savings deposits coupled with the land savings product continued to afford the union the opportunity to increase investment in liquid assets.

Mr Kwao said the prudent management of those funds had led to the dramatic improvement in returns on investments and that the liquid investments of the union stood at GH¢399, 941.60 as at June 2011.

However, he said, from 2012 to this year, the returns on investment rose from GH¢1.64 million to Gh¢2.85 million. Mr. Kwao said savings of the union in the form of Normal, Withdrawal, Children, Prime and Land savings stood at GH¢ 9,000,000 at the end of the financial year.

He entreated parents to start saving towards their children’s education in order to offer them quality education in the future.