An international rating agency, Global Credit Rating Agency (GCR) has upgraded Fidelity Bank Ghana’s national scale long term ratings from A- to A and short-term ratings from A2 to A1, with a stable outlook.
In a press release announcing the upgrade of Fidelity Bank, the rating agency indicated that Fidelity’s business profile is positive, supported by its above average distribution network, good spread of local geographic diversification, adequate capitalization and stable funding structure.
“Fidelity Bank Ghana’s risk position is sound, balancing the probability of asset quality deterioration due to the COVID-19 related economic shock and modest oil prices, and the better than market gross non-performing loans (NPLs). The bank recorded a regulatory NPL ratio of 2.1% at 31 March 2020, better than its competitors and against the industry average of 14.5%,” stated GCR.
According to GCR, the bank is adequately capitalized forecasting a capital ratio of between 23% and 25% over the next 12 to 18 months. GCR also indicated that Fidelity’s funding structure is very stable and broadly comparable to other top tier banks in Ghana, with retail deposits accounting for 60% of the customer deposits.
In response to the upgrade announcement by GCR, Managing Director of Fidelity Bank, Julian Opuni, said, “This international ratings upgrade and recognition reflects and confirms the confidence and continued support of our loyal customers. It is also a reflection of the sound corporate governance and risk management practices, hard work, innovation and dedication exhibited by management and staff over the years.”
“This is a significant milestone for Fidelity and we will continue to remain customer-centric in pursuit of growth that is anchored on good corporate governance, sound risk management, innovation and corporate social responsibility to further enhance the Bank’s position as a financially sound, top tier bank” he disclosed.
Mr. Opuni added “We want to thank our customers for working together with us to achieve this feat and they should continue believing with Fidelity Bank for a better financial future.”