Fidelity bank has held its Annual General Meeting and to present the banks performance to shareholders for the year 2018. The meeting came off on Friday 26th April at Kempinski Hotel, Accra.

The Bank explains that despite the turbulence encountered during the year in the banking sector, the year was rewarding and as such Fidelity bank maintained its position as a Tier one bank.

The bank closed the year with a balance sheet size of GH 7.02 billion, up by 30% from the 2017 asset position of GH 5.38 billion. The growth in the balance sheet comprises of a 38% increase in loan book to GH 1.42 billion, a 37% increase in investment securities to GH 3.47 billion and a 14% increase in cash and cash equivalents to GH 1.76 billion.

According Mr Julian Opuni, Managing Director of the bank, the growth was largely funded by a Gh 500 million increase in deposits from banks and other financial institutions representing a 13% growth, a 53% increase o stated capital. Total deposits and borrowings reached GH 4.46 billion and 1.73 billion respectively at the end of 2018, the total of which represent 90% of the bank’s total liabilities.

Income Statement Analysis

Net interest income grew by 23% (2017: 15%) from GH 408 million in 2017 to 501 million in 2018 whilst net fee and commission income also rose by 56% (2017: 25%) to end 2018 at GH 134 million. This contributed to a 32% (2017: 13%) increase in operating income from GH 523 million in 2017 to 690 million in 2018

The bank’s strengthened credit risk policies also continued to yield significant returns with net impairment loss on financial assets reducing by 17% (2017: 58%). The bank also benefited from better cost management strategies as the cost-to-income ratio reduced to 56%, down from 61% in 2017.

Dividends

The board has proposed a dividend of GH 1.28 per share for the next year. This represents a dividend growth of 83% from the 2017dividend payment of GH 0.70 per share.

Recapitalization Process

In response to Bank of Ghana’s directive for all banks in Ghana to increase their stated capital to at least GH 400 million by 31st December 2018, the bank embarked on a recapitalization process to meet the new capital requirement. The bank’s recapitalization process comprised a combination of fresh capital injection ad capitalization of income surplus. During the year, special resolutions were passed by shareholders which authorized the Board of Directors to transfer a total of GH 70.0 million through a private placement which was fully subscribed. These procedures were well concluded ahead of the Bank of Ghana’s 31st December, 2018 deadline.

Technology

As part of the bank’s digital drive, a fully digital branch was launched during the year on the Oxford Street, Osu, Accra. This branch afforded customers the ability to process a variety of transactions with minimal to no human interaction.

The Fidelity Mobile App was also upgraded to allow for international transfers, FX sale, utility bill payments, and cashless payments using the Fidelity QR Code Service known as the F-Pay. These digitization efforts were geared towards enhancing the customer experience.

Awards and Recognitions

Some of the awards won by the bank under the year of review include 2017 CIMG bank of the year, the Best Local Bank in Ghana, 2017 and the Best Local Investment Bank in Ghana, 2017 conferred by EMEA Finance. Furthermore, the GH 10 billion ESLA bond programme, the largest local currency corporate bond insurance in Sub-Saharan Africa which the bank was appointed as joint Lead Manager and Bookrunner, was awarded the Best Restructuring in EMEA by EMEA Finance.