Fidelity Bank Ghana Records 32% Increase in Profit Before Tax
Fidelity Bank, the largest privately-owned Ghanaian bank, has recorded a 32% increase in profit before tax (PBT) for 2021. This came to light at the Bank’s recent Annual General Meeting (AGM) which was held virtually for its shareholders to review the performance of the bank for the year ended December 31st, 2021. Within the period under review, the Bank posted a strong growth in key financial metrics across its various business segments. In addition to the record increase in PBT, the bank also recorded a revenue of GH¢ 1.1 billion, 14% above the 2021 figure.
Addressing shareholders at the AGM, Board Chairman of Fidelity Bank Ghana, Edward Effah, stated that despite significant external and domestic challenges, the bank remained resilient, turning in a strong performance in 2021. He further indicated that this buoyant performance was largely underpinned by the Bank’s allencompassing transformation journey which has seen Fidelity leverage cutting edge technology to enhance convenience and deliver superior customer experience across the Bank’s various touchpoints.
Mr. Effah stated that, “the Group’s balance sheet remained robust with a significant yearon-year increase of 44% to close the year at GH¢ 13.36 billion, an increase from GH¢ 9.28 billion in 2020. The growth was funded mainly from an increase in customer deposits and shortterm borrowings that financed corresponding short-dated investments.”
Mr. Effah further asserted that “Looking ahead, I have great confidence in the future of our Bank. Regardless of market conditions, our focus will always remain on what has sustained Fidelity Bank over the last 15 years: our people, our culture, and above all, our response to the evolving needs of our clients. In doing so, we are well-positioned to compete even better in the years ahead and to deliver higher, more sustainable returns for our shareholders and other stakeholders.”
At the AGM, the Bank reiterated the significant impact of its investments in digital innovations during the year under review in line with its transformation agenda. Consequently, by the end of 2021, 89% of all transactions were carried out via the bank’s digital channels. This impressive feat bears testament to Fidelity’s leadership in digital banking and its remarkable success in migrating customers unto digital platforms.
In his report at the AGM, the Managing Director of the Bank, Julian Opuni, stated that, “2021 marked the Bank’s fifteen years of existence as a commercial bank. Fifteen (15) years down the line, we are pleased with the successes we have chalked over the years with support from all our stakeholders and we believe that we are well positioned to continuously serve our customers better.”
He added that, the bank’s ambition of becoming a top 3 bank in Ghana by 2024 is on course with a focus on some key areas to achieve this mandate: digital innovation, data insights, value chain optimization, fit for future technology and talent optimization. He also stated that the bank’s transformation journey has already yielded some significant gains for the bank. Through the efforts of the Transformation Office, Fidelity achieved 113% of its revenue target for the year and mobilized low-cost deposits in excess of GH¢ 240 million.
The Bank also gave shareholders an overview of their notable accomplishments and honors received during the fiscal period under consideration. Consequent to the Bank’s remarkable business performance in 2021, the Bank and its leadership were duly recognized and accorded several laurels by reputable local and international organizations within the period. These include: The Bank of the Year Award at the Ghana Business Awards, Best Bank in Ghana by EMEA Finance, Best Treasury & Cash Management Bank in Ghana Award by the Global Finance Magazine, Agency Banking Bank of the Year Award by Instinct Business Finance Innovation, Outstanding response to COVID-19 and SME Loans Award by the Middle East and Africa Retail Innovation Banking Awards among others.
The remarkable growth of Fidelity Bank over the last 15 years is testament to the vision and resilience of the leadership and staff of the bank, both past and present. Fidelity’s story shows that the indomitable Ghanaian entrepreneurial spirit is still alive and demonstrates that “it can be done” in Ghana by Ghanaians.
Fidelity Bank Ghana is optimistic that in 2022 and beyond, buoyed by the impact of its ongoing Transformation Agenda, it will continue to leverage on technology and the Bank’s strategy, people, and systems to give customers a satisfying banking experience and enhance shareholder value.