Fidelity Bank Records Growth

Despite the economic downturn in 2014, Fidelity Bank Ghana Limited recorded an appreciable performance. According to Edward Effah, Managing Director of Fidelity Bank, the bank grew its balance sheet by 79 percent to close the year with an asset base of a little over GH¢3 billion.

Briefing shareholders at the bank's 2015 Annual General Meeting (AGM) held in Accra on Friday, the MD said the growth of the bank was propelled by a 93 percent growth in loans and advances to customers as well as 28 percent growth in investments in government securities.

He said interbank placements also increased by 24 percent to GH¢463 million and the increase in assets was mainly due to the rise in customer deposits and borrowings.

Mr. Effah told the shareholders that profit increased by about 79 percent to GH¢112.5 million in 2014 compared to GH¢63 million recorded in 2013, saying 'this was mainly driven by increased operating income.

'In the year under review, operating income was GH¢326 million, representing a growth of 67 percent over last year's figure of GH¢195 million. Growth in operating income was as a result of a 59 percent growth in the net interest income from GH¢117 million in 2013 to GH¢186 million in 2014. Growth in fees and commission on the other hand increased but was below expectation due to the shortage in foreign currency and decreased international trade activities in the year,' he said.

He said that effective cost savings, notwithstanding the higher inflationary environment, supported the profit performance, saying 'operating expense for the year came to GH¢183 million, 57 percent above that of the previous year.'

Mr. Effah said the bank exceeded its target profit after tax by about 26 percent, adding 'for Fidelity Bank, 2014 was a remarkable year; we improved our internal processes substantially, enhanced the delivery of service to our customers and increased our footprint in the Ghanaian banking landscape.'

He said the bank brought on board IBM, a leading IT company, to provide the latest technology platform to serve its customers, invested in a state-of-the-art centre to serve customers as well as acquired ProCredit Savings and Loans Limited to ensure expansion of its activities.

'We strongly believe that our aspirations to stay on course with our growth plans, along with offering a superior level of service to our customers remain highly achievable.'

William Panford Bray, Board Chairman of Fidelity Bank, said the bank was committed to deepening its 'exemplary' corporate governance standards that are consistent with legal provisions.

He said 'the board, through its audit and credit sub-committees, ensured good internal control processes, as well as compliance with regulatory requirements and provisions.'

He assured the shareholders that the bank had instituted measures 'to maintain an active role in Ghana's banking space in 2015 in spite of the challenges posed by the power supply bottlenecks in the economy.'

By William Yaw Owusu