Fidelity Bank posted a profit after tax of GHC164 million in 2018.
This is 82% higher than the previous year’s performance.
Within the period, the bank also worked to reduce its exposure to impairment by 17%.
The management attributed the development to its strengthened credit risk policies.
At the bank’s annual general meeting, the chairman of Fidelity Bank, Edward Effah also stressed that the focus is to be cautious with where to channel loans and advances to, going forward.
“By and large, we are in a very strong position. We were very cautious. For instance, with all the power challenges, cedi depreciation amongst others in 2014, and given that Treasury Bill rates were 25%, we took the view at the time that we need to stop lending because the economy was and very volatile and unpredictable and that when the economy stabilises we will lend,” he explained.
“That helped us a lot not to get into the trouble that some of our other banks got into.”
Mr Effah added: “This meant that when we began 2016/2017, we had one of the lowest loan-to-deposit ratios. In other words, we invested a lot into Treasury Bills and our loan-to-deposit ratio was about 10%.”
Following the recapitalisation of commercial banks in 2018, Fidelity Bank increased its stated capital from GHC264 million to GHC404 million.
The managing director of Fidelity Bank, Julian Opuni, for his part highlighted the bank’s focus for 2019.
According to him, the bank is still on course to becoming “an established top three bank in Ghana by 2021 based on all key performance indicators”.
This aim will be driven by three benchmarks, including: achieving the best digital presence with a people centered approach to product delivery; perfecting our strategic funding drive with a focus on best pricing and low risk and reinforcing the company’s position as a market intermediator strategically leveraging long- and short-term instruments.
Meanwhile, the board proposed a dividend of GHC1.28 per share for 2018.
This represents a dividend growth of 83% from the 2017 dividend payment of GHC0.70 per share.