Indigenous bank Fidelity bank saw its profits soar significantly in 2014. The bank is one of few local banks in the country tipped to soon lead the pack be it local or foreign in performance.
The bank last year saw its profits almost double while the size of its non- performing loans portfolio fell drastically reducing to 2.52 percent from the 5.81 percent recorded in 2013.
Significant growth in profits and assets According to the bank’s financial statement for 2014 the bank’s profit for that year shot up to 82,762 million cedis, nearly doubling up for the period as compared to the to 43,877 million cedis recorded in 2013.
Its profit before tax for 2014 went up 112,477million cedis from the 62,579 million cedis recorded in the previous year.
This figure represents a 57 percent growth in profits since 2007. The bank’s total assets also grew by 1,330,613 billion cedis in 2014 alone.
Fidelity bank’s total assets shot up 3,020,283 billion cedis from the 1,689,670 billion cedis it recorded in 2013. This leap places it among the top five banks in terms of asset size in the country and specifically at number four beating Barclays bank which was at this spot previously.
Barclays Bank Ghana (BBG), posted GH¢2,981,302 billion as its asset size for 2014. At number two is Ghana Commercial Bank (GCB) with GH¢4,259,102 billion and Standard Chartered Bank (SCB) at number three with GH¢3,506,297 billion in assets.
Fidelity bank’s current asset base represents 45 percent growth within 8 years. Prospects of bank Fidelity bank is seeking to become one of the top five banks in Ghana based on deposits, fees, quality of loan book and cost to income ratio by 2018.
The bank which began operations in 2006 last year acquired savings and loans company ProCredit making it the first Ghanaian bank to make such a move. That was not Fidelity bank’s first move to acquire a financial institution.
The bank two years ago was one of few banks that begun moves to acquire Merchant bank which was eventually acquired by private equity firm Fortis. According to its 2014 financial report its customer deposits increased to 1.777,313 billion cedis from the 1.355,980 billion recorded in 2013 while its total liabilities increased to 2,637,881 billion cedis from the 1,535,667 billion cedis recorded in 2013.
Credit: citifmonline