Business News of 2014-04-27

Fidelity joins league of big banks

Fidelity Bank says it has joined the league of Tier 1 banks in the country . This was after some of the bank's investors injected GH¢182 million ($ 67 million) into the firm.

Price Water House Coopers, a renowned audit and financial advisory firm, in 2013, ranked ECOBANK, Ghana Commercial Bank, Barclays' Bank, Stanbic Bank ,Standard Chartered Bank and Agricultural Development Bank as Teir 1 banks in the countrybased on their assets, including cash investments loans, and capital.

Tier 1 banks are banks with high capital adequacy.

Speaking to Joy Business after the bank's Annual General Meeting on Friday, Deputy Managing Director, Jim Baiden, was happy the bank has joined "the league of big banks".

He said the size of their balance sheet will be boosted by the move.

According to him the capital injection is part of a plan to embark on aggressive expansion drive which would bring the bank's branch network to 100 in the next two years.

Mr Baiden noted that their new status would also mean that they would be able to undertake bigger transactions while lending more to businesses and their customers.

The bank's balance sheet grew by 27 percent with an asset base of 1.7 billion Ghana cedis .

The growth was driven by an increase in loans and advances to customers and a 48 percent increase in investments. Fidelity Bank's profit after tax went up by 158 percent to 43 million Ghana cedis.

Meanwhile Mr Baiden says they do not expect the tax on financial services to affect their ability to attract more deposits .

There have been reports that some persons are withdrawing all their monies with their banks , while others are threatening to close their accounts.