…records 629% increase in profit before tax
Fidelity Bank, one of the leading private banks in Ghana has grown its asset base by GHS1.2 billion to close the 2017 financial year with an asset base of GHS 5.38 billion.
This represents a 29 percent increase in the Bank’s asset base from the GHs4.17 billion worth of assets held at the end of 2016.
The growth was mainly attributable to a 53 percent growth in investment securities as well as a 61 percent growth in cash and cash equivalents.
This growth was largely funded by a GHS743 million increase in customer deposits representing a 24 percent growth and a 97 percent increase in term borrowings. Customer deposits and borrowings reached GHS3.84 billion and GHS684 million respectively at the end of the 2017, the total of which represents 93 percent of the Bank’s total liabilities.
The Managing Director of the Bank, Jim Baiden, describes the year 2017 as very exciting one.
“This year the Bank bounced back as promised with notable successes on the business front culminating in a very good performance on the bottom line. From a low profit before tax of GHS18.6 million in 2016, we recorded a profit before tax of GHS 135 million in 2017.
“In keeping with our stated vision of creating value for all our stakeholders, the Bank recorded an impressive performance in 2017 relative to 2016 on a number of key performance indicators. The Bank recorded a growth in balance sheet size of 29 percent to GHS5.38 billion”.
Our Operating income increased by GHS62 million which represented a 13 percent growth over last year’s to end the year at GHS523 million. Our deposit base also increased by 24 percent to GHS3.8 billion. Having made extraordinary loan loss provisions in 2016, loan loss provisions reduced significantly in 2017 by 58 percent to GHS71 million”
“As a result of the aforementioned, the Bank recorded a 629% increase in profit before tax of GH¢135 million in 2017
The Board has proposed a dividend of GH¢ 0.70 per share for this year. This represents a dividend growth of 100% from the 2016 dividend payment of GH¢ 0.35 per share.
The bank through its Risk & Audit, Credit Risk, Technology and Remuneration and Staff Welfare sub-committees, and the various management committees, worked together to ensure sound business practices. Its financial crime unit was created to ensure that the Bank is well equipped in terms of systems and people to combat fraud, both internally and externally.
“It is also meant to ensure that we proactively manage financial crime, income leakages, and respond to the risks of digitization. Through the regular review of policies and procedures, the Board is satisfied that the systems in place are adequate to manage the risk inherent in the Bank’s business.” The MD added.
By Adu Koranteng