Fidelity Bank Ghana Limited has secured the approval of its shareholders to list on the Ghana Stock Exchange to raise additional capital.

The management of the bank was given the mandate to take all the necessary steps, including the appointment of all relevant professional advisors required for the Initial Public Offer (IPO) and listing of the company on the Ghana Stock Exchange between 2013 and 2015.

The decision was taken at the bank’s 5th Annual General Meeting which also authorized the board of directors to determine the relevant terms and conditions relating to the IPO and Listing.

Ahead of the IPO, it was resolved to accept deposit payments up to GH¢25 million from existing shareholders and others who may be interested in the offer.

Management of the bank also got approval to issue additional non-redeemable preference shares up to the Ghana Cedis equivalent of $420 million through a private placement.

It was also decided that the bank should transfer an amount of GH¢4.00 million from its income surplus account to stated capital after mid-year audit in 2012.

At the end of the meeting, the board of directors put smiles on the faces of shareholders of the bank as they announced a 150 percent surge in dividend payments per ordinary share for the end of 2011, and posted a GH¢14.6 million before tax profit.

This means that holders of ordinary shares would receive GH¢0.25 per share, which is 150 percent increase over the amounts that was paid to shareholders the previous year. In 2010, shareholders received GH¢0.10 while in 2009 the bank rewarded GH¢0.05.

The amount represents a payout ratio of over 40 percent of the profit after tax for 2011 and will be paid on April 16, 2012 to shareholders on the bank’s register.

An elated Edward Effah, Managing Director of Fidelity Bank Limited, said the bank was progressing towards its dream of “becoming a top 5 bank” in the next few years.

At the end of 2011, the bank posted a 106 percent increase in its profit before tax, growing from GH¢6.8million to GH¢14.6 million from the previous year.

Total assets of the bank also increased significantly from GH¢650 million in 2010 to GH¢1.1031 billion in 2011, representing a 59 percent growth; while it’s total income also increased by 72 percent from GH¢64 million in 2010 to GH¢79 million in 2011.

Mr. Affah also stated that Fidelity Bank’s customer base more than doubled as it increased from 120,000 to 250,000.

The rise in the customers of the bank was attributed to the extensive branch expansion embarked on in the years past, as well as the various customer loyalty programmes which received impressive patronage.

As a result of the increase in the customers, the bank recorded a boost in its deposit mobilization to the tune of GH¢896 million, a 64 percent increase from the previous year’s GH¢548 million.

“With a balance sheet size in excess of GH¢1billion, we are now among the few banks in the country with such a balance sheet,” said Mr Affah, who noted that after five years of the bank’s existence, it could now boast of 40 branches and 49 ATMs nationwide, with plans to roll out 10 more branches this year.

“We envisage a bright future in which we will remain ahead of the market trend,” he noted.

Chairman of the Board of Directors of the Bank, William Panford Bray, noted that the bank’s sterling performance was achieved against a backdrop of a relatively unpredictable global economy, yet “the relatively political stability in Ghana however served as a solid foundation for the private sector to successfully absorb the other challenges in the banking industry.”

“Your bank had an excellent year making significant strides in the market, increasing profitability and growing its size to an appreciable level in spite of the stiff competition and tough market conditions,” Mr Bray told the shareholders.

Later, the company’s name was changed from Fidelity bank Limited to Fidelity Bank Ghana Limited in accordance with the companies Code 1963 Act 179.