Fidelity Bank Records Profit

Despite the economic downturn in 2014, Fidelity Bank recorded an appreciable performance.

At the bank’s 2015 Annual General Meeting (AGM), the Managing Director of the Bank, Mr. Edward 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.”

Assets of the group soared significantly by 85 per cent from GH¢1.69 billion in 2013 to GH¢3.14 billion in 2014.

The bank’s profit after tax increased by about 90 per cent from GH¢43.86 million in 2013 to GH¢83.38 million at the end of last year, buoyed by about a 71 per cent growth in operating income from GH¢197.1 million in 2013 to GH¢336.7 million in 2014.

Mr. Effah noted that that “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 contact centre to serve customers as well as acquired ProCredit Savings and Loans Limited to ensure expansion of its activities.

Mr. Edward Effah noted that the integration has been very smooth and that Fidelity currently has the best combination of Human Resources. He said “This has been the best integration to have happened in Ghana. Before acquiring ProCredit, we made a commitment that nobody will be laid off and true to that vow, nobody has been laid off. We have the full support of staff of both Fidelity and ProCredit. Indeed we commend all Pro Credit Staff for being very supportive of our efforts”. Mr. Effah added that with such a combined force, Fidelity Bank will render its maximum support to grow indigenous Small and Medium Scale Enterprises and Commercial Operations.

Board Chairman of the Bank, Dr. William Panford Bray, touching on the acquisition of ProCredit noted that the acquisition of ProCredit  had helped the bank to increase its footprint across the country with an extended network of 80  branches and 110 ATMs.

With the integration of processes and credit methodology well integrated, Fidelity has also migrated all customers of ProCredit and is hoping to complete rebranding by the middle of the year.

“Our customer base has also increased from 485,000 to 621,829 helping to improve our deposit base by 31 per cent to GH¢1.8 billion. It is worth noting that this growth was primarily driven by current and savings accounts,” Mr Bray stated.

The Shareholders also appointed Mrs. Akosua Nelson-Cofie to represent the Social Security and National Insurance Trust (SSNIT).

Dr. William Panford Bray led the gathering to observe a minute silence for the late Mr. P.V.Obeng who died last year May. Mr. P.V.Obeng was a Board member of Fidelity Bank from September 2009 to May 2014.

On behalf of the board, Dr. Bray congratulated one of the board members, Mrs. Johanna Svanikier, on her appointment as Ghana’s Ambassador to France and Portugal and wished her well.