The Board of Directors of Fidelity Bank Limited, yesterday put smiles on the faces of shareholders of the bank when they announced a 150 percent surge in dividend payments per ordinary share for the end of 2011 after posting a GHÂ˘14.6 million profit before tax.
This means that holders of ordinary shares would receive GHÂ˘0.25 per share, which is 150 percent increase over the amounts that was paid to shareholders the previous year. In 2010, shareholders received GHÂ˘0.10 while in 2009 the bank rewarded GHÂ˘0.05.
The amount represents a payout ratio of over 40 percent of the profit after tax for 2011 and will be paid on April 16, 2012 to shareholders on the banks register.
An elated Edward Effah, Managing Director of Fidelity Bank Limited, speaking at the fifth Annual General Meeting, said the bank was progressing towards its dream of âbecoming a top 5 bankâ in the next few years.
At the end of 2011, the bank posted a 106 percent increase in its profit before tax, growing from GHÂ˘6.8million to GHÂ˘14.6 million from the previous year.
Total assets of the bank also increased significantly from GHÂ˘650 million in 2010 to GHÂ˘1.1031 billion in 2011, representing a 59 percent growth while itâs total income also increased by 72 percent from GHÂ˘64 million in 2010 to GHÂ˘79 million in 2011.
Mr. Affah also stated that Fidelity Bankâs customer base more than doubled as it increased from 120,000 to 250,000.
The rise in the customers of the bank was attributed to the extensive branch expansion embarked on in the years past, as well as the various customer loyalty programmes which received impressive patronage.
As a result of the increase in the customers, the bank recorded a boost in its deposit mobilization to the tune of GHÂ˘896 million, a 64 percent increase from the previous yearâs GHÂ˘548 million.
âWith a balance sheet size in excess of GHÂ˘1billion, we are now among the few banks in the country with such a balance sheetâ, said Mr Affah, who noted that after five years of the bankâs existence, it could now boast of 40 branches and 49 ATMs nationwide with plans to roll out 10 more branches this year. âWe envisage a bright future in which we will remain ahead of the market trend,â he noted.
Chairman of the Board of Directors of the Bank, William Panford Bray, noted that the bankâs sterling performance was achieved against a backdrop of relatively unpredictable global economy, yet âthe relatively political stability in Ghana however served as a solid foundation for the private sector to successfully absorb the other challenges in the banking industry.âÂ Â Â Â Â Â Â Â Â Â Â Â
âYour bank had an excellent year making significant strides in the market, increasing profitability and growing its size to an appreciable level in spite of the stiff competition and tough market conditions,â Mr Bray told the shareholders.
Shareholders also approved the issuance of additional non-redeemable preference share up to the cedis equivalent of $20million through a private placement, and mandated the management of the company to take all necessary steps including the appointment of all relevant professional advisors for the Initial Public Offer and listing of the company on the Ghana Stock Exchange between 2013 and 2015.
Later the companyâs name was changed from Fidelity bank Limited to Fidelity Bank Ghana Limited in accordance with the companies Code 1963 Act 179.
By Emelia Ennin Abbey