Fidelity Bank reports impressive performance at 2023 AGM, announces innovative agribusiness initiatives

Fidelity Bank, Ghana’s largest privately-owned indigenous bank, recorded high profit and a strong financial performance across all businesses in the year 2023, officials of the Bank have said.

By the end of December 2021, the Banks operating income increased from GHS1.43 billion in 2022 to GHS2.03 billion, representing 40 percent increase year-on-year.

That and other performance records were announced at a virtual Annual General Meeting (AGM) held on Friday, May 31, 2024, to review the Bank’s performance and provide update on other strategic initiatives.

Addressing shareholders, Mr James Reynolds Baiden, Board Chairman, Fidelity Bank, highlighted the Bank’s resilience despite ‘challenging economic climate’.

‘Notwithstanding the macro-economic challenges, 2023 was a year of strong performance and significant recovery for Fidelity Bank, evident in our record revenues and profits,’ he stated.

He attributed the Banks growth to strong performance across all segments, including Retail Banking, Corporate
and Institutional Banking, and Financial and Capital Markets.

Mr. Baiden reported that the Bank’s total assets grew by 25 percent, reaching GHS 17.22 billion at the end of 2023.

That, he said, was driven by a 28 percent increase in customer deposits, which closed the year at GHS 12.65 billion.

Profitability, according to the Bank, also saw ‘a dramatic shift, reversing a recorded loss of GHS518 million in 2022 to a profit of GHS1.17 billion in 2023.’

Loans and Advances Portfolio grew by 17 percent to GHS 3.21 billion and its Investment Securities book improved by 28 percent to GHS 7.70 billion in 2023.

Fidelity Bank again witnessed an increase in Shareholder Funds, reaching GHS 1.44 billion at the end of the year while its year-end Capital Adequacy Ratio (CAR) also improved with regulatory reliefs, from 16.8 percent in 2022 to 20.9 percent in 2023.

This implies that the Bank remains adequately capitalised, and with an improved Balance Sheet performance it remains the 5th largest bank in Ghana
by total assets.

Mr. Baiden said the Bank would continue to invest in technology-driven solutions to improve efficiency and customer satisfaction in the digital era.

‘The Bank is also forging partnerships with FinTech (financial technology) firms and sustainable development organisations to align our strategies with emerging growth areas in financial services and Environmental, Social, and Governance (ESG) propositions for greater value creation,’ he added.

Julian Opuni, Managing Director, Fidelity Bank, emphasised the Bank’s commitment to empowering local businesses and fostering economic growth.

‘In 2023, we provided over GHS2 billion in credit to businesses across key sectors like agriculture, manufacturing, services, and commerce. Over 10 percent of our loan portfolio is dedicated to supporting agricultural businesses, from established enterprises to small-scale entrepreneurs,’ he noted.

Mr Opuni announced plans to expand support for early-stage agribusinesses, particularly those led by fema
le entrepreneurs, and highlighted the Mastercard BRIDGE-in Agriculture programme, which aims to support smallholder farmers, impacting women and youth, and create jobs in the next five years.

Source: Ghana News Agency