Fidelity posts impressive profit growth

Fidelity Bank Ghana Limited has consolidated its position as a key player in the industry with an impressive 185 percent increase in profit after tax, which hit GHS27.7 million in 2012.

Addressing shareholders at the bank’s annual general meeting in Accra, Board Chairman William Panford Bray said the sterling performance is attributable to the significant growth in key areas of the bank’s businesses - which shielded it from the disruptions in macroeconomic conditions and currency pressures within the fiscal year under review.

“Our goal of creating value for all our stakeholders was the focus of activities during 2012 through the addition of some high-yielding assets, thus increasing total assets from GHS1.03 billion in 2011 to GHS1.331 billion this year, representing a growth of 29 percent.

“Total operating income for the year stood at GH¢138.8 million, compared to GS79.6 million the previous year, representing a 75 percent increase. Fidelity Bank increased its customer base from 250,000 at the beginning of the 2012 financial year to 400,000 by year-end,” Mr. Bray announced to shareholders.

He said driven by a number of customer loyalty reward strategies, and the efforts of the bank’s ‘Fidelity Sales Ambassadors’ initiative, developments in the balance sheet culminated in a significant boost to net profit.

Dividend declared was GHS0.325 per ordinary share, representing a payout ratio of 21 percent and an increase of 30 percent over the previous year’s dividend of GH¢0.25.

Mr. Edward Effah, Managing Director, said the bank has over its six years of operations emerged as a major player on the local banking landscape, and is gaining recognition in the international investor community.

“We have made strides in terms of business growth and outreach, and are well on our way to becoming a top-five bank in Ghana.

“Arguably the fastest-growing bank in Ghana currently, Fidelity Bank has expanded from one branch in 2006 to become a 45-branch bank, and the sixth-largest in Ghana in terms of deposits.

“The bank is contributing significantly to the Ghanaian economy, and has been involved in some ground-breaking projects and transactions -- particularly in the areas of downstream oil, power plant, cocoa, construction financing, as well as significant direct funding for Government of Ghana projects in the security services,” he said.

Mr. Effah said the bank’s plans going forward will be to increase revenue mobilisation to facilitate expansion while working to reduce cost funds as well as cost to income ratio significantly.

He said Fidelity Bank will continue to invest in key areas of the economy, including setting up a wholly-owned real-estate subsidiary, and will also introduce more card-based products to make banking convenient and attractive to both current and potential customers.