Fidelity Bank Reports Strong Performance And Profitability During 2023 AGM; Announces Innovative Agribusiness Initiatives.

Fidelity Bank, Ghana’s largest privately-owned indigenous bank, conducted its virtual annual general meeting (AGM) on Friday, May 31, 2024, exhibiting a year of spectacular recovery and record earnings.

The meeting streamed live from the Bank’s Head Office, presented Shareholders with an opportunity to examine the Bank’s performance for the year ended December 31, 2023, and get updates on strategic projects.

Strong Financial Performance

James Reynolds Baiden, Board Chairman of Fidelity Bank, addressed Shareholders, underlining the Bank’s resiliency in a hard economic context. “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,” said Baiden.

He announced a significant turnaround, with operating income jumping 40% year-on-year, from GHS1.43 billion in 2022 to GH¢2.03 billion in 2023. Profitability also underwent a remarkable turnaround, turning a stated loss of GH¢518 million in 2022 to a profit of GH¢1.17 billion in 2023. Mr. Baiden attributed this growth to the Bank’s solid performance across all business divisions including Retail Banking, Corporate and Institutional Banking, and Financial and Capital Markets.

Balance Sheet Expansion and Growth

Mr. Baiden noted that the Bank’s Total Assets expanded by 25% to reach GHS 17.22 billion at the end of 2023, driven by a 28% increase in Customer Deposits, which concluded the year at GHS 12.65 billion.

The added capital helped the Bank to grow its Loans and Advances Portfolio by 17% to GHS 3.21 billion, and its Investment Securities portfolio by 28% to GHS 7.70 billion in 2023.

The Bank witnessed a notable 119% increase in Shareholder Funds, reaching GHS 1.44 billion at the end of the year. This growth followed a sharp decline to GHS 0.66 billion in 2022, attributable to the Bank’s provisioning for expected credit losses occasioned by the Domestic Debt Exchange Programme (DDEP).

The Bank’s solid financial performance boosted its year-end Capital Adequacy Ratio (CAR), with regulatory reliefs, from 16.8% in 2022 to 20.9% in 2023, demonstrating that the Bank remains sufficiently capitalized. The Bank’s Balance Sheet performance positions it as the 5th largest bank in Ghana by Total Assets.

Commitment to Innovation and Sustainability

Mr. Baiden underscored Fidelity Bank’s commitment to innovation. “We continue to invest in technology-driven solutions to improve efficiency and customer satisfaction in this digital era,” he stated. ”

“The Bank is also forging partnerships with FinTech (financial technology) firms and sustainable development organizations to align our strategies with emerging growth areas in financial services and Environmental, Social, and Governance (ESG) propositions for greater value creation,” said Baiden.

Supporting Local Businesses and Agriculture

The AGM also highlighted Fidelity Bank’s commitment to assisting the Ghanaian economy. Julian Opuni, Managing Director, commented, “Fidelity Bank is committed to enabling local businesses and fostering economic progress. In 2023, we granted approximately GH¢2 billion in financing to enterprises across critical industries like agriculture, manufacturing, services, and commerce.”

Recognizing the importance of agriculture, Mr. Opuni further noted, “Over 10% of our loan portfolio is committed to supporting agricultural firms, from established enterprises to small-scale entrepreneurs.

Leveraging collaborations with key like-minded companies in the agribusiness industry such as Development Bank, Ghana, and the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), we extended credit paired with capacity-building services to agricultural entrepreneurs.”

Looking ahead, Mr. Opuni revealed intentions to boost support for early-stage agribusinesses, notably those run by female entrepreneurs. He emphasized the Mastercard BRIDGE-in Agriculture program, which seeks to support 200,100 smallholder farmers, benefiting over 280,000 women and youth, and creating over 20,000 new employment in the next five years.

AGM Outcomes and Recognition

At the AGM, Shareholders of the Bank adopted the reports of the Directors, Auditors, and the Financial Statements for the year ending December 31, 2023. The Shareholders also passed a resolution to issue a final dividend per share of GHS 3.41 for the same time; ratified the appointment of a Non-Executive Director; re-elected three (3) Directors departing by rotation; and permitted the Directors to establish the compensation of the Auditors.

Additionally, the AGM presented Fidelity Bank’s achievements and various honors obtained throughout the year, including Best Bank for Financial Inclusion Ghana 2023, CSR Bank of the Year, Best Commercial Lending Firm Ghana 2023, and Best Bank for Digital Solutions in Ghana.

Fidelity Bank’s outstanding 2023 performance positions the bank for continuing expansion and leadership in the Ghanaian financial industry. The bank’s commitment to innovation, client service, and helping local businesses underlines its particular role as