Fidelity Bank explains financial position
Fidelity Bank has completed technology and systems integration with ProCredit as well as customer migration onto the entity, paving the way for all ProCredit customers to transact business at any Fidelity Bank branch or the former ProCredit branches.
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The indigenous bank is hoping to complete all the branding and other integration activities in two months, which would phase out all the ProCredit branches.
“But more importantly, we are very committed to the small and business enterprises (SMEs) sector and supporting Ghanaian SMEs to become giants. And this is one of the reasons why we acquired ProCredit,” the Managing Director of Fidelity Bank, Mr Edward Effah, told some journalists after the bank’s annual general meeting in Accra on April 24.
Mr Effah described the integration process as “the best integration in Ghana.”
“ We got the full support of all the staff. We made the commitment that nobody will be laid off and nobody has been laid off,” he said and commended the ProCredit staff for their commitment and cooperation. He said the process had been without bad blood, conflicts or the misunderstanding that sometimes accompanied such processes.
The smooth process has undoubtedly impacted positively on the bank’s financial performance, as it posted one of the most impressive results the banking industry had witnessed in recent times.
“The net impact of the performance on the bottom line was a 79 per cent increase in profit before tax of GH¢112.5 million; up from GH¢63 million profit in 2013.”
The bank’s profit after tax increased by about 90 per cent from GH¢43.86 million in 2013 to GH¢83.38 million at the end of last year, buoyed by about 71 per cent growth in operating income from GH¢197.1 million in 2013 to GH¢336.7 million in 2014.
Fidelity Bank, which acquired Pro Credit Ghana last year, leveraged on the transaction to increase its deposits from GH¢1.35 billion in 2013 to GH¢1.89 billion at the end of last year; a jump by about 40 per cent.
The bank also grew its assets from GH¢1.69 billion in 2013 to GH¢3.4 billion; a little over 100 per cent change.
“The growth in the assets of the bank was propelled by a 93 per cent growth in loans and advances to customers as well as 28 per cent growth in investments in government securities. Interbank placements also increased by 246 per cent to GH¢463 million,” Mr Effah stated.
The Chairman of the bank, Mr William Panford Bray, said the acquisition of ProCredit Ghana, had helped the bank to expand its reach with an expanded network of 75 branches and 109 automated teller machines.
The bank’s customer base has also increased from about 500,000 to 621,829 customers; thanks to the integration with ProCredit Ghana.
The board chairman announced a final dividend of GH¢0.83 per share, the maximum allowable dividend, which was later approved by the shareholders.
The shareholders also appointed Mrs Akosua Nelson-Cofie to represent the Social Security and National Insurance Trust (SSNIT) on the board. — GB