Fidelity Raises Supplementary Capital
Fidelity Bank Ghana is set to raise between GH˘50 million and GH˘100 million as supplementary capital, including reserves and long term debts to support its increased lending strategy.
Edward Effah, Managing Director of the bank told shareholders at an Annual General Meeting (AGM) that the bank was discussing with institutional investors and some multilateral lending institutions to raise long term loans to deepen its financial activities.
“We have even considered issuing preference shares to some institutions, Mr. Effah said, explaining that the idea was still under discussions and shareholders approval would be sought.
The bank raised GH˘18.3 million last year through a rights issue and private placement to strengthen its balance sheet.
Despite the harsh economic and competitive banking environment, the bank grew its net worth position significantly from GH˘9.6 million in 2008 to GH˘32.2 million last year mainly due to the rights issue.
Profit before tax increased to GH˘3.3 million in 2009 as against GH˘219 million the previous year and total deposits were up to GH˘295 million from GH˘201 million in 2008.
Mr. Effah said the bank was on track to become one of the top five banks in the country in terms of assets, deposits, fees and commissions and cost to incomes ratio.
Management, he said, would pursue an aggressive marketing campaign to support staff efforts, besides plans to finance refined petroleum products.
In line with this, the bank last week signed a 20-milion-dollar trade finance agreement with Africa Finance Corporation (AFC) to partly finance the importation of petroleum product.
“We are focused on our mission to be among the top five banks in Ghana by December 2013 and we strongly believe the gains we will make this year will take us closer to that target: he stressed.
The Chairman of the Board of Directors, William Panford Bray announced a total dividend of GH˘800,000, which is almost the same as last year.
The bank, he said, performed creditably last year, doubling its customer base and increasing its Automated Teller Machines (ATMs) from seven to 14.
He revealed that the bank introduced a range of electronic banking products to enhance services and provide convenience to customers.
Mr. Bray said although competition in the banking industry might intensify, Fidelity Bank would maintain the strategy to build and grow the group and to improve operating efficiency to deliver superior shareholder value. GNA
(Jan-01-10)
