Fidelity Records 119% Profit

Edward Effah – Fidelity Bank Boss

Fidelity Bank, one of the fastest growing banks in the country, recorded a 119 percent increase in profit in 2010 as a result of gains made in the expansion of balance sheet as well as improved efficiency in its operations.

The bank’s profit before tax for the last financial year was GH¢6.8 million as against GH¢3.1 million in 2009 while its profit after tax for 2010 was GH¢4.8 million as against GH¢2.02 million in 2009.

Importantly, the balance sheet of the bank grew significantly by 80 percent over the same period in 2009.

The balance sheet structure remained healthy with 87 percent of total assets in earning assets.

The composition of these assets as at the end of 2010 was 33 percent in loans and advances with 67 percent in government bills and bonds, interbank placements, among others.

Total assets at the end of the December 2010 stood at GH¢650 million compared to GH¢362 million mainly due to immense branch expansion that took place during the year under review.

Highlighting the performance of the indigenous bank at its Annual General Meeting (AGM) yesterday, Edward Effah, Managing Director, said the unyielding support of the board and shareholders was a prime factor to its success in 2010, adding the bank was confident of taking advantage of the emerging opportunities in the economy in 2011, especially the oil and gas sector.

“The bank’s continued growth was evident in its staff strength as well. The number of permanent and contract staff increased from 340 to 492.”

He noted that the bank remains a strong brand with the capacity to continue as a first class financial institution.

“We made significant gains in brand value with the launch of our very innovative “Go-For-Gold” deposit campaign. Not surprisingly our customer base of 50,000 at the beginning of the year reached about 120,000 by the end of the year.”
40,000 new accounts were opened though the target was 20,000.

The bank also chalked some significant milestones in 2010, securing a total of $100 million through lines of funding for trade and export clients.

On branch expansion, the bank’s branches increased from 15 to 25 at the end of the year.

It now has branches at Tamale and Tarkwa while additional branches were opened in Accra, Kumasi, Takoradi and Tema.

Meanwhile, the bank has entered into an agreement with Ghana Post to roll out bank posts throughout the country.

By Charles Nixon Yeboah