Julian Kingsley Opuni
Fidelity Bank Ghana held its Annual General Meeting (AGM) showcasing robust financial performance, strategic resilience, and a commitment to innovation.
The meeting, attended by shareholders and other stakeholders, highlighted the bank’s achievements for the year ended December 31, 2024, and outlined its vision for sustained growth in 2025 and beyond.
Steadfast Performance
Despite industry-wide constraints, the Bank delivered a strong performance, with operating income growing by 15% to GH¢2.34 billion, up from GH¢2.03 billion in 2023, marking the second consecutive year of surpassing GH¢2.0 billion in annual revenues.
Profit before tax also saw an increase of 4%, reaching GH¢1.21 billion, indicating stability in the face of a difficult operating environment. In addition, the bank’s total assets grew considerably by 28% to GH¢22.11 billion, primarily driven from a robust 40% growth in deposits, which reached GH¢ 17.65 billion.
Board Chairman of Fidelity Bank, James Reynolds Baiden, reflected on the Bank’s resilience. “I am proud to say that the Bank has made significant strides in a very challenging business environment beset with persistently high inflation, sharp currency fluctuations, tight financing conditions, and regulatory changes. Despite these exigencies, including Ghana’s external debt restructuring, which imposed substantial losses on banks, we delivered strong results.”
Mr. Baiden acknowledged the impact of external shocks, including a 37% haircut on Ghana’s Eurobond holdings and income loss due to the increased cash reserve requirements.
“Our ability to navigate these challenges underscores the strength of our balance sheet and risk management framework,” he added.
Balance Sheet Strength
Despite a sector-wide decline in asset quality, Fidelity Bank prioritised the health and quality of its lending portfolio. The bank’s loans and advances, at GH¢3.14 billion, reflect a measured and disciplined growth strategy aimed at navigating the high-risk environment effectively.
Investment securities grew by 3% to GH¢7.90 billion, and the Bank’s Non-Performing Loan (NPL) ratio remained below 10%, significantly below the industry average. Furthermore, shareholder funds recorded a growth of 44% to end 2024 at GH¢2.07 billion, with the capital adequacy ratio, without regulatory reliefs, improving significantly to 19.55%, from 14.38% in 2023.
In recognition of this performance, shareholders approved an ordinary dividend of GH¢8.0 per share for 2024.
Operational, Strategic Achievements
Managing Director, Julian Opuni, highlighted how the Bank deepened its leadership in key segments.
“In 2024, we enhanced our retail and SME lending frameworks with a strong focus on cash-flow-based lending. Our partnerships with fintechs enabled greater access for underserved markets, particularly in the informal sector,” he said.
A Business Desk Report